Expand and Diversify Your Referral
Marketing Network
Author:
Ron Abbott
It’s common to have
gaps in your referral network that need to be filled. Not even the best
networks know someone to fill every need they might encounter. That’s
why you must continuously look to expand and diversify your referral
network.
This entails looking
outside your current market and finding organization and event where you may
be able to make connection to fill the gaps. There are many trade
associations and social groups that could become excellent networking
sources for your business. The most common sources are passive networking
groups, like a local chamber of commerce, and strong networking groups, such
Business Network International (BNI).
You can
find a chamber of commerce chapter in almost every major city worldwide.
Your local chamber of commerce gives you the opportunity to meet with many
of the movers and shakers in your local business community. Through the many
events they plan on a monthly and yearly basis, they offer you a chance to
connect with a number of potential prospects for your products and services.
Weekly networking groups or clubs are an example of strong networking
opportunities. These kinds of business networking events can be found in
many major cities worldwide. A strong networking group will meet on a weekly
basis for the sole purpose of exchanging business leads with one another and
learning better ways of networking to grow their business.
The
most successful networking groups require your weekly attendance and insist
that their members provide fellow members with referrals throughout the
year. They also allow only one person from each profession or industry to
belong to the group. This keeps the quality of the referrals high. One such
group is Business Network International (BNI).
So what are the advantages and disadvantages of each kind of networking?
They both have their place but strong networking groups, like BNI, represent
a bigger commitment than passive networking groups. By belonging to a strong
networking group, you are committed to be on the lookout for referrals for
group members. Strong networking groups also usually meet on a weekly basis
whereas passive networking groups usually meet monthly.
Passive networks can have multiple people from one profession or industry as
members. They also have no requirements for passing on referrals to other
members. Referrals do occur in a passive networking event but it is not
facilitated by the meeting and is totally up to the business owner to
initiate. You can belong to multiple passive networking groups. Any business
you get from passive networking will most likely be a result of the amount
of effort you put in.
Strong networks on the other hand restrict membership to only one person per
industry or profession. This greatly increases the likelihood that you will
receive referrals from participating members. Meetings are structured in a
way to encourage referrals and there is a formal referral exchange that
happens every week. It is strongly recommended that you only belong to one
strong networking group in order to keep the quality of your referrals high.
Both of these groups can become excellent places to increase your business,
but you need to put forth the effort and execute your referral marketing
system to be successful. Most importantly, adopt the philosophy of BNI,
“Givers Gain”. In the world of referral marketing you do reap what you sow.
©2005 Ron Abbott
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