Make it standard practice to ask clients and contacts for testimonials and you'll build your credibility and your business.
By Ivan Misner & Ronda Zaragoza
Written testimonials influence our actions and choices in a variety of ways, sometimes without our even thinking about them. For example: You and a friend decide to catch a movie, but your tastes don't always coincide. So you open the local paper and check out the film reviews. You decide you want to go to dinner first, but there are so many restaurants in your area that you don't know which one to pick. So you open up a local magazine and scan the recommendations of the magazine's food critic.
Even more powerful than these "professional" testimonials, however, are those that come from trusted personal contacts. If you have enough time, you might call or e-mail a couple of other friends to get their movie and restaurant suggestions. You're likely to follow their advice, too, because you know that they know your likes and dislikes pretty well.
So it is in business. Before people come to your firm for a particular product or service, they often want the comfort of knowing what others have said about you.
Let's say you refinish hardwood floors. Many consumers, before they let you haul your refinishing equipment into their house, will ask you for either written testimonials or phone numbers of people who can attest to your work.
You may even have experience with another form of testimonial: providing references when applying for a new job. Those references are expected to respond by written or spoken word about you and your work performance; quite frequently, a testimonial can clinch the job for you. That's a lot of weight riding on someone else's words.
Why Testimonials Increase Business
Testimonials carry a level of credibility because they come from someone who has direct experience with your product or service. Consumers generally place more trust in testimonials than they do in a business's marketing message. They believe that the average person is unbiased and has nothing to gain from providing a testimonial. The business stands to gain--or lose--everything, so its own words are seen as less trustworthy.
Recognizing consumers' skepticism, some businesses make a practice of asking for customer testimonials. Ditto for businesses that serve other businesses. If anything, a business can be an even more demanding customer than an individual consumer because it has its own reputation and ability to function at stake. Thus, a written testimonial on professional letterhead from one business to another is a powerful word in your favor, especially if the business represented on that letterhead is highly credible.
Displaying Testimonials
Written testimonials can be used in many ways to enhance your credibility and set you above your competition--on your business's website, for example. Some websites have them strategically sprinkled throughout so there's at least one testimonial on each page. Others have a dedicated page where a browser can view several testimonials at once. Either way, scan each testimonial to keep it with its letterhead. This will enhance its credibility--and yours.
If your business attracts a lot of walk-in clients, it's helpful to display your written testimonials, each encased in a plastic sheet protector, in a three-ring binder labeled "What our customers say about us" or "Client Testimonials." Keep this binder on a table in your reception area, where your customers can browse through it while they're waiting for services. It's a good way to connect with your prospects and enhance your relationship with clients. We are even now starting to use this same binder approach with our Business Network International (BNI) Champions chapter to show our visitors and guests the type of top quality professionals we have in our networking group.
Another way to stand out from the competition is to include testimonials with your business proposals. This strategy works best if you have a wide variety to choose from; you can include a section of testimonials that are most relevant to a specific proposal.
Asking for Testimonials
Make it standard practice to ask clients (or other contacts) for testimonials. At what point in the sales cycle should you ask? This is a tricky question, but in general, don't ask for any testimonial before it's time--which may be before, during, or after the completion of a sale or project, depending on your client, your product or service, and your own needs.
Let's say that one month before finishing a project, you call your client to ask how things are going. The client tells you she's very happy with the results and that her life or business has changed for the better because of your product or service. At this point, your testimonial detector should be pinging loudly. It's the right time to make your pitch: "That would be a great thing for other people to know about my company. Would you be willing to write me a testimonial on your company letterhead by the end of the week?" If the answer is yes, the next step is to coach your client in writing a testimonial that fits your needs.
Guiding the Content
Ask your client to tell why she chose to work with you, how she benefited from your products or services, how you solved a problem for her, and what other people should know about your business. What things are most people concerned about when using a business like yours? Ask her to address those issues. Don't be afraid to offer suggestions; you'll make it easier for her to write an appropriate testimonial, and the result will be more valuable for you.
Updating Your Testimonials
Finally, review your testimonial file or binder at least every two to three years to identify testimonials that are no longer valid or credible. Specifically, you may want to discard or re-file a testimonial that:
• Is from a company that's no longer in business
• Is/was written by someone who has left the company
• Represents a product or service that you no longer offer
• Has begun to turn yellow with age
• Needs to be updated with new statistics from the customer
Now that you understand what testimonials can do for your business, try asking for three written testimonials on company letterhead this week. Make it easy for your advocates--specify what you would like their testimonials to cover, based on what you know of their satisfaction or successes from using your product or service. Ask for them to be typed on company letterhead, signed and submitted by a certain date.
One more thing: Remember the law of reciprocity. If you want to truly motivate someone to write you a testimonial, write one for him or her first.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and reply to your question within 24-48 hours of receipt.
Showing posts with label Marketing. Show all posts
Showing posts with label Marketing. Show all posts
Wednesday, June 23, 2010
Get the most from your written testimonials
Make it standard practice to ask clients and contacts for testimonials and you'll build your credibility and your business.
By Ivan Misner & Ronda Zaragoza
Written testimonials influence our actions and choices in a variety of ways, sometimes without our even thinking about them. For example: You and a friend decide to catch a movie, but your tastes don't always coincide. So you open the local paper and check out the film reviews. You decide you want to go to dinner first, but there are so many restaurants in your area that you don't know which one to pick. So you open up a local magazine and scan the recommendations of the magazine's food critic.
Even more powerful than these "professional" testimonials, however, are those that come from trusted personal contacts. If you have enough time, you might call or e-mail a couple of other friends to get their movie and restaurant suggestions. You're likely to follow their advice, too, because you know that they know your likes and dislikes pretty well.
So it is in business. Before people come to your firm for a particular product or service, they often want the comfort of knowing what others have said about you.
Let's say you refinish hardwood floors. Many consumers, before they let you haul your refinishing equipment into their house, will ask you for either written testimonials or phone numbers of people who can attest to your work.
You may even have experience with another form of testimonial: providing references when applying for a new job. Those references are expected to respond by written or spoken word about you and your work performance; quite frequently, a testimonial can clinch the job for you. That's a lot of weight riding on someone else's words.
Why Testimonials Increase Business
Testimonials carry a level of credibility because they come from someone who has direct experience with your product or service. Consumers generally place more trust in testimonials than they do in a business's marketing message. They believe that the average person is unbiased and has nothing to gain from providing a testimonial. The business stands to gain--or lose--everything, so its own words are seen as less trustworthy.
Recognizing consumers' skepticism, some businesses make a practice of asking for customer testimonials. Ditto for businesses that serve other businesses. If anything, a business can be an even more demanding customer than an individual consumer because it has its own reputation and ability to function at stake. Thus, a written testimonial on professional letterhead from one business to another is a powerful word in your favor, especially if the business represented on that letterhead is highly credible.
Displaying Testimonials
Written testimonials can be used in many ways to enhance your credibility and set you above your competition--on your business's website, for example. Some websites have them strategically sprinkled throughout so there's at least one testimonial on each page. Others have a dedicated page where a browser can view several testimonials at once. Either way, scan each testimonial to keep it with its letterhead. This will enhance its credibility--and yours.
If your business attracts a lot of walk-in clients, it's helpful to display your written testimonials, each encased in a plastic sheet protector, in a three-ring binder labeled "What our customers say about us" or "Client Testimonials." Keep this binder on a table in your reception area, where your customers can browse through it while they're waiting for services. It's a good way to connect with your prospects and enhance your relationship with clients. We are even now starting to use this same binder approach with our Business Network International (BNI) Champions chapter to show our visitors and guests the type of top quality professionals we have in our networking group.
Another way to stand out from the competition is to include testimonials with your business proposals. This strategy works best if you have a wide variety to choose from; you can include a section of testimonials that are most relevant to a specific proposal.
Asking for Testimonials
Make it standard practice to ask clients (or other contacts) for testimonials. At what point in the sales cycle should you ask? This is a tricky question, but in general, don't ask for any testimonial before it's time--which may be before, during, or after the completion of a sale or project, depending on your client, your product or service, and your own needs.
Let's say that one month before finishing a project, you call your client to ask how things are going. The client tells you she's very happy with the results and that her life or business has changed for the better because of your product or service. At this point, your testimonial detector should be pinging loudly. It's the right time to make your pitch: "That would be a great thing for other people to know about my company. Would you be willing to write me a testimonial on your company letterhead by the end of the week?" If the answer is yes, the next step is to coach your client in writing a testimonial that fits your needs.
Guiding the Content
Ask your client to tell why she chose to work with you, how she benefited from your products or services, how you solved a problem for her, and what other people should know about your business. What things are most people concerned about when using a business like yours? Ask her to address those issues. Don't be afraid to offer suggestions; you'll make it easier for her to write an appropriate testimonial, and the result will be more valuable for you.
Updating Your Testimonials
Finally, review your testimonial file or binder at least every two to three years to identify testimonials that are no longer valid or credible. Specifically, you may want to discard or re-file a testimonial that:
• Is from a company that's no longer in business
• Is/was written by someone who has left the company
• Represents a product or service that you no longer offer
• Has begun to turn yellow with age
• Needs to be updated with new statistics from the customer
Now that you understand what testimonials can do for your business, try asking for three written testimonials on company letterhead this week. Make it easy for your advocates--specify what you would like their testimonials to cover, based on what you know of their satisfaction or successes from using your product or service. Ask for them to be typed on company letterhead, signed and submitted by a certain date.
One more thing: Remember the law of reciprocity. If you want to truly motivate someone to write you a testimonial, write one for him or her first.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
By Ivan Misner & Ronda Zaragoza
Written testimonials influence our actions and choices in a variety of ways, sometimes without our even thinking about them. For example: You and a friend decide to catch a movie, but your tastes don't always coincide. So you open the local paper and check out the film reviews. You decide you want to go to dinner first, but there are so many restaurants in your area that you don't know which one to pick. So you open up a local magazine and scan the recommendations of the magazine's food critic.
Even more powerful than these "professional" testimonials, however, are those that come from trusted personal contacts. If you have enough time, you might call or e-mail a couple of other friends to get their movie and restaurant suggestions. You're likely to follow their advice, too, because you know that they know your likes and dislikes pretty well.
So it is in business. Before people come to your firm for a particular product or service, they often want the comfort of knowing what others have said about you.
Let's say you refinish hardwood floors. Many consumers, before they let you haul your refinishing equipment into their house, will ask you for either written testimonials or phone numbers of people who can attest to your work.
You may even have experience with another form of testimonial: providing references when applying for a new job. Those references are expected to respond by written or spoken word about you and your work performance; quite frequently, a testimonial can clinch the job for you. That's a lot of weight riding on someone else's words.
Why Testimonials Increase Business
Testimonials carry a level of credibility because they come from someone who has direct experience with your product or service. Consumers generally place more trust in testimonials than they do in a business's marketing message. They believe that the average person is unbiased and has nothing to gain from providing a testimonial. The business stands to gain--or lose--everything, so its own words are seen as less trustworthy.
Recognizing consumers' skepticism, some businesses make a practice of asking for customer testimonials. Ditto for businesses that serve other businesses. If anything, a business can be an even more demanding customer than an individual consumer because it has its own reputation and ability to function at stake. Thus, a written testimonial on professional letterhead from one business to another is a powerful word in your favor, especially if the business represented on that letterhead is highly credible.
Displaying Testimonials
Written testimonials can be used in many ways to enhance your credibility and set you above your competition--on your business's website, for example. Some websites have them strategically sprinkled throughout so there's at least one testimonial on each page. Others have a dedicated page where a browser can view several testimonials at once. Either way, scan each testimonial to keep it with its letterhead. This will enhance its credibility--and yours.
If your business attracts a lot of walk-in clients, it's helpful to display your written testimonials, each encased in a plastic sheet protector, in a three-ring binder labeled "What our customers say about us" or "Client Testimonials." Keep this binder on a table in your reception area, where your customers can browse through it while they're waiting for services. It's a good way to connect with your prospects and enhance your relationship with clients. We are even now starting to use this same binder approach with our Business Network International (BNI) Champions chapter to show our visitors and guests the type of top quality professionals we have in our networking group.
Another way to stand out from the competition is to include testimonials with your business proposals. This strategy works best if you have a wide variety to choose from; you can include a section of testimonials that are most relevant to a specific proposal.
Asking for Testimonials
Make it standard practice to ask clients (or other contacts) for testimonials. At what point in the sales cycle should you ask? This is a tricky question, but in general, don't ask for any testimonial before it's time--which may be before, during, or after the completion of a sale or project, depending on your client, your product or service, and your own needs.
Let's say that one month before finishing a project, you call your client to ask how things are going. The client tells you she's very happy with the results and that her life or business has changed for the better because of your product or service. At this point, your testimonial detector should be pinging loudly. It's the right time to make your pitch: "That would be a great thing for other people to know about my company. Would you be willing to write me a testimonial on your company letterhead by the end of the week?" If the answer is yes, the next step is to coach your client in writing a testimonial that fits your needs.
Guiding the Content
Ask your client to tell why she chose to work with you, how she benefited from your products or services, how you solved a problem for her, and what other people should know about your business. What things are most people concerned about when using a business like yours? Ask her to address those issues. Don't be afraid to offer suggestions; you'll make it easier for her to write an appropriate testimonial, and the result will be more valuable for you.
Updating Your Testimonials
Finally, review your testimonial file or binder at least every two to three years to identify testimonials that are no longer valid or credible. Specifically, you may want to discard or re-file a testimonial that:
• Is from a company that's no longer in business
• Is/was written by someone who has left the company
• Represents a product or service that you no longer offer
• Has begun to turn yellow with age
• Needs to be updated with new statistics from the customer
Now that you understand what testimonials can do for your business, try asking for three written testimonials on company letterhead this week. Make it easy for your advocates--specify what you would like their testimonials to cover, based on what you know of their satisfaction or successes from using your product or service. Ask for them to be typed on company letterhead, signed and submitted by a certain date.
One more thing: Remember the law of reciprocity. If you want to truly motivate someone to write you a testimonial, write one for him or her first.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
Tuesday, January 12, 2010
Word of Mouth marketing can bite back
Word-of-Mouth Marketing Can Bite Back
A lot of reputations are at stake when you give a referral--including yours. Make it count and keep your integrity.
By Ivan Misner | March 04, 2009
Word-of-mouth is the most effective form of advertising--but it's not the safest. Some people approach referral marketing with an attitude that all they have to do is get to know people and referral business will simply bubble up like spring water. What they don't realize is that once trust evaporates, so does the water.
In word-of-mouth (or referral) marketing, your integrity and your reputation are on the line all the time. You can't hide behind an ad. In the referral process, you're continually transparent; you've got to do what you say you're going to do. You've got to be professional. Any flaw in your integrity becomes instantly visible to everyone you're dealing with.
When you give a referral, you give away a little bit of your reputation. While giving a good referral will enhance your relationship, a bad referral will hurt it. If the person you referred does a poor job or is dishonest, your reputation is what takes the biggest hit. Your relationship with the prospect will probably suffer, at least temporarily, and you may even lose that person as a customer.
For example, even top-flight master networkers can inadvertently pass a bad referral once in a while. I started a new company with two partners--Mike A and Mike B. Knowing that we'd be doing a lot of business printing, Mike A referred one of his clients, who owned a business-printing company, to Mike B. A deal was made, but before long it became apparent that the vendor was charging for services that hadn't been included in the quote. Mike B called Mike A and complained. Mike A called the business printer and complained. The vendor called Mike B and apologized for neglecting to reveal hidden charges in the contract. Mike B told him, "I'll accept your apology, but I think the bigger apology needs to go to my partner, because he's the one who referred you. You've done him a lot more damage than you've done me."
Since that time, we've done no business with that business printer and would never consider referring him to anyone we know. It was later learned that the vendor had cheated other people Mike A had referred him to and that, like termites, the damage to Mike A's reputation stayed hidden until it came to light in his own business referral. In the end, Mike A greatly mitigated the damage by contacting and apologizing to each of the people whose business had been harmed by the unscrupulous vendor he'd referred them to. In this way, he was able to minimize the damage to his own networking relationships.
As you can see, the biggest risk in this referral was to the referral giver's reputation and business relationships. Many people hired this printer without a bid process because of Mike A's reputation and clout. That's why referral marketing is dangerous, and why the referral giver owes it to himself and others to know as much as possible about the vendors he's referring to others. Take the time to get to know the people you're referring. Make sure they have integrity; if they don't, your reputation is at risk. Here's another important point: Never give good referrals to people who don't want them or can't handle them with integrity and professionalism.
Similarly, if the person being referred assumes he's got carte blanche because he's a referral--a friend of a friend--he can do himself permanent damage by performing poorly or dishonestly. When your business depends on word-of-mouth, you can't hide behind a mass advertising campaign and bank on plenty of new customers replacing used-up, disgruntled ones. Word-of-mouth is always working--if not for you, then against you.
The same thing goes for the prospect. If you're expecting to get a break--say a special price or a freebie--or if you try to take advantage of a situation in which a friend referred you to a vendor she knows, there's a strong chance you're damaging the vendor's relationship with your friend by making her look bad. Rather than refer other vendors to you and risk damaging those relationships, chances are the referral giver is going to avoid you in the future.
As you can see, everybody in this three-way referral relationship is in a fishbowl. Everything you're doing or communicating, everything you're displaying, is part of your word-of-mouth message. Dishonesty, incompetence and carelessness quickly become apparent to all. In traditional advertising, a graphic designer can create your image--your brand. In word-of-mouth marketing, your image is not only what's been created for you, it's also the way you come to the table--even the way you behave in roles outside of business. For example, if your child's Little League coach is timely, well-behaved, professional and a good leader, you'll be favorably disposed toward giving him your business when you learn he's also a respected attorney. His professional demeanor outside of business is likely to win him clients. Taking a similar approach in life is likely to win you business, too.
Even for someone who's honest, skilled and dedicated, word-of-mouth marketing may not be the best choice. If your business can ring up plenty of sales based on your customer service reputation alone, if you're uncomfortable spending the face time needed to maintain good networking relationships and if you don't want to do marketing yourself--traditional advertising probably should be your choice of marketing strategy.
Remember, word-of-mouth is always working; it's just not always working for you--especially if you're a jerk.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
A lot of reputations are at stake when you give a referral--including yours. Make it count and keep your integrity.
By Ivan Misner | March 04, 2009
Word-of-mouth is the most effective form of advertising--but it's not the safest. Some people approach referral marketing with an attitude that all they have to do is get to know people and referral business will simply bubble up like spring water. What they don't realize is that once trust evaporates, so does the water.
In word-of-mouth (or referral) marketing, your integrity and your reputation are on the line all the time. You can't hide behind an ad. In the referral process, you're continually transparent; you've got to do what you say you're going to do. You've got to be professional. Any flaw in your integrity becomes instantly visible to everyone you're dealing with.
When you give a referral, you give away a little bit of your reputation. While giving a good referral will enhance your relationship, a bad referral will hurt it. If the person you referred does a poor job or is dishonest, your reputation is what takes the biggest hit. Your relationship with the prospect will probably suffer, at least temporarily, and you may even lose that person as a customer.
For example, even top-flight master networkers can inadvertently pass a bad referral once in a while. I started a new company with two partners--Mike A and Mike B. Knowing that we'd be doing a lot of business printing, Mike A referred one of his clients, who owned a business-printing company, to Mike B. A deal was made, but before long it became apparent that the vendor was charging for services that hadn't been included in the quote. Mike B called Mike A and complained. Mike A called the business printer and complained. The vendor called Mike B and apologized for neglecting to reveal hidden charges in the contract. Mike B told him, "I'll accept your apology, but I think the bigger apology needs to go to my partner, because he's the one who referred you. You've done him a lot more damage than you've done me."
Since that time, we've done no business with that business printer and would never consider referring him to anyone we know. It was later learned that the vendor had cheated other people Mike A had referred him to and that, like termites, the damage to Mike A's reputation stayed hidden until it came to light in his own business referral. In the end, Mike A greatly mitigated the damage by contacting and apologizing to each of the people whose business had been harmed by the unscrupulous vendor he'd referred them to. In this way, he was able to minimize the damage to his own networking relationships.
As you can see, the biggest risk in this referral was to the referral giver's reputation and business relationships. Many people hired this printer without a bid process because of Mike A's reputation and clout. That's why referral marketing is dangerous, and why the referral giver owes it to himself and others to know as much as possible about the vendors he's referring to others. Take the time to get to know the people you're referring. Make sure they have integrity; if they don't, your reputation is at risk. Here's another important point: Never give good referrals to people who don't want them or can't handle them with integrity and professionalism.
Similarly, if the person being referred assumes he's got carte blanche because he's a referral--a friend of a friend--he can do himself permanent damage by performing poorly or dishonestly. When your business depends on word-of-mouth, you can't hide behind a mass advertising campaign and bank on plenty of new customers replacing used-up, disgruntled ones. Word-of-mouth is always working--if not for you, then against you.
The same thing goes for the prospect. If you're expecting to get a break--say a special price or a freebie--or if you try to take advantage of a situation in which a friend referred you to a vendor she knows, there's a strong chance you're damaging the vendor's relationship with your friend by making her look bad. Rather than refer other vendors to you and risk damaging those relationships, chances are the referral giver is going to avoid you in the future.
As you can see, everybody in this three-way referral relationship is in a fishbowl. Everything you're doing or communicating, everything you're displaying, is part of your word-of-mouth message. Dishonesty, incompetence and carelessness quickly become apparent to all. In traditional advertising, a graphic designer can create your image--your brand. In word-of-mouth marketing, your image is not only what's been created for you, it's also the way you come to the table--even the way you behave in roles outside of business. For example, if your child's Little League coach is timely, well-behaved, professional and a good leader, you'll be favorably disposed toward giving him your business when you learn he's also a respected attorney. His professional demeanor outside of business is likely to win him clients. Taking a similar approach in life is likely to win you business, too.
Even for someone who's honest, skilled and dedicated, word-of-mouth marketing may not be the best choice. If your business can ring up plenty of sales based on your customer service reputation alone, if you're uncomfortable spending the face time needed to maintain good networking relationships and if you don't want to do marketing yourself--traditional advertising probably should be your choice of marketing strategy.
Remember, word-of-mouth is always working; it's just not always working for you--especially if you're a jerk.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
Tuesday, January 5, 2010
Use small actions to get big results
Use Small Actions to Get Big Results
When it comes to creating relationships with other companies, take a long-term approach.
By Ivan Misner | December 03, 2008
I was recently speaking to a friend of mine who's a partner in an international consulting and training company when we discovered we had a mutual acquaintance--a bestselling author and fairly well-known speaker.
In our discussion, we found out he'd contacted each of us individually to see if there were any possibilities for some type of strategic alliance with his company and each of our own, individually. We were both open to the possibility but couldn't see an immediate and dramatic way our companies could link with his and undertake any specific projects at that time. We were both a bit amused to then discover that we were summarily "dropped" from his radar after that.
We sensed he was looking for that one big alliance that would help his company soar to the next level. Ironically, we'd had the same type of phone call with each other just 18 months earlier. We had come basically to the same conclusion: There was nothing on a grand scale that we could do together at that moment. The difference, however, was the rest of the story.
You see, we agreed to stay in touch, and we did. We connected several times over the year and met in person as well. During that time, we gradually found some simple ways to help each other and slowly enhanced the relationship. This was a sharp contrast from the third party we'd talked to individually. We both felt that when this person didn't see any big payoff, we became persona non grata with him. On the other hand, the two of us found ways to help each other gradually and still continue to build our relationship.
We came to the conclusion that most people who are successful at networking and creating strong strategic alliances view the process as a series of small actions taken with many people to create a long-term positive growth for their companies. The process is more of a marathon than a sprint. Throughout the race, you form alliances and help each other in what may seem like little ways over the long haul, but small actions over time can create big results.
Here's another real-life example of a scenario in which two companies reached out to me and my company to try to achieve a strategic alliance:
The first company, which shall remain nameless on the grounds that it likes to slam folks it doesn't approve of in the media, contacted me. Its introduction was akin to "Glad to meet you--let's get married!" I really got the sense from this company that it wanted to give me the privilege of sharing my entire database of contacts with it based on who it was and how amazing it would be for me to even say I had stood in its shadow. Get the picture?
When I explained our corporate philosophy and my own personal belief system that deepening a business alliance and building a relationship with a business partner took time and effort before getting to the "let's get married" stage, this company abruptly ended the call and--I imagine--moved on down its computer-generated list of businesses to call.
By contrast, here's how a second organization in the same business approached the same issue: The owner himself contacted me and started the conversation by asking what our corporate plans were. I shared with him what our overall goal for growth was over the next five years. The next statement from him was, "We want to help you achieve that!"
From there it went from "Glad to meet you" to "Let's get to know each other better." He then shared with me that he had ideas that could help us achieve our corporate goal and help our members perform better in business at the same time.
When I explained, as I had with Company X, that our philosophy as a networking organization was one of mutual cooperation and that our belief was that anything really of value to either of us would take time, he completely got it.
Our relationship has developed organically, and we now have a strong strategic alliance with the organization based on getting to know each other and working with each other gradually.
I'm not sure how Company X is faring; I don't hear so much about their program anymore. I wonder why.
Looking back over two decades of building an international company, I can clearly see that no one person or company brought something to the table that launched my company to the next level. Instead, it was the cumulative effect of many people, many strategic alliances and many well-nurtured relationships that over time catapulted my business higher than ever imagined in the early days. Each contact, each opportunity to reach out to each other and each mutually-beneficial activity served as just one more spoke in the wheel as we rolled up the hill toward success.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and return a reply within 24-48 hours.
When it comes to creating relationships with other companies, take a long-term approach.
By Ivan Misner | December 03, 2008
I was recently speaking to a friend of mine who's a partner in an international consulting and training company when we discovered we had a mutual acquaintance--a bestselling author and fairly well-known speaker.
In our discussion, we found out he'd contacted each of us individually to see if there were any possibilities for some type of strategic alliance with his company and each of our own, individually. We were both open to the possibility but couldn't see an immediate and dramatic way our companies could link with his and undertake any specific projects at that time. We were both a bit amused to then discover that we were summarily "dropped" from his radar after that.
We sensed he was looking for that one big alliance that would help his company soar to the next level. Ironically, we'd had the same type of phone call with each other just 18 months earlier. We had come basically to the same conclusion: There was nothing on a grand scale that we could do together at that moment. The difference, however, was the rest of the story.
You see, we agreed to stay in touch, and we did. We connected several times over the year and met in person as well. During that time, we gradually found some simple ways to help each other and slowly enhanced the relationship. This was a sharp contrast from the third party we'd talked to individually. We both felt that when this person didn't see any big payoff, we became persona non grata with him. On the other hand, the two of us found ways to help each other gradually and still continue to build our relationship.
We came to the conclusion that most people who are successful at networking and creating strong strategic alliances view the process as a series of small actions taken with many people to create a long-term positive growth for their companies. The process is more of a marathon than a sprint. Throughout the race, you form alliances and help each other in what may seem like little ways over the long haul, but small actions over time can create big results.
Here's another real-life example of a scenario in which two companies reached out to me and my company to try to achieve a strategic alliance:
The first company, which shall remain nameless on the grounds that it likes to slam folks it doesn't approve of in the media, contacted me. Its introduction was akin to "Glad to meet you--let's get married!" I really got the sense from this company that it wanted to give me the privilege of sharing my entire database of contacts with it based on who it was and how amazing it would be for me to even say I had stood in its shadow. Get the picture?
When I explained our corporate philosophy and my own personal belief system that deepening a business alliance and building a relationship with a business partner took time and effort before getting to the "let's get married" stage, this company abruptly ended the call and--I imagine--moved on down its computer-generated list of businesses to call.
By contrast, here's how a second organization in the same business approached the same issue: The owner himself contacted me and started the conversation by asking what our corporate plans were. I shared with him what our overall goal for growth was over the next five years. The next statement from him was, "We want to help you achieve that!"
From there it went from "Glad to meet you" to "Let's get to know each other better." He then shared with me that he had ideas that could help us achieve our corporate goal and help our members perform better in business at the same time.
When I explained, as I had with Company X, that our philosophy as a networking organization was one of mutual cooperation and that our belief was that anything really of value to either of us would take time, he completely got it.
Our relationship has developed organically, and we now have a strong strategic alliance with the organization based on getting to know each other and working with each other gradually.
I'm not sure how Company X is faring; I don't hear so much about their program anymore. I wonder why.
Looking back over two decades of building an international company, I can clearly see that no one person or company brought something to the table that launched my company to the next level. Instead, it was the cumulative effect of many people, many strategic alliances and many well-nurtured relationships that over time catapulted my business higher than ever imagined in the early days. Each contact, each opportunity to reach out to each other and each mutually-beneficial activity served as just one more spoke in the wheel as we rolled up the hill toward success.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I will try and return a reply within 24-48 hours.
Monday, January 4, 2010
You never know who they know
You Never Know Whom They Know
Don't think a gardener can be a referral source to the rich? Think again. Discounting even one potential networking opportunity can be disastrous.
By Ivan Misner | January 15, 2009
We don't walk around wearing signs displaying the names of everyone we know. It would probably shock you to learn about some of the influential people your best friend knows but hasn't told you about. You can't assume that your friend, acquaintance or referral partner doesn't have powerful contacts that can help you--or your business--in important ways.
Never underestimate the depth of the contact pool your fellow networkers are swimming in. There's a well-known story among referral networkers about a project management consultant who did business with large manufacturers and was asking for referrals. He was talking with a woman who owned a small gift-basket business, and she expressed interest in helping him. The consultant loftily informed her that he didn't see any possible way she could help him.
"Well, tell me what you do," she said.
"I go to manufacturers and help them with their processes. I'm sure you've never heard of any of the people I need to meet." He turned and walked away.
The gift-basket woman smiled and said nothing. She had a secret. Among her clients were several large manufacturing companies. She knew personally many executives at higher levels in these companies. Moreover, her father-in-law owned the largest manufacturing company in town. She was the best referral source the consultant could ever have, and he had rudely turned his back and walked away without realizing how much money he had left on the table. She smiled, but she wasn't going to be saying good things about him.
The value that you bring to a referral network or to a strategic alliance is directly related to the number of relationships you have and the quality of those relationships. In a typical referral-networking group of 20 to 40 people, the number of referrals that could be created, among all the possible contacts within one or two degrees of separation, is almost incalculable. And it doesn't take a corporate executive to connect you with another corporate executive, or a rich person to introduce you to another rich, influential person. That's not the way the world works anymore--and quite honestly, I'm not sure it ever was.
A friend of mine tells of a high-end property developer who was invited to a networking group's golf tournament as a guest to see what referral networking was all about. He came, but only because he loved golf. As a big-money developer, he "didn't need to network." He came to the awards dinner afterward only because his foursome won.
At the dinner, he happened to be seated next to a financial advisor who had grown wealthy through referral networking and become a property investor. Through conversation, the guest mentioned to the financial advisor that he was having trouble getting a bank loan on a big property deal. Hearing this, the financial advisor told him that he might be interested in investing. Within a few days, the two were negotiating a six-figure deal.
The moral of that story? Always pursue the networking opportunity of an event--you never know whom you're going to sit next to.
An associate of mine tells another great story about a financial advisor who received an enormous amount of business referred to him by a gardener on Cape Cod. Now, how can a gardener be a primary referral source for a financial advisor? Well, not only don't you know who they know, you also don't know how well they know who they know.
The gardener had an upscale clientele: big houses, rich people. He told the investment advisor that he would bring him some referrals. And the investment advisor thought: This person can't possibly help me. He's a digger in the dirt. He's a peon. What leverage, what credibility could this laborer have with his rich bosses?
Well, the gardener worked all summer long at these big houses. And who lived in these houses in the summer? The wives, of course. Who made the decisions about the gardens? That's right, the wives. So all summer long, the gardener was developing good professional relationships with the wives.
At the end of the summer, the gardener approached one of the wives and said, "Mrs. Gottbucks (not her real name, I hope), can I run something by you? You're doing well and I imagine you guys have a financial advisor--you know, an expert to help you with your investments. Can I ask you for some advice? See, I've managed to save up a bit of money, and there's this guy in my referral group who has a really unique way of packaging investments and getting a bigger return, and he says that by using article 32.3(e) in the tax code, I can save a lot on my taxes. He says he's saved dozens of clients thousands of dollars this way. Can you tell me if that sounds right? I suppose your financial advisor's saving you a lot of money that way, right?"
And the wife said, "Gee, I don't know. . .I'll have to check on that. By the way, what did you say your advisor's name is?"
Whether you're talking to a gift basket lady, financial advisor or gardener. . .remember, you never know who they know.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I usually reply back with 24 to 48 hours of reciept of request.
Don't think a gardener can be a referral source to the rich? Think again. Discounting even one potential networking opportunity can be disastrous.
By Ivan Misner | January 15, 2009
We don't walk around wearing signs displaying the names of everyone we know. It would probably shock you to learn about some of the influential people your best friend knows but hasn't told you about. You can't assume that your friend, acquaintance or referral partner doesn't have powerful contacts that can help you--or your business--in important ways.
Never underestimate the depth of the contact pool your fellow networkers are swimming in. There's a well-known story among referral networkers about a project management consultant who did business with large manufacturers and was asking for referrals. He was talking with a woman who owned a small gift-basket business, and she expressed interest in helping him. The consultant loftily informed her that he didn't see any possible way she could help him.
"Well, tell me what you do," she said.
"I go to manufacturers and help them with their processes. I'm sure you've never heard of any of the people I need to meet." He turned and walked away.
The gift-basket woman smiled and said nothing. She had a secret. Among her clients were several large manufacturing companies. She knew personally many executives at higher levels in these companies. Moreover, her father-in-law owned the largest manufacturing company in town. She was the best referral source the consultant could ever have, and he had rudely turned his back and walked away without realizing how much money he had left on the table. She smiled, but she wasn't going to be saying good things about him.
The value that you bring to a referral network or to a strategic alliance is directly related to the number of relationships you have and the quality of those relationships. In a typical referral-networking group of 20 to 40 people, the number of referrals that could be created, among all the possible contacts within one or two degrees of separation, is almost incalculable. And it doesn't take a corporate executive to connect you with another corporate executive, or a rich person to introduce you to another rich, influential person. That's not the way the world works anymore--and quite honestly, I'm not sure it ever was.
A friend of mine tells of a high-end property developer who was invited to a networking group's golf tournament as a guest to see what referral networking was all about. He came, but only because he loved golf. As a big-money developer, he "didn't need to network." He came to the awards dinner afterward only because his foursome won.
At the dinner, he happened to be seated next to a financial advisor who had grown wealthy through referral networking and become a property investor. Through conversation, the guest mentioned to the financial advisor that he was having trouble getting a bank loan on a big property deal. Hearing this, the financial advisor told him that he might be interested in investing. Within a few days, the two were negotiating a six-figure deal.
The moral of that story? Always pursue the networking opportunity of an event--you never know whom you're going to sit next to.
An associate of mine tells another great story about a financial advisor who received an enormous amount of business referred to him by a gardener on Cape Cod. Now, how can a gardener be a primary referral source for a financial advisor? Well, not only don't you know who they know, you also don't know how well they know who they know.
The gardener had an upscale clientele: big houses, rich people. He told the investment advisor that he would bring him some referrals. And the investment advisor thought: This person can't possibly help me. He's a digger in the dirt. He's a peon. What leverage, what credibility could this laborer have with his rich bosses?
Well, the gardener worked all summer long at these big houses. And who lived in these houses in the summer? The wives, of course. Who made the decisions about the gardens? That's right, the wives. So all summer long, the gardener was developing good professional relationships with the wives.
At the end of the summer, the gardener approached one of the wives and said, "Mrs. Gottbucks (not her real name, I hope), can I run something by you? You're doing well and I imagine you guys have a financial advisor--you know, an expert to help you with your investments. Can I ask you for some advice? See, I've managed to save up a bit of money, and there's this guy in my referral group who has a really unique way of packaging investments and getting a bigger return, and he says that by using article 32.3(e) in the tax code, I can save a lot on my taxes. He says he's saved dozens of clients thousands of dollars this way. Can you tell me if that sounds right? I suppose your financial advisor's saving you a lot of money that way, right?"
And the wife said, "Gee, I don't know. . .I'll have to check on that. By the way, what did you say your advisor's name is?"
Whether you're talking to a gift basket lady, financial advisor or gardener. . .remember, you never know who they know.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com. I usually reply back with 24 to 48 hours of reciept of request.
Tuesday, December 15, 2009
New to Networking No problem
New To Networking? No Problem
Build your networking skills--one step at a time.
By Ivan Misner | November 30, 2009
Print ShareThis Get the Mag Weekly Updates [-] Text Size [+]
As an entrepreneur, one of your primary goals is to continue to fill your pipeline with new business. One of the most cost-effective ways to do this--particularly for a smaller business--is through networking. Before you can begin to be an effective networker, it's important to identify some of the strengths and skill sets that you bring to the table as a business professional.
•Are you a people person?
•Do you enjoy public speaking?
•What kind of professional background did you have before starting your business?
•How long have you lived in the area where you do business?
•What other natural skills do you have (such as time management, organizational skills or keeping clients focused) that may not fall directly into your business expertise but are valued by people?
One of the biggest roadblocks to networking is the fear that being more of an introvert impedes any successful attempts at networking. In fact, it's a question I get quite frequently: "How do I network if I'm not a naturally outgoing person?"
Go ahead and breathe a sigh of relief, you don't have to become Mr. Man-About-Town, to be a successful networker. Most business people, over time, naturally develop a certain level of comfort from dealings with customers, vendors and others in their day-to-day transactions. So even people who aren't gregarious or outgoing can form meaningful relationships and communicate with a little practice.
Become the host
Over years of teaching people the art of networking we've found many techniques that can make the process markedly easier--especially for those who consider themselves a bit introverted. For example, volunteering to be an ambassador or visitor host for a local business networking event can be a great way to get involved without leaving your comfort-zone.
If you're wondering how being a host can help your introversion just think about it. When you have guests at your house or office, what do you do? You engage them, make them feel comfortable; perhaps offer them something to drink. What you don't do is stand by yourself in the corner thinking about how much you hate meeting new people.
By serving as a visitor host at your local chamber event, you effectively become the host of the party. Try it! You'll find it much easier to meet and talk to new people.
Build your social capital at your desk
If it's taking you a bit longer to get used to face-to-face networking, remember that thanks to technology's continuing advances, you can also network without ever leaving your desk--online networking is a very effective way to connect with potential clients and referral sources.
Computer technology and the growth of the internet has made it easier than ever before to connect with large numbers of people. Online networking gives you broad reach with low cost and effort.
What online networking doesn't do, however, is provide a forum where relationships can deepen. The nature of the medium strips away essential communication cues such as facial expression, tone of voice, and body language. That is why emoticons were invented--to help convey whether one is happy :D, unhappy :(, or joking around ;).
Online networking has an etiquette all its own which some would deem rude. Communications are blunter and less polite, and this often comes across as aggressiveness. It's easy to get "flamed" online-- encounter open hostility that is. In person, social norms still dictate more restraint.
It's usually better to use online networking with people only after you've established a relationship with them by traditional means. To develop trust, respect and true friendship, it's hard to beat in-person conversation and the occasional handshake or pat on the shoulder.
Offer advice to break the ice
So, we're back to the challenge of doing some face-to-face networking and you haven't had much practice at it, or you're not sure how to break the ice. You might want to start by offering some free professional advice.
Let's say you're a real estate agent talking with someone at a networking event who, although not ready to buy a home today, is heading in that direction. You could say something like this:
Well, I know you're not interested in buying a home right now. But when you're ready to start looking, I'd highly recommend checking out the north part of town. A lot of my clients are seeing their homes appreciate in the 10 to 20 percent range, and from what I understand, the city is thinking about building another middle school in that area.
See how it's possible to offer some value-added advice without coming across too sales-y? A statement like this acknowledges that you aren't trying to push them, while still demonstrating your expertise. He will probably remember the conversation when he's ready to act.
This model works for just about anyone in a service-based industry in which knowledge is the main product. If you're a marketing consultant, give your prospects a couple of ideas on how they can increase the exposure of their business. Don't go overboard; maybe share a technique you read in a magazine or tried with one of your clients.
This technique open up a good conversation with the person while you're networking and, if you play your cards right, who do you think they'll go to when they're in need of your kind of service? When it comes to building rapport and trust, few things do it better than solid, helpful information provided out of a genuine concern for the other person.
Become a trusted source for quality referrals and contacts
Another way to ease into networking is to provide a referral or contact. This could be a direct referral (someone you know who's in the market for another person's services) or a solid contact (someone who might be helpful down the road).
Let's say you're networking, and you run into a person who owns a printing shop. You talk for a while, you hit it off, and even though you don't know of anyone who's looking for this person's selection of print services right now, you'd like to help him out. So you say:
Jim, I don't know of anyone who's actively in the market for printing services right now, but I do have someone who I think could be a big help to your business. Her name is Jane Smith, and she's a marketing consultant. I know a lot of her clients need business cards, flyers and things like that printed, and while I don't know if she has a deal on the table right now, I think you both would really hit it off if you got together.
You see how easy that was? You stated right up front you don't know what will come of the contact. But you then followed up by saying you do think this person could help and briefly described how. Chances are this will sound like a good idea to your new contact.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
Build your networking skills--one step at a time.
By Ivan Misner | November 30, 2009
Print ShareThis Get the Mag Weekly Updates [-] Text Size [+]
As an entrepreneur, one of your primary goals is to continue to fill your pipeline with new business. One of the most cost-effective ways to do this--particularly for a smaller business--is through networking. Before you can begin to be an effective networker, it's important to identify some of the strengths and skill sets that you bring to the table as a business professional.
•Are you a people person?
•Do you enjoy public speaking?
•What kind of professional background did you have before starting your business?
•How long have you lived in the area where you do business?
•What other natural skills do you have (such as time management, organizational skills or keeping clients focused) that may not fall directly into your business expertise but are valued by people?
One of the biggest roadblocks to networking is the fear that being more of an introvert impedes any successful attempts at networking. In fact, it's a question I get quite frequently: "How do I network if I'm not a naturally outgoing person?"
Go ahead and breathe a sigh of relief, you don't have to become Mr. Man-About-Town, to be a successful networker. Most business people, over time, naturally develop a certain level of comfort from dealings with customers, vendors and others in their day-to-day transactions. So even people who aren't gregarious or outgoing can form meaningful relationships and communicate with a little practice.
Become the host
Over years of teaching people the art of networking we've found many techniques that can make the process markedly easier--especially for those who consider themselves a bit introverted. For example, volunteering to be an ambassador or visitor host for a local business networking event can be a great way to get involved without leaving your comfort-zone.
If you're wondering how being a host can help your introversion just think about it. When you have guests at your house or office, what do you do? You engage them, make them feel comfortable; perhaps offer them something to drink. What you don't do is stand by yourself in the corner thinking about how much you hate meeting new people.
By serving as a visitor host at your local chamber event, you effectively become the host of the party. Try it! You'll find it much easier to meet and talk to new people.
Build your social capital at your desk
If it's taking you a bit longer to get used to face-to-face networking, remember that thanks to technology's continuing advances, you can also network without ever leaving your desk--online networking is a very effective way to connect with potential clients and referral sources.
Computer technology and the growth of the internet has made it easier than ever before to connect with large numbers of people. Online networking gives you broad reach with low cost and effort.
What online networking doesn't do, however, is provide a forum where relationships can deepen. The nature of the medium strips away essential communication cues such as facial expression, tone of voice, and body language. That is why emoticons were invented--to help convey whether one is happy :D, unhappy :(, or joking around ;).
Online networking has an etiquette all its own which some would deem rude. Communications are blunter and less polite, and this often comes across as aggressiveness. It's easy to get "flamed" online-- encounter open hostility that is. In person, social norms still dictate more restraint.
It's usually better to use online networking with people only after you've established a relationship with them by traditional means. To develop trust, respect and true friendship, it's hard to beat in-person conversation and the occasional handshake or pat on the shoulder.
Offer advice to break the ice
So, we're back to the challenge of doing some face-to-face networking and you haven't had much practice at it, or you're not sure how to break the ice. You might want to start by offering some free professional advice.
Let's say you're a real estate agent talking with someone at a networking event who, although not ready to buy a home today, is heading in that direction. You could say something like this:
Well, I know you're not interested in buying a home right now. But when you're ready to start looking, I'd highly recommend checking out the north part of town. A lot of my clients are seeing their homes appreciate in the 10 to 20 percent range, and from what I understand, the city is thinking about building another middle school in that area.
See how it's possible to offer some value-added advice without coming across too sales-y? A statement like this acknowledges that you aren't trying to push them, while still demonstrating your expertise. He will probably remember the conversation when he's ready to act.
This model works for just about anyone in a service-based industry in which knowledge is the main product. If you're a marketing consultant, give your prospects a couple of ideas on how they can increase the exposure of their business. Don't go overboard; maybe share a technique you read in a magazine or tried with one of your clients.
This technique open up a good conversation with the person while you're networking and, if you play your cards right, who do you think they'll go to when they're in need of your kind of service? When it comes to building rapport and trust, few things do it better than solid, helpful information provided out of a genuine concern for the other person.
Become a trusted source for quality referrals and contacts
Another way to ease into networking is to provide a referral or contact. This could be a direct referral (someone you know who's in the market for another person's services) or a solid contact (someone who might be helpful down the road).
Let's say you're networking, and you run into a person who owns a printing shop. You talk for a while, you hit it off, and even though you don't know of anyone who's looking for this person's selection of print services right now, you'd like to help him out. So you say:
Jim, I don't know of anyone who's actively in the market for printing services right now, but I do have someone who I think could be a big help to your business. Her name is Jane Smith, and she's a marketing consultant. I know a lot of her clients need business cards, flyers and things like that printed, and while I don't know if she has a deal on the table right now, I think you both would really hit it off if you got together.
You see how easy that was? You stated right up front you don't know what will come of the contact. But you then followed up by saying you do think this person could help and briefly described how. Chances are this will sound like a good idea to your new contact.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
Monday, December 7, 2009
How & Where People Network
How--and Where--People Network
Online isn't for everyone; geography matters when it comes to building connections.
By Ivan Misner and Lisa Harris and Alan Rae | November 10, 2009
There are countless online networking activities we could participate in but it's not always clear which online networking sites are truly beneficial. Plus, it can be difficult to figure out how much time we should devote to online networking in order for it to be effective.
One of the things that's changed over the last five or six years is that people no longer trust the experts very much; instead we trust our peers. Therefore--in order to try to get some answers to our questions about how much time we should spend networking and where we should network (face-to-face and online)--we thought the best thing route would be to ask our colleagues.
So last autumn we created a questionnaire, asking people like ourselves how much time they spent networking, what specific marketing tools they used and how they balanced online and real world networking. The last questions we asked pertained to how they liked to network, which events worked best, what size group proved was most beneficial for them and how the process of trust development played out. In the end, 650 people completed the questionnaire; mostly entrepreneurs found through BNI, Ecademy or LinkedIn.
The results of the questionnaire provide very useful information to consider when contemplating a networking strategy.
• The average amount of time business owners spend promoting their business is 12-15 hours. Promotion activities include everything from sales to networking to online and conventional marketing.
• While face-to-face networking activity proved to be overwhelmingly important to respondents, it's also clear that LinkedIn has become an important networking tool, especially for small businesses.
• Other popular tools include workshops, PR, online advertising, and e-mail (more than 25 percent of respondents did one or all of these activities regularly or said they depended on them).
• On the internet side of networking, LinkedIn and Ecademy were favored sites. In the physical world, BNI and other structured events seem to be where people are focusing their networking efforts.
Most people reported that they prefer to network in groups of 20 to 40 people, but there were some that reported a preference for much larger groups. Larger networking groups appear to be more popular among employees of larger companies, European companies, high growth and global companies.
The people who most effectively utilize online media are also good face to face networkers; it seems they're using technology to as an alternative to conventional growth business models.
We also investigated the effects of scalability--whether or not the business is limited by demand rather than its ability to supply or whether a local, national or global orientation has any effect on how people network. It turns out whether or not the business considers itself local (defined as getting 80 percent of its business within a 50 mile radius) or national in scope has a pronounced effect on networking strategies.
Entrepreneurs that think of their companies as national are:
• Twice as likely to use LinkedIn; 40 percent vs. 20 percent,
• More likely to use Twitter; 10 percent vs. 2 percent,
• Twice as likely to use online social networks; 30 percent vs. 15 percent,
• More than twice as likely to have a blog; 25 percent vs. 10 percent,
• More likely to value chance encounters; 22 percent vs. 14 percent,
• Three times as likely to prefer big networking groups of 100 to 1000 members; 16 percent vs. 5 percent.
Thomas Power, chairman of Ecademy, says the key challenge in marketing is to meet and become liked by the 50 people who can most affect your business. An analysis of the data from our survey suggests if you have a local, non-scalable business--like a small, community-oriented organic vegetable business--you can better find those 50 people by conventional, local networking.
However, if you're trying to promote ideas or scalable services nationally, you'll benefit from the random connections that internet networking offers.
Our survey also revealed commonalities across the various groups. All networkers spoke of the importance of a core, local support group. Further, most people prefer to face-to-face networking groups of 20 to 30 individuals.
In addition, all survey participants believe that trust is generated by listening, practicing Givers Gain® and following up with people quickly. A good reputation is based on the opinions of others, evidence of enthusiasm and commitment and the ability to give referrals before expecting them.
Most important to building a good reputation--you must develop the characteristic of clarity. Be clear about what you do, what you stand for and what benefits you and your business offers people who might use your services. Only after peers like you, trust you and clearly know what you do will they give you referrals; regardless of whether you're dealing in online or face-to-face networking.
Since the overwhelming majority of our survey respondents offer business services, and since most business in that industry comes by referral or recommendation, this is real food for thought.
So, where does your business fit into these findings? Do you feel that spending more time online would benefit you or not?
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
Online isn't for everyone; geography matters when it comes to building connections.
By Ivan Misner and Lisa Harris and Alan Rae | November 10, 2009
There are countless online networking activities we could participate in but it's not always clear which online networking sites are truly beneficial. Plus, it can be difficult to figure out how much time we should devote to online networking in order for it to be effective.
One of the things that's changed over the last five or six years is that people no longer trust the experts very much; instead we trust our peers. Therefore--in order to try to get some answers to our questions about how much time we should spend networking and where we should network (face-to-face and online)--we thought the best thing route would be to ask our colleagues.
So last autumn we created a questionnaire, asking people like ourselves how much time they spent networking, what specific marketing tools they used and how they balanced online and real world networking. The last questions we asked pertained to how they liked to network, which events worked best, what size group proved was most beneficial for them and how the process of trust development played out. In the end, 650 people completed the questionnaire; mostly entrepreneurs found through BNI, Ecademy or LinkedIn.
The results of the questionnaire provide very useful information to consider when contemplating a networking strategy.
• The average amount of time business owners spend promoting their business is 12-15 hours. Promotion activities include everything from sales to networking to online and conventional marketing.
• While face-to-face networking activity proved to be overwhelmingly important to respondents, it's also clear that LinkedIn has become an important networking tool, especially for small businesses.
• Other popular tools include workshops, PR, online advertising, and e-mail (more than 25 percent of respondents did one or all of these activities regularly or said they depended on them).
• On the internet side of networking, LinkedIn and Ecademy were favored sites. In the physical world, BNI and other structured events seem to be where people are focusing their networking efforts.
Most people reported that they prefer to network in groups of 20 to 40 people, but there were some that reported a preference for much larger groups. Larger networking groups appear to be more popular among employees of larger companies, European companies, high growth and global companies.
The people who most effectively utilize online media are also good face to face networkers; it seems they're using technology to as an alternative to conventional growth business models.
We also investigated the effects of scalability--whether or not the business is limited by demand rather than its ability to supply or whether a local, national or global orientation has any effect on how people network. It turns out whether or not the business considers itself local (defined as getting 80 percent of its business within a 50 mile radius) or national in scope has a pronounced effect on networking strategies.
Entrepreneurs that think of their companies as national are:
• Twice as likely to use LinkedIn; 40 percent vs. 20 percent,
• More likely to use Twitter; 10 percent vs. 2 percent,
• Twice as likely to use online social networks; 30 percent vs. 15 percent,
• More than twice as likely to have a blog; 25 percent vs. 10 percent,
• More likely to value chance encounters; 22 percent vs. 14 percent,
• Three times as likely to prefer big networking groups of 100 to 1000 members; 16 percent vs. 5 percent.
Thomas Power, chairman of Ecademy, says the key challenge in marketing is to meet and become liked by the 50 people who can most affect your business. An analysis of the data from our survey suggests if you have a local, non-scalable business--like a small, community-oriented organic vegetable business--you can better find those 50 people by conventional, local networking.
However, if you're trying to promote ideas or scalable services nationally, you'll benefit from the random connections that internet networking offers.
Our survey also revealed commonalities across the various groups. All networkers spoke of the importance of a core, local support group. Further, most people prefer to face-to-face networking groups of 20 to 30 individuals.
In addition, all survey participants believe that trust is generated by listening, practicing Givers Gain® and following up with people quickly. A good reputation is based on the opinions of others, evidence of enthusiasm and commitment and the ability to give referrals before expecting them.
Most important to building a good reputation--you must develop the characteristic of clarity. Be clear about what you do, what you stand for and what benefits you and your business offers people who might use your services. Only after peers like you, trust you and clearly know what you do will they give you referrals; regardless of whether you're dealing in online or face-to-face networking.
Since the overwhelming majority of our survey respondents offer business services, and since most business in that industry comes by referral or recommendation, this is real food for thought.
So, where does your business fit into these findings? Do you feel that spending more time online would benefit you or not?
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
Thursday, December 3, 2009
10 Ways to Waste Your Time in a Networking Group
10 Ways to Waste Your Time in a Networking Group
Referral business from networking groups can pay off handsomely, so make the most of every meeting.
By Ivan Misner | October 16, 2009
Word-of-mouth marketing is a sure-fire way to generate new business. A single referral can start a chain reaction of new business as positive word spreads. It's no wonder networking groups pay off handsomely in referral business and that membership in a good networking group can be worth a considerable amount of money; especially if you calculate the time you spend each month and the value of that time.
So make your time and efforts worthwhile. Don't squander your opportunity by doing the wrong things in those meetings.
Success in a networking group comes when the rest of the group members trust you enough to open up their best referrals to you. Unless they've seen your work, you have to earn that trust by demonstrating your professionalism to them. Since founding BNI almost 25 years ago, I've seen how people truly succeeded in networks and I've seen how people totally waste their time in them.
Here are 10 mistakes to avoid if you don't want to waste your time in a networking group:
1. Go ahead, air your grievances among your fellow networkers and guests; after all, they really want to hear about your complaints.
2. Wing it in your regular presentations to fellow members--don't worry, you have a mulligan.
3. Use one-on-one meetings to talk about your networking groups' issues instead of learning more about each other.
4. Focus your efforts primarily on selling your services to members of the group.
5. Don't rush to follow up on a referral when someone gives you one. Hey, they know where to find you if they really need you.
6. While other people are doing their introductions, that's the perfect time to think about what referrals you can give that week.
7. Never invite your own guests, just focus on those who show up.
8. Don't worry if you get to the meeting late. No one will notice.
9. Absenteeism, it's no big deal. You can just call in your referrals ... right?
10. Take that phone call and check your messages during a meeting. No, no, it doesn't bother anyone; actually it's a sign of real professionalism that everyone admires.
Imagine how you'd respond if someone in your networking group continually exhibited the behaviors above. Would you be enthusiastic to pass them referrals? Of course not! You'd be hesitant, rightfully, because they've convinced you that they are unprofessional and irresponsible. Of course you'd withhold your valued connections.
We all need to beware of these common pitfalls and take great care to avoid them. They're great reminders that doing business through word-of-mouth marketing requires a special ingredient that only you can supply--commitment.
Commit to the process from the beginning. You have to be an active, responsible, professional, accountable participant and show your fellow networkers the respect, attention, and support that you want them to give you.
You see, the key concept in referral marketing is relationships, and referral relationships don't just spring up full grown--they must be nurtured. Avoid the 10 mistakes on this list because they're detrimental to growing your referral relationships; they will cause the time you spend in your networking meetings to be nothing more than a waste.
Focus on growing your referral relationships by acting in ways that are exactly opposite of what's described above and concentrate on building relationships based on mutual trust and shared benefits. You'll get a lot more out of your group and so will your fellow members.
Remember, if you start putting together your network when the need arises, you're too late. The better way is to begin developing relationships now with the people whose help you will need in the future. Your networking group meetings offer the perfect opportunity and the perfect place to do this. Make the most of this opportunity because there's no room for wasted time. And if you see chronic offenders at your next meeting, print out this list and pass it along.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
Referral business from networking groups can pay off handsomely, so make the most of every meeting.
By Ivan Misner | October 16, 2009
Word-of-mouth marketing is a sure-fire way to generate new business. A single referral can start a chain reaction of new business as positive word spreads. It's no wonder networking groups pay off handsomely in referral business and that membership in a good networking group can be worth a considerable amount of money; especially if you calculate the time you spend each month and the value of that time.
So make your time and efforts worthwhile. Don't squander your opportunity by doing the wrong things in those meetings.
Success in a networking group comes when the rest of the group members trust you enough to open up their best referrals to you. Unless they've seen your work, you have to earn that trust by demonstrating your professionalism to them. Since founding BNI almost 25 years ago, I've seen how people truly succeeded in networks and I've seen how people totally waste their time in them.
Here are 10 mistakes to avoid if you don't want to waste your time in a networking group:
1. Go ahead, air your grievances among your fellow networkers and guests; after all, they really want to hear about your complaints.
2. Wing it in your regular presentations to fellow members--don't worry, you have a mulligan.
3. Use one-on-one meetings to talk about your networking groups' issues instead of learning more about each other.
4. Focus your efforts primarily on selling your services to members of the group.
5. Don't rush to follow up on a referral when someone gives you one. Hey, they know where to find you if they really need you.
6. While other people are doing their introductions, that's the perfect time to think about what referrals you can give that week.
7. Never invite your own guests, just focus on those who show up.
8. Don't worry if you get to the meeting late. No one will notice.
9. Absenteeism, it's no big deal. You can just call in your referrals ... right?
10. Take that phone call and check your messages during a meeting. No, no, it doesn't bother anyone; actually it's a sign of real professionalism that everyone admires.
Imagine how you'd respond if someone in your networking group continually exhibited the behaviors above. Would you be enthusiastic to pass them referrals? Of course not! You'd be hesitant, rightfully, because they've convinced you that they are unprofessional and irresponsible. Of course you'd withhold your valued connections.
We all need to beware of these common pitfalls and take great care to avoid them. They're great reminders that doing business through word-of-mouth marketing requires a special ingredient that only you can supply--commitment.
Commit to the process from the beginning. You have to be an active, responsible, professional, accountable participant and show your fellow networkers the respect, attention, and support that you want them to give you.
You see, the key concept in referral marketing is relationships, and referral relationships don't just spring up full grown--they must be nurtured. Avoid the 10 mistakes on this list because they're detrimental to growing your referral relationships; they will cause the time you spend in your networking meetings to be nothing more than a waste.
Focus on growing your referral relationships by acting in ways that are exactly opposite of what's described above and concentrate on building relationships based on mutual trust and shared benefits. You'll get a lot more out of your group and so will your fellow members.
Remember, if you start putting together your network when the need arises, you're too late. The better way is to begin developing relationships now with the people whose help you will need in the future. Your networking group meetings offer the perfect opportunity and the perfect place to do this. Make the most of this opportunity because there's no room for wasted time. And if you see chronic offenders at your next meeting, print out this list and pass it along.
As always if you have any questions or comments please email me at rondazaragoza@gmail.com.
Subscribe to:
Posts (Atom)
Posts
