Business Networking Tips in March 2009

Where are Your Referrals Coming From?

posted on March 30, 2009

One thing that took me a particularly long time to figure out about networking is the best referral sources. Often times we identify an individual who is in a perfect position to provide us with an endless stream of highly qualified referrals. As a good networker I'd identify this person, work really hard to add a lot of value for them, and ask for those referrals. Too many times those referrals would never come, and I'd still spend a ton of time trying to make the relationship work (sometimes years). For whatever reason, some people are just not going to refer you. Some are just not comfortable giving any type of referral, it's just not how they operate. Others have other resources they're exceptionally loyal to, or even related to, who you'll never be able to replace. Whatever the reason it's ok, and there's nothing wrong with your strategic referral source. What matters is your ability to identify your best, proven referral sources. An exercise I try to conduct fairly regularly is to go back and source all of my opportunities to a specific individual. It's important to focus on opportunities, not closed business. I will typically look at a period of time, say six months. As a name comes up I write it down. Each time that person comes up again I'll put a check mark next to their name. The most important point here is this: Someone who refers you once is probably 10 times more likely than any other person in your network to refer you again. Anyone who refers you multiple times is probably 10 times again more likely to refer you yet again then even your other single referrers. It quickly becomes abundantly obvious which relationships you should put the most focus and attention on. Here's the kicker. Most of the time your multiple referrers are a surprise. They're almost never the people you thought were going to be good consistent sources of opportunities. It's important not to keep score and expect that people you create opportunities for will return the favor. However, I do think it's important to keep track of the opportunities you receive and work really hard to return those favors. You won't always be able to fully pay them back, but it's a lot of fun to try. In my next post I'll write about Tracking Referrals, and discuss my thoughts on what you should and shouldn't track. Happy Networking! Scott Ingram NetworkInAustin.com

Author: Scott Ingram

The Networking Rule of 150

posted on March 17, 2009

The Economist recently had an article titled: "Primates on Facebook," which suggests that even with social networking tools like Facebook and Twitter they still don't change the fact that 'the size of the human brain allows stable networks of about 148. Rounded to 150, this has become famous as “the Dunbar number”.' I first became aware of the Rule of 150 after reading about it in Malcolm Gladwell's book: The Tipping Point (a great book that I highly recommend by the way). When I mentioned this article on Facebook one of my friends quipped: 'Said the man with 455 "friends."' Sure I may have a lot of connections on Facebook and LinkedIn, but I see the Rule of 150 as being a description of your core network. Certainly we've all met more than 150 people, we may even have quite a few more legitimate relationships than this theoretical 150 person limit. However if you really boil it down to the truly meaningful relationships I would image that you, like me, would come up with a number really close to 150. Your core network in my opinion is your real network. These are your family, close friends, co-workers that you're close to, etc. The people you spend most of your time with, and have really solid relationships with. This certainly wouldn't include that guy you see a couple of times a year at this event or that event. It probably doesn't even include people you've had lunch or drinks with once or twice. These are the individuals you really spend time with, and who spend time with you where you have much deeper relationships. So here's an interesting exercise I've been playing with. Exactly who makes up your core network? Who are these 150 people? Are they the right 150 people? There's also the theory that says you're most likely to be like the people you spend the most time with. It's probably a smaller subset of the 150 that this theory applies to, but it's an important concept to pay attention to. Consider making an actual list to get a better understanding of what your own core network looks like. That's just my 2 cents. What do you think? I'm very interested in your thoughts and comments. Happy Networking! Scott Ingram NetworkInAustin.com P.S. I'm considering writing a follow-up post. Something along the lines of: Beyond the Rule of 150 - The Impact of Social Networking Tools on Network Size. I have some definite opinions, but don't want to taint your thoughts with mine... yet. :)

Author: Scott Ingram

Sales Professionals as Allies in Building Decision Maker Relationships

posted on March 8, 2009

One compliant that I frequently hear is that there aren't enough decision makers at such and such event. This is often followed by a complaint about there being too many sales people. Depending on the caliber of sales people at a particular event this can be a valid complaint. The naive sales person frequently thinks that a networking venue is a sales venue, and will try to sell at the event. It's these folks that probably keep a lot of executives away from certain networking events. Fortunately not all sales people act like this. In fact a true sales professional if treated properly can create far more opportunities than these supposed decision makers that everyone is looking for. Think about it. Let's say you run into the CEO of your ideal prospective company at a networking event. What are you going to do? Too many suddenly become that sleazy sales person we just identified in the last paragraph. Some impression you just made. How likely is it that you're going to now get their business and some referrals to their peers? That's what I thought. Now let's take a look at the high quality sales professional you just met at the same event. How many decision makers do they have real relationships with? [Hint: It's probably more than the CEO we just met]. If this is a true professional they also know a TON about the decision maker's company as well. In fact, there's a good chance they have a better idea of whether or not that organization is a good candidate for your product or service than you do! Obviously this is an oversimplified example, but I think it's a relatively common scenario. So, who's the better contact? The decision maker or the sales professional? Now I'm a pretty good sales guy myself, but it's far more powerful to have somebody refer/sell me to a decision maker than for me to sell myself in a chance encounter. And who better to sell the value of me and my solutions than a good sales professional who already has a well established relationship? Far too many people overlook the incredible value that a good sales professional can bring. The best part is it's really easy to get their attention, and get them to want to help you. Bring them deals! These are professionals and they should be able to easily articulate what kind of opportunities they're looking for. All you have to do is ask, and they'll tell you. Now go out and help them find it. Build a strategic relationship and you'll be amazed at the number of opportunities they have the ability to create for you. Think about this before you write off yet another sales professional at the next event you attend. Happy Networking! -Scott Ingram NetworkInAustin.com

Author: Scott Ingram

The Give and Take of Networking

posted on March 2, 2009

Networking is all about relationships, and the benefits come from the give and take between the people in those relationships. If you've paid any attention to this blog, or really any writing about networking you know that one of the key and most important ingredients is giving. Many refer to the benefits derived from networking as "Givers Gain." I'm here to tell you that giving is critically important, but that's not really the point of this post. Instead based on a variety of recent experiences I think it would be more valuable for me to spend some time talking about the "take" side of the give AND take equation. Through feedback and conversations from our first NetStorming event it is very evident that the biggest challenge most networkers have is the "take." They want to benefit from their networking efforts, but they don't want to offend anyone, and they don't want to seem greedy. So how do you go from being a good giving networker to making sure that you gain the things that you want? I believe the key is the ask. It's really hard to get (or take) what you want from networking without asking for it. What you're looking for in your networking efforts may be obvious to you, but it's not always obvious to others. Even when it is obvious, for example you're looking for new clients or a new job, the specifics may not be as evident as you think. I know lots of bankers, and generally it's pretty obvious what a banker is looking for right? In reality it's not. Are they looking for deposits? From what size company? Merchant accounts? New Loans? On what? Real Estate, receivables, lines of credit, or some other facilities? There are probably 100 different things they could be looking for. If they were to ask for all of them they would likely get none of them. If instead they were to ask very specifically it's much more likely that someone will be able to help them find what they're looking for. Everyone has and uses money. It's important to narrow the request down so much that it brings a small handful of people to the top of mind. Only then can an introduction be made. Don't make somebody else do all of the work. Ask specifically for what you know someone can or should be able to deliver. The best ask or request should take the person you're asking no more than 5 minutes to do for you. Here are a couple of examples: Ask someone for one or two introductions. Name the person that you want them to introduce you to and why. Now, if they're willing, all they have to do is send a quick e-mail or make a phone call. Request a testimonial from someone, but do most of the work for them. At least suggest a couple of items they can highlight. Now all they have to do is write around your suggestions. Ask someone for advice, but be so specific that follow-up questions aren't necessary. Now all they have to do is quickly answer your question. In our NetStorming format many people struggle to clearly define what they're asking for. This causes the rest of their time to be spent by people asking follow-up questions rather than providing advice, guidance and/or introductions. The better you can definte your need or question the more likely you are to get what you're looking for. Finally, there's a big difference between asking and demanding. When you ask someone for something you should never expect them to help you. You're simply providing them with the opportunity to help (which many of us love). Many times they'll be able to help, but sometimes they won't. Do not expect or worse yet demand that they help you. Even if you've done a huge favor for someone, it's unfair to expect them to return that favor. This creates a toxic networking environment. You may never know why someone can't or won't help you. It's ok, it's just part of the process. Simply move on and ask someone else, and don't be afraid to ask that person for help again. It's possible it was just the specific request you made that they weren't able to help with, or it could have just been bad timing. Help your fellow networkers help you. Ask them clearly and concisely for something that they can do for you in just a few minutes. Afterall, wouldn't it be much easier to help them if they did the same for you? Happy Networking! Scott Ingram NetworkInAustin.com

Author: Scott Ingram