Drive business from your existing network

All of us have existing connections that make up our network.  A good network will provide a steady stream of referral business.  There are was to improve even the best of networks.

First, you must establish the ground rules for every member of your network.

1. They must be very good at what they do.
2. They must help your business as much as you help theirs.

If anyone in your network is not good at what they do, take them out immediately!  You cannot afford to refer business to someone who drops the proverbial ball.  At a minimum, every member of your network should be exceptional at what they do, some who refer business back to you and some who do not.

For those partners who have not found a way to build your business, don’t get rid of them yet.  Good service providers are hard to find.  It is much easier to teach them how to be a good referring partner than how to provide exceptional service.  Talk to them.  Make sure they understand your business and what your perfect clients looks like.  Let them know how important referrals are to you.  Maybe they are not in a position to refer business directly to you, but they can certainly introduce you to people who can.  Those introductions are as good as the referrals.  Put systems in place to monitor the results.  If you do not see the results, find another exceptional service provider who is willing to build a mutually beneficial relationship.  Then pull the original service provider out of your network and stop referring business to them.

Those members of your network who provide great service and help your business grow are worth their weight in gold.  You cannot afford to lose them.  Make a plan (write it down) of exactly what you can do to help them, what connections you can make for them.  Reach out to these individuals and let them know how much you appreciate their business.  Share your plan to help their business grow.  They will be impressed and more loyal than ever before.  They will look for ways to drive additional business through your doors.  When your competition comes knocking, looking to build a relationship with them, chances are slim to none they will leave you.

Implement these ideas and we promise your networking return on investment will go up considerably.

Networking Tips (volume 2)

Tip #4: Surround yourself with people that are exceptional at what they do.  People that consistently exceed their client’s expectations will have a thriving business.  When they make a recommendation (referral) to another service provider the client usually trusts that recommendation and retains the service.

Tip #5: Support people who support you!  Take a look at the service providers you currently refer clients to.  Do they support you and your business, do they introduce you to people that might help grow your business?  It needs to be a mutually beneficial relationship.  If it’s not, consider finding another service provider that is exceptional at what they do and will support you at the same time.

Tip #6: Every person you come into contact with is a potential source of referral business.  Tap into that potential by getting to know them and the services they provide.  If they are exceptional at what they do, refer them some business.  This creates a sense of loyalty and they may start referring business to you.  It has to be mutually beneficial though.  Ask for the referral.

Networking Tips (volume 1)

Tip #1: A great way to generate referrals business is to exceed your clients expectations, and then ask for the business.  At that point you have earned the right to ask, and they will feel comfortable referring people to you.

Tip #2: When you receive a referral, take extra care with the client and strive to under promise and over deliver.  Immediately thank the person who referred you and occasionally update them as to the status of the referral.  Do your best to reciprocate the referral or introduce the referee to someone you know that might have a positive impact on their business.  Every good business relationship has to be mutually beneficial.

Tip #3: When you recommend someone’s service, take time to let them know you referred them.  It will strengthen your relationship and may generate extra business for you.  If they know you are supporting their business, they will be more inclined to support yours.

Networking groups can reduce your business.

Most networking groups have inherent weaknesses or limitations which cause members to leave or perspective members not to join.  This severely limits the amount of business/opportunities the network can generate.  People join networking groups to generate and expand their business, not limit it.  Some common limitations are:

• No quality control. A big part of networking is referring business between the members.  Referring a client to someone who drops the ball will kill the referral chain and cost the sender business.  Why let a bad service provider into the network and all of the members to this risk?

• Mandatory meeting requirements. Successful people are very busy and cannot drive across town for frequent mandatory meetings.  With technology today we have the ability to send and receive referrals 24/7.  Often good referring partners are removed from the group because they cannot attend 75% of the weekly meetings.  Keep them in the group, we need their business.  A networking meeting should be well attended because members get a lot out of it.  They come because they want to be there, not because they are forced to.

• Mandatory recruiting requirements. We joined the network to grow our business, not the networks business.  If the network provides business to its members, it will grow organically as members share their success stories with others.  Members should not be forced to recruit members, generating income for the non-performing network and being kicked out of the group if they don’t.   The only exception is if the networking group is brand new and members understand they are joining an emerging networking group.  Then everyone needs to pitch in to help establish the network with people they want to refer business to.

• Small size groups. There are well over 600 uniquely different professions someone could refer business to and would like to receive business from.  Most groups represent a very small percentage of the total professions available to network with, usually much less than 10%.  This mandates the need to join more than one group to increase connections as different professions are represented in different groups.  After all, the more people who are talking about your business, the better.  This leads us directly into the worst limitation of all……

• Exclusivity. Most professional networking organizations have strict “exclusivity” provisions.  Once you join the group, your fate is sealed.  They own you and you are forbidden from joining another networking organization.   They will tell you this encourages business generation in the network.  On the surface it makes sense so we write a check and join.  In reality, the network is afraid its members will find a better networking option that provides a higher ROI, and members will leave.  I’m sorry but that’ free enterprise, the way it should be.  Let the strongest, best producing networks survive and we will all prosper from it.

Did you really pay a premium to join a professional networking group that limits the amount of business and connections you see as a result of networking?  Progressive networking groups look at it from the members point of view and do everything they can to help them grow their business.  They encourage members to belong to other networking groups that are effective.  They promote outside events that offer a chance to expand their members’ connections, and to grow their business.  Align yourself with these groups and you will not only generate more business, you will see whole new ways to network and create opportunities for your business.

Give Referral Tree or the Tucson Business Club a try.  You will be glad you did.

Cheers,

Elevator Speech Template

We have found this to be a good guide to developing an effective elevator speech.  Your speech should take no longer than 30 seconds.  Follow the steps and write it down as you go.  Then read it and make a few minor changes and you have a very polished elevator speech.  This is a variation of the form shared with us by Sam Williams of New View Group.

Step #1:  Introduction.  Your name and the name of your company:

• (you write)   “Hi, I’m ________________ with _______________.”

Step #2:  A very brief description of what your company does:

• (you write)    “We’re a ___________________ company.”

Step #3:  A short statement about why you are unique, but only if you are unique:

• (you write)  “What makes us unique is ___________” or “we specialize in __________.”

Step #4:    A short description of your typical or ideal client:

• (you write)  “we typically work with clients like ________.”

Step #5:     Pick one or two items from the “pain menu” which are things from the listeners perspective that identify what problems you solve.  Keep it short and to the point.

• (you write)   “who are having problems like __________”

or “are frustrated with ______________”

or “that are worried about _______________”

or “who have a special need for _______________.”

Step #6 (OPTIONAL)     Describe the decision maker and your best contact within a prospective organization you might be introduced to:

• (you write)  “I usually talk to / approach the Company’s (name the profession).”

Step #7 (OPTIONAL)      Mention our best source(s) of referral:

• (you write)   “often people in the fields of _______________ or ______________ come into contact with my best prospects”

or “if you know anyone who is a ______________, I would love an introduction.”

Step #8 (OPTIONAL)     Close with a clever tag line that will help the listener remember you or your company.  Use this only if you come up with something clever and memorable.  Better not to have one than to have one that does not serve the purpose.  Remember to deliver it in a conversational way.  Some examples might be:

• KGB Communications is a business communications company and they use: “At KGB Communications we have ways of making you talk”.
• Auto Executives is an auto broker and they use: “At auto executives we tell everyone “friends don’t let friends drive…..to the dealer”

EXTRA CREDIT:  If you can find a way to “tell a story” about how you helped a client or provided a solution to a problem in your elevator speech it is even better.  People remember stories and it is a great way to really make them understand the service you provide.  When they have an opportunity to refer business to you they will tell the same story and that is very motivating to the person being referred.  They can relate to exactly how you can help them, and chances are better they will call you.  Remember to keep it to 30 seconds or less, even if you are telling a story.

Why many networking groups are not effective.

The reason most professional networking groups are not effective is simply because the goals of the network are not aligned with the goals of the members.   The networking group’s decisions are made from the organizations perspective, not from the member’s perspective.  Inherent weaknesses are found in most professional networking organizations and they actually limit the business potential that could be generated.  Let’s take a look at a few:

Quality vs. Quantity:

All too often new members are allowed to join a networking group if there is an opening.  It is all about numbers and revenue from the networks perspective.  Conversely, members join networking groups to generate business for their company, and to help fellow members generate business.  We need to know someone is good at what they do before we will put our reputation on the line.  An element of trust has to be established before significant business begins to flow.   The process of building trust takes time, especially if the networking group does not screen members for quality before they join.  Time is money.  Networking groups could greatly reduce the amount of time require to generate business if they would screen for quality.  Most networking organizations do not implement screening processes because turning away members reduces revenue.

MLM’s (direct sales):

Most networking groups are saturated with various home based, multi-level marketing companies (MLM’s).  Don’t get me wrong, some of these products are very good.  Most MLM reps are tenacious in their requests to meet, constantly “selling” themselves and rarely putting an effort to building relationships (not always the case.  JD Almond with ComF5 or Wayne Weld with Send Out Cards are great referring partners and do not push the MLM’s).  Business owners want to network with good referring partners, other business people and service providers who are interested in creating mutually beneficial relationships.  Many quality business owners either leave or do not join networking groups because there are so many MLM’s in the group.  The vast majority of networking groups permit MLM’s because it is a huge source of revenue for the network.

Turnover:

The two factors above mandate the serious networker must spend a considerable amount of time getting to “know, like and trust” members of the group before they can send and receive any notable business.  Networking return on investment (ROI) is based on what it cost to join the group AND more importantly the time invested in developing relationships.  Most quality business owners will measure this ROI and become frustrated with the lack of results after several months, leaving the group.  Imagine you just started to build what appeared to be a promising relationship and now the other party is gone.  A new member has taken their place and you start the entire process over again.  By the time this new relationship starts to blossom, you are the one fed up and leaving the network which starts the vicious cycle all over again.  This turnover is detrimental to the members, but again provides extra income to the networking organization which falls right in line with their goals, not yours.

These are just a few of the reasons most networking groups are not as effective as they could be.  There are many, many more.  It does not have to be this way.

Imagine how much business a networking group could provide if they looked at it from the members perspective, if the entire purpose of the network was to generate business for its members and improve their networking ROI.  Imagine a network packed full of good quality (screened) members, all of them focused on creating mutually beneficial business relationships and there were no MLM reps there to distract you?  The potential is tremendous.

They are out there so look for them.  Once you find one you will see effective networking is one of the most powerful ways you can grow your business.  Tucson Business Club and Referral Tree are two examples.

I have to give credit where credit is due.  I learned everything I know about goal setting and alignment from Paul Bellows of Bellows Consulting.  Thanks Paul!

Cheers,

The Power of Networking

Most businesses are struggling right now.  Income is down and traditional ways to grow a business are not as effective as they use to be.  Many business owners must find a way to generate additional income in order to survive.  If traditional methods are not as effective, what are they supposed to do?

Every business is primarily concerned with three things; increasing revenue, reducing expenses and improving efficiencies.  If a business can improve in all three of these areas it will be successful.

Effective networking is one of the most powerful tools any business can employ because it has an immediate and very positive impact on all three areas.  Here’s how:

1. Increase revenues: An effective network generates business and creates opportunities which have a direct impact on increasing revenue.  If done correctly, this income stream can start immediately.  Generally speaking a client referred to you from someone they trust is going to buy your product or service.  They do not call three of your competitors to find the lowest price like they would if they found you in the Yellow Pages.
2. Reduce expenses: A network is a sales force.  It generates income for the business without all the costs typically associated with those sales.  No wages, salaries, benefits or HR cost to hire and manage the sales team.  Finally, the business does not have to pay for marketing to generate those sales which also improves the bottom line.
3. Improve efficiencies: There are a number of ways a good network can help improve operational efficiencies.  A good network is a great resource of information and advice to solve problems early before they become expensive and time-consuming.  Finally, a good network can be a trusted source of exceptional service providers who can help a business in areas like search engine optimization, social media marketing, effective communication systems, legal advice etc.

We are seeing a migration towards a more social way of doing business and new networking options emerge every day.  Keep this in mind:  not all businesses are the same, not all networking groups are the same and there is no perfect networking solution for everyone.  Like anything thing else, you have do it right or it will not work.  All too often business owners join the first networking group they come into contact with.  They attend meetings and actively participate but do not see the results.  At the end of the year they give up and quit.  Left with a bad taste in their mouth for networking, they walk away from one of the most powerful ways to grow their business.  There are very good reasons why most networking experiences do not work.  We will examine those reasons later…..

Regardless of your business, make networking part of your business plan!