Posts Tagged ‘Networking Groups’

When It Doesn’t Make Sense to Split a Seat In a Networking Group

Friday, May 18th, 2012

In my last post, I talked about why it’s important to not get too possessive of a seat in a networking group. But there are often two sides to a story, and that’s true here as well.

I’ve seen groups try to split a seat too finely. Like multiple residential real estate agents who serve different jurisdictions. Can it work? Yes, sort of. But the problem comes when a referral isn’t certain of where they want to live. What then? Who gets the referral?

The classic situation is the financial planner/insurance seat. I’ve seen groups try to split this four or more ways. Again, it can work if all the members are true specialists, but that’s not common.

Most financial planners also sell life insurance, disability insurance, annuities and sometimes even group health. Many property and casualty agents also sell life insurance and do financial planning.

So on the surface, it might look like a good ides to split the seat. But the guy who gets the life insurance referral isn’t likely to refer the financial plan to the planner. Resentment ensues, and the group is caught up in nasty politics.

Think carefully before splitting a seat. Interview all prospective members and ask if they can and will refer each other. Dig deep and don’t accept a quick, “Sure. Of course I will.” Ask how and when. Create some scenarios.

Like I said, it can work. But it can also be a disaster. No group wants to deal with ugly internal politics. I’ve been there. It usually doesn’t end well.

Networking Group Seat Territoriality

Wednesday, May 16th, 2012

If you’ve ever been in a single-person per profession networking group, you already know what I’m talking about. It’s when someone joins with a certain set of core services, and then gets very possessive of visitors or prospective members that offer ancillary services similar to the member.

A good example is a situation I faced recently. There’s a real estate agent in one of my networking groups. He’s primarily a residential agent, but he occasionally talks about commercial services since we don’t have a commercial agent in the group. I invited someone who offers a very specific set of property management services. I received an email from the agent telling me there was a conflict and I should have notified him before inviting my guest.

Huh?

Okay, leaving aside that person, let’s break this down, looking at both the good of the group, and the good of the individual member.

Real estate agents often specialize in either residential or commercial, although they occasionally cross and do the other type of business. Commercial agents, by the way, are sometimes dismissive of residential agents who dabble in commercial, and for good reason. I once sat in on a commercial agent sales meeting, and oh boy! They have their own language and rules.

Residential agents tend to work with consumers, and they are a fabulous source of referrals for B2C businesses, especially contractors, home stagers and personal organizers. Commercial agents, on the other hand, tend to work with business clients, like doctors, dentists, attorneys and restaurants. Great for the B2B businesses.

So splitting this seat benefits many in a group, and being territorial really doesn’t benefit anyone, including the agent. Often, a residential agent refers the business to a commercial agent in the office. That’s not a bad thing, but if I’m referring you and talking you up to my referral, I might be just a bit peeved if my referral gets handed off to a total stranger. Then I might not refer said agent again, which can be a bad thing.

It can take some time to tease this sort of thing out of a potential member, but it’s worth the time up front to take the measure of a person and carefully craft the core services. You’re much better accepting someone who isn’t territorial.

In my next post, I’ll look at the flip side. Defining a seat so narrowly that no one wins.

Why Aren’t You Referring Me?

Wednesday, March 14th, 2012

Does this story resonate with you?

A friend of mine does home improvements, including large jobs like kitchen and bathroom renovations. He had been getting a lot of referrals from his networking group, especially from the real estate agent. Then slowly the referrals dried up, even from the agent.

What happened? He’ll never know for sure, but he thinks it went something like this.

One of the chapter members asked for a quote for a project. Joe (my friend–not his real name) gave him a quote. The member’s reaction? “Joe, you’re pretty pricey.”

Soon after that, the referrals dried up. Joe assumed the chapter member spread the word that “Joe’s kind of expensive.”

Joe lost a lot of referrals, including a year’s worth from the agent, who has finally started referring him again. Why did she finally start again? Because the cheaper guy she started referring screwed up one too many times.

Is Joe “pricey?”

Good question, and the answer is “yes” and “no.” Joe’s prices are competitive for the quality of work he does, so no, he’s not “pricey.” But home improvements are expensive, and Joe has to deal with sticker shock all the time. Joe’s chapter member didn’t know what the job should cost, so he was surprised by the price and assumed it was high.

Any of you could find yourself in a similar situation, especially if you are in a business where many of your clients aren’t educated about how much you should cost.

What can you do?

First, accept that not everyone will refer you. Some people have a friend or fourth cousin six times removed who does what you do, for less. And other people are just cheap and won’t be educated that you are worth what you charge. Forget about them.

What about the rest? They need education. Don’t wait until someone gets a quote from you to address the price issue. Talk about it in your one on one meetings. Bring data to back up why you are competitive. Give some ranges of pricing and explain why that’s what your services cost.

But that’s your words. How about using someone else’s? Bring satisfied clients to your networking group and ask them to talk about your pricing. If you can get a client to say, “Yeah, I thought Joe was expensive but then I shopped around, saw what cheaper would get me, and wow, Joe looked pretty reasonable after that.”

Education is the key. You have to educate your clients on why your prices are competitive. Don’t forget to do the same education with your network.

Anyone else have a similar story to share and how you overcame it?

Promote Your Chamber the Right Way

Friday, May 27th, 2011

A friend of mine took me to a Chamber event this week. The Chamber has an excellent reputation, but I hadn’t been to an event yet. And now I probably won’t go back.

It wasn’t a bad event, a little crowded, but that’s more of a good thing than a bad. The reason I’m not planning to go back is that I spent most of the event fending off fairly hard sell “join the Chamber” conversations.

I use the word “conversation” sarcastically. I didn’t actually have any conversations that evening. Few people I spoke to asked much about me beyond a superficial “what do you do?” One person actually spent about 10 minutes trying to talk me into joining. And made it difficult to gracefully leave the conversation (yeah, I tried the advice I gave on Wednesday, but she didn’t take the hint).

So enough about venting. How can you promote your Chamber or other networking organization in a positive way?

The short answer is to promote your organization the way you’d promote your business. Ask questions. Listen for needs. When you hear them, position your group as a way to address those needs.

Selling an organization is exactly the same as selling a product. If you do most of the talking, you’ll blow the sale.

We know when you are sincere and when you are just going through the motions. Find some common ground. Perhaps talk about why you’re in the Chamber and specifically what the benefit to you has been.

Then ask if the other person would like more information. If he or she says no, back off. I told every person that night that I wasn’t interested in joining because the location was bad for me. They all tried to talk me out of thinking that way by telling me about other events (all at equally bad times.)

You need to realize that your organization isn’t for everyone, but if you leave a good impression, they may refer others to you. Ironically, I have referred a number of people to that Chamber. Not so sure I’m going to continue. Don’t leave that impression with other people about your organization, please.

Your Changing Networking Needs

Friday, May 6th, 2011

It’s likely that your networking needs will change over time. Perhaps you were looking for a job and landed it. Or your business has grown over time and you are targeting a different market. Situations like this can lead to you needing to reevaluate your networking goals and sometimes your groups and venues.

It’s not a comfortable decision to leave a group, but it might be the right thing to do.

First, you need to be certain about your decision. Look at the contacts you need. Is this group or venue providing them? If not, check your message. What are you asking for? Have you changed your message? If not, try that first. Maybe your group didn’t realize your needs have changed.

If a change of message doesn’t work, it might be time to leave. You need to be careful. The group may not meet your needs, but you have built relationships, and you don’t want to lose them.

Consider what you say when you leave. Telling them they can’t introduce you to the right people might sound harsh. You might want to look at phrasing it a different way. It might be prudent to give a more complete explanation to key people and send a more general message to the group as a whole.

The most important time is right after you leave. If there are relationships you want to maintain, it’s your responsibility to reach out. The group will likely move on to the next new member, and without any malicious intent, you will slip in their thoughts. Identify the key relationships you want to continue and look for ways to stay in touch. Referrals are always good. Keep referring someone, and he or she will be happy to stay in contact.

Moving on from a group can be done, if you are careful and sensitive. Do it well, and you’ll keep them in your network. Do it badly and you’ll burn bridges you might need later.

Who To Refer?

Wednesday, February 16th, 2011

I recently heard something very disappointing at a networking event.

Three of us were talking. For ease of writing this, we’ll call the other two people Jim and Jane. Jim expressed a real need for a service. I knew Jane had a good relationship with someone (Bob) who offered that service and I turned to her and said, “I’m sure you’ve already referred Bob to Jim.”

People, this should have been a no-brainer, and I was so certain Bob had been referred that I almost didn’t say anything. Good thing I did. Because Jane said, “Oh, Bob isn’t in my networking group anymore.”

Don’t worry. Bob did get the referral, but I kind of felt like I was guilting Jane into it.

So what’s up with this? If someone provides a good service does it matter if you’re not in the same networking group anymore? Remember that networking is about building relationships. Relationships last (or should) no matter what group you belong to.

The situation would have been different if Jane had said, “No, I didn’t refer Bob because someone new in that position has joined my group, and I referred her instead.” That would have been fine. At least someone would have been referred.

But to hear about a need, know someone who can fulfill it and say nothing? That’s counter to every principle of good networking.

This must be a common problem because I’ve had so many people tell me, “When I left that group, I never heard from any of the members again.” Regular networking meetings are a way to stay in touch. They aren’t the only way.

You want people to remember and refer you, no matter what group they are in, right? Then stay in touch with everyone in your network, no matter what groups you do or do not share.

Sell Your Networking Group Well

Monday, January 24th, 2011

I was at an event a couple of weeks ago, and I was approached about joining the hosting group.

I was interested after talking to the first person who approached me. It seemed that the group had synergy with me and might lead to some excellent contacts. I was mentally working out how it would fit in with my overall networking plan when member number two butted into the conversation.

He asked what I did. I told him I was a networking and social media coach. He asked if I were a member. I said, “No, but I’m thinking about it.” His response? “Shame on you. You should join right away.”

He then launched into a lengthy explanation of why I should join, starting with “we don’t have anyone in your profession who is already a member.” He went on for almost five minutes on the benefits of networking. (Did he miss what I said I did for a living?)

What all did he do wrong? More like, what didn’t he do wrong!

Attempting to “shame” me into joining. Obviously not listening to what I said I did and thinking I needed an explanation on the benefits of networking. His manner was generally obnoxious, and he didn’t shut up until (finally!) they asked us to sit to listen to the speaker.

Oh, did I mention that he tried to embarrass the speaker during his presentation?

Before you ask, no, this was not a BNI meeting or any similar type of group.

I’m sure none of you would be this obnoxious to a potential member of your networking group or professional organization, but I tell the story to remind you to always be aware when you are asking someone to join. Hard sell, obnoxious techniques don’t work. Listen to the other person. Find out his or her needs. Show how your group can address those. And then shut up and let the person think.

It’s too bad. I think the group would have been worth joining. But the thought of having to deal with him every month has definitely put me off.

BNI Isn’t Networking

Wednesday, December 8th, 2010

I’m expecting some flack on this post, and I’m ready. Bring it on!

Before I start, let me say that I was a member of BNI for 5 years, and I still recommend people join chapters. It’s a great way for some people to grow their business.

For those of you who don’t know what BNI is, quickly, it’s an international organization of chapters of business people who meet weekly with the goal of referring business to each other. Follow the link above if you want more information.

But it doesn’t really teach networking.

What it is VERY good at is teaching how to do business by referral, which is a part of networking, but there’s more to networking than referrals, and some of what you learn in BNI can actually hurt someone who is new at networking.

What, you may ask?

1. BNI encourages closed-group referrals

BNI chapters are made up of individuals, with one person per profession. Members are strongly encouraged to refer the members of their chapter. So, if one of your clients is looking to buy a house, you are supposed to refer the real estate agent in your chapter.

Why is this a problem? Because the agent in your chapter might not be the best fit for your client. In networking, you want to make the best connections to develop a relationship. BNI has systems in place that make it difficult for members to refer outside their chapters.

2. BNI encourages keeping score

Keith Ferrazzi in his book, Never Eat Alone, says, in networking we shouldn’t keep score. And I agree with him. There are people I refer without hesitation who have never referred me back. They make me look good with my clients, which is good for business. But BNI chapters usually have some method of tracking who is referring and bringing guests and who is not. Because of the score keeping, members often feel pressured to refer the members of their chapter, fearing that otherwise they won’t be referred in return. When I was still in BNI, I heard members frequently say, “I’ve referred so-and-so lots of times, but he still hasn’t referred me. I’m not going to refer him anymore.”

That’s not good networking.

3. BNI members tend to network too much within BNI

Although BNI says they encourage members to network outside BNI, many members don’t. They visit all the local chapters, one at a time, and say “I’m doing a lot of networking.” When I ask, “Are you giving and receiving referrals?” the answer often is, “No, but I’m having lots of one on one meetings.”

Yep. That’s effective.

4. BNI has a huge focus on inviting guests to chapters

This is probably my biggest pet peeve. BNI members who don’t quite get it attend other events like sharks, looking for members to invite to their home chapter. Often they pop the invitation without asking anything about the other person. It’s almost like the sales person who walks up to you at an event and says, “You need to hire me,” without knowing anything about you or your business.

Networking is about meeting new people and building relationships. That doesn’t happen when members cruise other events looking for “fresh meat.”

As I said earlier, BNI is an excellent place to learn the basics of doing business by referral. If you are considering BNI, by all means investigate your local chapters and see if one might be a good fit for you. But don’t think that BNI is networking and fall into the trap of just working BNI. There’s a lot more to effective networking than attending an endless series of BNI chapter meetings.

Anyone want to agree or disagree?

You Are Where You Network

Monday, November 15th, 2010

You know how they say, “You are what you eat”? After this weekend, I must be a chocolate chip cookie. (My husband baked!)

But it’s also true that where you network will influence how people see you.

I was in a class last Friday, and there was a networking event next door. In the bathroom, I met someone I haven’t seen in a while. I had a neutral opinion of her based on my prior interactions with her.

However, the event she had been attending is frequented primarily by people who are more interested in socializing that networking. I attended the event once and left half-way through. Many of my clients have attended and quit because, while it is billed as a business networking event, few serious business people attend, and little business is passed.

My impression of the event is that it is attended by hobbyists who are not interested in growing their business or referring others.

This contact indicated she attends the event frequently. How do you think I view her?

On the other hand, there is a well-regarded monthly networking event I attend in DC. I recently had someone say, “Oh, you go to that event? You must be serious about networking.”

Music to my ears.

Can impressions be incorrect? Of course. Which is why I recommend you are careful where you network. Look at where you want to be in 5 years. Where do people at that level of success gather? Go there. Their success and reputation will rub off on you.

I Won’t Use Your Service. How Can I Refer You?

Tuesday, August 17th, 2010

All last week I wrote about social media. Time for a change back to face to face networking for a few days.

I was meeting with someone last week who was thinking about joining a networking group, and she asked my advice. I knew the group well, and I said, “I don’t think it’s going to work for you. The people in that group aren’t going to need your services, and I think you’ll be frustrated.”

She very correctly called me on my statement and said, “But I thought the point was to work through them to their referrals, not make them clients.”

Of course I agree with her, but that wasn’t quite my point. As you network, you need to know your audience and your product or service. Some groups are made up of more savvy networkers than others. This group isn’t one of the savvy ones.

Some people can envision how they would refer someone, even if the service is something they will never use. For example, I personally have no use for someone who does corporate mediation. But I know the kinds of people who would need that service, and I can refer it.

Some people can’t make that leap. They are generally the smaller business owners who are new to the concept of business by referral. When they are still trying to get their message right to generate referrals and keep in mind easy to refer businesses, they aren’t quite able to get their heads around more complicated to refer businesses.

You need to keep this in mind when joining a networking group. Is your business something the members of the group will understand and use, even if they don’t use you? If so, you’ll have an easy time educating them on how to refer you. If not, you’ll have a bigger challenge.

Am I saying you shouldn’t join such a group? No, I’m just warning you that you’ll have to work harder than say, someone who sells gift baskets. Everyone can see how to refer that business. Everyone may not instantly see how to refer you.

That’s the “bad news.” The good news is that tomorrow I’m going to write about how you can educate anyone about how to refer your business, even if you fall into the “hard to refer” category.