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Monday, November 08, 2010

NETWORKING LIKE A PRO: Both “Old” and “New” are Vital to the Success of a Networking Group

Networking Like A Pro with Dr. Ivan Misner


A lot of people assume that referral groups and other networking organizations are only for those who are young, new to business, and hungry to grow their businesses. However, the studies don’t support that line of thinking. If fact, it has actually been shown that the ages of referral-group members range from the twenties age group – to well through the sixties.

A university survey of networking group members, conducted by Steve Brewer of St. Thomas University as part of a master’s thesis, showed that 74 percent owned their own business. Approximately 40 percent were women, 60 percent men. About one-third of the members were over fifty years old, only 10 percent younger than thirty. The age distribution formed a typical bell curve. However, when analyzing the ages of those who responded, we found that sixty-three percent of all respondents were 40 years old or older. Clearly, this would indicate that the age of the average participant in networking groups is higher than some would expect. In fact, from both empirical data and from my own observations from well over 20 years in the business of “networking,” I firmly believe that it is mostly the seasoned business professional who seeks out the long-term benefits of a referral-marketing strategy.

In any good networking organization, selecting qualified members are very important. Good groups tend to select more experienced people over inexperienced ones because they know that seasoned professionals are more likely to bring in an established network. They are also more likely to be good referrals, because experienced people are typically better at what they do for a living. An experienced referral is more likely to work out well and reflect favorably on the person providing the referral.

In fact, it could be argued that the last point above is the most important: An experienced referral – referring someone who is experienced at the work they are being referred to do – is a trait that is even more important to the networking group than having a person in the group that just has a large “network.” One of my colleagues, an author and currently serving as an office in a networking group recently had to caution the committee in charge of admitting new members. The chapter was in a “growth” phase, and the committee was eager to admit just about anyone submitting an application. In one case, a visitor introduced herself as an Executive Coach. As she described what she did, she stated that she had just left a career in advertising to “realize her dream” in becoming a coach. She was in the process of being certified, and wanted to join a networking group to be able to get her first “paid” clients.

The membership committee was very excited about this applicant, citing her “huge” network of colleagues from her former career. However, the president asked the committee about the three required references that the prospective member had put on her application. Yes, they all spoke very highly of her, and said she was great in advertising, the president was told. But what about her coaching ability – was she a good coach? inquired the president. Well, she doesn’t have any coaching references, as she is just starting out, said the committee. At that point, the president asked the committee members how they could be sure she was any good at the job category for which she was applying, and how could members of the chapter refer this coach to the contacts who would trust them to give a solid referral if it was not yet known how good a coach this applicant actually was? In this case, the risk of a member who was very inexperienced in the profession she was representing far outweighed the benefits of her large network.

Note, however, that a good networking group should still strive to seek a balance between “old pros” and “newbies.” Groups with only seasoned people can be too laid back and easygoing, because most of their members are not in the start-up phase anymore, and no longer are new prospects perceived as being as important to the business as they once were. But a group made up mostly of new people tends to be too frenetic, too hungry.

In well-balanced groups, we’ve seen very successful partnering between established professionals and younger, newer, “junior” professionals. (Note, however, that “junior” networkers should still be very good at the job or service they are trying to sell, so that members can be comfortable referring business to them.) When the networking veteran takes the newer partner under his or her wing in a mentoring relationship, coaching that person in the finer points of word-of-mouth marketing, the junior professional gains business acumen as they accumulate real-world experience, and both begin to see more referrals coming in. It’s a real win-win, Givers Gain® kind of experience: if you give business to others, they will give business to you.


Called the "father of modern networking" by CNN, Dr. Ivan Misner is a New York Times bestselling author. He is the Founder and Chairman of BNI (http://www.bni.com/), the world's largest business networking organization. His latest #1 bestseller, The 29% Solution, can be viewed at http://www.ivanmisner.com/. Dr. Misner is also the Senior Partner for the Referral Institute, an international referral training company (http://www.referralinstitute.com/). He can be reached at misner@bni.com.


For more information, please visit Ivan's TNNWC Bio.



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