Fifteen years ago, I started a job selling coaching services.
I knew that we needed a marketing budget, and networking may not cut it. A few years prior, I relied on networking to produce leads in my own consulting business, and I failed miserably. For my next go, I was determined to succeed in the industry. But I believed that traditional marketing campaigns were essential to generating consistent recurring leads.
However, my new boss looked at me and said, “There is no external marketing budget — you are the marketing budget.”
I had to build a book of business again solely by referral, and I was terrified of failing again.
I went to networking event after networking event. At first, the results were slim. Slowly but surely, however, my efforts started gaining traction. I learned how to strategically produce leads that fed my business month after month.
It is common to leave a networking event or referral meeting with no results. Many business owners rely on referrals to generate business but cannot count on their referral generation strategy to produce a consistent number of leads. However, successful business owners do not waste time networking and they produce a consistent number of referrals per month.
This means that the best networkers implement a strategy that leads to a recurring stream of referrals.
When you go to a networking event, banquet, professional event or the like, there are three types of people in the room — fluff, people for you and people for those in your network. There is nothing wrong with fluff attendees who have no connection to you, your network, or your work. The most useful fluff can at least introduce you to someone who could be helpful to you. As a focused networker, you should seek out people who can help you or those in your network.
Once we assess the categories of people in the room, we can then decide which model of partner they will be — six-degrees, a client or a strategic partner.
The concept of six-degrees of separation means that everyone knows someone who knows someone, and with the right ask, you will get to the person that you want to partner with or sell to.
Speaking of the right “ask,” you have to have a tight “ask” when networking. The answer to “who is your target client,” should not start with the word “anyone.” You should know the industry, size, and needs of your ideal client. Then, practice communicating that target competently and confidently. For example, my elevator pitch is that, “selling businesses is my business, and I work with marketing, construction trades and landscaping companies to help their owners have a happy exit from their business.” If you have a tight “ask,” it is easier for six-degrees, client and strategic networking to think of great referrals for you.
The second partner model to identify while networking is a direct client. While finding a new client should be a low priority at an event, every once in a while you will run into someone who needs your services. A few months ago, I was at a Pacers game and met the owner of a construction trades business. When I told him that I am an attorney, he immediately said that he needed assistance and signed the engagement agreement the next day. A rare opportunity, but possible.
The third partner model to identify while networking is a strategic partner. Strategic partners sell to the same target market that you do, are involved in a similar needs-based conversation and have similar size clients. The key to leveraging strategic partners is to build enough trust to access that partner’s contact database and request warm introductions.
The three partner models to identify at networking events all work. However, one method produces more consistent leads than the other two. If you meet a six-degrees connection, they may have a referral for you, or they may not. If you meet a new client, you get one client. But, if you find a strategic partner who sells to the same type of client that you do, and they are willing to share contacts, then you have access to a recurring stream of referrals.
If you are seeking the most effective form of networking, finding strategic partners is it.
In a future column, I will discuss how to vet strategic partners and how to generate leads from them month after month.
Back to the job I started fifteen years ago … I ended up being wildly successful. I increased the company’s business by 30%, won the networker of the year award and earned a six-figure income for the first time.
Networking worked when I stopped wasting time, focused on strategic relationships and pushed for quantifiable results every month.
Jamar Cobb-Dennard is a business broker and attorney. For more information on how to buy or sell a company, contact Jamar at jamar@jamarcobbdennard.com.
