farming Archives - Dr. Ivan Misner®

Over the years, I have observed that most business professionals go about networking the way our cave-dwelling ancestors went about hunting for food. If I could impart one piece of wisdom regarding networking and getting more referrals, it would be this: Networking is about farming for new contacts, not hunting them.

Premature Solicitation

Has a complete stranger ever solicited you for a referral or business? I call this “premature solicitation.” I have been its victim many times. Years ago, I was speaking at a networking event, and before my presentation, an unknown person approached me and said, “Hi, it is a real pleasure to meet you. I understand you know Richard Branson. I offer specialized marketing services and I am sure his Virgin enterprises could benefit from what I provide. Could you please introduce me to him so that I can show him how this would assist his companies?”

I replied with the following response: “Hi, I’m Ivan Misner. I am sorry. I do not think we have met before. What was your name again?” That surprised the man enough to make him realize his solicitation might have been a bit premature. I continued to explain to him. “I regularly refer people to my contacts, but only after I’ve established a strong, long-term relationship with the service provider”. He thanked me and moved on to his next victim.

Over the years, many people have shared with me their frustrations about strangers who pounce on them at networking meetings and ask for business. However, occasionally someone will share with me that they approve of using “premature solicitation”. Here is one example that I received:

Hunting Networkers

“I don’t happen to believe that you need a relationship with the person you are asking first. What you must have is a compelling story or product/service that would genuinely benefit the referral. The fact that you had not cultivated a relationship with the person has become irrelevant because, more importantly, you had been in a position to help [your contact] benefit from the introduction. If it’s of genuine benefit to the person being referred, I don’t see the problem. Who am I to deny my contacts something good?”

The relationship is “irrelevant”, according to this person. It does not matter if I actually know or trust someone. As long as the person has a worthy product, I should not “deny my contacts something good.” I absolutely disagree, and I would ask anyone interested in business networking to keep the following in mind:

Networking is not about hunting.
Networking is about farming.
It’s about cultivating relationships.
Do not be guilty of premature solicitation.

Farming Networkers

This kind of networker is also meeting people. However, they build relationships first, instead of just adding names to a contact list. They are building referral sources to people that were referred to them by their strategic alliances. Proper networking is about taking the time to cultivate relationships. Use networking opportunities to first meet people, Then schedule additional times to connect and build trust with them. Do not ask someone for a business referral until you feel confident that the person knows and trusts you.

Networking is indeed like farming. Commit to mastering what it takes to efficiently and effectively harness the potential in your “relationship crops” and you will reap a bountiful harvest of mutually satisfying relationships and sustainable growth in your business.

Over the past couple of weeks, I’ve written a few blogs on the VCP Process® of networking and, since I’ve already covered visibility and credibility in detail, today I’m going to tell you what you need to know about profitability, the third and final phase of the VCP Process.

The mature relationship, whether business or personal, can be defined in terms of its profitability. Is it mutually rewarding? Do both partners gain satisfaction from it? Does it maintain itself by providing benefits to both? If it doesn’t profit both partners to keep it going, it probably will not endure.

The best piece of advice I can give you in regard to when to expect to get to profitability is to be patient. The time it takes to pass through the phases of a developing relationship is highly variable. It’s not always easy to determine when profitability has been achieved: A week? A month? A year? In a time of urgent need, you and a client may proceed from visibility to credibility overnight. The same is true of profitability; it may happen quickly or it may take years, but most likely it will be somewhere in between. It will depend on the frequency and quality of the contacts and especially on the desire of both parties to move the relationship forward.

Shortsightedness can impede the full development of the relationship. Perhaps you’re a customer who has done business with a certain vendor off and on for several months, but to save pennies you keep hunting around for the lowest price, ignoring the value this vendor provides in terms of service, hours, goodwill and reliability. Are you really profiting from the relationship, or are you stunting its growth? Perhaps if you gave this vendor all your business, you could work out terms that would benefit both of you. Profitability is not found by bargain hunting. It must be cultivated. And, like farming, it takes patience.

Visibility and credibility are important in the relationship-building stages of the referral-marketing process. But when you have established an effective referral generation system, you will have entered the profitability stage of your relationships with many people–the people who send you referrals and the customers you recruit as a result. It’s an essential part of successful relationship marketing and networking.