Branching out
Feb 1, 1999 12:00 PM, Ted Tate
When I started out in business, I spent one Sunday afternoon at the family dinner table debating whether or not I should join an organization. I recall my mother saying that it is not always about what you know; it is often who you know. She consequently suggested that I join. I did and to this day do not regret having been more involved in business organizations and making connections with other business people in my early years. After about 10 years I got the message and started to get involved in various networking activities. I soon learned where the opportunities were and what would amount to a waste of my time. I am going to share with you what my years of networking taught me, not only the successes, but also the places and situations that turned out to be losers. I will assume that selling more is your main motive for networking.
Where people network Networking opportunities exist all around us. The truth is, any place two or more people gather can be an opportunity to network. The only way to know, however, is to have specific goals in mind. Otherwise, you will waste time networking in the wrong places and failing to network in the right ones. Examples of places or situations suitable to networking are: mentor/protege programs, alumni groups from school, former employee alumni groups, coalitions, special-interest groups, political organizations, trade associations, professional associations, forums, power breakfasts and lunches, quality circles, retreats, training programs, conventions, trade shows, networking organizations and sales leads clubs.
Without a specific goal for networking, your results will be disappointing. You first must know what you are seeking before you can find it. Although this is designed to assist you with the first goal, finding new business, you may have other valid reasons to network, now or in the future. Some common goals networking can help you achieve are locating new business, making professional contacts, changing jobs in the near future, changing career, making friends, making others aware of your skills and expertise, and increasing knowledge of your field or other area of interest.
Inappropriate networking Networking, highly misunderstood by many people, is frequently misused. A great many networking attempts are usually doomed to failure because the individual treats it as if he were making a sales call. A favorite example of mine is people who are in some kind of multi-level marketing pyramid. They learn quickly that most people avoid these scams, so to get someone interested, they grossly exaggerate or outright lie. After all, they invested in the thing so now they have to find some other people to invest or not get their money back. They may not believe that they are lying; they may see it as creative selling.
I have had former friends of mine con me into attending some half-baked pyramid scheme meeting. Not only did I drive 45 minutes to get there, but I also sat through two hours of meaningless rhetoric before it became apparent I was expected to invest $5,000 so that I could change my life. You will meet such people when networking, especially at events billed as networking mixers. At most of those events, you will find that everyone there is trying to sell something to each other. All salespeople, no prospects. Here are some common networking behaviors that many people find offensive: collecting business cards without connecting with the people, obsessing over quantity instead of quality, intruding inappropriately on people, conducting short, superficial interaction, focusing exclusively on your agenda without listening to the other person to gather information, and trying to sell on the spot, even to someone you do not know. Some people often make the mistake of either constantly looking around the room for more opportunities while speaking to someone or even being overly assertive and rude at times.
It is important to understand what networking does not involve. You should never sell to people you meet on the spot or use people strictly for your gain. Avoid badgering people about your business and putting associates, friends or neighbors on the spot. Never manipulate or coerce people to do what you want. In fact, do not exhibit any behavior that may be construed as manipulative or coercive.
Networking, especially for salespeople, can be essential to success. It can help you find excellent prospects to whom you can sell in the future. You may find that you can make new friends who can refer you new business. You can also meet potential future prospects socially that you could never get to on a cold sales call. In the end, you may even develop a reputation among prospects as an expert in your field. Some of the best places to do this are trade and professional associations your best prospects join, trade shows attended by your best prospects, and any organization meeting or any function where a number of potential prospects will be.
A room full of strangers True networking means joining organizations where your best potential contacts are members and socializing, developing business contacts as well as friendships over a period of time. At the other end of that spectrum are networking events or mixers sponsored by such various organizations as chambers of commerce. Frequently, most of the people there are also trying to sell. This kind of networking can actually produce business for some salespeople, but only if they know how to make contact and qualify people quickly. I will show you how to make the most contacts and somewhat qualify them for future follow-up. As in all other kinds of selling, it is a numbers game.
There are many reasons as to why a given networking attempt may fail. When networking, you must know what you expect and clearly verbalize it to others. People are not mind readers. State your needs in one or two sentences that people can understand. Never ask anyone if they know somebody who wants to buy something. No one does. Instead, ask for characteristics that make a good prospect. When I sold security systems, crime victims and businesses moving were good prospects. I trained my salespeople to ask about people who had a recent burglary or fire and who might be moving. In those terms, people could quickly identify what we were looking for.
Second, some find networking unrewarding because of selfish behavior. They see networking as a way to get something for nothing. They only talk long enough to see what they can get. They tend to be aggressive and abrasive, with little interest in helping others. To succeed, networking must be mutually beneficial with both parties seeing the rewards. Because nothing in life is equal, you may give assistance to people who are unable to help you. Other times, people will help you, and you cannot return the favor. Sometimes, the results come much later. Rest assured, it evens out. Networking success comes with a win-win attitude.
The third problem, shyness, involves a difficulty in talking to strangers. I see people go to networking events with a friend, spending the time walking around, talking to the friend and looking at the surroundings. Later, they complain about the unproductive networking event. Successful networking requires a determination to meet as many new people as possible.
Fortunately, there are proven networking strategies that can help. At large events where you know few if any attendees, go alone, or if with someone, split up until the event ends. Smile when you walk in the door and do not stop until you leave. Count out 20 business cards for a large event, and promise yourself not to leave until you give them all away. Pin a name badge made up with your name and company name to your right lapel; it will be easy to read when you shake hands.
As you walk around, make eye contact with everybody. The minute you get a return eye contact, smiling, extend your hand and introduce yourself along with the nature of your business stated as a benefit. By simply stating how you benefit people instead of what your line of work is, the dull and boring becomes interesting, even exciting. A great conversation starter, especially if you tend to be a little shy.
Spend less than 10 minutes with any one person. Collect business cards and make notes. You can and should follow up with a phone call. When I was selling, I would consider it a success if I gave out 20 cards and found one or two good prospects. One thing for sure, I would be a lot poorer today in money, customers and friends if I had not made it a habit to attend and network these events.
Networking in organizations Networking is something you should be aware of wherever you go. Shopping, parties, family gatherings and meeting new people are among dozens of ways we all can come in contact with potential opportunities. Having said that, let me tell you from years of hard experience that networking is not a dependable source of opportunity unless you know how to maximize your efforts. The trick to getting a good return on your networking skills is placing yourself in the right surroundings.
I am a firm believer in salespeople joining their own trade associations in their industry. For new business, however, join a business organization other than your own trade association. There is no one at your own organization to impress but your competitors. Join an organization that potential new customers (or business contacts) might come from. A chamber of commerce is one. A trade association for your customers can be excellent. Many allow people outside the trade to join as associate members. There is an old saying, "People like to do business with people they know."
Joining alone is worthless; do not join anything unless you can attend regularly. Then, get involved. In organizations, 90% of members pay dues and come to events. That is it. Volunteer for something. By taking some time to get involved you will become known. Follow through, and do a good job at whatever it may be. Otherwise, instead of gaining credibility, you will look insincere. Over a period of time, people will see you as a dependable person who gets things done. You will be respected for it. If you do this in an organization of potential customers or contacts, opportunities you would never find otherwise will come your way.
Also, you might want to use what I call "finders," people who may logically come in contact with your potential clients. When I was president of a central station alarm company, I instructed my sales staff to contact every locksmith, window glazier and insurance agent in his or her territory because when a burglary or fire occurred, these people knew about it and were in a position to recommend us or give the salesperson the name. We, of course, reciprocated.
Another source is networking clubs or groups. Regularly read the meeting calendar listings in local business magazines and business newspapers as well as the business pages of the daily newspapers. You will see business and professional groups listed with meetings open to the public. You will have to attend any group once to explore what networking possibilities exist. Some are excellent for networking; others have limited memberships, and after attending a few meetings, you will have exhausted all possibilities. Join no organization until attending preferably two meetings to see if the organization lives up to expectations.
In evaluating organizations you may want to join, there are some points to consider. Be certain these are the people you need to meet. If not, determine if their daily routine, career or background puts them in contact with the people you need to meet. Find out if the members are successful to some extent and if they have a win-win attitude, a true atmosphere of sharing and friendship. Note whether the prevailing attitude is positive or negative. Are the members eager to share new ideas, or are they tired people just looking for a place to make idle chatter as they rest their feet? Never forget, losers hang out with losers, winners with winners. Go where there is success, or simply do not go in the first place.
Lastly, there are sales lead clubs. Different from networking groups because these clubs meet for only one thing-to exchange sales leads among its membership, which consists of mostly salespeople and owners of small businesses who sell. There are numerous informal groups to explore with little or no dues. The best way to find them is networking with other salespeople.
If a good organization is not available in your area, try founding one yourself. Instead of shelling out money for dues, substitute a little time and effort. You will need to find a free or low-cost meeting space. When asking for meeting space, be sure to point out you are a non-profit, relatively small organization from the community, and you need the space only once a week in the early morning hours when many meeting rooms are unused. See if any of your members work for companies who will donate a conference room or other space. Check with churches, synagogues, libraries, community centers and city halls to see if they will donate a space or can refer you to someone who may. Many restaurants, hotels and motels have party rooms and will allow you to meet for free or a nominal fee because some people will order food.
To find members, call companies who are likely to employ salespeople and ask the sales manager to let his salespeople know of your organization. Post bulletin board notices in community centers and libraries. Send a notice to business newspapers who publish these meeting notices. Get referrals from any business people you call on and from other salespeople you may meet.
To keep meetings running smoothly, meet early in the morning so you do not take from people's selling time. You will find the more successful the salesperson, the more preoccupied about not wasting valuable selling time they are. Understand that the kind of people who are the most desirable members are successful people with lots of contacts. These people will not return if the meeting does not run in a businesslike manner. Decide on a specific time to start and end each meeting and a regular day each week. Stick to them like glue. Structure meetings so that everybody has a chance to speak for a few minutes to describe what they do and what kind of prospects they are looking for. Have predetermined time limits for people to speak, and make sure everybody knows in advance. If people speak too long, do not be shy about reminding them of the time limit. Never allow one person or group of people to dominate the meetings, or you will not be able to keep members. Have predetermined rules about subject matter. Keep the meeting focused on the purpose only and always in a positive tone. Never allow it to become a general bull session or worse, gripe session; otherwise, you will lose members. You may want to have some kind of dues to cover any mailings or printing of notices. Keep it minor. Limit membership to one person from each kind of business. Never allow someone's competitor to join for any reason. Decide in advance how many leads people must bring to each meeting. Occasionally, even the best lead-getters will run dry, and that is all right. Once in a while, however, people will join who take leads but never return any or give poor leads instead. Have rules designed to get rid of freeloaders who do not contribute decent leads regularly. If you agree from the beginning and put these rules in writing, it is much easier to get rid of the chiselers. Again, if you do not do this, you will lose your better members. Whoever runs the meetings must enforce these rules to keep running smoothly and maintain a strong membership.
As with anything else, the rewards of networking are proportional to the quantity and the quality of the energy invested in its development. Use these techniques properly, and sales performance cannot help but benefit. Implement them poorly, however, and you will be wasting your time. Good luck and good selling.
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