Does networking actually generate sales?
The question of networking came up in the Facebook group that I’m a member of recently. I know many people who network regularly, and when I’m putting together a marketing plan with them networking is always something we consider. But can networking actually generate leads and sales , or is it just an excuse to socialise (and there is nothing with that, especially if you are a solo business owner working from home).
Like everything in life there is no right or wrong answer, and it depends on a number of variables:
· What kind of networking event is it?
· Will your target customers be there?
· How frequently have you been attending these meetings, and what successes have you had to date?
· Do you have a strong offer to promote?
· Does attending this group complement other elements of your marketing?
· What else could you be doing if you were not at this networking event?
Rather like buying houses, you can only choose from what is currently on the market. In my experience, based on the networking available to me where I live, the options include:
· Closed groups - where only one of each industry type is allowed entry. I’ve attended a couple of these, representing my own business and as an employee of a business. I have found that in these types of groups your “network” is limited to a small group of the same people. Whilst everyone is encouraged to spread the word and make referrals outside of the group I wonder how often this happens in reality. Having only one representative from each type of business may reduce the opportunity to share learnings and experience.
· Open groups with a pay as a you go fee. These can be a bit hit and miss. "Pay as you go" (or no fee at all) means that people don’t always commit, and the group size can fluctuate from meeting to meeting. (I've been to one of these where only three of us showed up). On the plus side it does mean that you often get fresh faces to connect with, as well as being able to develop relationships with regular attendees.
· Business groups that require you to pay an annual fee. I haven’t attended any of these personally as the ones local to me always look quite corporate, and not where I will find my ideal clients.
On that point if you are looking to generate leads via networking then it makes sense that you select events where you might find your ideal client, and you may have to "kiss a few frogs" and visit lots of different groups to find the best fit for your business.
Attending meeting regularly does allow you to build relationships and gives people to opportunity to get to know and like you, and a can be a great way to develop relationships with potential suppliers as well as potential customers. Everyone else in the room will be there with their own objective, and tuning in to what others find beneficial about the group can help you see how the group may benefit your business.
Having a strong offer to promote may help you to generate leads. This could be a freebie trial session, a reduced-price offer, or launching a new service. Just listing out what you do, or could do, is a little dull and won’t help you to be memorable. Whatever you are promoting make sure that you have a flyer or leaflet as well as business card to hand out. Make it easy for potential customers to take up your offer outside of the event.
Ask yourself what you could be doing if you weren’t networking. Are there other lead generation tasks that you could be doing instead? If you are a solo business you will now that your marketing time is limited. If it getting leads is your objective maybe you could use that morning writing a blog post or newsletter, attending to your social media accounts, updating your website, or other tasks that have a far greater reach than the networking group.
Networking can be great for building relationships, finding suppliers as well as customers, and for those that work at home it’s well to get out and socialise a bit. To be successful you need to have an objective for going, choose the right group to help you meet your objective and accept that often it’s a slow burn. Remember that networking is just one tactic in a whole toolbox of marketing possibilities.
You don't need to try and find me at a networking group! If you would like a chat over coffee, whether locally or virtually, to discus how I might be able to grow your business please get in touch.
vpanter@icloud.com
07812 985508
Comments