The way the world does business has changed. Traditional advertising media, such as press and broadcast, are still important for generating new business, but today over 90 per cent of companies rely on referrals as their main source of fresh income.
These can take a variety of forms, such as through the recommendation of a satisfied client or a tip-off from an existing business contact. Despite this, less than five per cent of businesses actually have a formal strategy to bring business through referrals.
Word-of-mouth is recognised as marketing’s most cost-effective form, yet also requires us to be effective at business networking. And that requires a pro-active approach that is backed up by strategy and implementation. Fortunately, however, this vital business skill can be honed through training and practice.
So what is networking? Essentially it is about forming and then nurturing relationships of mutual trust and respect with other business professionals. Hence the oft quoted expression, “Networking is about farming and not hunting”. Therefore, your attitude when networking is all important.
You should approach others with an intent to help them, instead of only being focused on what they can do for you. Unsurprisingly, the most successful business referral organisation in the world has the core philosophy of “Givers Gain”.
So how do you start taking advantage of business networking? Well, you should start by formulating a strategy or a positioning statement. This must include the fundamental elements of what you can offer: your product or service, the target group it is aimed at, and what end benefits it delivers to that group. By doing this you can clearly identify who you need to network with, as well as who might help you make those contacts.
Having defined your parameters, it’s time to look at networking itself. You need to find appropriate networking opportunities. Ivan Misner, widely known as the “Networking Guru”, recommends networking with several organisations, for example at gatherings of your trade or professional body, as well as at Chamber of Commerce mixers. However, while these are useful ways to make good contacts, they will only rarely bring you business referrals.
Actually, the best way to get business referral opportunities is to join a “hard networking group” such as Business Network International, or BNI. These organisations meet every week, which is essential if you are to build trust and a good reputation with your contacts.
BNI groups also only allow entry for one person of each professional niche: so there is only one accountant, one web designer, one insurance adviser. This means that, over time, you will build strong working relationships and be able to recommend your fellow members to your own contacts with confidence.
However, merely joining such an organisation is no guarantee of referrals. You must network. And the clue to that activity is in the name: it is “net-WORK”, not “net-SIT” or “net-EAT”.
Secondly, you must build trust in your business relationships by helping others and living the philosophy of “Givers Gain”. Don’t expect only to take. Business is a two way street and your networks will close down very quickly once people realise you are only in it for yourself.
Therefore, it’s important to learn how to make it easy for others to help you. Let them know what you do and why you are particularly good at what you do – essentially educating your network. You need to be able to present yourself and your business with clarity and conviction, as well as asking for referrals in the right way.
Fortunately there are several tools to help you, such as Dr Misner’s book, The World’s Best Known Marketing Secret, and various articles and blogs. The website www.bni.com can also point you to many of these.
Mr Bullock will be organising a seminar on The Art of Effective Networking at the Radisson Blu on February 17, starting at 4 p.m. Those interested in attending can obtain more details at http://www.maltabni.com or send an email to admin@maltabni.com.
Mr Bullock is a director of Business Network International