Can a networking group help build your business? Probably – if you do it right.
One of the biggest opportunities – and one of the biggest challenges – to salespeople is the networking club (or referral group, or whatever yours chooses to call itself). It’s a great opportunity because, structured correctly, a networking group can be a great source of leads, referrals, and even new customers. It’s a challenge because each networking group can be its own little minefield of do’s, don’ts, and cultures that predate you and are likely to post-date you.
Have no fear. Most networking groups can be a great source of business, referrals, and even knowledge. I’ve been a member of one for over six years now, and the membership of this club greatly aided me in the critical first few years of the startup phase. Still, even in this club, I see members who waste opportunities and leave disillusioned. So, the purpose of this article is to help you maximize the opportunities inherent in your networking clubs – or know when it’s time to leave.
Assess the culture: Every networking group has its own culture. Fortunately, nearly every networking group will allow you to attend at least one meeting (most will allow two or three) before you must either join or exit. Use those “try out” meetings to get to know as many members as you can. Ask good questions about how the club views pursuing referrals and selling to other members (business reciprocity). Some groups (for instance, some Rotary clubs) frown on overt business networking within membership; others are formed specifically for that purpose. And yes, I know that Rotary was originally formed for that purpose as well, but some clubs have gotten away from it. You should also understand the membership makeup – is it primarily owners, managers, and decision makers, or is it primarily other salespeople? That will greatly impact your ability to do business with the companies represented. Salespeople tend to be great at referring anyone but their own companies (though there are exceptions).
Reach out when you join: One of the best things I did when I joined my breakfast club was that I sat down and created a letter to each of the members describing what I do, and then sent it out. My phone didn’t exactly ring off the hook, but it did ring – and two of those rings led to checks in hand. That wouldn’t have happened had I not sent the letters, making it well worth the effort. Somehow, when you join a club, I encourage you to broadcast to each member who you are, what you do, and how you help your customers. You may not get any response, but you will plant a seed. Additionally, some clubs allow new members to speak to the group about their business for an extended period of time. Always take advantage of this! I got three more clients from my first talk to the group, and have always gotten more clients with every talk (which reminds me that it’s about time to schedule another).
Target Members: Let’s face it; not every member will be a great referral partner or even customer for you. Get a membership guide as soon as you can (if you can get it before joining, do; this will help you assess the group), and pick out those members that have the right synergies. In the early stages, focus your energies on developing relationships with those members and pursuing referral opportunities. In my experience, early success within clubs is critical to long term membership success, so work to make the most of early opportunities.
Be there: If there’s any step that separates the winners from the losers in the networking club sweepstakes, it’s simple attendance and visibility. If you don’t go to the meetings and functions, the other members can’t get to know you, and if they can’t get to know you, they won’t do business with you. Go to as many functions as possible. Another tip – in some clubs, people end up sitting at the same tables each week with the same people. Don’t be that guy, at least not in the early stages of your membership. Move around the room and get to know as many people as possible.
Understand what a networking club really does: I see a lot of people who leave various clubs frustrated and unfulfilled. Much of the time, this is due to a basic misunderstanding of the nature of networking clubs. Networking clubs exist to create relationships and opportunities. It’s your job to capitalize on them. For instance, my networking club has “business reciprocity” as one of its missions. Nowhere does it say “mandatory business reciprocity.” Sometimes a member will throw a tantrum and leave because a member bought from a competitor outside the club. It happens. It’s happened to me, in fact, and yes, it’s frustrating. Ultimately, however, a customer made a determination that another service provider was a better “fit,” and that will happen regardless. Think of the networking club like the table-setters at a buffet dinner. They’ll put the plates and silverware out, but it’s your job to go get the food.
Know when to leave and why: Sometimes, it just doesn’t work out. I’ve been in clubs where everyone had the best of intentions and the opportunities still didn’t happen. That’s life and that’s selling. My recommendation is that, when you join a club, you should commit to being a very active and engaged member for at least six months before making a determination regarding its usefulness to you. You might still leave the club – I’ve left clubs before – but you’ll at least make an educated decision and know that you gave it your best shot. And hopefully you’ll at least end up with lasting friendships along the way.
