Networking Like a Pro

1. Networking is about farming relationships, not hunting for quick sales

"Networking is about farming for new contacts, not hunting them."

Shift your mindset. Successful networking requires a long-term approach focused on cultivating relationships rather than seeking immediate business opportunities. Like a farmer planting seeds and nurturing crops, networkers should aim to form and build connections wherever possible, understanding that the effort expended upfront will yield a rich harvest later on.

Focus on giving, not getting. Adopt a "Givers Gain" attitude, always looking for ways to help others without expecting immediate reciprocation. This approach builds trust, credibility, and goodwill, which eventually leads to more referrals and business opportunities.

Quality over quantity. Instead of trying to collect as many business cards as possible at events, focus on having meaningful conversations with fewer people. Aim to make 5-10 quality connections per event, spending 5-10 minutes with each person to establish a genuine rapport.

2. The VCP Process: Visibility, Credibility, Profitability

"The VCP Process describes the creation, growth, and strengthening of business, professional, and personal relationships."

Visibility is the first stage, where you become known to others in your network. This involves attending events, joining organizations, and making your presence known in your industry or community.

Credibility is built as you demonstrate your expertise, reliability, and trustworthiness. This can be achieved through:

• Consistently delivering high-quality work
• Sharing valuable knowledge and insights
• Following through on commitments
• Receiving endorsements from others in your network

Profitability is the final stage, where your relationships become mutually beneficial and lead to business opportunities, referrals, and collaborations. This stage is reached only after investing time and effort in building visibility and credibility.

3. Develop a diverse network through four major streams

"Your business strategy comprises multiple elements that work together toward achieving your overall goal, whether that goal is higher sales, greater profit, geographic expansion, or something else."

Casual-contact network: This includes general business groups like chambers of commerce, where you can meet a wide variety of professionals. While these connections may not be as deep, they provide breadth to your network.

Knowledge network: Join professional associations and industry groups to stay informed about developments in your field and connect with peers and potential collaborators.

Online network: Leverage social media platforms and professional networking sites to expand your reach and maintain connections. Use these tools to complement, not replace, face-to-face networking.

Strong-contact group: Participate in dedicated referral groups or organizations focused on business exchange. These provide a structured environment for building deep, mutually beneficial relationships.

4. Master the art of asking questions and active listening

"The human brain can think at 400 to 450 words per minute; the average person, however, speaks 100 to 150 wpm."

Prepare thoughtful questions. Before networking events, prepare a few open-ended questions that encourage others to talk about their business, challenges, and goals. Examples include:

• "What do you like best about what you do?"
• "What got you started in your industry?"
• "What are some of your biggest challenges?"

Practice active listening. Focus your full attention on the person speaking, avoiding the temptation to scan the room for other contacts or plan your response. Use the extra mental capacity to process and understand what's being said.

Follow up with relevant insights. Based on what you've heard, offer valuable information, connections, or resources that could help the other person. This demonstrates your attentiveness and willingness to add value to the relationship.

5. Craft a compelling Unique Selling Proposition (USP)

"Your USP is basically a brief description of the purpose of your business, stated in the most succinct and compelling way possible in order to get others to understand the unique value of what you do."

Identify your target market. Clearly define the specific group of people or businesses that are most likely to benefit from your products or services.

Articulate the problem you solve. Explain the key challenge or pain point that your business addresses for your target market.

Highlight your unique approach. Describe how your solution differs from competitors or traditional methods in your industry.

Keep it concise and memorable. Aim for a one or two-sentence statement that quickly captures attention and invites further conversation. For example: "I help busy entrepreneurs market their business in less than 90 days."

6. Leverage your database and follow-up systematically

"Did you know that the average businessperson's contact database contains 859 names?"

Implement a robust contact management system. Use software like ACT!, Microsoft Outlook, or Relate2Profit.com to organize and track your network connections. Include fields for:

• Contact information
• Date and location of first meeting
• Personal interests or hobbies
• Last interaction and follow-up dates
• Referrals given and received

Develop a follow-up strategy. Create a system for regular, meaningful contact with your network:

• Send personalized follow-up emails within 24-48 hours of meeting new contacts
• Schedule "coffee connections" with promising new contacts within 1-2 weeks
• Make two personal phone calls each week to touch base with past contacts
• Send periodic newsletters or valuable content to your entire database

Segment your contacts. Categorize your network into groups (e.g., A-list, B-list) based on their potential as referral partners or clients. This allows you to prioritize your follow-up efforts and tailor your communication.

7. Become a referral gatekeeper to supercharge your network

"What if I became the hub?"

Position yourself as a connector. Actively seek opportunities to introduce people in your network to each other, even if there's no immediate benefit to you. This establishes you as a valuable resource and increases the likelihood of reciprocal referrals.

Develop expertise across industries. Familiarize yourself with a wide range of businesses and professionals so you can make informed referrals and connections.

Create a referral system. Implement a process for tracking referrals given and received, and follow up to ensure positive outcomes. This could include:

• A database of trusted professionals in various fields
• A standardized introduction format for connecting contacts
• A system for following up on referrals to gauge satisfaction

Communicate your role. Let your network know that you're available as a resource for connections and referrals. Consider creating a letter or email template explaining your commitment to facilitating valuable introductions.

8. Create a Chief Networking Officer mindset

"Don't hire a CNO; just take on a CNO mind-set."

Allocate dedicated time. Set aside 2-3 hours per week specifically for networking activities, treating it as a crucial business function rather than an afterthought.

Develop a networking strategy. Create a plan that outlines:

• Target industries or professions for expanding your network
• Specific networking events or groups to attend regularly
• Goals for new contacts, follow-ups, and referrals each month

Track and measure results. Use tools like the Networking Scorecard to monitor your networking efforts and their outcomes. Regularly review and adjust your strategy based on these metrics.

Cultivate a giving mindset. Approach every interaction with the question, "How can I help this person?" This attitude will naturally lead to stronger relationships and more referral opportunities.

9. Implement creative rewards to incentivize referrals

"Creativity is the key to any good incentive program."

Think beyond cash rewards. While finder's fees can work in some situations, consider more personal and memorable incentives:

• Customized gifts (e.g., a unique wine blend, concert tickets)
• Exclusive experiences (e.g., dinner at a high-end restaurant)
• Recognition (e.g., a "referral partner of the month" program)

Tailor incentives to different groups. Develop separate reward systems for employees, clients, and networking partners to ensure relevance and effectiveness.

Use incentive triangulation. Partner with other local businesses to offer discounts or services as referral rewards, creating a win-win-win situation for you, your referral partner, and the third-party business.

Seek input on incentives. Host a brainstorming session with key clients, partners, and team members to generate creative reward ideas that resonate with your network.

10. Understand and leverage the ten levels of referrals

"Referrals come in many different grades."

Recognize the spectrum of referral quality. Understand that referrals range from simply providing a name and contact information (Level 1) to a fully closed deal (Level 10). The higher the level, the less work required on your part to convert the referral into business.

Educate your network. Teach your referral partners about the different levels of referrals and how they can provide higher-quality introductions. This might include:

• Assessing the prospect's needs before making the referral
• Providing a warm introduction via email or phone
• Arranging a face-to-face meeting with the prospect

Aim for higher-level referrals. While any referral is valuable, focus on cultivating relationships that lead to Level 7-10 referrals, where your referral partner takes an active role in facilitating the connection and promoting your services.

Reciprocate with high-quality referrals. When referring others, strive to provide the highest level of referral possible. This sets a standard for your network and increases the likelihood of receiving similarly high-quality referrals in return.

Last updated: November 5, 2024