This week's question comes from David Kassin Fried (www.dkfwriting.com):

Q: Are paid networking groups like BNI or NetworkinAustin worth the cost of joining? Given that there are so many free networking opportunities out there, I've avoided paid memberships in the past, but it would stand to reason that if people are paying for something, they must be getting value from it. Given the success some of these groups have had, there must be something that keeps the people coming back. Is the caliber of the connections one makes at paid associations higher than those who attend free groups? Or am I better off continuing my less-expensive strategy and banking on my ability to strengthen those relationships?

A: Thanks for the question David. It's a good one, and one that's not uncommon.

When evaluating any organization it's important to look at two types of ROI. Traditional Return On Investment or the financial return you can expect based on the membership/event investments you'll make in the group. Perhaps more importantly you should also look at your Return On Involvement or the return on the amount of time you'll spend both at organization meetings and developing deeper relationships with other members. Understanding the value of your time and the associated return you're getting will help in evaluating all types and it doesn't matter if they're free or paid.

In my experience you can typically tell whether or not a groups is likely a good fit for you relatively quickly. One meeting may not be enough, but two meetings should give you a pretty good sense of the types of members, how the meetings run and whether or not it's a culture and business fit for you personally.

One important note is that with most groups you shouldn't expect to see referrals immediately. It takes time to build trust in a new group. Set your sights on measuring ROI at 6-12 months which is where you should start to see a descent number of opportunities IF you're consistent in your involvement with the group and take the time to get to know members beyond regular meetings.

Now to answer your question a bit more directly. With a free group there's very little barrier to entry. People just need to show up. While a paid group obviously has a higher barrier. Typically you'll see more committment from individuals in a paid group. This could be an advantage or a disadvantage depending on your business. If you're interested in getting to know a lot of different people, or have a very low cost product or service a free group might be a great fit as cost won't keep anyone from attending and potentially meeting you. If your work typically requires a higher degree of trust a paid group may make more sense as members are more likely to be consistent in attendance and supporting other members of the group.

In the end you have to evaluate each interesting group on your own and make your decision. At the very least make the effort to visit a number of different organizations to get a feel for the best fit. Paid or free, it's almost certainly going to come down to the quality of individuals in the group (based on your networking values), and how well you personally fit into the group.

Keep those questions coming.

P.S. Since David mentioned NetworkInAustin.com specifically in his post I'll respond to that briefly here. We don't view ourselves as a traditional networking group, although we do offer opportunities to connect through our NetStorming events. Instead this is a set of tools to help networkers better network and gain more visibility. We also work very hard to keep our costs low so that the barrier to entry is low to anyone who will benefit. Learn more about the benefits of NetworkInAustin membership.

Happy Networking!