Networking – How and Why
Are you frustrated with the ineffective activity of attending events touted to be a golden opportunity to meet business people with whom you can do business? The outcome, more often than not, is a hand full of business cards that are put in a drawer with no follow-up from you or the other person.
Entrepreneurs have capitalized on people’s naivety on how to reach more clients/customers by turning networking into a business – from BMI to Le Tip and Meet-Up. However, people are not conducting more business or making more money than those who never attend a ‘networking’ event. The question is, of course, why? The majority of people do not understand the complex psychology of high-net-worth clients, CPAs or other centers of influence.
Networking events are devoid of your most important client relationships. Networking events are stacked with those who do not know how to network with people of influence. Thus, you are meeting people who are only looking to ‘sell.’ This undermines your credibility as a true professional. You need to consider going back to the old school networking method.
The old school networking method is based on learning the psychology of referrals. You need to learn a set of skills and a process that will help you position your referrals from strength…not weakness. This approach reflects the core attitudes and attributes of top clients. It calms their created referral fears and resonates with their own self-image of intelligence, professionalism and success.
Old school networking begins by connecting with someone who might know the person you need to connect with to achieve a goal, purchase something or gather information.
For example: In 1985, I was on a management and organizational consulting assignment with a major bank in Tulsa, Oklahoma that was going through a merger. My phone rang. The caller introduced himself – “This is Robert Jones (not his real name) I am the President of XYZ bank in Kansas City, MO. Your name was given to me as the best person in Tulsa to contact.” (Flattery works, but be cautious. It could come across as disingenuous. Who gave him my name has long ago been forgotten.)
What can I do for you, Robert? I asked. My wife was recently transferred to a plum job in Tulsa. It was a job she wouldn’t turn down for her career, so, I am the tag along spouse. I am looking for a new opportunity in banking in Tulsa. I don’t need to be, president, head of a division in a large bank is of interest. Our conversation continued. Although, I didn’t know of anyone to refer him to, I suggested he send his resume. His resume was impressive. I gave his resume to two division VP’s in the Tulsa bank. They both agreed he had an impressive work history and they would keep him in mind if they heard of a position commensurate with his background. Three weeks later, I received a phone call from a headhunter in Tulsa, who I knew before taking the consulting assignment. She called because she was looking for a candidate for a Tulsa bank that needed a new president to do a turn-around. Was I the last person she would think to call? No. Why? Because I work in a large bank, I am in a center of influence in the industry she is hoping to find a candidate. Of course, I told her about Robert Jones. Of course, I wouldn’t be telling the story unless it was a home run. Indeed, Robert was offered and took the job two months after his initial phone call to me. August, 1986, I moved to New York, Robert and I kept in contact.
Three years later, Robert called me, because he had done such a good job turning the bank around they didn’t need him and his position was given to a division VP, they wanted to give a promotion. I knew the Tulsa manager of the government managed Resolution Trust Corp., organized to resolve the savings and loan debacle. I suggested Robert contact the Tulsa manager. He got a job in Tulsa with the Resolution Trust Corp. We are no longer in contact, he might have retired.
You have heard the clich?, it isn’t what you know, it is who you know. Of course, intelligence, skills, talent, experience and reputation are important. The bottom line is, you need to develop relationships with influential people.
If you want to establish a network of people you need to develop a list of twenty names in four categories or those who know others who are influential in areas you need contacts. Twenty names is all you need to have a well organized and honed network. List five names in each area: Personal, Professional, Community and People of Influence.
o Personal: Country clubs, organizations, sports activities, golf, sailing, travel, skiing, hair-stylist/barber (they know many people), etc.
o Professional: colleagues, competitors, suppliers, CPA, lawyer, professional associations, etc.
o Community: Clubs, civic organizations, religious community, chamber of commerce, local business owners – dry cleaners, etc.
o People of Influence: Politicians, University career center, sorority/society, high school/college friends, etc.
o Do research: Google, local newspaper, local business journal, WSJ journal, hobby publications and more.
o Identify twenty people you would like to be referred to – find a connection to get the referral..
o Identify twenty people you have on your referral list to refer people to them..
o Last, but not least, quid pro quo is a highly honored and accepted networking strategy. Use it well..
It has been said that a well designed network means that one needs to make only two phone calls or less – one to someone, who would know the right person to contact, or the right contact.
Although, I would not have considered myself the person for Robert to contact in his job search, I am a commensurate ‘old school’ networker and I was working in the industry he was interested in finding a position. Furthermore, since I was in Tulsa less than a year, I would say, I was the last person to contact. Yet, I was the one who had the right contact to lead him to the right job, not one, but twice.
If there is a moral to the story, it is this, ‘old school’ networking works.
Benefits of Social Networking
Social Networking of course is in its infancy, at least to web site traffic generators, so what are the so far under-penetrated benefits of social networking?
Despite the huge success of sites like MySpace, Friendster and Reunion.com, millions of people have not yet seen the advantages of social networking. Perhaps it is due to the awkward situations where users find themselves wary of the friendships offered by strangers – just like when we were in junior high school.
Depending on what angle you want to promote your business, most networking spots are free, which means no cost to you to generate an extra lead or build some additional traffic. The beauty of utilizing these sites is the opportunity to use social media content to create brand recognition in a timely fashion.
Social workers have to work long hours with very difficult situations, if they are able to build a supportive circle of friends around them to support them this should be encouraged. However it does need the support of their organisations to be in agreement that this is a worthwhile tool.
You may not believe it, but social networking sites have actually paved the way for easier advertising. Another positive news is that you could promote your products and/or services for free. For example, you could create forum threads to generate interest. You could tell people the simple steps in acquiring your products or availing your services.
On the other side of the coin, the services that these sites are at the same time playing important role in the business world. Despite the fact that these social networking sites can give wide opportunity to broaden your circle of friends, online social networking can also increase a person’s exposure to the people with a less than the friendly intentions.
And while those that logged in didn’t provide any breakthrough thoughts, their assistance helped me to have one or two on my own, including a nascent concept for developing a new type of international speaking agency.
Social networking software has become extremely affordable and requires only a one time investment. There are no monthly fees and usually upgrades come with no additional charge. This lack of additional charges makes social networking software a much better investment than most other forms of online advertising.
Normal procedures, like email and mailing lists, are fine for people whom you already know. Meeting new people is somewhat more complex. For those circumstances, we have social networking sites. I have friends I only see in person at conventions, and the social networking sites are excellent for that.
Another thing that joining a fitness social networking site can do for you is to put you in touch with fitness professionals who can educate you about techniques for achieving the overall physical and mental well being that you are searching for.
Another benefit of social networking is communication. You don’t have to load a chat software to talk to someone in another continent; you can easily do so on the site itself. You can send them an email, invite them to chat, or even give them a call if the feature is included in the social networking site.
Networking
Networking: Is it who you know or what you know that counts?
Who you know gets you into the door, what you know keeps you there! Majority of the people who are in the work force today have got their opportunities through people that they knew or know. Networking in my opinion is the key to starting a successful career. Once in the door it is the individual’s responsibility to progress his or her own career. Networking even pays while you working in your current position. Many individuals move on to better careers through networks that they have formed.
Networking Tips
Ask people questions. What are you doing? Tell them what you do, ask for a business card. Make sure that you listen to what the other person is saying; there are many verbal signals that people give, that tell you a lot about what they are thinking.
Join a club or a Gym where you can meet new people. Clubs and gyms are a good place to meet new people. A lot of individuals in key positions in organizations will go to a gym to work out or play a sport. Sure these people are there to work out and relax, but if you strike out a conversation you never know who you meet. I got my first co-op placement this way! It worked for me and it will work for you, especially if you interest the person that you are talking too. If you don’t mind spending a little bit more, you can always join an exclusive club, where you get to meet and network with business professionals. Remember to sell your strengths, subtly.
Contact companies that you are interested in working with and tell them who you are. Tell them that you are going to be on the market soon and your first choice is them. Start with a general mail asking questions about whom you can get in touch with in HR. Make sure you get a name! By putting a name on your resume you will most likely double your chances of being interviewed. Also post your resume on Monster. This is one of the best sites to get your resume noticed by thousands of employers at no cost to you. I have formulated a special link at the bottom of this page for those of you who are interested!
Get your business cards and letter head’s printed. Whether you are still in University or in College, having a business card tells people that you are professional and serious about your career. It also gives them something tangible to hang on too. This makes it easier for them to remember you. For example I am completing my MBA and will be done in December. I just got my business cards printed because I know come December I will be looking for a job. So I hand out these cards to people who are interested, leave them in shops and restaurants in communities, this just gives me more air time! What do I put on my card? Well I cheat a bit, but you have too in today’s world. Since I am sure that I will get my MBA in another 6 months my business cards read.
Manik Thapar (MBA)
ADDRESS
HOME PH
CELL
Email
Volunteer, at your local church, or temple or in your community. This is another great way of meeting new people who might end up playing a big part in where your career leads you.
Remember that networking is something that can be done any where. You can do it on the subway or on the bus, you can do it in a coffee shop or a grocery store and best of all you can pick and choose you want to network with.
Net Work Like a Pro
It’s a common refrain, and it’s true: Most of the best jobs are never advertised–anywhere.
From an organization’s point of view, it’s easy enough to judge from your resume whether you have the requisite education and experience under your belt. But it’s not so easy to discern the other qualities that matter on the job, such as how motivated you are to do the work, how you handle crisis situations, how well you get along with other employees, how you respond to various types of managers, and how you deal with opportunities and disappointments.
That’s why most organizations look first at people they know and people who come recommended by people they know when it comes time to hire someone. And that’s why you need to learn to network. Still, having an “in” usually isn’t enough to land the job. You need to present yourself to your best advantage in interviews with your would-be supervisor as well as with that person’s supervisor and other members of the team. Preparation based on in-depth knowledge of the interviewing process will help you do that and allow you to walk into interviews confident and relaxed. The more you know about an industry and company, the better your chances of landing a job–and the more people you’ve networked with in the industry and company, the more you’ll know.
Networking That Will Get You Hired
Companies tend to recognize that they need to hire someone long before they create a formal job specification and resort to classified ads, the Internet, or a recruiter to bring in candidates.
During this gestation period, they often cast about informally to see if anyone within the organization knows of a talented person who might be available. They may consult advisers, vendors, or customers. And they will be more open than usual to discussions with those who present themselves on their own–or better yet, come with an introduction from someone the hiring manager respects. As you can see, organizations themselves engage in networking when they need new employees. As a job seeker, your aim should be to make sure that their networks intersect the network you create.
Why is networking such an important part of a job search? Jobs posted on the Internet or advertised in the newspaper and even those listed with campus recruiters have often been filled or are close to being so by the time you become aware of them. Networking gives you an earlier chance at an opportunity, at a time when you can still help shape the job description and influence the level and pay range of the position.
You will face less competition because no more than a handful of other people will typically be brought in through an organization’s own networking activities. And most of these other candidates will already be employed elsewhere and will not have taken the time to prepare as thoroughly as you.
Networking also gets you access to people who might not be responsive to a direct approach letter, and provides you with the added advantage of a recommendation from someone the hiring manager knows. Professional career consultants say that a job seeker’s chances of obtaining a meeting with a particular individual improve significantly when a good approach letter is coupled with a respected referral.
A company’s current employees are among the best sources of referrals–many firms report that 40 percent to 50 percent are filled by candidates referred by staff members. Moreover, companies view such candidates more favorably than those brought in through other methods, because they already know something about the organization and have a personal connection with it. Finally, networking may be the only way to locate good opportunities for job seekers whose skills are not much in demand. Even those whose skills are in high demand can benefit from networking, as multiple opportunities and personal referrals will enhance a candidate’s bargaining position.
Using Personal Contacts to Land Job Leads
Networking should start with people you already know–friends, family, colleagues, and acquaintances. These people are not necessarily the best source of jobs, but they can advise you on your resume, comment on how you present yourself, and help you identify your skills. Discussing such topics with friends and relatives may lead you to intriguing areas you’ve never thought of exploring. What’s more, these people are bound to have friends and relatives of their own who could turn out to be valuable resources let you.
We’ll call the people you already know and their connections your A group. During this initial round of meetings, you will ask about and get referrals to people your contacts think will be relevant resources for you, such as professionals working in your field of interest or people who work for organizations that interest you. These people, your B group, may or may not know of any specific job opportunities, but they can provide valuable information about current needs in your field, where your skills might fit, what you should emphasize in your presentations, what you need to learn, and resources that you can access. The B contacts, if duly impressed, can also introduce you to other B contacts and possibly to people in the C group. The C group consists of people who could hire you if a need existed in their company and you seemed to be qualified. While there may not be an immediate opening for you, a well-conducted information and referral meeting with a C person might lead to an interview a month or two later, as well as to introductions to other B and C contacts. While a telephone call will usually suffice to set up a meeting with an A group person, an approach letter, followed by a phone call to set up an appointment, is usually a more effective and appropriate means of contacting a B or C group person. An approach letter normally should not be accompanied by a r?sum?–a r?sum? labels you as a job applicant and may limit your chances of obtaining a meeting.
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Networking – Turning Prospects Into Clients
There is nothing hard about networking or sales; both are basically simple tasks to perform. But to be effective at networking and sales – now that takes some skill. To be effective I like to say is simple but it is not easy.
If you want to be effective at networking (and to be effective I mean have the ability to identify prospects and ultimately turn those prospects into clients) you must first understand the basics.
Rule number one in networking is identify with whom you want and are trying to network. You have to know whom you are looking for. Why? here’s a newsflash – not everyone wants to buy your product or service. Not everyone can benefit from, pay for, or has a need for your product. Your job as a master networker is to clearly understand they type of client you stand the best chance of building a relationship with.
If you sat down right now and analyzed your perfect customer – I mean really analyzed your perfect customer – you would find that description fits a very distinctive niche. There are unique and specific things about the individual. The better you know, understand and can describe this niche the better you will be able to identify who truly wants what you are selling. And imagine a sales process where you spend the majority of your time in front of and working with prospects that want, need and desire what you are selling!
Defining your target market is a fun exercise. Think about things like gender (do you appeal more to men or women) age, hobbies (what does your target market like to do), geographic location, their interests, what they like about you; what is important to them, their values, what motivates or drives them etc.. There is no end to what you can identify – magazines they like to read, movies they like to see, products they like to buy. Gather as much as you can and find out what your ideal clients have in common. The better you know, understand and can describe your niche the better you will be able to identify the type of customer who truly wants what you are selling.
I have a client who is a master at this. Every quarter she updates her Target Market description – constantly tweaking, changing and adding information to her client data. She knows her ideal clients are successful men, between the ages of 45 and 55, who are professionally driven, well educated (master degrees and above), athletic and dedicated to physical fitness, married with high school and college aged children; demanding, value success, their reputation and their families; looking to continue to advance in their careers and chosen professions; and they will choose slowing down rather than retirement; they hire her for her reputation for effectiveness, accountability, and drive.
Where does she network? Professional associations and sporting events – those she can participate in as her potential clients are active. Her prospects are dedicated to advancing in their careers, so they attend meetings, are continuously seeking knowledge and enjoy networking among their own peers. They are also active, and by participating in these events she has a very natural way to meet, connect and build natural relationships with her prospects. She also understands why they choose her – her effectiveness, accountability and drive. So when making new proposals she makes sure to emphasize those qualities. Needless to say, even in a tough economy she has a thriving practice and constant flow of new business.
Knowing this she is able to shape her networking and prospecting efforts to events, organizations and referral connections that put her right in front of the very prospect that is most likely to hire her.
If you want to be effective at networking. If you want to get results. Then you must first understand who is the type of customer you want to attract. What do they look like, what do they do, what do they value and why do they choose you? This is rule number one if you want to turn your prospects into clients!
Advantages of Business Networking
Business networking is more than just a tactic that some people use to draw in more clientele. For most small business owners, proper networking skills are necessary for their continued existence and success.
Networking takes many forms. Whether a business owner is cold-calling clients on the phone, or meeting other business owners in the area for breakfast or lunch, the networking never stops. Networking leads to referral business, and referral business leads to increased customer satisfaction and loyalty.
Many business owners choose to become part of organizations such as their local Chamber of Commerce. The Chamber is an excellent way for business owners to participate in business advocacy and lobbying efforts, and provides a way for business owners to band together for their own protection. Chambers of Commerce around the world hold both formal meetings and informal “meet-and-greets” during which business owners can discuss the current business climate in their given area, and formulate ways to overcome obstacles such as local governmental regulations and workforce problems.
Regardless of the type of networking activities that a business owner conducts, they are still responsible for presenting themselves in a way that is both professional and forceful. Without a forceful but polite demeanor, business owners may fall prey to the most difficult of obstacles, word of mouth and the rumor mill. If a business owner doesn’t conduct themselves with the utmost dignity, they may be labeled as unstable, and other business owners may elect to exclude them from future meetings and planning sessions. This leads to a rapid breakdown in communication, and a corresponding drop in sales.
A business owner that is well-versed in networking skills can be nearly assured a profitable business climate and a steady stream of both new customers and repeat business. While new customers are essential to grow any business, repeat customers are equally important, as they keep the business going even during lean economic times.
Networking skills tend to be a mixture of both learned behavior and natural charisma. A business owner that can harness both aspects of the networking trade can maintain an intricate web of contacts and vendors. With that network in place, new business can always be found and the business owner can always ensure that they are being presented with the best options available to guarantee the success of their endeavours.