Today’s guest blog is an extract from the book, “Networking Quotient” by my good friends and BNI® Leaders, Paulo Corsi and YP Lai, about two immensely powerful measurements that determine the ability of your network to generate business for you, your Networking Quotient and your Referability Degree.
As a networker, have you ever asked yourself how effective your network is in bringing business referrals? And have you ever pondered which strategy will bring you better results? Should you expand your network and get to know more people? Should you build a deeper relationship with the people who are already in your network? Well, the secret to getting the answers is being able to measure your network. That sounds simple, right? However, what is the right measurement to use? The size of your network? The depth of your network? Or perhaps something else?
Let me introduce you to two powerful measurements that determine the ability of your network to generate business for you.
Your Referability Degree
The Referability Degree points out how much of your network is working for you. However, it does not tell you if your network has the right size to generate more business opportunities for you.
The Referability Degree is calculated by dividing the number of contacts in your network who have given you a referral in the last six months and dividing this number by the total number of contacts you have. (e.g., 30 people that gave you referrals / 100 people in your network gives you a Referability Degree of 30%).
- If you have a Referability Degree of 50% or less:
Your focus should be on developing better relationships with the people who do not regularly give you business referrals. Through nurturing the relationship, you will teach them how to generate referrals for you. At the same time, you will be learning ways on how to create value and bring referrals for the other person and develop a long-term mutually beneficial relationship.
- When your Referability Degree is above 50%:
You are ready to expand your network. As you expand your network, you should simultaneously strengthen the relationship so that both parties can bring good quality business referrals for each other.
Imagine a person that has a Referability Degree of 90% – which is exceedingly high. However, the size of the network is only 10 people. This indicates that he has deep relationships with his existing contacts but has only an extremely limited network. In this scenario, he must expand his network to more people. A network of 10 people will not be sufﬁcient to create a constant ﬂow of opportunities for him.
Your Networking Quotient
The Networking Quotient is simply the number of people that have given business referrals to you in the past 6 months.
For a continual flow of business by referrals, it is recommended to have a Networking Quotient of at least 100. This means having an active community of at least 100 people that you are constantly in contact with, build rapport with and know how to bring you good quality referrals. Building up your Networking Quotient takes time, and with constant practice, it will become your daily habit.
Paulo Corsi and YP Lai in their book, “Networking Quotient”, share in detail how to calculate the Referability Degree and the Networking Quotient. And more importantly, they share proven strategies to build your Referability Degree and your Networking Quotient.
The eBook / Kindle version of “Networking Quotient” is on sale for $1.99 until 11 pm (PDT) TONIGHT – April 1st, 2021.
“Work Less Earn More”
Accompanying the Networking Quotient book, YP Lai has written another book, “Work Less Earn More” about the 10 proven strategies to be wealthier, healthier & happier.
This book acts as a guide for busy entrepreneurs to get their lives into harmony, ensuring that while they are in pursuit of material wealth to provide for the family, they also focus on other important things in life like health, fitness, and happiness.
The eBook / Kindle version of “Work Less, Earn More” is on sale for 99¢ on Amazon until 11 pm (PDT) on April 2nd, 2021.