Networking to Grow Your Business – Part 1 of 3
July 9, 2009 :: Scott Lawrence
With the incredible growth of social media over the last few years, many small business owners have started finding success at growing their businesses by networking online, using some relatively simple internet tools. This exciting new world of internet networking can seem absolutely intoxicating at times; the hangover is realized only at the sobering realization of the abundance of time required to make social media and blogs really work. Some have said that the idea of social media was far more intriguing than the actually having to regularly participate. Although Twitter’s unique audience has increased exponentially in the last year alone, helping to make “twitter” something of a household name, its audience retention rate hovers right around 40% (see graph I), spawning another common term: “twitter quitter.” It would seem that, no matter the level of technology, in networking and marketing, the adage seems to hold true: we get what we put into it. (See Graph I)
Not to be outdone, Local Networking events, which require a regular physical presence, are also seeing record turnouts lately. Similar to social media, the same adage applies here too, yet the two networking media are poles apart. We’ll explain. But first, we should define Local Networking. Local Networking is any organization, consisting of small to medium sized businesses, which meets on a regular basis to share and receive referrals and leads. Examples of formal Local Networking groups are: BNI (Business Networking International), Merchants’ Associations, Chambers of Commerce, Business Associations, etc. We’ve outlined below the most common similarities, and biggest differences, between local networking events and social media.
The similarities
1. No matter the city where you live, local networking events occur all of the time.
2. Both social media and local networking events are primarily in place to promote businesses to new customers.
3. It is usually the most interesting blogger (or interesting person at the local event) who will get the most leads.
4. Many Local Networking groups, as well as bloggers, attempt to pay for their activities (and even make a profit) by attracting sponsors.
5. They both require constant attention, although the frequency may be quite different.
6. Social media can become viral, where blog entries and links are sent along to readers who might find the content interesting. Similarly, local networking groups are not in place to sell to one another, but rather to sell to the attendees’ circle of influence.
The differences
1. Blogs and other social media typically require regular (often daily) attention. Local Networking events typically occur (at most) on a weekly basis.
2. By definition, Local Networking events are… well… local. Not global like social media can be.
3. Some Local Networking groups, like BNI, are exclusive to one business per industry.
4. Just as Local Networking groups do not require daily interaction, the payback period for this group is also prolonged. Generally speaking, the attendees at local networking groups must become familiar with you at their regularly scheduled events before they feel comfortable suggesting you to their customers or circle of influence.
5. Due to the nature of geographically based businesses, some industries are better than others for Local Networking vs. Social Media. (e.g. a mechanic in Opelika, AL may have a fantastic blog worth reading every other hour, but he’s not likely to get much business from his most loyal fan in San Fransisco, CA)
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