Quote: Power networking involves the development of a team of powerful, proactive referral partners capable of producing a steady flow of referrals for your business.
In this chapter:
o Examples of power networking
o Defining networking
o 7 Myths and truths about networking
Before we talk about networking, let’s take a look at some examples of the results that some have achieved by applying the principles of effective networking. The examples we cite are mostly from Local Business Network simply because these are the individuals with whom we have worked and whose stories we know. In most cases, you can replace LBN with the words “structured networking organization”.
We share these stories to help you understand how truly powerful networking can be for anyone who is willing to learn the principles of power networking and to apply them consistently. Many who do so achieve rewards totaling hundreds of thousands of dollars. For many, business from referral partners account for 25% to as much as 90% of their sales. We hope these examples will encourage you to read further and to consider seriously the principles we teach.
Website Design Firm Finds Structured Networking its Most Powerful Business Growth Tool
Steve Hyer started IGD Solutions, a website development firm, in 1999. In 2000, he joined Local Business Network, a structured business referral organization. Steve was not only new to business, but new to networking.
For the ensuing three years, LBN referrals accounted for an average of 38% of his business. In real dollars, that amounts to six figures each year. Forming strategic and referral partner relationships with members of his own chapter and with those in other chapters helped Steve create a continuous referral stream and thus a continuous stream of new leads and new clients. Steve found the regional mixers particularly helpful in finding and developing referral partner relationships with those in the technology field.
Steve writes that, “LBN is the single most effective method we have used to promote our business. The structure of meeting twice a month and really focusing on sharing referrals makes it extremely effective.”
From Corporate Cast Off To Successful Business Owner In 1 Year
Mark Raymond was laid off abruptly from his information technology job when his company was bought out. The IT market was slow and Mark knew he needed to find additional sources of income. He knew it takes time to grow any business.
Mark had an entrepreneurial background. He had owned a number of different businesses before, ranging from working as a disc jockey, to being a truck driver, to operating as a multi-media expert with auto shows. Fortunately, he had built a successful real estate rental business and owned more than ten properties. Still he needed to replace his IT income.
Mark joined Pre-Paid Legal Services as an Independent Associate. He focused on the sales aspect instead of building a team, but needed prospects and referral partners. His target markets were companies and small business owners, but he did not know where to start.
His wife, Tricia Raymond, a real estate agent, already belonged to a Local Business Network and she encouraged him to use the networking to promote his business. Mark only knows one way to go – full speed ahead. He became the President of his LBN chapter and aggressively built referral relationships.
Within one year of joining LBN, he sold over 400 Pre-Paid Legal memberships. Nearly half, 180 memberships, came directly or indirectly from LBN. Today he has a rapidly growing nationwide network of business associates helping to grow his business.
Sales Agent for a Title Insurance Company Receives over 60% of Her Business Through Networking Group Referrals
Sandra Maurer enjoyed networking, but didn’t realize how powerful it could be when she joined the Birmingham, MI chapter of Local Business Network. Her sales were strongly dependent on relationships with mortgage lenders, attorneys and real estate agents.
Sandra began visiting as many LBN chapters as she could to meet key referral partners and build relationships. She attended every regional mixer to meet other members and build more relationships. She became an extraordinary referral generator, giving as many as 50 or more referrals every month.
Within two years, the relationships she had built within LBN were generating over 60% of her income. When she changed jobs, she took those relationships with her and had an immediate sales base even though she was selling different products and services.
Accountant Gives and Receives Over $100,000 in Referrals Annually
Norm McKee is an accountant and business consultant. During his first year in LBN, referrals from LBN members accounted for about 25% of his business. The second year it grew to 40%. Partnering with other LBN professionals, he also began an employee benefits firm with the potential to generate even more profit than his already highly lucrative accounting practice.
Norm receives eight to ten new client referrals a month from his referral partners. He receives over $100,000 in referrals annually and gives at least that amount to his referral partners.
Norm says, “We selected LBN as our networking group because of the structured/instructional based program offered, providing all members with basic direction over their networking activities. We found LBN members to understand the importance of relationship marketing and how to utilize relationships to create a marketing avenue for their businesses.
Residential Cleaning and Janitorial Service Reports 90% of Sales Come From LBN Members or Their Referrals
Mary Youtz was downsized by a major software development firm. She had worked in the accounting department in a thankless job for a thankless boss. After being let go, she and her husband started their own business and elected to use networking as their primary means of promoting it.
After six months, the firm was in the black and 90% of sales had come through members of her Local Business Network. Mary immediately recognized the value of visiting as many chapters as possible and became a regular visitor to half-a-dozen chapters in communities near her place of business. She attended every regional networking event and built relationships with those in a position to send her referrals. She brought referrals to every meeting she attended.
Mary also grew personally. She had never been required to speak in public and initially expressed concerns about having to do a sixty second commercial at her local chapter meeting. She quickly outgrew her fear and even became a speaker at regional networking events. Her friends saw an extraordinary transformation in her self-confidence and demeanor. She recently took on a role as an officer in her local chapter.
And there are hundreds of additional stories but we don’t have time to tell them all. Here are some quick recaps of a few more.
o Jim Motley started a new computer repair business with $250,000 in sales his first year largely through referrals; doubled his business the second year; then doubled it again the third year.
o Jeannie Kime, a marketer of promotional items spent two years in another networking organization before joining LBN without much success, then tripled her business in her first year in LBN.
o John Gentilia of Perfect View Blinds reported 35% of his business from LBN referrals his first year, growing to 40% his second year.
o Doris Benson of Comfort Zone Heating and Cooling developed 100 new customers in her first six months in LBN.
o Ed Koerner, a mortgage lender, got 36 referrals in his first six months in LBN.
o Brian Jenks, a commercial lender, received referrals for real estate financing for projects of $12 million and $5 million.
o Sharon Quarters, a Realtor, received leads totaling over $2 million in her first three weeks in LBN.
o Attorney, Brian Rolfe got a lead for a $50,000 client within a few weeks after joining LBN.