How to Be Effective in Networking Groups Part 1

Word-of-mouth advertising is one of the oldest forms of marketing. Some of us will ask our friends and family who they use for a particular item or service needed. While most real estate agents understand how to work the system many business owners do not know how they can use this powerful business tool.

To be successful at developing word-of-mouth referrals through networking groups, you should be organized. After all there are many other ways to advertize your business goods and services. You need to be thoughtful about it as you are because some can cost you thousands of dollars to be effective. Here are 5 ways to be effective in any networking group you are active in as your business grows.

1. Know how to ask for the referral. There are specific techniques you can learn and develop that will help you master your ability to ask for the referrals or business you want. The best technique is to ask “who do you know who...?” You would then list the types of people you can help, such as someone who is new to the area, someone recently divorced or who has just considering starting a business.

2. Diversify your networks. When joining various organizations, make sure you select a well-rounded mix of business groups in which to participate. These groups might be business referral groups, chambers of commerce, community service groups, and or trade associations. Try to avoid being in more than one group per category such as two chambers of commerce because this could divide your loyalties. This may put you in a position where you’ll be making promises to too many people.

3. Develop a creative incentive to encourage people to send referrals your way. A realtor here in New Mexico offers bottled wine as gifts to clients who give referrals. While some others provide gift baskets to recognize the efforts of those who have passed on business.

4. When attending meetings or other networking events, bring your networking tools with you. These include: an informative name badge, business cards and a business card carrying case to hold others’ cards.

5. Spend time developing your networking skills. Read business books and articles on networking, listen to tapes and talk to people who are always networking. Networking is an acquired skill. This is take time to become an expert at it since you are always learning new ways to network. I mean after all, Face book has been around less than 5 years and you can see many businesses are now using it as a social media tool to network and get the word out.

You are potentially linked to an incredible network beyond your own business because of word of mouth marketing. By implementing a few of these tactics above, you will receive benefits from that network. Maximize your opportunities by cultivating your networking relationships with others and you will see just how effective word-of-mouth advertising can be! Stayed tuned for part two of how to maximize you’re networking capabilities.

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.