Little Networks, Inc.

Networking Groups - Which Type is Right For You?

By David Mancarella

In founding Dialogue Web Design, I have found networking to be an incredibly valuable tool. As they say, it's who you know. But to quote Jeffrey Gitomer (author of numerous sales and business books) it's not just who you know, it's who knows YOU - especially as a small business. So how do you become known? How do you stay top of mind with as many people as possible? Marketing is one answer, and can be effective, but for small businesses and medium businesses networking is key. This is especially true in a community that values local business relationships.

But what type of networking group is right for you and your business? There are four general categories of networking groups, and all can serve you well.

1. Large, Membership Required. 

These would be your Chamber of Commerces. There are regular meetings, often have numerous members (hundreds, maybe thousands), and you must pay to be a member (or pay higher fees to attend events).

Pros:
i. The regular meetings allow you to get to know certain people well, but it's big enough that you have a wealth of businesses to build relationships with.

ii. The Chamber will often work to get you exposure within the Chamber, and sometimes in the community as well.

iii. Usually there's an opportunity to become an ambassador, where you can get more facetime and build better relationships.

iv. Relatively inexpensive ($200-$300 per year).

Cons:
i. If a chamber is too big, it can be a negative, making it harder to really get to know anyone that well.

ii. Unlike referral groups, chambers have a much more social aspect to them. This may be a pro if you're looking for a good night, but frustrating if you're focused on building leads.

Who it works best for:
i. I'd recommend that anyone serious about networking to belong to at least one chamber. Think of it as homebase. You may visit various networking events, but you need at least one place where people know your name. Remember: it's about who knows YOU, and has YOU top of mind.

2. Small, Formal structure. 

These would be your BNI and BNI look-a-like groups. For those who aren't familiar with BNI (Business Networking International), it is a very structured meeting, with everyone getting a chance to give a 60 second pitch. The expressed purpose of BNI is to pass referrals to each other, and no two people of the same profession are allowed in one BNI chapter. Loyalty is expected, and you've got to give referrals if you expect to get them.

Pros:
i. BNIs are serious about trading referrals and making money. You don't need to be shy about asking: that's why you're there.

ii. A strict commitment is expected, so you'll have a consistent group of people you get to know well, and get to know your business well.

iii. If it works like it should (and it doesn't always), you have 20 people out there selling for you every day.

Cons:
i. Big time commitment. Meetings are weekly and attendance is required (you can miss a few). If you don't have the time or can't fit it into your schedule, it's not going to work

ii. Relatively expensive. It can add up to $750/yr to belong, with $100 up front to join. It's tough to justify for some, but many say the business they receive far outstrips the money they put into it. Plus you get breakfast.

Who it works best for:
i. For the right professions, BNI can be golden. And this can run the gamut from a contractor to a CPA. If your business is too specialized to expect referrals, it may not be for you. Keep in mind: Referrals are expected. But don't think you need to constantly be searching for them. Many people say that if you just keep your ears open as you network and do business, you'd be surprised what you'll find. You'll also likely fall into a groove with a few members that have overlapping professions (for example: a business attorney, a CPA, and a business insurance consultant). But beware: BNI isn't for the casual networker. You do need to take the commitment seriously, or else it's a waste of time (and money). BNI chapters often let you visit twice before joining, so check a few out and see if any meet your personal taste and your professional needs.

3. Small, informal structure. 

I have encountered various networking/referral groups that loosely resemble a BNI group, but are much more informal. Membership may not be required, and while everyone gets a chance to talk, it's okay if you drone for a couple minutes. Attendance is optional (unlike BNI): you get in what you put out.

Pros:
i. It's a small group, and you can get to know regular attendees quite well.

ii. It's more relaxed, a pro to many who find BNI stuffy or too formal.

iii. It's cheap - many just the price of breakfast.

Cons:
i. Since it's less formal, you're a lot less likely to get consistent referrals out of it.

ii. It's a small group, so exposure is less than at a chamber.

Who it works best for:
i. If you're looking to get to know a group of people and build some good relationship, without shelling out too much cash, these are good to attend. But don't expect loads of business. The nice part: there's no commitment, so check them out, go when you see fit and get your name out there a little more.

4. Large, Periodic. 

These are your Expos or other large networking events that happen periodically. They may have high attendance, and may even be monthly, but require no membership.

Pros:
i. Lots of people, and an opportunity to meet many that you haven't before.

ii. If you know people in the community, you'll see some familiar faces in a new place. This is a good way to be known as someone who is engaged with the broader business community.

iii. Often they are free.

Cons:
i. If you're intimidated by large groups of people, these may be overwhelming. If need be bring a friend or colleague to wade the crowd with you.

Who it works best for:
i. Anyone who believes networking is important should attend the big networking events. It's a great opportunity to pass out a bunch of cards to new people, and follow up with the ones that can be valuable. While it's possible no one will notice if you're NOT there, they'll likely notice all your competitors. If you're not present, you might not be top-of-mind.

Certainly, all serve a purpose, and can serve you and your business well. But remember, there is no one answer for everyone. Think about what makes sense for your business, as well as what your personal networking style is. Above all else: experiment. Visit all the networking groups you can find and see what works for you.

(c) David Mancarella, Dialogue Web Design

David Mancarella is the founder of Dialogue Web Design, a web design firm focused specifically on the needs of small businesses. We offer site design, hosting, search engine optimization, and social media assistance at an affordable price and with great customer service.

David writes a blog that is everything small business - advice for building your company both on and offline. Are you just starting out, and need a website? Do you have a website, but would like a second opinion? We're happy to offer a free consultation or website critique to see if we can make your website more powerful, and your online presence more profitable. Visit our website at http://www.dialoguewebdesign.com and contact us today!

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