Should you lead your networking group?

In the NRG Linkedin Group last week there was a discussion about 'Making a Business out of Networking'. Some of the discussion was about leading a networking group as a way of growing your existing business.

Last month Sarah Owen of the Referral Institute presented a Networking Masterclass before the NRG Charing Cross lunch in London. One of the things she want through was their VCP Process™. This stands for Visibility, Credibility and Profitability*. A good networking group provides the platform for people to go through this relationship building process.

Leading a group can move your relationships through to Profitability when done in the right way with the right people. Sarah shared with us the experience of her and her clients who see a seven fold increase in the profitability of their networking for their existing business when they lead groups. Too often, however, people think about running a group in the wrong context. Some think it is about a new revenue stream. Others that it is just about lead generation and concentrate exclusively on the Visibility bit.

Many networking organisations have positions for people to lead groups (including ours). These positions are not usually about creating an additional revenue stream. I would treat anyone that claims that for leading a group with suspicion. Leading a group is really about increasing the overall return on investment in your networking for your main business. As Sarah said "it is about increasing the profitability of the business relationships you build through networking". A good rule of thumb is that any income generated just for running a group should pay for your networking activity.

There are some business opportunities with networking organisations that are genuinely about creating a revenue stream. These are usually a networking franchise of some description where you are investing equity to build a business. In this scenario you will building a business with the primary revenue being from the activity of networking itself.

Leading a group could be right for you if it makes sense for your business to be at the hub of the business community in that group. That could be an existing group or using a networking organisation's existing infrastructure to get a group together of the people you want to have around you in the group.

*VCP Process™ copyright Referral Institute 2010, all rights reserved.

Good Networking!
Dave Clarke                     

What Matters Now

In 'What Matters Now: get the free ebook' Seth Godin writes about a new ebook he has organised. In it 70 big thinkers each contribute a page in which they share an idea for you to think about as we head into the new year. Then after thinking about them to do something with what you learn. Download and read it below.
What Matters Now
The overall idea I take from it is how much more we can achieve when we collaborate!

Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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Can you accelerate trust?

At a recent event someone posed the question "what can we do to accelerate the building of trust within the group?" It's a good question as successful networking relies on the building of trust. I think there are some essential ingredients for building trust in a group including leadership and facilitation. The members must also 'buy in' to the process and be proactive.

A few years back we conducted some research into the importance of developing trust in business relationships as part of networking. The article 'Have you unlocked the benefits of business networking?' includes a link to the full findings. It includes a breakdown of the trust building process in business networking. If you are proactive and follow this you can accelerate the building of trust, particularly if you join the right networking group for you.

As I wrote in 'How to build trust in business relationships':

Building a trusted business relationship in a networking context is a simple process:
1. Make contact
2. Follow up
3. Form relationships
4. Develop Advocates

Like many simple things that does not mean it is easy!

These previous blog posts also address the issue of building trust in business networking:

The killer app in business networking
Building trust in networking
Nothing compares to the power of trust
Building trust with a new contact
Behaviours that build trust
What’s your NRG? Part Two.

Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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Networking and Strategy

A couple of weeks ago in my post, 'Leadership and Networking', I wrote about the lessons learned in an excellent session on 'Mastering Leadership' presented by William Montgomery of askten. A key lesson was the importance of thinking strategically.

Most of the people I meet networking do not have a strategy for their networking. The danger with this is that you can be very active and very busy but with no positive outcome. If you don't know where you are going any road will do.

William shared some simple ways of starting to think strategically;
1. Know where you want to go
2. Know where you are
3. Know what you need to do to get there
4. Take positive action

Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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business networking | business networking events | business networking podcast

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Leadership and Networking

Today I attended an excellent session on 'Mastering Leadership' presented by William Montgomery of askten. William framed the day around the 10 actions of effective leaders and I will come back to some of those over the next week or so as they are important for you in leading your network.

Effective leaders;
- learn to lead
- think strategically
- think creatively
- set goals
- appreciate that time matters
- are socially intelligent
- motivate successfully
- influence people
- put it across
- are fit to lead

Before going into those in more detail he also shared some research into the characteristics of good leaders. The top three are definitely shared by those that excel in business networking. They are honest, forward-looking and competent. These three qualities are the bedrock on which you can grow effective, profitable and long lasting business relationships.

Good Networking!
Dave Clarke
Get 7 networking secrets for business success

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business networking | business networking events | business networking podcast

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