Sales and Sales Management Blog

June 10, 2009

Boost Your Sale series: “What Type Of Networker Are You–Really?” by Jonathan Farrington

We continue with Successful Networking week.  Today find out what kind of networker you are.  Tomorrow Will Kintish deals with working a room at a networking event, and Friday I will discuss how to turn networking an event into a disciplined process that will allow you to indenify real prospects and begin building long-term relationships with them.

NEXT WEEK we’ll bring in Ian Brodie, Bill Cates, Joanne Black, and Dr. Martin Russell to help you gain more referrals and Word of Mouth exposure.

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What Type Of Networker Are You – Really?
By Jonathan Farrington

Before you even begin to look at engaging seriously in lots of networking effort, it is useful to look at your own temperament or disposition. This is the individual’s internal desire to network and to find value and enjoyment from the whole process of building relationships.

For some people, this will be an almost irrelevant issue to debate. Their motivation to want to talk to people regularly and to network is naturally high. Talking to strangers in supermarket lines, at bus/train stops, or even in the elevators is characteristic of such people.

However, even if you really enjoy talking to people, it is a proven fact that most of us are not highly confident and highly motivated networkers. In fact, statistics reveal that only one in ten people are actually comfortable in striking up a relationship with a complete stranger.

Unfortunately, this means that their own misgivings, fears and doubts potentially hinder the vast majority of people. And for successful sales professionals, networking is not a choice; it is a necessary part of the job.

Four Networking Types

In practice, you can divide people who attempt to build networking relationships into four distinct types: the Loner (little or no networking), the Socializer, the User, and the Relationship Builder.

Although a salesperson’s aim is to become the fourth option, the “Relationship Builder,” let’s briefly look at each of these types in turn.

Loners like to do most things by themselves. They may feel that they can do it faster or better, or perhaps they don’t want to bother or worry other people. They feel that their knowledge and skills are often superior to most people, and they ask for help only as a last resort (and when it may be too late).

The Loner is an easily recognizable type, because there are times when we all believe that we will do better ourselves than if we ask others for help. The Loner will not usually want to bother anyone else, or necessarily see much point in doing so, believing that others will be slower and will set lower standards.

Unfortunately, the Loner attitude is a major obstacle to effective networking. We need to shift our thinking greatly in this area. We should be more willing to let others assist, and we should even ask for help more often.

Socializers try to make a friend of everyone they meet. They tend to know people’s names and faces, but not what they do. Socializers are not usually systematic or ordered about following up on a sales lead -– contact is random. Such a person may not listen too deeply and is quick to move on.

Although the Socializer may have a wide circle of friends and contacts, he or she knows little of substance about personal skills and resources. As a result, Socializers do not often share their skills.

The Socializer is also a random networker, following little or no formal contact system.

Users are likely to collect business cards without really connecting with people. They try to make “sales” or “pitches” on the first encounter. They talk about and focus on their own agenda rather than information about mutual needs. They often have superficial interactions, and keep score when giving favors.

Unfortunately, people of this type do network widely, but in a way that creates little benefit for themselves or others. Even worse, this kind of networker tends to create a bad impression, and therefore can give networking an image of being about selling, taking, bargaining and keeping score.

Relationship Builders have a “giving” disposition or abundance mentality. They are generally happy to ask others for help or guidance, and listen and learn about people carefully. Builders are regularly on the lookout for useful information for which others can also benefit. They have a well-ordered and organized networking system.

This type of networker is what this article is all about -– an individual who takes a long-term perspective on relationships with others and thinks more about what he or she can give or offer than about the return.

This type is out there for others, or on call to offer help whenever it is needed. If they cannot help in person, they usually know someone else who can.

Maintaining High Self-Esteem

A topic as big and potentially complicated as a person’s relative self-esteem cannot be covered at any level of detail in a short article. However, it is important to appreciate how low self-esteem can have a major impact on your networking efforts if it is not at least basically understood and addressed.

An individual with high self-esteem is likely to build his own confidence to want to network by having a positive, open and “can-do” attitude.

Conversely, an individual with low self-esteem is likely to lack confidence to start with. They will convince themselves (and others) that they have little that would be of interest to others in any network.

And in a successful sales career, this is too high a price to pay.

Apart from the Builder, one factor connects the other three types in preventing them from networking more effectively. This is the issue of self-esteem.

The Loner believes in himself or herself, but not necessarily in others (especially relative strangers). The Socializer likes people, but also very much wants to be liked by others (and therefore does not want to ask for favors). Finally, the User takes a relatively selfish view of, “If I benefit or gain, I might reciprocate; otherwise I won’t.”

Of course, all of these types fear rejection, obligation, being too pushy or even looking weak. All of these fears or concerns about networking need to be lessened or overcome.

So………..just what type of networker are you really?

 

Jonathan Farrington is a globally recognised business coach, mentor, author and consultant. He is the CEO of Top Sales Associates, Chairman of The Sales Corporation and Managing Partner of The JF Consultancy, all based in London & Paris. You can read his hugely popular daily blog here

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June 8, 2009

Boost Your Sales Series: “21 Tips to Use at a Networking Event,” by Mark Hunter

Week 2 of the Boost Your Sales series focuses on Successful Networking.  Our first expert is Mark Hunter with “Networking is a ‘Con’ Game.”

Tomorrow we’ll hear from Andrea Sittig-Rolf

Wednesday brings in Jonathan Farrington

Thursday it’s time for Will Kintish

Friday is my take on networking

And stay tuned for next week when we’ll have Ian Brodie, Joanne Black, Bill Cates, Dr Martin Russell and I tackle using referrals and Word of Mouth to generate business.

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21 Tips to Use at a Networking Event
by Mark Hunter “The Sales Hunter”

When you arrive at a networking event, avoid gravitating to people you know.  You should initially thank the host and then immediately find someone new to introduce yourself to.  This will help keep you in the right frame of mind as to why you came.

Stop selling and start listening!  When you meet someone for the first time, use it as an opportunity to get to know them.  Don’t try to sell them anything.  Rather, begin to establish a relationship.

Keep your business cards in the breast pocket of your coat, a shirt pocket, or in an outside pocket of your purse so they are easy to access and in good condition.

When giving a person your card, personalize it by hand writing your cell number on it.  This will cause the recipient to feel that they are receiving something special. 

When giving or receiving a business card, be especially careful when dealing with people from outside the US as many cultures treat them with very high regard.

When receiving a card from someone, take a moment to write yourself a note on it such as where you met.  If you do this while you’re still talking to the person, it will help convey your sense of personal connection. 

During the course of a conversation, use the other person’s first name two or three times.  People always like to hear their own name and it will help you to remember it when the discussion is over.

Rather than telling a new contact all about yourself, spend your time asking them questions.  It’s amazing how much you’ll learn!

After you meet someone for the first time, use the back of their business card to jot a note about something you learned from the conversation and the date and place you met them.  Recording the information will give you something to talk to them about the next time you see them.

Connect with the person you’re talking to by tilting your head as you listen to them. It is an effective body language technique which communicates that you’re paying attention to what they’re saying.

When a person is talking to you, be sure to look directly at them.  Giving a person full attention with your eyes will encourage them to share more. 

Remember, however, that it’s not a “stare-down” contest.  Give the person 3 – 5 seconds of eye contact and then look away briefly before returning your focus to them again.

The best location to network is by a high-traffic area such as a main door, the bar, or near the food.

Never approach people if they’re walking towards the restroom.  Wait until they have returned to the networking area.

After the person has shared something with you, ask them another question about what they just said.  This shows that you’re paying attention and that you care about what they’re telling you.

 Always keep one hand free to allow yourself to shake hands with people.  This means that you shouldn’t eat and drink at the same time.  Remember, this is a networking event, not a full-course meal.

 As a way of demonstrating your networking skills, introduce each new person you meet to at least one other person.

 Never try to barge into a group of 4 or more people.  Come along side of the group, but do not attempt to enter into the discussion until you’ve made eye contact with everyone.

 Do not approach two people who are talking, as you may be interrupting an important discussion.

 It is best to initiate conversation with someone who is standing by themselves.  They’ll be happy to have someone to talk to them and, as a result, will many times open up with valuable information.

When you meet someone for the first time, you have 48 hours to follow up with them before they will completely forget about meeting you.

A networking event is not a time to see how many business cards you can acquire.  Rather, it is a time to develop a few relationships that have potential.

Mark Hunter, “The Sales Hunter”, is a sales expert who speaks to thousands each year on how to increase their sales profitability.  For more information, to receive a free weekly email sales tip, or to read his Sales Motivation Blog, visit www.TheSalesHunter.com.

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March 23, 2009

Charity Can Be Great Business

On any given workday you can find tens of thousands of professionals, salespeople and business owners across the country working networking events.  These events, whether sponsored by a chamber of commerce, an industry association, or a networking group, attract a large number of men and women all looking for the same thing-a prospect.  In fact, at a great many of these events the vast majority of attendees are not really interested in meeting and mingling with other business people, but are only interested in finding a real, live prospect and if there are no prospects, they deem their time spent at the event to have been wasted. 

In time, most salespeople, professionals and business owners become convinced that networking as they’ve come to know it is nothing more than a huge waste of time.  For most, unless they are selling a relatively inexpensive consumer or business commodity, they’re right.

This doesn’t mean that networking is a waste of time.  Networking can, in fact, be one of the most productive and satisfying prospecting and marketing methods one can engage in.  Whether you’re a professional, business owner, or salesperson, there are a number of viable networking venues open to you, but non-profit charitable organizations are ignored as prospecting venues by most. 

Non-profit charitable organizations offer a tremendous opportunity to acquire new business while at the same time contributing to your community.  What better way to generate new business than to do so while volunteering your time, energy, and possibly money to help others?

Why are non-profits so valuable as prospecting venues?

  • You can often identify a charity whose board and committees have a large number of real prospects for your goods and services.
  • Instead of meeting these prospects in a sales situation where they will probably have their guard up, you meet them in a much more relaxed atmosphere where you can get to know one another as friends prior to approaching them regarding business.
  • You have the opportunity to demonstrate your competence, trustworthiness, and honesty prior to engaging the prospect in a business conversation.

However, networking through a charitable organization isn’t as simple as just picking one out and joining it. 

If you want to network through a charitable organization you’ll need to:

  • Find an organization whose purpose and goals are of sincere interest to you. In order to effectively network through an organization you’ll have to become an active member, participating in the success of the organization by becoming involved in a committee, attending all of the function, and working for the overall success of the organization. If you simply join hoping to show up when you think there might be a networking opportunity, you’ll quickly discover that you won’t succeed. Many members of these organizations are leery of those who join for no other reason than to meet business connections. They can smell you coming-and they’ll reject you. If you want to be successful, you have to be a real part of the group and not a leech.
  • Be patient. Building relationships takes time. Demonstrating who you are and why taking you seriously takes time. If you looking for quick, easy business, working within a charitable organization isn’t for you.
  • Commit yourself to the organization’s goals and objectives first, business second. If you’re not committed to the organization’s goals and objectives, your lack of commitment will eventually come through–and you very possibly may do your business more harm than good.

If you’re looking to establish some new business connections and find some great new prospects, consider investing your time and energy in a charitable organization.  You’ll find it far more satisfying and productive than the typical networking venues most salespeople and professionals work.

December 19, 2008

Top 12 Sales Articles of the Year–March: “The 10 Commandments of Networking,” by Ivan Misner

The March monthly winner at Top 10 Sales Articles was Ivan Misner’s “The 10 Commandments of Networking,” originally published at Salesopedia.  Ivan’s article is one of 12 monthly winners vying for Sales Article of the Year.

Top 10 Sales Articles selected the 10 best out of the thousands of articles published each week.  The weekly winners then went to head to head competition with each other, the best being named the Article of the Month.  Now, out of the over 500 articles nominated, the 12 monthly winners are now competing for Article of the Year honors.

Each day I’ll be posting one of the monthly winners.  Read them and then head over to Top 10 Sales Articles and vote for your favorite.  Better yet-go there now, read all 12 and cast your vote (for my article, of course).

The 10 Commandments of Networking
by Ivan Misner

Leave out any of these strategies, and your networking is just a waste of time.

Do you suffer from “butterfly-itis” at the very mention of networking at business functions? If you answered yes, you are not alone. Many entrepreneurs get a bit uncomfortable when it comes right down to walking up to someone and starting a conversation. Many others are concerned about getting effective results from the time they spend networking.

The process doesn’t have to be traumatic, scary or a waste of time. When done properly, it can truly make a difference in the amount of business your company generates. With the right approach, you can use it to build a wealth of resources and contacts that will help make your business very successful.

Use the following ten commandments to help you network your way through your next business networking event:

1. Have the tools to network with you at all times. These include an informative name badge, business cards, brochures about your business, and a pocket-sized business card file containing cards of other professionals to whom you can refer new business.

2. Set a goal for the number of people you’ll meet. Identify a reachable goal based on attendance and the type of group. If you feel inspired, set a goal to meet 15 to 20 people, and make sure you get all their cards. If you don’t feel so hot, shoot for less. In either case, don’t leave until you’ve met your goal.

3. Act like a host, not a guest. A host is expected to do things for others, while a guest sits back and relaxes. Volunteer to help greet people. If you see visitors sitting, introduce yourself and ask if they would like to meet others. Act as a conduit.

4. Listen and ask questions. Remember that a good networker has two ears and one mouth and uses them proportionately. After you’ve learned what another person does, tell them what you do. Be specific but brief. Don’t assume they know your business.

5. Don’t try to close a deal. These events are not meant to be a vehicle to hit on businesspeople to buy your products or services. Networking is about developing relationships with other professionals. Meeting people at events should be the beginning of that process, not the end of it.

6. Give referrals whenever possible. The best networkers believe in the “givers gain” philosophy (what goes around comes around). If I help you, you’ll help me and we’ll both do better as a result of it. In other words, if you don’t genuinely attempt to help the people you meet, then you are not networking effectively. If you can’t give someone a bona fide referral, try to offer some information that might be of interest to them (such as details about an upcoming event).

7. Exchange business cards. Ask each person you meet for two cards-one to pass on to someone else and one to keep. This sets the stage for networking to happen.

8. Manage your time efficiently. Spend 10 minutes or less with each person you meet, and don’t linger with friends or associates. If your goal is to meet a given number of people, be careful not to spend too much time with any one person. When you meet someone interesting with whom you’d like to speak further, set up an appointment for a later date.

9. Write notes on the backs of business cards you collect. Record anything you think may be useful in remembering each person more clearly. This will come in handy when you follow up on each contact.

10. Follow up! You can obey the previous nine commandments religiously, but if you don’t follow up effectively, you will have wasted your time. Drop a note or give a call to each person you’ve met. Be sure to fulfill any promises you’ve made.

October 16, 2008

Working a Networking Event Made Easy–and Effective

Are you one of the millions of small business owners, salespeople, and professionals who have attended networking events held by the chamber of commerce or a business organization and found the experience to be far less than what you had hoped?  Attending networking events requires more than simply showing up-it requires a disciplined approach.

Typically, the frustrations and wasted time arise from two fundamental issues:

  • overblown expectations
  • not having a plan of attack

Networking events, especially those of a general nature organized by the chamber or a general business organization, will not provide you with a plate full of potential prospects.  If you can walk out of a networking event with three or four good potential contacts, you have done well.

Unfortunately, many, especially those who are not networking junkies, attend these functions with the hope of leaving the event with a whole stack of business cards of great prospects.  When their expectations are not met, they conclude that networking isn’t all it’s cracked up to be and decide their time is better spent elsewhere.

In addition, most attendees waste the majority of their networking time.  Rather than an organized plan to maximize their benefit from the event, they simply attend hoping to “run into” prospects.

Yet, if you attend regularly and with realistic expectations, networking can eventually pay great dividends.  There are three “secrets” to making networking pay:

  1. Know Where You’re Going

Knowing who is likely to attend the event you are considering is as important as attending the event.  If you are considering going to an event you have never attended before, try to get a copy of the host organization’s member roster.  By examining the membership directory, you can get a fairly good idea of the type of people you can expect to meet.  If it appears there are a reasonable number of people and businesses of interest, plan on attending.  If you can’t get a copy of their member directory, call the organization and ask-most won’t mind the inquiry and will be happy to give you as much information as they can.

  1. Know Why You’re Going

Go with a definite number of contacts you want to make.  Determine how many good contacts you will need in order to make the investment of time worthwhile.  Depending on your particular product or service, that number may be only one or two-or may be much higher at five or six.  By establishing realistic, objective criteria, you can easily determine whether or not your time was well spent and whether or not you want to attend the event again in the future.

  1. Have a System for Working the Event

For most business owners and salespeople, the real networking event killer isn’t so much who is in attendance or even their own unrealistic expectations, but rather the time they waste during the event.

Working a networking room requires planning and a clear vision of how you will spend your time.  I and many of my clients that I’ve taught the following networking method have found it to be easy and very effective:

Arrive about 15 minutes before the official event start time.  Wear a large, easy to read, high quality, permanent nametag that features your first and last name, not just your first name.  Of course, have lots of business cards.  Business cards should be blank on the back.  Wear clothing with two easy to reach pockets.

Station yourself close to the entry door-close enough that people might mistake you for one of the hosts.  Greet each person as he or she enters.  Nothing more than a greeting-and, hopefully, noticing their company name.  All you want is to hear a name, put a name to a face and to make a quick judgment as to whether they might be a prospect.

When arrivals begin to slow, begin your progression around the room.  Move in one direction-left or right.  Greet the first person or group of people you meet.  This round of conversations should be short-two to three minutes at most.  Your goal is to introduce yourself and learn as much as you can in a very short span of time about the person or persons you’ve just met.  Don’t clutter the conversation with information about yourself-keep everything focused on the person or the persons you are speaking with.  Your goal at this event isn’t to sell it’s to qualify prospects.  This will be your second meeting with many of these people, although you will probably not remember their names.

Since many, if not most, will offer you a business card, you will begin to segregate cards into an interest stack and a non-interest stack.  When you meet someone you believe you’d like to get to know better-a potential prospect, put their business card in your right-hand pocket.  Those you don’t believe are prospects, put in your left-hand pocket.  This system allows you to immediately find the cards of those you want to reconnect with during the event without having to try to remember their name.

If you meet someone you would like to get to know better, before moving on to another group, let them know of your interest in learning more about their business and ask their permission to contact them via phone at a later date.  Once they agree, take one of your business cards and on the blank reverse side, write the day and an hour span of time during which you will call:  ”Thursday, March 12 between 10:30-11:30.”  This day and time will be the same for everyone you meet that you want to call.  It keeps you from having to remember when you will call, but because it is an hour span, you’ll have time to make several calls without concern that you won’t keep your appointment.

Now, move to the next group and continue in this manner for the majority of the event.  About 30 to 45 minutes prior to the end of the event, go into your last phase.  The last phase is taking the few cards in your right-hand pocket and seeking to reconnect with those people.  This will be your third chance to meet them and to put a name and face together.  In addition, since it will be your third meeting, they’ll begin to feel like they know you and they will probably greet you as a friend rather than as new acquaintance.  Just as you are implanting their name and face in your mind through multiple meetings with them during the event, you’re planting your name and face in their mind.

This conversation will be a little more in-depth, but, again, keep the focus on the

other person.  During this conversation, possibly you can move the conversation to the point that instead of a phone call on Thursday, you can invite them to lunch.  If not, prior to moving to the next person, again reiterate the phone call on Thursday and give them another business card with the same information written on the back.

On Thursday, make your phone calls and close for a get to know one another meeting.

This structure allows you to “meet” a prospect three times during the course of the event, set up a definite telephone conversation and help both you and the prospect quickly move from the “just met” stage to acquaintance stage very quickly.  All without having to remember any details during the course of the event.

If you keep your expectations reasonable and focus you time during the event on the few true prospects you meet, you’ll find your time at networking events to be both more enjoyable and profitable.

September 5, 2008

Networking Lessons from Mother Teresa and Machiavelli

Little, sweet, big hearted, concerned only with the poor, the hungry, the homeless. That’s our image of Mother Teresa. And she was that in reality. But she was more-much more.

Conniving, heartless, power hungry, goal focused, destroy anything in your path. That’s our image of Machiavelli. Well, he actually wasn’t all that, but that’s the message that has been gleaned from The Prince, his treatise to his prince on how to govern.

Mother Teresa must have studied The Prince well because she learned the book’s lessons well. And Machiavelli must have been friends with Nostradamus to have envisioned the means by which to create great working relationships in modern American business.

What did Machiavelli understand about modern business so well that he taught it to Mother Teresa and she used it so successfully?

Fortunately, it isn’t the ruthlessness, the exercise of power, or the need to be vigilant in identifying and destroying threats, although it sounds like some modern businesspeople have been reading The Prince also.

What Machiavelli and Mother Teresa understood so well was human nature. They understood how to get what they wanted without the use of force, of ruthlessness, of power. They understood how to create relationships that brought people to do their bidding (admittedly, in Machiavelli’s vision there was always the threat of the more unpleasant means if one sought to resist).

Unlike so many today who try to take advantage of their connections to get what they want, Machiavelli and Mother Teresa understood that you must first give in order to get.

So often I see salespeople and business owners try to coerce people they meet into buying from them or giving them referrals. Not coerce in the sense of force, but rather coerce by immediately overwhelming them with information about who they are, what they do, their great products or service, their stupendous customer service, their unbelievable offers.

They hardly give the other person an opportunity to breath.

They don’t take the time to learn a thing about the other person or what they may or may not need or want.

Their approach is that of a volcano, spewing forth words like lava, hoping to bury them in so much hot BS that the other person capitulates in order to just survive the encounter.

Any of us who have been to a networking event, conference, or seminar have met these people. They swarm the floor like flies, moving from person to person with fantastic speed, leaving in their wake a series of potential connections who hope they never encounter that salesperson again.

We meet them and are appalled. We think to ourselves, “What a dufess.”

But in reality, that dufess just might be us. It’s so easy to fall into that type of behavior without even recognizing it.

Mother Teresa and Machiavelli understood the fruitlessness of this behavior. They understood that in order get what they wanted they had to first take a sincere (Mother Teresa) or calculated (Machiavelli) interest in the other person and to find something of value they could give-and then they could expect to get. And more importantly, they understood the value they gave had to be something the other person recognized as valuable. They understood that they had to dig; they had to discover what was valuable to the person they were dealing with. They didn’t give something they thought was of value; they gave what the other person thought was of value-even if that was something they would not have thought of being of much value themselves.

Whether sincere or calculated, if you want value from your connections, be they clients, family, friends, or new acquaintances, you must find ways to first give value. And you don’t get to decide what’s valuable and what isn’t-that is for the person you’re trying to connect with to decide.

And for their effort what did Machiavelli and Mother Teresa get? Machiavelli’s prince got power. Mother Teresa got the funding and the ability to carry out her work. Each had very different objectives, but they got them the same way. You can too.

July 21, 2008

Netting a Return on Networking

Networking.  For many, if not most, salespeople and managers that word evokes images of the Chamber of Commerce networking nights, the breakfast lead exchange groups, and pestering mom, dad, the black sheep uncle, and anyone else that might be able to cough up lead.

That word may also conjure up memories-maybe really recent memories from like, yesterday-of wasted time, a room full of no real prospects, dad’s agonized tone of voice that belies his smile and can’t hide his unease with the request to give a referral to his friends and acquaintances.

Although there are many good books on networking, many salespeople are still spending a good deal of time and effort seeking to network in the wrong places, with the wrong people, and with the wrong goals.  They view networking as a grazing activity, seeking out venues where they can find a sizable group of men and women, and spit out their ‘value proposition’ to as many of them as possible in as little time as possible.  Favorite haunts tend to be the local chamber of commerce; the networking events of various local business associations and groups; lead exchange breakfast groups; and the proverbial family and friends.

Not surprisingly, few salespeople who approach networking in this manner find their time and effort to be well spent.  Grazing for contacts and leads generally doesn’t work because it violates some key aspects of business and human nature.

Location, location, location.  The old real estate adage applies to networking as well.  Where you network is of prime importance.

Although easy, floating into the chamber networking event isn’t likely to produce results.  In most instances, these events are overwhelmingly dominated by other salespeople who are also looking for the opportunity to meet new prospects–and who are not the least bit interested in being sold to.  Instead of finding yourself in a room of 125 prospects, it is far more likely to find yourself in a room of 100 salespeople and 25 business owners and managers-of which only a very small handful would be quality prospects for you.  Certainly you can meet prospects.  And certainly there are sales made from the contacts developed at chamber meetings.  But the return on time and energy investment is usually extremely small.

Lead exchange groups can be very viable opportunities for those selling the right products and services.  A mechanic or quick print company might find a lead exchange group to be an extremely valuable source of new business.  On the other hand, a salesperson selling enterprise solutions or a management recruiter would more than likely find little if any success in one of these groups.  Nevertheless, I’ve know management consultants, copyright attorneys, and financial services salespeople who sell money management services with a minimum portfolio size of a million dollars who invested their time and energy in these groups before they discovered it was a poor match for their services.

This is not to say that networking through groups can’t be worthwhile.  It can.  You just have to spend your time and energy in the right places.  Where are the right places?  That, of course, depends on what you sell, but whatever you sell, the right place is where you’ll find a large number of legitimate prospects and that tends to be in specialized organizations and associations.

If you sell high end printing equipment, you want to spend your time where prospects who purchase high-end printing equipment gather-say the local associations for architects, manufacturers, or design companies.  If you sell financial services, you would spend you time where there are likely a number of wealthy prospects.  You want to be where your prospects are, it’s that simple.

Networking general business groups tends to be low return; networking specialized groups where your prospects gather tends to be high return.  Although this is common sense, it goes against the grain of what most salespeople do.

Human Nature: Networking events are usually a terrible time to try to market yourself because you’re going against the grain of the objectives of most of the participants.  There will certainly be a few participants at these events whose only objective is to meet new people or to mingle with friends, but most are there for one reason-to find and connect with prospects.  And how do they intend to do that?  By spending their time talking about themselves.

Probably more than 80% of the contacts you make at a typical networking event have little interest in hearing your story because that’s not what they are there for.  They are there to get their story out.  Their networking methodology is to float from person to person until they find a live target and then to try to wow them with their value proposition and set an appointment.  This is hardly an atmosphere conducive to finding and connecting with quality prospects.

Even if you invest your time in organizations and associations that are full of your prime prospects you can’t go with the intent of collaring prospects and spewing forth your value proposition, your product’s benefits, and how great you are.  Networking is a process, not a one-time event.  Networking is about developing relationships, not grazing for low hanging fruit.

To successfully network takes time, commitment, and a sincere desire to get to know-and help-people.   Networking isn’t a short-term sales generator; rather it is a long-term business builder.

Networking in an organization or association requires a commitment on your part to the organization.  Thinking you can just show up at a networking event and have an impact is going to be disappointing.  But becoming involved-becoming a part of the group can generate a great deal of sustained business because it caters to the way human beings think and how they respond to others.

Humans have a tendency to view their own problems as somewhat unique.  Intellectually they recognize the universality of their own issues, but emotionally they view their problems as distinctly their own.  This tendency to view problems as unique can be one of the most powerful opportunities a salesperson can take advantage of.

Although few problems a trucking company encounters are truly unique to the trucking industry, most decision makers in trucking companies view their industry’s issues as unique to the trucking industry.  Likewise, most decision makers in the printing business view their issues as unique to the printing industry.  This isn’t to say that the issue per se is unique but that the particulars of the issue are industry unique.  If the particulars are unique, then the solution is undoubtedly somewhat unique also.  If the particulars and the solution is unique, then it is natural that the decision maker wants to work with someone who really ‘understands’ their issues.

That ‘understanding’ is where your opportunity comes in play.

By joining and becoming a part of their industry’s association, you become one of the team-in other words, you’re perceived to really ‘understand’ the ‘uniqueness’ of their problems and issues and consequently you understand the solutions they need.  People want to work with people they believe recognize and understand the uniqueness of their needs, issues and problems, not someone who treats every business and every situation in the same manner with a canned ‘solution.’  The heart specialist can charge more and is more highly respected than the family generalist because she has a unique understanding of the issues and solutions of the patient.  When seeking a divorce, most people seek out a divorce lawyer rather than a generalist because they believe the specialist has knowledge and skills the generalist doesn’t.

By becoming a part of the team you put yourself in the position of an industry specialist-you ‘know’ and ‘understand,’ and that knowing and understanding sets you apart from your competitors.  You go to the top of the list when one of the members of the organization needs your services.  You become an expert, not a generalist.

The key to successfully networking within these organizations and associations is to become an actual part of the group.  You can’t just show up at networking events-if you do you’ll be viewed as nothing more than an opportunist.  You have get in and work with the group-volunteer for committee work, help on fundraisers, pay your dues-both in terms of money and sweat.

It’s About the Prospect, Not You: Networking is about relationships and relationships are built on mutual respect, understanding, and a sincere desire to know the other person.  To connect means to bond with the other person and bonding takes time.

Most people love to talk about themselves and they tend to naturally like and respect those people who allow them to do that.  Instead of spending your time talking about yourself and your value proposition, spending the vast majority of your initial meeting-even your initial two or three meetings-learning about the other person will pay great dividends in the long run.  Don’t rush to talk about your value proposition, your products or services, what you do for companies, or even your background.  Concentrate on getting to know the person in front of you-there will be plenty of time later to get to you and what you do.

When you let people talk you learn a great deal about them, about their likes, their history, their wants and needs, their hopes and dreams-and very quickly you learn whether or not they are viable prospects.  The more they talk, the more you learn.  The more you learn, the better opportunity you will have later to direct the conversation in directions that naturally lead to how you can serve them.

Most salespeople spend far too much time talking and far too little time listening.  This is especially so when networking.  Learn to keep you mouth shut and your ears open.  Allow your new acquaintance to lead the conversation by doing exactly what you want them to do-talk about themselves, their business, their needs.  If you remember, Peter Faulk as Columbo didn’t speak much, asked a great many questions, and always got what he wanted in the end because the suspect always ended up telling him what he needed to know-either directly or indirectly.  Turns out selling is similar-prospects always tell you what you need to know in the end if you can keep you mouth shut, ask lots of questions, and like Columbo, know how to listen.

Networking can generate a tremendous return on investment if done correctly.  By just going where your prospects go, understanding the natural tendency of humans to view their problems and issues as unique and becoming that uniquely qualified specialist who understand their issues and the solutions, and allowing your prospect to talk will open a lot more doors than trying to graze the low fruit at artificial networking events.

February 7, 2008

The Medium, the Message and the Financial Adviser

The typical financial adviser will spend over 650 hours a year studying their profession through reading professional books and publications, on-line classes, seminars, listening to CD’s, and other study methods.  That’s almost 17, 40-hour weeks of study a year to become good at what they do.  Broken into the equivalent of college courses, it equates to about three full semesters of college work a year. 

Three years into the profession, they will have completed the equivalent of a Bachelor’s degree, plus a semester of graduate school.  After only 5 years in the profession, they’ve invested the equivalent of 7 ½ years of class time.  Since most enter the profession with at least a Bachelor’s degree, they have, in essence, earned a Ph.D. 

During the same time, they have invested little, if anything in their profession’s other side—learning to sell and market their services.  By the end of their 5th year in the profession, most advisers have invested little more than a college semester in learning how to generate the clients necessary in order to practice their profession. 

Unfortunately, being technically good is useless if you don’t have a client to work with.  Being half a financial adviser will get you nowhere except into another profession. 

Many advisers struggle when it comes to generating new business.  Some cold call.  Others network the local chamber of commerce.  Some stick their business cards to bulletin boards at restaurants or under windshields in parking lots, send unsolicited emails, fax fliers all over town, invest in direct mail, buy leads, or purchase expensive advertising.  Yet, few invest their time and money in learning more sophisticated prospecting and client acquisition methods.

When acquiring complex and sophisticated services such as financial products and guidance, prospects want to work with an adviser they believe to be expert.  Indeed, whether their assumptions are correct or not, prospects make a number of assumptions about what an expert is and how experts acquire their business.  They assume that experts are not cold calling, sending unsolicited emails, sticking business cards on windshields or bulletin boards, putting up cheap yard signs on street corners, or faxing fliers.  Rather, prospects assume that experts don’t have to do these things because their practice is populated through referrals from the adviser’s current client base. 

Consequently, the very act of cold calling, faxing fliers, blasting emails, or engaging in any other form of prospecting that prospects identify as crude, sends the message that the adviser is not what the adviser proclaims himself or herself to be—an expert.  These prospecting methods confirm Marshall McLuhan’s proclamation that “the medium is the message.”  The medium used to communicate to the prospect shapes the prospect’s perception of the adviser more than the content of the message.  Unfortunately for the adviser using these media, the message the medium communicates is the exact opposite of what the adviser seeks to communicate. 

Nevertheless, there are client acquisition methods available whose medium message can reinforce the adviser’s content message.  Learning and perfecting these formats requires as much dedication and commitment as learning the technical aspects of the profession.  Alternatively, hiring someone who understands the financial adviser’s business and can perform a number of these activities for the adviser will both expedite the process and free the adviser from the time commitment to learn and hone the required skills.

Communicating an expert message requires you use the media of an expert.  Mixing an expert message with a non-expert medium doesn’t send a mixed message, it sends the dominate message of the medium–a message that the adviser is just another one of the crowd. 

What are the media of an expert?  There are many:

Networking:  Networking through various organizations and associations is an expert format.  However, as all things associated with the expert, how and where you network is crucial.  An expert is more likely to be networking through specialized business, industry, and charitable associations than through more general organizations.  Working within a physician, engineering, architectural, CEO, or charitable organization is more “expert” than surfing the local chamber of commerce or breakfast networking group.  In addition, becoming an active member and developing relationships without overt “prospecting” is more “expert” than trying to evangelize someone you just met.  The relationship converts the prospect, not the overt “selling.”

Referrals:  Prospects assume true experts acquire clients through referrals.  Generating a large volume of high quality referrals requires learning and practicing a well-developed process that leads clients to a comfort level to give strong, quality referrals.  Simply asking doesn’t produce the quantity or quality desired.  However, there are processes used by the top sales professionals that work extremely well.

Press Releases:  Learning how to write and distribute well-written press releases about yourself and your practice will have far more impact than advertising.  Most prospects are resistant to advertising and direct mail.  Press releases, on the other hand, have the authority and subtlety of being reported as hard news.

Published Articles:  Becoming a published author on technical subjects important to the prospect demonstrates expert knowledge—and is in a medium most prospects recognize as educational and informative, not one that is “selling.”  With the thousands of article databases on the internet, becoming a published author is quick and easy if the article is well-written, educational, and void of overt self-promotion.

Speeches:  Giving educational speeches to local business and civic groups and organizations will also establish your credentials as an expert.  Moreover, like writing articles, the medium used has automatic expert credibility.  By appearing before the group as an expert, you become an expert.  And like writing articles, the emphasis is on education, not self-promotion.  Experts are far more effective at promoting themselves when they don’t overtly promote themselves.

Becoming an Expert Source:  Recognized experts are interviewed and quoted in various media—print, audio, and visual.  The “experts” quoted and interviewed in your local media have worked hard to become expert sources for the reporters, columnists, and freelance writers interviewing or quoting them.  You can become an expert source also by learning the ins and outs of working with the media and establishing yourself as a source for information, quotes, and interviews when they are dealing with a subject that you can address as an expert.

By carefully matching the medium you use with the content of your message, you can establish a public image and reputation as an expert in a matter of months that will continue to grow over the years.  These media are not easy to use, nor are they a quick solution to client acquisition.  They are, however, highly effective and they come to the prospect in a format that doesn’t confuse the message or, worse, defeat the content of your message.

January 19, 2008

Do Business Networking Breakfast Groups Work?

If you’re in sales, are an independent professional or are a small business owner, you either’ve attended a business networking group meeting or have been invited to attend one.  They’re everywhere.  Some of these groups are franchised by large, international companies; others are simply small, local groups that have been formed by a local entrepreneur. 

Nevertheless, whether part of a huge company or just a lone group, most of these networking groups work more or less the same way.  The object is getting a number of businesspeople together to work at supplying “referrals” to one another.  Each member is encouraged and expected to actively look for and supply leads to other members of the group.  Generally, membership is limited to only one person or company for each industry or each area within an industry.

Members typically pay a fee to join and then monthly dues—and, of course, there’s the breakfast that must be paid for also.  Each meeting will usually feature a member who has a few minutes to highlight their particular business and define for the group what a quality referral for them is.

I’m frequently asked by salespeople and business owners if membership in these groups is worth the time, effort and investment.  And my answer is—it depends.  If you’re a mechanic, a lawn care company, or a plumber, probably so.  If you’re a CPA, attorney, sell investments, or most any business-to-business salesperson, there are probably far better networking opportunities available to you.

The primary objective of a networking group is to find potential prospects for one another.  The idea is that each member will develop relationships with or meet people who will need or want products or services other members of the group can supply.  If each member actively works to refer business to other members in the group, everyone will increase their business. 

The concept isn’t bad.  And most people if they become active in a group, will eventually see some business developed through their membership—possibly even enough to make their membership worthwhile.

Yet, for most salespeople and business owners there are better places to spend their time.  For example, a CPA whose business is primarily focused on small manufacturing companies would be better served belonging to a manufacturer’s association where he or she could meet and develop relationships with a large number of actual prospects.  Would you rather spend your time networking with 25 other business owners and salespeople who may on occasion run across a small manufacturer, or would you rather spend your time getting to know and develop relationships with 75 or 80 or more small manufacturers? 

Likewise, a financial planner would probably be better served joining and becoming active in a Porsche owner’s club where they can meet several dozen members who presumably have enough disposable income to afford an expensive hobby than spending time with 25 or 30 struggling business owners and salespeople who may only on occasion run across someone that needs financial planning.  No interest in Porsche’s?  Then consider joining the architect’s association or the petroleum engineer’s association. 

There are thousands of business, industry and social associations, many with chapters near you.  No matter what you sell there are associations and organizations that can put you in direct contact with dozens, hundreds or even thousands of your prospects.  For most of us, general networking groups cannot even begin to give us access to that many prospects. 

Networking can work well.  The real question with networking isn’t can it work, it’s where can you most profitably spend your time and energy.  Rather than joining a group of diverse businesspeople who will probably only run across a real prospect for you on occasion, why not join a group made up primarily of potential prospects.  The only thing we really have to sell is our time.  Making the best use of that resource is one of the keys to success.

January 11, 2008

Three Secrets To a Successful Networking Event

Are you one of the millions of small business owners, salespeople, and professionals who have attended networking events held by the chamber of commerce or a business organization and found the experience to be far less than what you had hoped?  Attending networking events requires more than simply showing up—it requires a disciplined approach.   

Typically, the frustrations and wasted time arise from two fundamental issues:
•  overblown expectations
•  not having a plan of attack

Networking events, especially those of a general nature organized by the chamber or a general business organization, will not provide you with a plate full of potential prospects.  If you can walk out of a networking event with three or four good potential contacts, you have done well.

Unfortunately, many, especially those who are not networking junkies, attend these functions with the hope of leaving the event with a whole stack of business cards of great prospects.  When their expectations are not met, they conclude that networking isn’t all it’s cracked up to be and decide their time is better spent elsewhere.

In addition, most attendees waste the majority of their networking time.  Rather than an organized plan to maximize their benefit from the event, they simply attend hoping to “run into” prospects.

Yet, if you attend regularly and with realistic expectations, networking can eventually pay great dividends.  There are three “secrets” to making networking pay:

1.  Know Where You’re Going
Knowing who is likely to attend the event you are considering is as important as attending the event.  If you are considering going to an event you have never attended before, try to get a copy of the host organization’s member roster.  By examining the membership directory, you can get a fairly good idea of the type of people you can expect to meet.  If it appears there are a reasonable number of people and businesses of interest, plan on attending.  If you can’t get a copy of their member directory, call the organization and ask—most won’t mind the inquiry and will be happy to give you as much information as they can.

2.  Know Why You’re Going
Go with a definite number of contacts you want to make.  Determine how many good contacts you will need in order to make the investment of time worthwhile.  Depending on your particular product or service, that number may be only one or two—or may be much higher at five or six.  By establishing realistic, objective criteria, you can easily determine whether or not your time was well spent and whether or not you want to attend the event again in the future.

3.  Have a System for Working the Event
For most business owners and salespeople, the real networking event killer isn’t so much who is in attendance or even their own unrealistic expectations, but rather the time they waste during the event. 

Working a networking room requires planning and a clear vision of how you will spend your time.  I and many of my clients that I’ve taught the following networking method have found it to be easy and very effective:

Arrive about 15 minutes before the official event start time.  Wear a large, easy to read, high quality, permanent nametag that features your first and last name, not just your first name.  Of course, have lots of business cards.  Business cards should be blank on the back.  Wear clothing with two easy to reach pockets.

Station yourself close to the entry door—close enough that people might mistake you for one of the hosts.  Greet each person as he or she enters.  Nothing more than a greeting—and, hopefully, noticing their company name.  All you want is to hear a name, put a name to a face and to make a quick judgment as to whether they might be a prospect.

When arrivals begin to slow, begin your progression around the room.  Move in one direction—left or right.  Greet the first person or group of people you meet.  This round of conversations should be short—two to three minutes at most.  Your goal is to introduce yourself and learn as much as you can in a very short span of time about the person or persons you’ve just met.  Don’t clutter the conversation with information about yourself—keep everything focused on the person or the persons you are speaking with.  Your goal at this event isn’t to sell it’s to qualify prospects.  This will be your second meeting with many of these people, although you will probably not remember their names. 

Since many, if not most, will offer you a business card, you will begin to segregate cards into an interest stack and a non-interest stack.  When you meet someone you believe you’d like to get to know better—a potential prospect, put their business card in your right-hand pocket.  Those you don’t believe are prospects, put in your left-hand pocket.  This system allows you to immediately find the cards of those you want to reconnect with during the event without having to try to remember their name.

If you meet someone you would like to get to know better, before moving on to another group, let them know of your interest in learning more about their business and ask their permission to contact them via phone at a later date.  Once they agree, take one of your business cards and on the blank reverse side, write the day and an hour span of time during which you will call:  “Thursday, March 12 between 10:30-11:30.”  This day and time will be the same for everyone you meet that you want to call.  It keeps you from having to remember when you will call, but because it is an hour span, you’ll have time to make several calls without concern that you won’t keep your appointment.

Now, move to the next group and continue in this manner for the majority of the event.  About 30 to 45 minutes prior to the end of the event, go into your last phase.  The last phase is taking the few cards in your right-hand pocket and seeking to reconnect with those people.  This will be your third chance to meet them and to put a name and face together.  In addition, since it will be your third meeting, they’ll begin to feel like they know you and they will probably greet you as a friend rather than as new acquaintance.  Just as you are implanting their name and face in your mind through multiple meetings with them during the event, you’re planting your name and face in their mind.
  
This conversation will be a little more in-depth, but, again, keep the focus on the other person.  During this conversation, possibly you can move the conversation to the point that instead of a phone call on Thursday, you can invite them to lunch.  If not, prior to moving to the next person, again reiterate the phone call on Thursday and give them another business card with the same information written on the back.

On Thursday, make your phone calls and close for a get to know one another meeting.

This structure allows you to “meet” a prospect three times during the course of the event, set up a definite telephone conversation and help both you and the prospect quickly move from the “just met” stage to acquaintance stage very quickly.  All without having to remember any details during the course of the event.

If you keep your expectations reasonable and focus you time during the event on the few true prospects you meet, you’ll find your time at networking events to be both more enjoyable and profitable.

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