Too often we only think of the value of networking very narrowly. So much of the attention is focused on generating referrals or other types of opportunities. Building strong, mutually supportive relationships has a wide variety of positive impacts. Today we'll look at it from two different perspectives to 1) lower your risks in entering new vendor relationships and 2) closing more deals (this could also refer to getting an offer letter for those looking for a new job).

Anytime you're hiring a vendor whether it's for a personal or professional need, and especially if it's for some type of service there's risk. Will this person be able to deliver what they're promising? Imagine that you're getting ready to remodel your home and you're talking with contractors. They all sound good at this stage (before anyone has started any work). But will they and their crew be on time? Will they clean up and respect your property and privacy? Will they be on budget or will this person be coming back 80% of the way through the project and asking for 40% more money?

Let's look at the other side of this equation as well. You're in a conversation with a great new perspective client, or you're interviewing for an amazing job. Imagine you're the person on the other side of the table tasked with making the decision. You're probably talking with several people who are all telling you how great they are and what a wonderful job they've done. You can see examples of their work, or a copy of their resume that shows that they've done this type of job before. But what if it doesn't work out? A bad decision is going to be incredibly expensive, because you'll still have the problem you started with and you'll need to start all over and find somebody else.

Your networking comes into play in helping lessen the risks in these decisions. You're having some great conversations with your new potential client/employer and everything looks great on paper. You have the experience, you're saying all the right things, but they're looking for just a little more certainty before they write that first retainer check or offer letter complete with signing bonus. You can bring your network to bear to speak to your reputation and to validate that you've actually done the things that you claim.

So your job is to maintain good relationships 1) in the community in general so that many others can speak to your personal standing and integrity (This is why I'm such a big proponent of volunteering with non-profit causes that you're passionate about and even joining their board of directors). 2) keeping close ties to those that you've worked closely with in the past. Co-workers, managers, and especially clients.

Hopefully you're active on LinkedIn, because this is where many folks will go to get a sense for your overall reputation. The testimonials will help, and they'll also likely be looking for relationships you have in common to find someone they can call to ask about you and vet your reputation.

The real secret sauce I'll share here is the pro-active testimonial. If you've done a great job of understanding what your new client/employer is looking for, and what their concerns might be. The traditional route would be to provide some references. You right down names and numbers of people that they can call to check on you. The problem is that requires a lot of extra work on their part. Instead, to truly set yourself apart, what if they received an e-mail from someone who was truly evangelizing your cause? It takes particularly strong connections to pull this off, but being able to deliver this type of validating proof can be a huge differentiator.

So how is your reputation in the commmunity? Who's seen what you've done in the past that can give you a massive endorsement? Perhaps more importantly, how is your relationship with those individuals?