Formula Archives - Dr. Ivan Misner®
Quality Relationships

Building Quality Relationships

Years ago, I learned that there is a correlation between the number of quality relationships and the number of referrals generated in a strong networking group. If you have a networking group of 16 members, that group has 120 relationships among all the members. However, a networking group of 32 members has 496 relationships among the members. Doubling the size of a networking group from 16 to 32 members has over four times the number of relationships. See the above graphic for an example of these relationships as chords of a circle. This video further explains this concept.

The Number of Quality Relationships Generated by the Members of a Strong Network

The number of relationships grows exponentially as the size of the group gets larger.  For example, if your networking group has 50 members, that networking group has 1225 relationships among the members. We have a few BNI chapters with 100 members. Therefore, they have 4950 quality relationships among their members. However, it is not the QUANTITY of members in your networking group that is important. What is important is the QUALITY of the relationships that you have with the members of your strong network. Growing more quality relationships in your networking group will increase the number of referrals generated by your members.

The formula: Number of Relationships = 0.5 x [(Number of members) x (Number of members – 1)] 

Quantity is good, but quality truly is king

The bottom line is that the more connections you have, (based on quality relationships of course), the more referrals you generate.  Grow your business by growing a strong network of quality relationships. For decades, I have seen groups that are twice the size of other groups in an area generate several times more referrals than their smaller counterparts.  The math is pretty significant and consistent. If you know your connections well enough to be able to call and ask for a favor–and get it–that is a powerful network.

Effective networking is about building strong relationships. If you approach the first months or year of your involvement in a networking group with the sole motivation of building relationships first by getting to know the other members well, you will be far ahead of the game. One of the most important things I’ve learned over the years is that it is not really what you know or who you know. It’s how well you know them that really counts. People do business with people they know and trust. The more relationships you build with your members, the more referrals you can give to your members, and the more referrals you will receive from them.

The Three Step “Follow-up Formula”

Follow-up is one of the most challenging aspects of networking for many networkers and I often get asked the question; “What is a good system for following-up with the people you meet at networking events?”  In my opinion, here is one of the best ways to follow-up – it’s called the 24/7/30 system.

Image courtesy of Master isolated images / FreeDigitalPhotos.net

Image courtesy of Master isolated images / FreeDigitalPhotos.net

When you meet someone at a networking event, drop them a note within the first 24 hours.  It can be a personal handwritten note or an email, just make sure to use whatever approach that you will do consistently.

Within 7 days, connect with them on social media.  Make a connection via LinkedIn or Facebook.  Follow them on Twitter or join them on Google+.  Find ways to connect and engage with them via the social media platform(s) you are most active on.  Do NOT do this as a way to “sell” to them, do it as a way to start to establish a meaningful connection with them.

Within 30 days reach out to them to set up a 1-2-1 meeting.  If you live near each other, meet in person (that is almost always best).  If you are far from one another, set up a meeting via Skype or by phone.  At this meeting find out more about what they do and look for ways to help them in some way.  Don’t make it a “sales call” make it a relationship building opportunity.

If you do the 24/7/30 approach to your follow-up, you will establish a powerful routine that will help you to make your networking efforts meaningful and successful.

Do you do something similar to this?  Share with me here any other suggestions you’ve got and what you think of this approach.

 

Facts Tell, But Stories Sell

Over the past few weeks, I’ve posted blogs on how embracing quality, adding members, and seeking engagement are all things that will help networkers and entire networking groups achieve success.  Today, I’d like to talk about an additional tactic for obtaining stellar networking results–sharing stories.

Listening closely to the information shared by those in your referral network will help you in telling positive stories about them when you come across potential opportunities to refer them.  Conducting regular one-to-one meetings with each of your networking partners will also help you become more able to share stories when you refer others to them.  Think about your many positive experiences with your fellow networkers and write them down.

A number of years ago, I met Robert Dickman, author of The Elements of Persuasion, and he taught me the formula for a good story:

  1. A story is a fact
  2. Wrapped in emotion
  3. That compels us to take action
  4. That transforms us in some way

The key here is that a good story compels people to take action and that this action transforms or helps them in some way.  I always try to re-live a story, not just re-tell a story.  Make it sound fresh and alive.  That is an important aspect of storytelling.

Remember that facts tell, but stories sell.  If you want to build your network in order to generate more referrals, overlay storytelling on top of your efforts.

The keys to success within networking groups which I’ve previously posted blogs about (embracing quality, adding members, seeking engagement) can combine with sharing stories for a powerful formula that will help members of networking groups obtain optimum networking results and business growth:

3+1 = Member Success

  • 1-Embrace Quality
  • 2-Add Members
  • 3-Seek Engagement
  • +1 Share Stories

Understanding this formula can improve your business networking success in amazing ways. 

If your networking group already employs this formula, I’d love to hear about the impact it has made on your group’s performance and results.  Please share your feedback (and stories) in the comment forum below.  Thanks!

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