Quote: Power networking involves the development of a powerful and aggressive referral partner team that can produce a steady flow of recommendations for your business.
In this chapter:
Power networking example
Network definition
7 myths and truth about networking
Before explaining networking, let's see some examples of the results achieved by applying effective networking principles. Examples cited by us are mainly those of the Local Business Network. Because this is what we were working for and we know. In most cases, you can replace LBN with the word "structured networking organization".
We will share these stories to understand how powerful networking will be for those who master power networking principles and apply them consistently. Many of them are paying hundreds of thousands of dollars in total. In many cases, referral partner business accounts for 25% to 90% of sales. We hope that these examples will further read on you and seriously consider the principles we teach.
Web site design firm found structured networking, its most powerful business growth tool
In 1999 Steve Hyer launched IGD Solutions, a website development company. In 2000, I joined the Local Business Network, a structured business introduction organization. Steve was new to networking as well as new business.
For the following three years, LBN introduction accounted for an average of 38% of his business. In real dollars, it will be six numbers each year. By forming a strategic referral partner relationship between members of his own chapter and members of other chapters, Steve creates an ongoing reference stream and creates a continuous stream of new leads and new clients. Steve discovered that regional mixers are particularly useful for finding and developing referral partnerships with people in the technical field.
Steve said, "LBN is the single most effective way we used to promote business, the structure of twice a month meeting, actually focusing on referral sharing is very embarrassing It is effective.
Cast off to a successful business owner one year from the company
When his company was acquired, Mark Raymond suddenly fired from the work of information technology. The IT market was sluggish and Mr. Mark knew that he needed to find additional income sources. He knew that it would take time to grow the business.
Mark had an entrepreneurial background. From working as a disc jockey, he owned a number of different businesses, from becoming a truck driver to working as a multimedia expert at a car show. Fortunately, he built a successful real estate leasing business and owned more than 10 real estate. Still he needed to change his IT revenue.
Mark joined the pre-paid legal service as an independent associate. Instead of building a team he focused on sales, but he needed prospects and referrals. His target market was owners of companies and small businesses, but I did not know where to begin.
His wife Tricia Raymond (real estate agent) has already belonged to the local business network and he has encouraged to use networking to promote the business. Mark knows only one way. He became the president of the LBN chapter, and actively introduced referral relations.
Within a year after joining LBN, he sold over 400 members of Pre-Paid Legal membership. Nearly half of about 180 members came directly or indirectly from LBN. Today, he is growing business with a network of rapidly growing business associates.
Title insurance company distributor receives over 60% of her business through introduction of networking group
Sandra Maurer enjoyed networking, but I did not know how powerful it was when I joined the Local Business Network Birmingham, MI chapter. Her sales consistently depended on relationships with mortgage lenders, lawyers and real estate agencies.
Sandra has met with key introduction partners and began visiting so many LBN chapters that they can build relationships. She met with other members and attended each regional mixer to build more relationships. She is introducing more than 50 people every month.
Within two years, the relationship she built within the LBN was generating more than 60% of the income. Even though she sold various products and services with her when she changed her job she had a sales office soon after taking a relationship with her.
Accountants give and receive over 100,000 dollars references each year
Norm McKee is an accountant and business consultant. During his first year at LBN, referrals from LBN members accounted for about 25% of his business. In the second year it will grow to 40%. We partnered with other LBN experts and he also began an employee benefit company that could potentially generate more profits than accounting practices that already have high revenues.
Norm receives 8 to 10 new client introductions monthly from introduction partners. He receives over 100,000 dollars annually and offers at least that amount to referral partners.
"We have chosen LBN as a networking group, providing a structured / instruction-based program, providing all members with the basic direction of network activity," said Mr. Nom.
House cleaning and hygiene management service report You can get 90% of sales from LBN members or referrals
Mary Youtz has been miniaturized by a major software development company. For her boss who did not thank her, she worked in the accounting department at an ungrateful workplace. After being abandoned her and her husband started to do their business and chose to use networking as the primary means to promote it.
Six months later, the company was in surplus and 90% of sales reached members of the local business network. Mary soon recognized the value of visiting as many chapters as possible and periodically visited half a dozen chapters in the community near her business area. She attended all regional networking events and built relationships with people in the standpoint of sending referrals. She welcomed the introduction to all the meetings she attended.
Mary is also very personal. She had never had a public talk, and first expressed concern that she had to do a 66-year-old commercial at a local chapter conference. She soon lost her fears and became a speaker at regional networking events. Her friends saw an astonishing change in confidence and attitude. She recently played an official role in the local chapter.
There are hundreds of additional stories, but I do not have time to tell them all. Here are some simple summaries.
o Jim Motley, through introduction, launched a new computer repair business with sales of $ 250,000 in the first year. Doubled the project in the second year. It doubled again in the third year.
o Promotional item marketer Jeannie Kime tripled the first year business at LBN after spending two years at another networking organization before joining LBN.
John Gentilia of Perfect View Blinds reported 35% of the projects from the introduction of the first year LBN and grew to 40% in the second year.
Doris Benson heating and cooling in the comfort zone gained 100 new customers in the first six months at LBN.
o Mortgage lender Ed Koerner got 36 introductions during the first 6 months at LBN.
Brian Jenks (commercial lender) received $ 12 million to $ 5 million for project real estate finance introduction.
Sharon Quarters, a real estate agent, exceeded $ 2 million in total for the first three weeks at LBN.
Lawyer Brian Rolfe won the $ 50,000 customer lead within a few weeks after joining LBN.
o Financial planner Julie Green reported the LBN group's lead and a $ 20,000 mission with twice the expectation two years later.
Although these types of stories may last forever, the important thing to understand is the legitimate business relationships that represent the effective products and services that are sold to the general public and other companies Power networking principle will work for you. The problem is not to whether the system works, but to apply the principles of power networking where you want to learn.
What is power networking? Webster & # 39; s Dictionary defines networking as "development of contacts and information exchange in informal networks for career development". In the broadest sense, virtually any type of social interaction can be viewed as networking. Most business people are familiar with the informal network that is being held at the Chamber of Commerce and other business organizations. However, increasing sales is the ultimate goal and informal and decentralized networking is inadequate in the business environment where "time is money". We need to transition to more formal and intensive network description and definition.
Development of Win-Win Relations - In Bob Burg's book "Endless References", networking is defined as "development of mutually beneficial Win-Win relationships". Mr. Bob said, "If all things are equal, people will do business, people will love and trust people they like." Therefore, networking is to develop relationships with other people who work with you, send you referrals to you because you trust you, you know, trusting. Bob's goal is to turn networking from an "informal process" into an "official" process that focuses on generating sales that increase sales and generate revenue.
Please note that there is a requirement that individuals who give referrals to you have to know and trust like yours first. It is necessary to enable other people to know about you. Before you send an introduction, you like what you are seeing and you have to trust. When building an introduction network, it is necessary to establish a relationship of trust.
Selling through networking partners - Power networking is to "sell" people who are "unwilling" to people who are networking partners. There are two components of networking-derived business. Mr. Berg explains it from businesses you know and those who you know. The latter is far more important than the former. Because, assuming that every businessman knows literally hundreds of people, the possibilities expressed are hundreds of times greater. The ultimate purpose of formalized networking is not to "sell" to people who know you or trusted people but to "sell" to the hundreds of people they know.
Power networking is sold to unknown people with the help and cooperation of people you know. It is "collaborative marketing" assuming the following assumption.
1. Without proper training, you and partners can effectively see each other.
2. It is easier for others to see outlook within the influence than others see through the same individual.
This definition points out another important aspect of formal business networking. You need to train others to promote your business for you But obviously, in order to train others to promote your business, you first need to promote it yourself We need to understand. Effective network staff not only understand who your prospects are and how they are promoted but also teach others how to identify prospective customers of products and services and give presents to prospective customers You must be familiar with the way to create opportunities to do.
Introduction partner - But why do your friends referrals work hard to promote your business to others? What is included for him or her? Obviously, he / she is expecting something, and the reward can take any form, but the ideal form of reward is the introduction of those who can use their products and services is. In order for formal networking relationships to endure, this reciprocity must exist. This reciprocity concept leads to another definition of business networking. It is to create personal wealth through acquisition and exchange of referrals. If you want to receive an introduction from others, you can introduce in exchange for what you received. If you do not give back, the relationship will not end, you will no longer receive referrals.
Introduction refers to these special kind of relationships that are regularly and continuously transferred as "referral partner relationship". They are the gold jar at the end of the rainbow, the mother's lighthouse! One such relationship may lead to the introduction of hundreds, hundreds of thousands of dollars. Most of the business network's efforts should focus on finding and developing these relationships. Some of such relationships will lead to enough referral flow to satisfy the lifetime needs of your business.
Strategic Partner - The concept closely related to the "Referral Partner" concept is the concept of "strategic partner". "Strategic partner" is an individual who provides products and services that complement itself, provides products together, or cooperates in marketing activities. By collaborating with "strategic partners", we will expand the range of products and services we can offer to our customers, expand sales, expand our customer base, reduce marketing expenses by utilizing marketing expenses, etc. You can create opportunities for marketing activities that you may not have time to spare. "Strategic partners" can be "referral partners" as they deal with customers that are the same or similar to you.
Traditional networking and power networking - Traditional networking makes it possible for others to know you, hoping to use your own goods and services, give you others, It was replaced by what is called networking. Power networking is a networking style to market business through the development of powerful and proactive partners to market business as a price of helping to promote business. Both structured networking groups of formal and informal organizations that are designed to teach introduction-based networking and to support the development of referral partner team are standing up to support this process. This document describes the nature of structured networking groups and the role of applying power networking principles.
Myths and truth about networking
Myth # 1: Networking is only belonging to "Good Old Boys Club". It is exclusively for fraternity and associates.
Truth: If you train properly, you can not only meet other people at the bar at social lunch or happy time, but also build business relationships that lead to referral organizations.
Myth # 2: The network is a waste of productive time.
Truth: Networking for the purpose of building referral partner relationships is far more productive than spending time. An effective referral partner may bring hundreds or thousands of sales during the lifetime of the relationship.
Myth # 3: Networking is for active and loudly talking salesmen.
Truth: In networking, active, my oriented people hardly succeed. They feel that it is difficult to build respect and trust, which is the foundation of the referral partner relationship.
Myth # 4: Networking gathers people who struggle and do not have a real impact on the market.
Truth: network attractions of not only experienced experienced business owners and experts, but also relatively few experienced people. The important point to keep in mind is that no one has a contact database with what you are interested in connecting.
Myth # 5: Networking has little or no results, it takes too long.
Truth: Networking is a highly utilized activity, meeting many experts in a very short time. People you meet are sensitive to the development of relationship partner relationships. As mentioned earlier, the results are phenomenal.
Myth # 6: The network is expensive.
Truth: Networking is one of the cheapest marketing available. Local Business Network (LBN) will charge about 30 dollars per month for members. Many members can collect expenses for one year with one referral. For some people, there are hundreds of cost benefit advantages.
Myth # 7: Networking is mainly for small and non-professional business.
Truth: Networking is useful for all kinds of business. Several examples are experienced professionals such as accountants, lawyers, technology companies, small retailers, home based companies.
Key Point:
To summarize what we learned in Chapter 1:
1. Focused business networking involves the development of mutually beneficial win-win relationships called "referral partner relationships".
2. These relationships are based on trust relationships and require cooperative marketing with people who are within range of each other's influence.
3. In order to be effective, education and training on the prospect's recognition and introduction method are necessary.
4. Relationship between referral partners is well-balanced, and both parties must consistently generate referrals and exchange.
5. Strategic partners are individuals who provide customers with complementary products and services similar to what they offer. By collaborating with them, you can create opportunities to expand product offering, expand market and utilize marketing expenses.
6. Give power to power networking refferers to business marketing through active "introduction" and "strategic" partner relationship.
7. The structured networking group is designed to help build these partner relationships.
Action plan:
1. Please read "Endless References" by Bob Burg.
2. Please look at your current business situation. Does networking help you?
3. Are you ready to tackle networking as a different way to grow your business?
4. If you are already using networking, are you satisfied with the results? If not, please continue with committing to the master network.
Do you want to see Chapter 2? For the free version of the next chapter, please visit http://www.networkto100000.com.
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