The Truth About Belonging to Networking Groups

One of the most cost effective ways to generate revenue for
your firm, is to have other business professionals refer you
business. When this happens, it's like having a sales force out
there working for you without having them on your payroll. The
only way you can get other professionals to do this for you,
though is if they know, like, and trust you. In other words, if
they have a relationship with you.

But how do you build these relationships in a timely fashion
and strong enough to ensure they WILL refer business your
way when they run across it? The easiest way is to get business
professionals together in the same place at the same time and
have a program in place that allows them to build relationships
with others.
That's where networking groups come in. They meet at the
same time at the same place, like an appointment, at regular
intervals to encourage this relationship-building. This can
happen weekly, bi-weekly, monthly or yearly. Studies have
shown that the more exposure a person has to another person,
the faster the relationship gets built. Using this information, it
would be fair to expect that relationships you built in a group
that meets weekly grow stronger faster than those that only
meet monthly. In a year's time, a weekly meeting would expose
business professionals to each other 52 times while with a
monthly meeting, there would be only 12 times.
Groups also vary in their composition. Many groups are
comprised of one business professional from any chosen
field, thus eliminating competition within the group for
specific business leads. Other groups place restrictions on
length of time in business, or level of responsibility in the
firm when deciding on the acceptance of specific members.
Still others have no restrictions at all. Restrictions that are
placed on the membership of a group often help ensure that the
membership is comprised of business professionals who are
all looking for the same thing. In other words, they are all
playing by the same rules. These restrictions can also help
eliminate conflict within a group, thus allowing an easier time
for relationship-building.
Groups vary considerably when it comes to the cost of
involvement. Fees for membership can range from nothing to
thousands of dollars a year. The concept of networking groups
is not a new one, by any means- some older groups have been
around for over 50 years. Almost without a doubt, the groups
that last that long, charge a fee to belong to them. This
ensures that participants are not going to just breeze in, take
what they can get and breeze out. That's not to say that doesn't
happen, but it lowers the incidence of it. Charging a fee makes
a prospective member make a commitment to the group. It also
means that all members have made that same commitment.
The use of the fees varies from group to group as well. Some
groups have a Corporate sponsor- a company that has a name
that is recognized as a Professional Leads Group. In this case,
fees are paid to Corporate and the benefits of a Corporate
sponsor are assumed. One of these benefits is usually that
Corporate provides a Representative to the group who is
responsible for the marketing of the group, so that members
can focus on the marketing of their own businesses. When the
group does not have a Corporate sponsor, these fees are
usually used for the needs of the group- marketing and
advertising support is a common use . Members are expected
to market the group as well as their own businesses.
The only way these groups will work to the maximum for any
business professional is if that person participates in the
group's activities. This participation would include but may not
be limited to :
1. Attending the functions of the group- the regularly scheduled
ones and any special events they may have.
2. Inviting guests to the group who fit the requirements of
membership in the group.
3. Having a commitment to learn how to best help each
member of
the group.
4. Getting in a networking frame of mind so that, when business
for a group member presents itself, it can be passed on to that
member.
5. Serving on a committee or Board of Directors.
6. Developing loyalties within the group.
One of the easiest ways to help remember the wealth of
business that can come from participation in networking
groups, is to think of the group's functions as "appointments"
instead of "meetings". You have the luxury of being able to
meet with multiple prospective clients at the same place and
time, in one "appointment", instead of each one individually.
Networking groups have different structures and focuses.
Some of them can be very rigid and structured, others can be
very loose. Effectiveness in a group is enhanced by being in a
group that "feels" right- where the personalities and the group's
dynamics suite the personality and dynamics of the individual
members. Most groups will allow guests to visit at least once
for free to get a feel for the group. This is strongly encouraged
to ensure that, when a member joins a group, there is enough
of a comfort level with the group dynamics to build strong
business relationships.
Networking groups work. They help business professionals
achieve their business goals and they help develop relationship-
building skills that are just as effective out of the office as in.
The process is called "Networking", which means it involves
"work". Networking groups are one of the most effective types
of work that can be done for business development.