The Only Business Networking Guide You'll Ever Need

If effective business networking is so important, why do so few people see any benefits?

The problem starts with expectations.
Most people approach networking as a key driver of sales. ("Networking is like advertising... but networking is free!")

While networking can occasionally lead to a sale, when selling is your primary intent you fail because potential clients instantly realize your attempts to "network" are just a poorly-veiled sales tactic.

But networking can work if you take the right approach. Let's start by defining what networking really is (I promise it won't be boring).

The Four Basic Principles of Business Networking:

#1: Networking Always Starts With Giving
The ultimate goal of networking is to connect with people who may be able to help you: A direct sale, a referral, a contact, an endorsement, a job interview... something tangible that helps you reach a particular goal. It goes without saying that when you network you want something.

But you can't ask for what you want -- at least not at first, and maybe not ever. Forget about receiving and focus on providing. Your ultimate goal may be to receive, but your short- and medium-term focus must be on giving. That's the only way to establish a real connection and relationship.

Focus only on what you want and you will never make a valuable connection.

#2: No One Cares What You Need or How Badly You Need It

A joint venture with a major player in your industry could transform your company. A writeup in the New York Times could generate the publicity you need to drive significant sales. An endorsement from Guy Kawasaki on his blog might kick-start your consulting business. Or maybe your startup will soon run out of cash without a desperately-needed infusion of capital.

All great reasons for you to connect with people, but no one cares. Nor should they. Your needs are your problem.

Never expect people to respond to networking efforts based on your needs. Everyone has needs. Others may feel your pain but it is in no way their responsibility to help you. People care first about how you can help them. Embrace that premise and you'll go far.

Plus, keep in mind networking is a little like dating. The more desperate or needy you are the less likely you are to connect with someone worthwhile.

#3: Networking is Highly Targeted -- Just Like Sales
Some people like networking events. I don't; they're too unfocused. A much better approach is to identify someone you can help, determine whether they might be able to help you, and then approach them on your own terms.

Always select your targets. Then go after them. Don't expect to find them at a networking event.

#4: The Higher You Reach the Less You Should Expect
Say you're trying to network with Guy Kawasaki or Seth Godin or Malcolm Gladwell.

Great -- get in a very long line. Half the world is actively trying to network with them while the other half is still looking for their contact information so they can try as well.

Effective business networking creates a mutually beneficial relationship, with major emphasis on "mutually."

Say you're a writer or "thought leader" (whatever that is):

• What can Malcolm Gladwell offer you? Plenty: Contacts, endorsements, advice, mentoring, etc.
• What can you offer Malcolm? Nothing. Be realistic. You may believe you have something to offer, but you really don't. (Don't feel bad, I don't either.)

Now that we're clear on what we mean by networking, I'm going to give you the basic steps on how to do it; follow them and the time you spend networking will actually pay off:

Step 1: Segment your networking "targets"
Step 2: Identify the best approach to each target
Step 3: Determine what you should provide
Step 4: Decide how much time you can afford to spend on networking
CLICK to learn how to segment your networking targets >>
How to Segment Your Networking Targets
First break down the people you hope to network with into three broad categories:

• Easy: Establishing a connection is unlikely to gain you much but should definitely help them.
• Medium: Establishing a mutually beneficial relationship is fairly straightforward; what you can provide and what they can provide is relatively equal.
• Reach: Establishing a connection with these folks is at the far end of possibility; you have little to offer compared to what they can provide.

In networking terms here's how we can segment our targets:

Easy: Local florists, cake shops, carriages, venues, wedding planners, etc. These vendors are delighted when we offer them photos or other "stuff." What do we get in return? Realistically, not much; couples don't tend to ask their florist for a wedding photographer recommendation. If you like to prioritize, you could put florists and cake shops at the "least potential return" end of the scale and wedding planners and reception venues at the "greatest potential return" end of the scale, since couples do occasionally ask wedding planners and venues for advice about photographers.

Medium: Sought-after venues, respected wedding planners, etc. These folks are, for want of a better way to put it, "at our level" because we tend to serve clients in the same spending demographic. Venues like the Congressional Country Club, the Boar's Head Inn, The Greenbrier, The Jefferson... they're in our wheelhouse. They appreciate, for example, getting photos from us to use for promotional purposes since the images are great and the connection reflects well on them. We benefit for the same reason. Plus they're happy to provide referrals because they know we'll come through for their clients -- as we know they will for ours. Work hard on this list (you'll see why in a moment.)

Reach: Our work has appeared in bridal magazines but we're by no means a go-to source for the top wedding media outlets. We land occasional features, but being seen regularly in, say, The Knot or Martha Stewart Weddings would be difficult since thousands of other wedding photographers are dying for the opportunity as well. High effort, low odds of return.

You should segment your targets the same way. Think of where you currently stand in your industry and market and make lists of Easy, Medium, and Reach targets. Then feel free to prioritize each segment in terms of potential return.

Then allocate the time you spend to networking each segment like this:

• Easy: 20%. It doesn't take much time to connect with easy targets. That's a good thing since you're unlikely to receive much in return. But occasionally you might, and you can also feel good about helping other entrepreneurs.
• Medium: 70%. Connecting takes a little more time and the return is definitely worth it. Establishing mutually beneficial connections is what networking is all about, so spend the bulk of your time here.
• Reach: 10%: Go ahead and go after the Seth Godins if you feel you must, but don't expect any return. (He's a nice guy but he doesn't need you.) Cultivating a relationship with reach targets takes a long time so there's definitely no need to hurry.

Once you've segmented your targets, it's time to make contact.

CLICK to learn the right way to approach business networking targets >> Identify the Best Approach
Here are the three most important aspects words in networking: Provide, provide, provide.
In a few cases you'll ask for what you want, but most of the time you will only provide. (Whether or not you ask depends on how you categorized the target.)

We'll use the wedding example again. When we photograph a wedding our sole focus is to create beautiful images for our client, but later we can leverage the work we've already done for networking:

Easy: Brides love their bouquets so we work hard to create striking photos. We don't need to, but it's okay to ask for what we want when we reach out to a florist: "We're going to send you images of your awesome bouquet... in return all we ask is that you credit us and provide a link." No florist ever turns us down because our photos are always better than theirs. The total cost to us is a phone call. Will we receive anything in return besides an inbound link? Probably not, but that's okay. Sometimes being nice is its own reward.
Medium: Every wedding planner needs help keeping their portfolio up to date. We don't ask for anything in return (although occasionally we could); we just offer photos. Because we're on the same "level," great wedding planners almost always say, "I would love to get images from that wedding... and you guys did such a wonderful job I'll definitely refer my clients to you." When you provide something of value to a connection at your level, most will automatically offer to help you out in return. If not, cross that person off your list.

Reach: Never ask for anything in return. And make sure what you provide is something they could not easily get themselves. For example, The Carlyle in New York City doesn't need our photos. While they have used several striking and unusual images, offering anything less would waste their time and ours. We didn't ask for anything in return because contacting Reach targets requires a very delicate touch: Just plant a great seed and leave that seed alone. (Reach targets always water and cultivate their own gardens.) If you later come up with more great seeds you can plant them too, and in time maybe a relationship may begin to bloom.

Maybe.

In summary:
Easy: Feel free to ask for something in return. But make sure what you provide has real value.

Medium: You shouldn't need to ask for something in return so the classy approach is to simply provide something of real value. Consider the response you receive and proceed accordingly.

Reach: Never ask for something in return, and make sure what you provide is not only valuable but also unique. Otherwise your attempt at a connection is just one of thousands.

Speaking of value, let's determine what you can and should provide. Fortunately, providing is easier and cheaper than you think.

CLICK to determine what to provide >>
Determine What You Should Provide
A continual focus on "giving" might seem odd or off-putting, but remember: Networking is based on a mutual exchange of value. An exchange requires giving and receiving. By giving first you set the stage.

But what you give doesn't have to cost a lot, even though it's valuable:

1. Appreciation. Few people receive enough praise, so unsolicited accolades make a memorable impact. (Just like flowers you send a loved one when it's not a special occasion.) Watch for something a target has accomplished or done well and congratulate them. Keep it simple, to the point, don't ask for anything, don't mention what you do or how they can help you... just say "well done" or "thanks" and make sure your contact information is at the bottom of the email or note. I guarantee they'll check you out on their own.
2. Advice. Providing advice must be handled gracefully because unsolicited input can easily sound like a sales pitch: "You may not realize it but email marketing can boost your sales by 20%!" Instead find a way to give truly helpful advice. A friend runs an ad agency and sent a target a note: "We recently conducted a traffic survey while conducting market research for a client and determined 25,000 vehicles pass his location (and therefore yours) between 9 p.m. and 5 a.m. each weekday. Since your sign isn't lit, thousands of potential customers don't see it..." He didn't close with the typical "Call us if we can help you..." line because valuable advice serves as its own calling card.
3. Assistance. The best tangible assistance is a by-product of something you already do; otherwise it's a sample. Photographing wedding cakes for our couples is a standard function but also one we can leverage since bakers appreciate great photos of their work. Think about what you do internally or for customers and determine how you can leverage those existing efforts to benefit your networking targets. With a little creativity you'll find plenty of possibilities. Just don't stray into the "sample" zone, because then in effect you're doing work on spec. Always leverage what you already do.
4. Referrals. Making referrals should also be handled gracefully. Don't say, "I'm referring a client to you so by gosh you better send some work my way in return." Instead call to give a heads up and provide useful information about the referral. For example, I might call a wedding planner we respect and say, "We gave a client your number because we know you do a great job. They want a fairly traditional and slightly understated reception, but their ceremony will be more complicated than usual and getting the details right is really important to them...." Then planner benefits in two ways: They get a solid referral as well as plenty of time to prepare so they can make a great impression when our client calls.

Reach out and provide real value and you will quickly establish positive relationships. But it's also easy to go overboard on making those connections, so let's make sure you don't spend too much time networking.

CLICK to determine how much time to spend on your business networking efforts >> Determine How Much Time You Can Afford to Spend
What's the easy answer to how much time you should spend networking?
Not much.
The majority of your marketing efforts should focus on direct sales. Networking takes time. You need sales and revenue a lot more than connections that may someday pay off.

Many people fall into the trap of over-networking since networking is like playing the lottery: You never know when the next connection might pay off big. Plus when you network you typically don't hear the word "no" like you do in sales, so networking is more fun. In networking you plant seeds and hope they grow... planting and hoping are fun.

But most networking seeds don't grow. You can make lots of connections, but you only successfully network when those connections become mutually beneficial.

Think about your current networking results. Some businesses gets lots of referrals from vendors, partners, etc. If that's the case, spending significant time on networking probably makes sense. If you get very few referrals -- even though you work hard to create those connections -- either your approach is wrong or you're in a business where referrals are less likely.

Here's an example. In law school most lawyers are taught to network with their local bar but those efforts rarely pay off. A friend of mine is a lawyer and spent years attending Bar Association events, having dinner with other lawyers, basically networking his butt off... but the only referrals he received were cases other lawyers didn't want.

Good lawyers keep the good clients for themselves; they're not going to dole any out to those (lawyers) less fortunate.

So he took another approach. He does a fair amount of real estate work and decided to network with local real estate professionals instead. But he didn't just send a letter and a card: He referred a few of his clients to one of the more successful local agents. She appreciated the gesture and sent some work his way.

Mutually beneficial: He needs clients, she needs a lawyer who will delivers on time since hanging on to a closing date is often the bane of an agent's professional existence.

Mutually beneficial is your goal too. Otherwise business networking is a waste of time.

So how much time should you spend? Twenty minutes a day or a couple of hours a week.
Feel you have plenty more time on your hands? Fine. Use that time to sell.
I know twenty minutes a day doesn't sound like a lot of time, but if you identify the right targets, segment them appropriately and provide something of real value, a few minutes a day will pay off a lot more than the time you currently waste collecting business cards, playing golf, and no-purpose schmoozing.

Read More:

• Great Business Networking in Four Easy Steps
• Why Everyone Should Work in Sales -- At Least for Awhile
• The Single Biggest Way to Be More Persuasive