BNI Membership Drives Profits
Business Referral Organizations Focus Word of Mouth Marketing Plans
BNI is the most prominent group specializing in business referral generation for its members. Its "Givers Gain" philosophy drives its success.
Business Network International, or BNI, is the most prominent of a number of business referral organizations. BNI chapters and similar groups specialize in business networking and word of mouth marketing to drive referrals to their members. Referrals are neither required nor guaranteed, as members are expected to clearly communicate the types of people they want to do business with, and demonstrate the business reputation necessary to get those referrals.
Focus on Business Networking
BNI and similar organizations have business networking and word of mouth referrals as their main focus, unlike other networking groups that are primarily about service, public speaking, or issues of local interest. Meetings are structured to train members on how to recognize opportunities to refer business to one another.
- Each member presents a Sales Manager Minute, during which he or she speaks about a specific type of referral being sought, including visual and audio clues to recognize the referral opportunity and suggested language to bring it up in conversation with the prospect.
- Every member makes a more in-depth presentation on a rotating basis, allowing for detailed discussion of some aspect of their business.
- Referrals are passed at the end of the meeting, and are usually accompanied by an explanation of how the referral was obtained, as further training for the other members.
Focusing on Business Referrals
BNI makes a distinction between a "lead" and a "referral." A lead is the contact information of a person who may be in the market for another member's product or service. This may be a warm or cold sales prospect, depending on the relationship with the person providing the lead. A referral, according to BNI founder Dr. Ivan Misner, must meet the following criteria:
- They are in the market for the product or service
- The referring member has spoken to them about their interest
- The referral is waiting for the member's call
The focus on referrals is not represented as a guarantee that business will occur, but it is designed to increase the closing rate by making the sales call as warm as possible.
Asking for Specific Referrals
Members of BNI are encouraged to use their sales manager minutes to request very specific referrals, going so far as asking for an introduction to an individual by name. If the member asks for a referral to anyone, the wisdom goes, they will receive a referral to no one. Drilling down to a very specific referral may or may not succeed in getting an introduction to that person, but those details will more likely create a mental connection to other similar referral sources for the other members of the chapter. A chiropractor who asks for a referral of "anyone with a spine" is much less likely to receive business than one who asks for "a construction worker who carries heavy loads on his right shoulder."
Training for Business Networking
Membership in BNI or another business referral group has the side benefit of training for more effective use of business networking events. The "Givers Gain" philosophy encourages the principles of active listening and building social equity which are powerful business networking tools. The sales manager minutes that must be regularly presented focus a business owner's elevator pitch, and speaking in front of a group makes interacting with strangers at these events much more comfortable.
