ROI Archives - Page 2 of 2 - Dr. Ivan Misner®

NetTime: How Much Time Should You Spend Networking?

The secret to getting more business through networking is. . . spending more time doing it!   OK, well, it’s a little more complicated than that because you have to spend time doing the right things.  However, devoting the necessary time is the starting point.  So how much networking time (or NetTime) should you spend developing your personal network and what kind of results can you expect to see?

Based on a survey that I helped to write and conduct of over 12,000 business professionals from every populated continent in the world, we finally have a definitive answer to those questions.  The study found that people who said “networking played a role” in their success spent an average of 6.3 hours a week participating in networking activities.  On the other hand, the majority of people who claimed that “networking did NOT play a role” in their success spent only 2 hours or less per week developing their network.  

Clearly, those people who spent very little time engaged in the process felt that networking was not an effective way to build their business.  As with many other aspects of life, you clearly reap what you sow.  It’s no wonder that the people who didn’t invest as much time also did not realize as much reward.  This demonstrates the direct correlation between the amount of time you devote to the networking process and the degree of success that you will likely realize from it.

The typical person in the survey who spent a little over six hours a week networking generated almost 47 percent of all their business through referrals and networking activities.  Of the 12,000 global participants in the survey, women spent less time networking (6.19 hours compared to 6.44 for men), yet generated a higher percentage of their business through the process (49.44 percent compared to 43.96 percent for men).

Why would women spend less time and get a higher percentage of their business from referrals than men?  Well, we discovered that men tended to be more transactional in their networking activities.  That is they were more likely than women to be focused on the “business first and the relationship second.”  On the other hand, women were more likely to be relational in their networking activities.  In other words, they were more likely than men to “focus on the relationship first and do the business second.”

An emphasis on relationships first was clearly and undeniably a key factor in determining whether people were going to identify  networking as having played a role in their success. When we looked at the responses from all the participants who said that networking had played a role in their success and then compared them to those people who focus on relationships first, we discovered that the majority of respondents who felt they’ve achieved success through networking also felt that it was better to build the relationship first and then focus on the business.  Consequently, regardless of gender, business professionals who focused on the relationship first and the business second tended to do better than those business people who focused on the business first.

In other words, relationships beat transactions when it came to networking.  The reason that women seem to have done better in the global study was that women tended to be more relational then men.

Those who skip the relationship building and attempt to establish an “all business” interaction often discover that trust and goodwill are more than just window dressing – they are part of the social capital that energizes a mutually rewarding business relationship.  People who bypass relationship building are more likely to feel that networking has not contributed to their success, and they are probably right – because they’re doing it wrong or at least not doing it enough.

You may be reading this article and thinking – OK, I now know that I need to be spending at least 6 ½ hours a week networking.  Well, that’s true IF you want to be average (and what successful business person wants to be average)!   If on the other hand, you’d like to be above average – you need to devote more time than that to the cause.  The optimum amount of NetTime is more likely to be 8-10 hours a week if you want to be one of those people that are generating well over half their business from referrals.

How much NetTime do you spend each week?  More?  Less? and what percentage of business (total) do you get from your networking efforts?  Comment below.

Networking ROI

I recently co-authored an article about the return on investment (ROI) of membership in BNI (the organization I founded back in 1985).  My readers here may find some of the results interesting:

The average amount of business gained from referrals in the last 12 months was $37,055.  When asked about further orders they had received as the multiplier effect of participation, members were able to think of, on average, an additional $17,668 per year of membership.

Combining closed business in the last 12 months with the average value of 2nd and 3rd generation referrals in a year showed the true value of a seat as $54,720 per year.  On average, members who were involved in the group for 7 years generated $383,038 since they joined, thereby underpinning the lifetime value of participation.

An associate of mine is conducting an independent study regarding ROI for any networking organization.   He will share some of the results with me and I will publish them here on my blog.  Please take a few moments to take the short survey (it will only take 3 or 4 minutes).

*** Take the SURVEY HERE ***

After you take the survey, post a message here with any questions that YOU would like to see in a future survey that I’m doing or recommending (like this one).

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