The New Face of Networking

By Ann Bevans-Selig

It's no secret that networking is an important component of most companies' sales and marketing plans. After all, "It's not what you know, it's who you know," as the saying goes.
But there's value in that old clichŽ. Despite the business community's growing emphasis on online marketing and its continuing love affair with traditional media, many business owners still find that a large percentage of their revenue comes from people they know well or people who have been referred to them by people they know well.
Therefore, it stands to reason that broadening your contact base will proportionally broaden your client base. Formal networking is an efficient way to increase your contact base and to develop ongoing relationships with people who need your products or services, or know people who do.

Who to Run With
A traditional networking organization like a chamber of commerce or a referral group is efficient because members gather in a large group on a consistent basis. Over time, familiarity among "the regulars" creates a sense of community and builds trust.
Although you have to attend regularly to reap the benefits, you can use networking happy hours and referral group meetings to leverage your time, building and maintaining multiple relationships at once. Usually, just seeing your face from across the room is enough to generate rapport with your fellow group members.
Despite the effectiveness of these groups, there are disadvantages as well. In a chamber of commerce, finding other businesspeople who are a good fit as customers or referral sources is a matter of luck. Not all chamber members actively participate in networking events, and those who do usually select their chamber affiliations based on narrow geographical criteria.
In addition, there's no guarantee that you won't end up sitting right next to your biggest competitor (or two or three) at an event.
Members of small, professionally managed referral groups often enjoy the benefit of industry exclusivity, but the groups are assembled by moderators who may have more interest in rounding out the group than in engineering the perfect fit for its members.
In short, while these traditional networking venues are valuable, some businesspeople are finding new ways to network that, they say, are even better. Here's a rundown of some of the trends:

DIY Networking
Many business owners who benefit from networking are taking a hands-on, "do-it-yourself" approach, assembling networking groups that consist of their own customers, vendors and trusted referral sources. By choosing their own members, group leaders are effectively stacking the deck in their favor.
The most successful and enduring groups are assembled around a common theme, such as "IT professionals" or "solo entrepreneurs." Many homegrown referral groups mirror the major benefits of a professionally-managed group, including industry exclusively and building rapport through regularly-scheduled meetings. But because these groups are organized by their members, they are more likely to provide maximum benefit to everyone involved.

Ideas and Support
Some networking groups are making co-mentoring a major component of their missions. Instead of focusing on sharing sales leads, group members spend their time celebrating each other's successes and mentoring their fellow members on common business challenges.
A group like this really requires industry exclusively, since most business owners are unwilling to discuss their challenges in front of their competitors. Most groups that make co-mentoring part of their agendas find that this level of interaction builds even stronger relationships, and that referrals naturally flow from their work together.

Pooling Resources
One trend that is emerging within particularly close-knit groups takes networking to a new level by encouraging members to pool their resources to make their marketing dollars go further. Group members contribute their time, talent and marketing dollars to activities that support the entire team.
Examples of co-branded marketing efforts include larger networking events, informational publications and workshops that are conducted by group members and target shared prospects. For some activities, all the group members may participate, while in other cases, sub-groups of two or three members may take part and share the spotlight.

Finding the Right Fit
When evaluating networking options, the best advice is to find an approach that supports the way your business generates prospects. If your product or service is widely used and your sales process is a numbers game, a large chamber of commerce may be your best bet.
If you share prospects in common with businesses in related industries, try to find a networking venue that is geared toward your industry. If you can't find one, start your own. And consider incorporating some of these trends to make your group truly successful for yourself and your members.

Ann Bevans-Selig is president of the Bevans Group. She can be contacted at 301-598-9440, abevans@bevansgroup.com and via www.sbdg.biz.