VCP Archives - Dr. Ivan Misner®

8Feb2021

Why People Resist Networkingstring(28) "Why People Resist Networking"

February 8, 2021

Networking, VCP, VCP Process Credibility, Networking, Profitability, Visibility

Every year, people continue to resist networking even though successful people have used networking to grow their businesses. Networking provides a great return for a much smaller monetary investment as compared to the cost of traditional advertising. Why are so many business owners still not networking as a way to grow their business?

The four reasons why people resist networking

They are frozen by their fear

Having a fear of rejection keeps people from networking. The fear of interacting with strangers is paralyzing. Having low self-confidence, shyness, or an under-estimation of what they can contribute are reasons why they resist networking. Giving in to these fears is just plain bad for business.

They are too busy

Not having time to network is another excuse many people use as to why they are not networking. People believe that they are too busy already. They think that it is not worth the time or stress it takes to network. They resist networking because they believe that their current time obligations are more important. Being “too busy” is an excuse when people are not clear on their networking goals.

They are “hunting”

People resist networking because they expect immediate results. They are impatient and don’t understand the value of taking the time to build strong relationships first. “Hunters” want a quick sale as opposed to following up and establishing credibility over time with others. They do not follow up with the people they connect with and get no results.

They are talking more

People often resist networking because they pitch their sale in a room full of competition. I was at a big networking event with more than 500 people in the UK one year, and the person who spoke before me asked the audience: “How many of you came here hoping to do some business–maybe make a sale?” More than half the people in the audience raised their hands. He then asked, “How many of you are here hoping to buy something?” No one raised a hand–not one single person! This is the networking disconnect and they are not listening.

The four reasons why successful people network

They are focused by their fear

Successful people are not blocked by fear. They are focused on meeting others when networking. Not only are they building their business visibility, but successful networkers also have a good time building new relationships with others.

They value their networking time

Successful people have clear networking goals. They know what they want to gain with their networking time. Successful networkers have learned that breaking out of their routine is an enriching experience. They have found ways to incorporate networking into their schedule.

They are “farming”

Networking is not a “get-rich-quick” scheme. Successful networking is more about farming than it is about hunting. We have to cultivate good relationships that pay us back over the long term, year after year. Networking works by building credibility with strong relationships.

They are listening more

Networking is not like “cold-calling.” It is not something you do to someone. It is something you do with them. Networking is a conversation. It involves more listening. Don’t forget that a good networker has two ears and one mouth and should use both of them proportionately.

Networking involves building a strong relationship. The first of the three phases of networking is visibility. You and other individuals become aware of each other. When networking, you become genuinely interested in the other person as you get to know each other. This interest in each other leads to credibility with each other. This credibility will build and will create opportunities over time to provide referrals. Those referrals will ultimately lead to profitability resulting from your networking efforts.

15Mar2018

The Three Phases of Networking: The VCP Process®string(49) "The Three Phases of Networking: The VCP Process®"

March 15, 2018

Ivan Misner

"Navigating the VCP Process to Networking", VCP, VCP Process(R) Credibility, Profitability, VCP Process, Visibility 1

I have written about this concept in many of my books but I’ve never done the full description here on my blog. So – for the first time, here’s a thorough description of the three phases of networking: The VCP Process.

The key concept in referral marketing is relationships. The system of information, support, and referrals that you assemble will be based on your relationships with other individuals and businesses. Referral marketing works because these relationships work both ways: they benefit both parties.

A referral marketing plan involves relationships of many different kinds. Among the most important are those with your referral sources, with prospects these referral sources bring you, and with customers you recruit from the prospects. These relationships don’t just spring up full grown; they must be nurtured. As they grow, fed by mutual trust and shared benefits, they evolve through three phases: visibility, credibility, and profitability. We call this evolution the VCP Process^®.

Any successful relationship, whether a personal or a business relationship, is unique to every pair of individuals, and it evolves over time. It starts out tentative, fragile, full of unfulfilled possibilities and expectations. It grows stronger with experience and familiarity. It matures into trust and commitment. The VCP Process describes the process of creation, growth, and strengthening of business, professional, and personal relationships; it is useful for assessing the status of a relationship and where it fits in the process of getting referrals. It can be used to nurture the growth of an effective and rewarding relationship with a prospective friend, client, co-worker, vendor, colleague, or family member. When fully realized, such a relationship is mutually rewarding and thus self-perpetuating.

Visibility

The first phase of growing a relationship is visibility: you and another individual become aware of each other. In business terms, a potential source of referrals or a potential customer becomes aware of the nature of your business – perhaps because of your public relations and advertising efforts, or perhaps through someone you both know. This person may observe you in the act of conducting business or relating with the people around you. The two of you begin to communicate and establish links – perhaps a question or two over the phone about product availability. You may become personally acquainted and work on a first-name basis, but you know little about each other. A combination of many such relationships forms a casual-contact network, a sort of de facto association based on one or more shared interests.

The visibility phase is important because it creates recognition and awareness. The greater your visibility, the more widely known you will be, the more information you will obtain about others, the more opportunities you will be exposed to, and the greater will be your chances of being accepted by other individuals or groups as someone to whom they can or should refer business. Visibility must be actively maintained and developed; without it, you cannot move on to the next level, credibility.

Credibility

Credibility is the quality of being reliable, worthy of confidence. Once you and your new acquaintance begin to form expectations of each other – and the expectations are fulfilled – your relationship can enter the credibility stage. If each person is confident of gaining satisfaction from the relationship, then it will continue to strengthen.

Credibility grows when appointments are kept, promises are acted upon, facts are verified, services are rendered. The old saying that results speak louder than words is true. This is very important. Failure to live up to expectations – to keep both explicit and implicit promises – can kill a budding relationship before it breaks through the ground and can create visibility of a kind you don’t want.

To determine how credible you are, people often turn to third parties. They ask someone they know who has known you longer, perhaps done business with you. Will she vouch for you? Are you honest? Are your products and services effective? Are you someone who can be counted on in a crunch?

Profitability

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 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? one 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 – most likely, somewhere in between. It depends on the frequency and quality of the contacts, and especially on the desire of both parties to move the relationship forward.

Shortsightedness can impede 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.

20Apr2017

The VCP Process with Tiffanie Kellogstring(36) "The VCP Process with Tiffanie Kellog"

April 20, 2017

Ivan Misner

VCP, VCP Process Building Relationships, Credibility, Guest Video, Profitability, Tiffanie Kellog, VCP Process, Visibility

We simply can’t achieve success at networking without strategically building VCP = visibility, earning credibility, and then ultimately gaining profitability.

VCP is a referral process, not a sales process. If the majority of your clients aren’t giving you referrals, then you are only at Credibility with your clients, not at Profitability. It’s possible that you can have a lot of Visibility and a lot of Credibility, but NOT have Profitability. Rather than a formula, VCP is a continuum. Before you can refer to someone, you will need to know, like, and trust them.

In this guest video blog, Tiffanie Kellog, a trainer for Asentiv Florida, explores the three stages of the VCP process. Click here to watch.

In short, your goal should be to first enter Visibility with people, then perform activities that will help you build trust and Credibility with them, and finally through time and the strengthening of that relationship, they will most likely pass you consistent referrals in the Profitability stage. After all, “It’s not who you know, it’s who knows you.”

19Oct2015

Are You Prepared to Enhance Your Credibility?string(45) "Are You Prepared to Enhance Your Credibility?"

October 19, 2015

Ivan Misner

marketing supplies, referral marketing, VCP Credibility, VCP Process 2

The VCP Process is the foundation of building a referral-based business. While this general business-building philosophy isn’t going to automatically increase your business, there are plenty of benefits to increasing your visibility and your credibility.

Visibility is usually pretty easy for businesspeople to get on board with. You attend extra networking events, look into other forms of marketing, reach out to new client bases. Credibility is where, time and again, we see more people struggling to build up that quality reputation of being credible.

There are a few simple items other than business cards that you should try to have at your disposal to help you develop that word-of-mouth campaign and show off your credibility to potential new clients or business networks. Try to always have access to at least one example of the following simple items:

Photos of yourself and your office facilities, equipment, and products;
Your letterhead and stationary;
Your annual report and capability statement;
Advertisements you’ve run;
A list of your memberships and affiliations;
Articles on trends affecting your target market.

Most business professionals will have these few simple items at their disposal at any given point, and many won’t realize what a vital tool to building credibility these can be! You can really up your game by having a couple less common items at your disposal as well:

Articles in which you or your business are mentioned;
Product catalogs you use;
Client or customer proposals and bid sheets;
Marketing letters you wrote to clients;
Posters, banners, and display materials used at trade shows;
Photos of awards and certificates you and your staff have earned.

Got all that? Great! You can never have too many credibility-building items at your disposal, so the following are great additions, as well. Just make sure not to throw all of your items at potential contacts at the same time. You don’t want to overwhelm anyone, though it would be incredibly easy to do so. Look to have these on-hand in case someone requests them:

Testimonial letters from satisfied clients;
Photos of key customers;
Unpublished articles;
Any of your new-product announcements or press releases;
Question-and-answer sheets;
A one-page, faxable flyer.

With a little foresight, it can be incredibly easy to get all of the basic supplies you’ll need to prove your credibility and increase your word-of-mouth marketing campaign.

What items do you use on a regular basis to show your potential clients and business networks that you are a credible candidate to help them with their needs? Let me know in the comments below!

9Aug2010

Moving from Visibility to Credibilitystring(37) "Moving from Visibility to Credibility"

August 9, 2010

Ivan Misner

Networking, Referrals, relationships, VCP, VCP Process Building Relationships, Business, Credibility, Networking, Networking Prep, Profitability, Visibility 5

In last Thursday’s blog, I explained that visibility, the first phase of the VCP Process®, brings the opportunity to build credibility and that credibility is what will ultimately get you to profitability, where you’ll actually benefit from your networking and relationship building efforts.

So how do you move from visibility to credibility? Well, once you and another individual achieve visibility with each other, meaning you’re aware of each other and the nature of each other’s business, you begin to form expectations of one another; once those expectations are fulfilled, your relationship can enter the credibility stage. If each person is confident of gaining satisfaction from the relationship, then it will continue to strengthen.

Credibility is the quality of being reliable, worthy of confidence. Credibility grows when appointments are kept, promises are acted upon, facts are verified, and services are rendered. The old saying that results speak louder than words is true. Failure to live up to expectations–to keep both explicit and implicit promises–can kill a budding relationship before it breaks the surface of the ground and can create visibility of a kind you don’t want.

To determine how credible you are, people often turn to third parties. They ask someone they know who has known you longer or perhaps has done business with you. So, how credible are you? Would the people in your network vouch for you by saying that you are reliable and honest, your products and services are effective, you keep your appointments, act on your promises, deliver results as expected, and can be counted on in a crunch? If you’re not sure, now is the time to make a strategic effort to build your credibility; without credibility, you can forget about achieving profitability.

If you’re interested in learning more about profitability (If you’re in business, it’s safe to assume you’re very interested. ;-)), the third phase of the VCP Process®, and when you should expect to achieve it with your contacts, be sure to come back and read this Thursday’s blog.

2Aug2010

The First Phase of the VCP Process–Visibilitystring(51) "The First Phase of the VCP Process–Visibility"

Last week I wrote a blog explaining the VCP Process, which is a huge part of the foundation of networking. Because this process is so crucial to effective networking, I promised to write a blog entry for each of the three phases (visibility, credibility and profitability), and today I’m going to talk about why it all starts with visibility.

The first phase of growing a relationship is visibility: You and another individual become aware of each other. In business terms, a potential source of referrals or a potential customer becomes aware of the nature of your business–perhaps because of your public relations and advertising efforts, because of your social media presence or perhaps through someone you both know. This person may observe you in the act of conducting business or relating with the people around you. The two of you begin to communicate and establish links–perhaps a question or two over the phone or via e-mail messages about product availability. You may become personally acquainted and work on a first-name basis, but you know little about each other. A combination of many such relationships forms a casual-contact network, a sort of de facto association based on one or more shared interests.

The visibility phase is important because it creates recognition and awareness. The greater your visibility, the more widely known you will be, the more information you will obtain about others, the more opportunities you will be exposed to, and the greater will be your chances of being accepted by other individuals or groups as someone to whom they can or should refer business. Visibility must be actively maintained and developed; without it, you cannot move on to the next level, credibility.

I’ll talk more about credibility next week, but it’s important to understand that visibility brings the opportunity to build credibility, and credibility is what will get you to profitability, where you’ll actually benefit from your efforts. So many times people try to jump straight from visibility to profitability, and that’s not real networking; it’s just an obvious ploy to get something from your new contacts. That’s nothing more than a bad attempt at direct selling and a big waste of time.

So, how do you go about creating more visibility for your business? What are some strategies that have really worked out well for you? I’d love to hear your comments.

29Jul2010

What is the VCP Process?string(24) "What is the VCP Process?"

The key concept in referral marketing is relationships. The system of information, support and referrals that you assemble will be based on your relationships with other individuals and businesses. Referral marketing works because these relationships work both ways: They benefit both parties.

A referral marketing plan involves relationships of many different kinds. Among the most important are those with your referral sources, with prospects these referral sources bring you and with customers you recruit from the prospects. These relationships don’t just spring up full-grown; they must be nurtured. As they grow, fed by mutual trust and shared benefits, they evolve through three phases: visibility, credibility and profitability. We call this evolution the VCP Process(R).

Any successful relationship, whether a personal or a business relationship, is unique to every pair of individuals, and it evolves over time. It starts out tentative, fragile, full of unfulfilled possibilities and expectations. It grows stronger with experience and familiarity. It matures into trust and commitment. The VCP Process describes the process of creation, growth and strengthening of business, professional and personal relationships; it is useful for assessing the status of a relationship and where it fits in the process of getting referrals. It can be used to nurture the growth of an effective and rewarding relationship with a prospective friend, client, co-worker, vendor, colleague or family member. When fully realized, such a relationship is mutually rewarding and, thus, self-perpetuating.

This simple concept has made a bigger difference in more people’s networking efforts than any other single idea I’ve discussed. For this reason, I’m going to devote the next few blogs I write to explaining each step of the VCP Process individually. Come back on Monday to learn why it all starts with visibility . . . I guarantee you you’ll want to read this one!