The essential franchise art of networking

Networking in its most basic form consists of making contacts and building relationships that will help you achieve your sales and business goals. It can be directly related to business goals such as when you meet a supplier or customer, but can also have an indirect connection with your business in situations such as when you might volunteer for a community group to enhance your position in the community, which in turn will hopefully have a positive flow-on effect to the business.

Some of the benefits your sales team and company can gain through networking include:

Building your prospect and customer base.

Increasing the visibility of your company and its products in the industry and the community – through mention of your membership, contributions and participation; presence at trade shows and conferences; appearances as guest speaker at meetings and conferences.

Improving the perception of your company in the community – through donations of time and money to charitable and community causes.

Gaining influence on the content of laws and regulations that could impact your business or your clients – also having advance notice of changes in laws and regulations your business and its customers need to comply with.

Building relationships with schools and colleges from which your company can recruit new employees.

Improving the interpersonal skills of your salespeople.

The nature of networking

Networking is a continuous process that should be an integral part of your team’s prospecting activities. Unlike other types of sales prospecting, networking involves making contacts in situations that don’t present any obvious expectations of business. If using a networking approach like the one taught by Sandler Sales Institute, you can network in social and business settings effectively and without getting a reputation as a vulture who never stops looking for business.

If you are conscientious about networking, you will eventually have three levels of network.

1. The first, which feeds into your system of established business suppliers and customers, is a network of contacts most likely to bring you new business.

2. The second includes contacts that may benefit your business at some time in the future. This group may include an executive of a trade association related to your business; a principal or official at a local college whose graduates your company may want to hire; a contact in your industry’s regulatory body, and the like.

3. The third is a more changeable group that will vary depending on the nature and special business interests you have – for example, if you have a special project with a business that is owned by, say, a Japanese firm, you might build a business relationship with someone who has experience doing business in Japan. Once the project is over, that person drops out of your active network.

By mastering the art of networking, you and your salespeople will build a solid network of business and personal contacts, in place and at your disposal when you need them. We will now focus on the ‘art of networking’, from making your plan to carrying it out.

Networking plan

Before you or your salespeople start networking you need a plan. Business goals should be considered to help you identify a list of the organisations you want to spend time with. Once identified, this list should be narrowed to target some key groups that will potentially be the most lucrative to your business.

Audition any organisation before joining. Visit as a guest for at least two or three meetings before paying to become a member. Keep in mind when targeting organisations that you do not have to join to gain access to their membership. You may be able to obtain a spot as a guest speaker, or your company may be able to take a booth at one of its trade shows.

Rules of networking

Effective networking consists of more than handing out a stack of business cards at meetings. In fact, a good rule to follow at networking functions is:

1. Give out your business card only when there is a good reason to: This means only after you have set up an appointment with someone, or he or she has agreed to accept your phone call to set up an appointment. If you receive a business card from another person, find out about their product needs and if they are happy with their current vendor, or what they would change about their current vendor’s services.

2. Have a ‘30-second commercial’ ready: When you first speak to someone, be prepared to give a very brief explanation of your business purpose. That’s your 30-second commercial. It should focus on the results you provide your clients, not just the features and benefits of your product or service. For example, instead of saying, “We sell state-of-the-art business equipment”, an effective 30-second commercial would sound like, “I work with my customers to help them run their business more effectively by providing reliable, state-of-the art office equipment”. Other examples are: “We’re in the business of helping companies that aren’t capturing as much attention in the marketplace as they should be (for a PR firm), or “We provide homeowners with a quiet, economical solution to their heating and cooling problems” (for an air-conditioning company).

3. Have a specific goal for the function: This means you need to think through the purpose of the function before you arrive. If you are auditioning an organisation your goal should be to obtain the type of information your team needs to assess it as a networking target. If you belong to a group, your goal should include giving and receiving leads.

4. Slow down to speed up: Successful networking takes time. Everyone is out there looking for leads, and usually in a hurry to get results. When you meet someone at a function, let them do the talking; focus on finding out about them and their business. That little bit of information can help you assess the value of the contact. When you join an organisation, go to work for them first; let them get to know you and what you can do before trying to promote your company. While they are learning about you, you are learning where to best focus your activity. This ties in with the Sandler principle of ‘Discovery versus Convincing’. Take the time to discover and be discovered before trying to convince others of the value of your product or service.

5. Always give leads before trying to get leads: Another Sandler sales rule is ‘if everyone else is doing it, stop doing it!’. Be different. Most people go to networking functions in order to get business leads. These people generally don’t succeed in long-term, profitable networking. They don’t form relationships. Instead, they collect business cards and an occasional appointment. On the other hand, if you show you are willing and able to help others achieve their goals, they will likely return the favour.

6. Talk to anyone within a one-metre radius: Make and stick to this rule and keep moving around, so you aren’t talking to the same people the whole time.

Tracking networking activity

To keep yourself and the rest of your sales team aware of networking activities, set aside time in the sales meeting for reports on networking contacts and development of contacts. If you have employees attending specific functions, ask them to provide brief activity reports to you after the event.

Consider setting up a database for recording and tracking details of activity including time and money spent on each.

The following are the type of organisations likely to be included on a list of networking targets:

Chambers of Commerce: These should probably be at the top of your list of groups to target for networking. Ideally, you want to be part of a Chamber that is expanding while continuing to offer its members new ways to grow their business.

Lead exchanges: These can be excellent sources of new business leads, and follow the rule of giving as well as receiving leads. Lead exchanges usually allow only one representative of a business group at a meeting: e.g. one banker, one real estate agent, one sales trainer, and so on. At a meeting, each person gives their 30-second commercial and puts a lead in a basket. The leads are tracked so that the leader knows if they prove to be substantive. You are also expected to bring a guest once a month, as long as that guest is not involved in a business that is already represented in the group.

Other organisations to research for networking purposes are manufacturer associations, trade and professional associations, and non-profit organisations.

Now that you are familiar with the basics of networking, the next vital step is to arm yourself with a friendly smile, a good number of business cards, and put your well-rehearsed 30-second commercial into practice.

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