Networking for Results
Doyle Slayton | Mar 01, 2009 | Comments 23
A couple of months ago, we did a reader Q & A called Cold Calling vs. Networking. I asked everyone for an opinion on which sales professional would produce the biggest results… the one focused on cold calling or the one focused on networking. After several weeks of letting it soak in, I’m ready to share my opinion!
As was the case with The Great Debate: Quality vs. Volume, once again, I’m in the minority (see Pump Up the Volume). I don’t find networking to be an effective way for “sales” professionals to exceed their goals. For that reason, I almost never attend networking events. On the rare occasion when I do, I’m normally there to support the person or the friend of the person who is hosting the event.
Don’t get me wrong, I’ve met a lot of nice people and built some good friendships at networking events, but when I’m looking for results… when I’m looking to exceed quota… I get on the phone! Cold calling and pipeline management… that’s the key to sales success!
If I’m going to meet new people at a networking event, I’m looking for people who are big thinkers. Maybe I’ll meet someone who I can collaborate with at some point in the future… But let’s be clear… At this point, I don’t want to sell them anything, and I’m not in the buying mood. Lastly, I’m not looking for an opportunity to get together for coffee. No offense, but I don’t have time for that. The truth is… I don’t drink coffee (smile).
There is another very important fact that has shaped my disbelief in networking. Almost every team I have worked with has members who are attracted to the networking scene. None of those individuals were ever outstanding producers. Most of them struggled to even meet expectations.
Then I think to myself… wait a minute. Just because I’ve never seen it, doesn’t mean it doesn’t exist. Maybe networking can produce big results. I just haven’t ever believed in it enough to get anything out of it. In other words, if I treated my cold calls with the same apathy as I treat networking events, then my phone work wouldn’t produce many results either… right?
I guess what I’m saying is… I’m keeping an open mind. If I’m ever going to promote networking as a successful activity for sales people, I need to find a step-by-step process or methodology for turning networking into results.
Is there a step-by-step formula for those who love networking to produce “superstar” results?
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Filed Under: Blog • Featured • Reader Questions • Sales • SalesTaxi
Doyle,
You propose an interesting ‘Conundrum!’ I just learned that word by the way. I say many times in my book “Cold Calling pays the bills while referrals buy the luxuries!”
I agree with you totally, I can fill my pipeline in a few days with qualified prospects as opposed to networking which could take months if not longer. But, I do get many great referrals from networking, so here are some tips which have worked for me. The following questions I have to answer honestly or I will be wasting mytime.
1. Is my ideal client going to be there? I need to meet them on ‘accident.’
2. If my ideal prospect is going to be there who can introduce me to them? Who else knows my ideal prospect and will they introduce me to them? I would call them ahead of time so my friend is aware I want to be introduced to “Mr. Smith.”
3. Is there another sales person who also sells to my ideal client going to be there? I need to meet them to see if we can grow our relationship to work with each other. I will start by asking them to coffee to see if we could work together.
These questions help me develop a strategy on what I am trying to accomplish.
If I answer all three of these questions negatively I will stay home.
So if my ideal client is not going to be there and a someone who sells to my ideal client is not going to be there then there is no reason for me to go…
Can you think of a reason for me to go if I can’t answer these questions positively?… Well, my wife can’t either. So, I don’t go.
I hope this helps,
Chris
Author of For Free and For Fun – How to Ask for the Appointment and Get It
http://www.forfreeandforfun.com Visit for a FREE expansion CD set of the book.
919-753-8282 my personal cell
You have described many of the great dilemmas of today’s networking. Check out http://www.businessclubsamerica.com.
How would you like to network in a group that is made up of the following:
-No competitors
-All members are mid size companies and up
- 85% C-level execs
-Like-minded individuals all trying to grow their businesses via developing relationships.
-not needing to worry about your target being at the meeting, because someone at that meeting either knows your target(s) or knows someone who does and is willing to connect you because they know that you will reciprocate.
-Everyone has a “givers gain” mentality.
-All events tightly focused on one thing: Helping members to build their businesses by providing warm referrals and face to face introductions. All made possible because of BCA fully is fully staffed. All members need to do is show up and participate.
-The annual membership dues include incredible value. And, because of the high cost, not anyone can join and there is “skin in the game” factor. If you make an investment, you will not squander it. In such organizations, participation is the key to success.
*Most networking events that I have been to outside of BCA, such as Chamber meetings, etc. involve 15 competitors handing out biz cards. There is no focus and no follow up.
Check out the BCA web site above if all of the examples I mentioned is of interest to you.
BTW, cold calling is still necessary, but the ration of networking vs. cold calling is highly dependent upon what you are selling and to whom.
I agree in part. I think the marginal performer is always looking for the silver bullit to solve their problems, and networking is more fun than cold calling. Networking is a longer term asset. You won’t go to a networking event amd close a sale. You may meet someone who you can develop in to a lead, or connect you to a lead, maybe,
“You cannot shoot the moose from the lodge”. Get out there and meet some people.
Christopher you’ve hit the nail on the head for me. It’s about qualifying the networking event; treat it as another prospect.
As a relative newcomer to the corporate world (3 years only) from a country town, I have discovered networking is something I am very good at. But the bulk of my networking is not to events but individuals. I always have my eye out for likeminded people so when I ’stumble across’ (LinkedIn contacts-of-contacts, etc) them I purue ontact. This invariably results in a quality contact as I listen to their interests and drivers… And while this is only PART of sales activity (doesnt pay today’s bills)….my interest in being useful to others is a big part of my professional credibility.
I believe “SELECTIVE networking” is part of business development for the long term. “LUCK is a 4-letter word spelt W-O-R-K”.
The reality of networking is that it will never help to reach or exceed this months goal. I have found, however, that somewhere in my travels I will undoubtedly run into the people I meet at networking events while doing my job. Having built a repore and having gotten to know them in a different atmosphere actually makes the sales process easier. After all, the first thing a salesperson has to sell is themselves. If they don’t like you or trust you, you most likely will not make the sale.
Hi Doyle –
With great interest, I’ve read and re-read your post and have analyzed it thoroughly.
My conclusion, in answer to your parting request for a step-by-step formula for producing “superstar” results, is that you need to . . .
start drinking coffee!
;<) Have a $uper $ale$ week! Hal
I believe there is a simple solution to your dilema. Cold call during business hours and network AFTER hours. I use this simple strategy as a one/two punch and it works well. I am marketing in the daytime like crazy for my business, and at night I am making friends and building win/win relationships with other professionals. What’s better than that?
Just a quick note to your last point about methodology.
Look at how colleges and universities work to translate the alumni network into a donation (revenue) generating system. Is there anything more challenging from a sales standpoint than to acquire someone’s time and resources in exchange for goodwill and a prominently displayed name?
The point is to move an uncommitted alumnus into a network and up the network into volunteerism and donations.
Some organizations do it better than others of course. And everything starts with the college experience itself. The more forthcoming alumnus generally looks back on good experiences with student organizations such as clubs, teams, music organizations, ROTC, etc. The part-time student may find the kindness and consideration of the professors a major factor.
So I would like to hear from alumni board members and alumni relations and development directors on this one.
To reply to this blog,
I would like to say that I have been a “open networker” for many years. I believe it has a lot to do with the product you are selling. With that said, it’s a matter of building relationships with people and with your current clients. As far as being a “large producer” it is a matter of your skills. In sales you must know that people don’t buy from a company, they buy from a person. If they don’t like you then you aren’t getting the sale no matter what you do. You might be the type of person who only sells and moves on, who has no interest in building a business or customer base, but only selling, and in my opinion you will move from one job to the next and be a big producer but after awhile you will have a reputation. You might not know about it but people will know.
Bill
Canton, OH
Doyle,
You pose an interesting question. After 35 years of selling, I have found networking very productive. Over the years, I have consistently produced top results in more than one industry. I’m now in the mortgage industry where all I can claim is that we have outlasted many of our higher volume competitors. During the best of times, they may have made more money, but during the worst of times, they went out of business.
When it comes to your debate between Cold Calling and Networking, I find there isn’t one answer. I find most sales people don’t know how to network effectively. They go to networking events looking for immediate business. Instead, networking events are opportunities to meet people, build relationships, and train a sales force. The sales force consists of people who decide that what I am offering is valuable enough to sell to their friends and associates. The people I network with sell my services for me. This means that to be a good networker, the person must truly be focused on serving the customer’s interests better than the competition. It is a quality driven sales focus. Some buyers respond to it. Some do not. In my industry, repeat borrowers are more likely to respond positively than first time borrowers. First time borrowers think all suppliers are the same. Repeat borrowers understand the differences.
The cold call approach requires finding prospects with a need and filling it. The cold call approach will be most effective with prospects who do not see any difference in suppliers. Whoever makes an acceptable offer at the right time will get the order. It is transactional selling instead of relationship selling. The buyers people who shop for the lowest price and don’t care who offers it as long as the seller looks acceptable. These customers typically exhibit little loyalty to suppliers, and do not become repeat buyers. These buyers are more likely to cancel an order or switch suppliers during a transaction for a small difference in price. My experience is that this approach will generate more inquiries faster, but a lower closing rate. The volume will be higher, but the cost per sale will be much higher.
I find either approach can work. When you are “looking to exceed quota”, I agree that the cold calling approach is the way to do it. You are being paid on volume, not profits. My experience is that most sales managers are looking for the quick hit instead of sustained results. Unless your sales manager understands networking and can teach you, it is probably best to stick with the cold calling approach. There is “a step-by-step process or methodology for turning networking into results.” It’s just harder to learn than cold calling, and typically requires longer to produce initial results. I find the results from networking much easier, more satisfying, and rewarding.
Don Opeka, President, Orion Mortgage, Inc., http://www.OrionMortgageInc.com
Interesting article. My belief is that you are missing an important component. How do you decide which networking events to go to? My response would be select those where you will learn something or have fun. There are so many places you “could” go — why would you not use the two criteria listed above? If you are connected to your community you will know what events the decision makers are attending. I agree those are much more fun than following the crowds where food/drinks seem to be the most important part of the evening.
Kathy Condon,Executive Coach, Speaker, Trainer and Author of the Award-winning book: “It Doesn’t Hurt to Ask: It’s all about Communication.”
http://www.kathycondons.blogspot.com
Doyle:
You are RIGHT ON!! Even though I do a lot of networking and I LIKE networking, I have, as of yet, to find it effective for any actual sale. Being targeted and using my connections to connect to their connections is what’s effective.
Doyle,
A few years back I sold double my budget three years in a row, the next-best salesrep sold 75% of budget, I still sell well in these times of crisis.
I have outperformed time and again.
And most of it comes down to networking.
I’m an active member of ‘Business Network International(http://www.BNI.com), the worlds largest business-referral network. The whole idea is that we open our networks for each-other in order to produce business. That way we go from cold-calling to warm-calling.
Another angle to networking is to leverage your existing clients. If you take time to build relationships with your existing client-base they will happily refer you to their peers.
Networking is about building relationships. Relationships that last, and that are mutually beneficial. And that will outshine cold-calling any day.
Networking is also about learning and knowledge-sharing. Both of these are essential so that you stay updated and can deliver to your clients. Since there is no way I can know everything about everything, I leverage my network of people that can help me. It may well be that I refer business elsewhere in order to solve a problem. Both of my contacts will be happy about this arrangement, and both will be willing to help me whenever I need it, since I helped them sometime in the past.
But of course, there is one reason I succeed with networking, it is because I am results-oriented to the max. I always look for a way to help others, to connect, to build mutually beneficial relationships. Networking for the sake of spending some time has limited value.
Thats my 2c
Edgar Valdmanis, MBA
Marketing Director, The Norwegian Computer Society
Board-member, Meeting Professionals(MPI), Norway Chapter
http://www.linkedin.com/in/edgarvaldmanis
Follow me on Twitter – http://twitter.com/EdgarValdmanis
I don’t think it’s a straightforward “either/or” equation as some would like it to be. First, I think there are some people with excellent networking skills and a networking personality, while others excel at cold calling and have that kind of personality.
But regardless of those salesperson strengths, a lot also rests on the kind of company the sales person represents – how long it’s been around, how well known it is, and the profile of the ideal customer – and the sales person’s background and existing relationships. If you are selling into multiple verticals and your clients don’t tend to know each other, then networking is guaranteed to be less effective.
If you target a vertical where the buyers often know each other and maintain a tight network, then you’ll be more effective with that tool. But even then, networking will only be effective if the sales person is experienced, has been in that vertical industry for a while, and is well-respected. If he/she develops a reputation for not delivering, being pushy, or for lying, then networking will backfire.
I founded my last three companies on the premise that we can capitalize on relationships in a single industry. So each company has targeted a specific vertical market where intercompany relationships are common, where people tend to move from company to company in the same industry building their relationships as they go, where a lot of socializing between companies takes place, and where there are only a few degrees of separation between players. I’ve targeted this same industry for the past 10 years, and only hire sales people with industry experience.
While I’m still a BIG proponent of cold calling and have a methodology that everyone in my organization follows, we get 75% of our business from referrals, networking and relationships.
To answer Doyle’s question about a formula – yes, we use a methodology for networking that addresses the types of events we attend, the types of people we seek to add to the network, the number of contacts we make, and the number of referrals we request. We also have a standard plan for asking for introductions.
The answer is definitely networking but not the way you have been doing it. There is no question that what we all want are more referrals. If you spent your time knowing who your best champions were (those who are your referrals partners) and networked not for prospects but for referral partners – you would find your efforts much more rewarding. Not only for your business but also for the type of networking you might do.
Let me refer you over to a website where the guy has perfected referrals to a real science http://www.referralacademy.biz
If you contact him use my name – I think out of all the ones I have spoken to about how to grow your business effectively he has the answers.
Cold calling – you have got to be kidding – no one likes it and few do it well – spend your time talking with people you like in building a relationship and you will get the business you need and deserve.
Doyle, once again you ask a very relevant question pertaining to success in a sales career.
From my visits with you I know you are very successful using the telephone too find new customers and I wish everyone in the group could spend one hour or two with you to see that how cold calling or appointment setting with the telephone can really help a sales person achieve sustainable success.
If a salesperson can always achieve success by networking alone, that is great. Like you, I have not found many that can do that in my 40 years of sales experience.
Sales opportunities or leads come from 4 sources. Let me start with the first 3, networking, referrals and marketing. If real sustainable success can be achieved with these 3 alone, sales would be a real easy job.
Most salespeople find that leads from these resources usually don’t provide them with enough leads to be successful.
That being the case, there is only one other way to reach quota or success on a regular basis and that is by adding telephone prospecting to our sales actvities(cold calling).
So success is usually obtained by having a sales plan that incorporates all 4 sources. Because cold calling is the most difficult, most sales people take the path of least resistance and therefore under perform or fail because they cold call ineffectively. “A random pursuit of a group of poorly qualified suspects”.
Let me close by saying that in all my years of my experience, as well as experience with other sales people, those that have incorporated and developed a best practice for cold calling and exercise that best practice by committing at least 30 minutes a day to cold calling, have been successful. Most have been very successful.
Great question and some great responses.
Well I believe in both cold calling and networking. It does depend on the networking event you go to but you can and my company has closed sales from a networking event. But you are correct in saying the majority of networking events will involve making relationships and connections with people who in the future can give you business and/or referrals.
Joining networking groups like BNI, local Chamber of Commerce and Wometec are great ways to build your base and to get referrals on a weekly basis.
There is no correct formula; only what works for you.
In order to succeed you must do both calling and networking. I think networking is very important, as it allows you to get to know your client and future clients on a more personal level. The relationship is key ! If they don’t know you, they won’t buy from you. But then you must follow up with calls, emails and information to close the sale.
Doyle,
As someone that has done, and still does, a lot of cold calling this article is great. Qualifying the event as per Christopher’s early suggestion is important: If you don’t have a big enough reason to go, then don’t set foot out of the home / office.
Cold calling is effective at getting to the “no” and removing anyone that isn’t open to anyone or anything new. People have a right to decide whether they want to be reached be that by email, phone or networking meetings.
I don’t get to face to face networking events more than twice per quarter. In France it’s not an integral part of the business culture. So, using the phone in conjunction with online networking platforms/forums is the way forward.
The one thing I disagree with is holding and sending lots of glossy literature. It’s a way to get rid of a person whilst feigning interest or politeness. What is wrong with a website? Isn’t the carbon footprint big enough already? Aren’t offices already awash with unread mail?
Hi Doyle. Kudos to you for rattling our cage. What a great debate!! If your perspective is accurate, all the research I’ve done on the most successful business and sales professionals was all for nought.
Relationships are the foundation of success in business and in life. That’s not my personal opinion, it’s a fact of life. It’s an accepted fact that the single most effective way to grow a business, drive sales or advance a career is networking.
The key to more and better sales success using networking is in changing your paradigm from a single-focus prospecting activity to a multi-faceted strategy that delivers multiple payoffs.
When used strategically, networking is far more productive than cold calling. The keys to sucecss are: accepting the process, being better prepared and persisting in building relationships.
Happy to chat about how you might improve your results by “Networking For Results” in the future.
Michael J. Hughes
Canada’s Networking Guru.
Hi Doyle,
Taking your request to heart I looked at what my “cold call sales process” looks like:
Bonding & Rapport
Decision Maker Identification
Uncovering Problems
Opportunity Identification
Digging Deeper (questioning about the opportunity)
Talking Money/Budget
Purchasing Process
Presenting Your Solution
Closing the Sale
Follow Through
When looking at it I realized there are MORE steps when I’m networking before I find any opportunity to do business:
Bonding & Rapport
Ask them what they are working on
Find a way to help them
Share what you are working on
Stay in touch
Opportunity Identification
Decision Maker Identification
Digging Deeper (questioning about the opportunity – now includes Uncovering Problems too)
Talking Money/Budget
Purchasing Process
Presenting Your Solution
Closing the Sale
Follow Through
I agree with everyone else who talked about doing both activities for success. Along with the people who discussed networking not being about finding an opportunity to sell something “at the moment you meet the person”. I look to build the volume of people who are out there and bring me up when someone says – hey I really wish I had someone better/faster/stronger at XYZ.
Lynn
Hi,
I have a step by step process for getting business from networking that works. Networking does not work for every type of sale. I recommend it for people who have to sell in a local area. I agree with you that no selling should go on while we are networking. For networking to be effective you have to have a strategy and most people don’t so it is not effective. Business networking is about connecting with people who can either buy from you directly or can become a referral source. So start by finding places to network where your target audience can be found. Then get to know people, help them get what they need, tell them what you need and then follow up. That of course is the simplified version. The strategy you set is the key.
Alice