Addicted to Networking

I have an addiction. I am a networking junkie. As a small business owner, I am ok with this addiction, so I am not looking for a 12-step program to cure me of my habit. The "BUZZ" my business gets from my referral addiction is and important part of the marketing mix for my small business. It is one addiction I don't want to live without.

Want to develop your own networking habit? Here is how to create a healthy referral based business; start by creating relationships with business professionals who provide other services to your customers.

Who Else Sells to Your Customer?

When working with a DJ who was interested in growing his wedding business, I suggested he create relationships with a caterer, a florist, baker, jeweler, and a photographer. Why? The average bride spends $20,000 on her wedding. He can reach reach more potential customers at the right time by having a solid network of people who are also talking to brides.

The process of finding strategic relationships works in the home services industry. The average homeowner is doing something in their home every few months. Creating a network of associates on the look out for opportunities for you is like expanding your sales force.

Every day your potential clients are talking to roofers, remodeling contractors, carpenters, maid services, painters,electricians, and snow removal companies. Do you have one of each of these people in your network? And don't forget home inspector, real estate agent, insurance salesman and mortgage broker as you evaluate candidates for your referral network.

Surround Yourself with The Best People

Feed your habit with connections to the right people. To find them, check out the local chamber or other business association. You will need to meet a lot of people to find the people you want to introduce to your customers.

It is not just about getting referrals. A good networking habit is a two way relationship. When it comes to business referrals if you create opportunities for someone else, they are more likely to create them for you. It won't always be one-for-one, but in the long run, it pays off!

When evaluating who you want in your inner circle, think about what you can do for them. Be fair if you can't see yourself ever referring any business their way, don't waste their time or yours cultivating the relationship.

If you are going to share referrals it is important to pick your partners with care! If you recommend someone to a client or a friend, you are involved in the transaction. If the company you suggest handles the assignment professionally and competently your value, as a trusted advisor, or "go to guy" increases. If they blow the project, it reflects on you as well.

Stay in Touch with Your Network

Make time for your referral partners. Stay in touch through emails, phone calls or the occasional face-to-face. Find out what is new in their business and share what is new in yours.

As your relationship grows, it becomes easier to ask for referrals.

Also, periodically, review your referral sources. Have you remembered to say thank you for a sale that has closed. A personal note, or starbucks gift card - even for only $5 is a nice way to follow up.

Every few months, consider buying lunch for the person who has sent you the most leads recently. Look for ways to send business their way. Also look for someone who used to be a good source, and has fallen by the wayside. Take them to lunch as well. Maybe something in their business has changed, or maybe they have just forgotten about you.

An electrician noticed that his referrals from a particular contractor had all but dried up. He called him, and they met for coffee. In the course of the conversation, he found out the contractor was selling his business. As a result of the conversation, the electrician met the buyer and became his electrician of choice. Without the conversation, the sale would have been made, and that source of business might have been gone permanently.

People come and go, and so even with a strong referral base, you need to stay active, and connected, always adding new people to your mix.

And one final thought, networking is addictive. The more you do it, the easier it is, the greater your results, the more addictive it becomes.