Where’s Your New Business At Networking Events?
How good would it be if new business came to you rather than you having to find new business? And what if new business came to you and it didn’t cost you a penny in advertising? Wouldn’t that be good?
What if gaining new business was as easy as recommending a good restaurant, film or book? Everyone has recommended one of these to friends and family. The restaurant, cinema or author/publisher are making money from the recommendation and it costs them absolutely nothing to advertise to secure that business.
So how do you apply this to your business? Easy, it is all in the power of word of mouth referring, which is just another term for networking. Business people naturally know lots of people, many they would call friends and a fair few they trust implicitly, so refer business to.
If in your day to day routine you were to come across a potential piece of business for a friend's company you would of course refer it to them. Your friend receives some new business, new business gained without spending a penny on advertising and of course they will reciprocate for you.
(It is said that a referral generates 80% more business than a cold call. So not only is there a saving on advertising but there is a significantly better chance of converting a referral into new business.)
Apply word of mouth referring to a group of say 16 business friends, all keeping their eyes and ears open for each other and in all essence you have a 15 strong unpaid sales team working for your company. The beauty is that not one person is spending any additional time, cost or effort, each are just being aware of opportunities for each other in their usual day to day routine. Word of mouth referral combined with the premise that 'givers gain' is a very powerful tool.
You can tap into the power of word of mouth referral by doing very little, simply by building good business relationships and looking out for opportunities for others as they will do likewise for you. Networking speeds up this process as it provides an environment where ‘word of mouth referral’ and ‘givers gain’ are encouraged and believed in very much.
It is said that on average a person knows around 250 people. It could be argued that a business person could double or treble that amount, but let’s work on a figure of 400. If your 15 business friends have access to 400 people each, that amounts to 6000 people through a chain of just one person! If those 6000 people know only 250 people each, through a chain of just 2 people you have access to 1.5 million people!! Yes, 1.5 MILLION people!!! It is said that through a chain of 6 people you have access to everybody on this planet!!!
An example from our events of a poor understanding of word of mouth referral is a gentleman who came to two of our events a few years ago. His ideal contacts were schools and those responsible for recruitment within them. Towards the end of his second event he advised that whilst enjoying them he would not be attending again. On asking why he advised that in two events he had not met a single school teacher.
When giving this example I always ask ‘Do you know a teacher?’ 99% reply ‘Yes!’ This person's new business was only a small step away from 99% of the delegates he met but he couldn't see it!
So when you are out in general and at networking events look further than the person you are talking to, because who do they know? Harness the power of word of mouth referral.
Details of our next events can be found here: www.networking4business.com/future-events.htm
Written by Mark Greenwood of Networking4Business.
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