Word of mouth referrals begin by having a name that people know and remember. Business networking events encourage the sort of relationship building that leads to successful word of mouth marketing. Although different organizations host different types of networking events, an effective networker is always one who listens well, seeks to help other people, and makes valuable introductions.
Types of Business Networking Organizations
There are several general categories of business networking organizations, each with their own advantages.
- General Business Organizations including chambers of commerce and business associations, are places where business owners of all types gather. There may be any number of one profession represented at these events, and they often have a speaker or other programming.
- Industry Networking Groups such as real estate broker seminars are an excellent place to develop relationships with others in the same field. Competition is effectively 100%, as there are no customers at these events.
- Mission-Oriented Clubs such as the Rotary and Toastmasters do not include networking as a stated purpose, but serve many entrepreneurs in this manner. The common bond of membership in the group can be a strong networking tie.
- Networking Specialty groups, such as Business Networking International (BNI), focus completely on networking itself. Generally such groups restrict membership to a single person of each profession, and offer strategies for building word of mouth referrals.
Effective Networking Techniques
The small business owner who goes to a business networking event and succeeds only in passing out a number of business cards is not building momentum for word of mouth referrals. People want to help other people who are caring and generous and helpful themselves. The biggest challenge is to actually be all of those things. Communicating it can be done in a number of ways.
- Find someone new. Speak to someone standing alone - he or she is there to network and doesn't know how! They will remember the person that made the effort.
- Actively listen. Pay attention to the person you're talking to. When you are introduced, look them in the eye as you shake their hand, and repeat their name aloud. Nod and look interested when they are speaking to you.
- Focus on the other person. Whenever possible, turn the conversation back to the other person. Ask open-ended questions about the kinds of people that are their best clients.
- Be the power broker. If there are two people in the room that can benefit from knowing each other, introduce them. After making the introduction and explaining why, excuse yourself.
The more an entrepreneur is in a position to offer help, the greater the amount of "social equity" he builds up (and how many business cards he hands out). As Bob Burg says in his book Endless Referrals (McGraw Hill 2005), people desire to help those who have helped them. Continual practice of business networking techniques, coupled with an attitude of gratitude, will increase the rewards of business networking quickly.
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