Simple Addition Equals Successstring(30) "Simple Addition Equals Success"

 

Years ago I learned that there is a dramatic correlation between the size of a quality networking group and the number of referrals which are generated by that group.  The fact is, the addition of new members brings an increase in the likelihood that any given networking group will be successful.

Groups under 20 people do not generate as many referrals (proportionately) as do groups over 20 people and the math proves it.  If you have a group of 16 people, that group has 256 connections (16 x 16).  However, a group of 32 people has 1,024 connections (24 x 24)!

In a network, the number of relationships leads to a number of possible business referral connections that is a squared multiple of the actual number of people in your network.  I call this ratio of people in a group compared to the total connections that are created, the “Squared Connection Effect.”  Hence, the quantity of people you build networking relationships with truly makes a difference in the total number of connections and inevitably the amount of referrals which can be generated from your group.

So as you begin to build your own network of referral relationships, keep in mind that the more the better!  The bottom line is that the more connections you have (based on quality relationships, of course), the more referrals you can generate. The math is pretty significant and consistent.

Is your networking group currently positioned for success in regard to the number of people belonging to the group?  If not, what are some things you might be able to do this week to help your networking group grow?

The 3 Networks You Need to Join If You Haven’t Alreadystring(60) "The 3 Networks You Need to Join If You Haven’t Already"

In the book Room Full of Referrals (click here for the paperback edition and click here for the Kindle edition) which I wrote with Tony Alessandra and Dawn Lyons, we talk about the Top Ten Referral Marketing Basics and number one is:

RfOR

Belong to Three Different Networks

  • A Service Network like the Rotary Club, for example.  Service clubs are devised for just that, to provide service to an organization.  Your main reason for joining a service clubwould not be to gain business.  Most people truly believe in what the organization is doing and have a passion for it.  While your main goal is to serve the community or organization, you will also be building relationships and, yes, business may come to  you through this group.  However, it should not be your main reason for joining.
  • A Casual Contact Network, like a Chamber of Commerce.  Casual networks provide a way for you to meet a larger amount of people at one time.  There are less restrictions with this group, and they mainly do large mixers.  A key benefit to the casual contact networks is that you can meet people who would be good referrals for your referral sources.  Having a large sphere of influence is important in your being able to give lots of referrals on a regular basis.
  • A Strong Contact Network, like BNI. Strong contact networks like BNI provide exclusivity.  For example, only one person per profession is allowed to be part of the group.  They also incorporate more structure and commitment from their members, which in turn greatly increases the amount of loyalty and participation.  These groups are designed to gain referral business.  The key is to only belong to one of these types of groups to ensure follow-through, commitment and loyalty.

When you create a strong referral network, you’ll want to be able to give lots of referrals to them as well.  You’ll need a wide sphere of influence within which you have substantial credibility, so as they need things in their life, you can refer them.  It’s as Referral Institute® Partner Mike Macedonio states in the book:

“It is not just the breadth of the relationships that you have, it’s the breadth and depth of the relationships that are the most important.”

Being involved in three different networks will give you breadth–all you have to do is create the depth! 

What are you going to do this week to expand your networking involvement to include all three networks and to deepen your relationships?  Please share your thoughts in the comment forum.

How Much do You Trust Advertising?string(34) "How Much do You Trust Advertising?"

Nielsen recently did a survey regarding people’s “trust” in various forms of advertising (see the graph below).

Remarkably, the two top categories of trust involved word of mouth!  All other forms of advertising were substantially lower than the top two (word-of-mouth approaches).  Furthermore, 82% of all forms of advertising (other than word of mouth) showed that more than half of all people didn’t trust that form of advertising much at all!

The media often asks me why networking is so important.  I think the graph below clearly demonstrates why networking is so important for business growth and success.  It’s important to note that I believe in advertising; I also believe that referrals and networking are a form of advertising and I’ve been saying for many years that business networking (i.e., referral marketing) is the most cost effective form of advertising.

This independent study clearly confirms the power of word-of-mouth advertising.  Weigh in here – what are your thoughts on the matter?

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