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Networking & Relationships

At the end of January I gave a talk for the Bellevue (WA) Chamber of Commerce as part of their Professional Development Series. I have always maintained that any program that covers marketing for small-business fills the seats and this was no exception.

My talk was titled, "Networking to Grow Sales and Profits." Judging from the (unsolicited) comments and testimonials, it was a success (attendance was way above average too).

The presentation covered six general topics:

How to build a referral network
6 networking tips for introverts
Why we're all in a relationship business
7 techniques to get people to come to you
How to generate so much business you can raise your prices
6 networking traps to avoid

While the introverts (like me) really identified with that section, the topic I feel is most important is the one on relationships. Following is a brief summary of my remarks and feelings on relationships.

It's the key

A person in the graphics and marketing industry gave me some advice for my son who is a graphic design major. She said that good designers are a "dime a dozen" and it's the 10% with great people skills, who can relate to the clients, who get the job and make the money. I told her that he'll think she sounds like his dad as I've maintained for years that a requirement for college graduation should be a Sales 101 class.

I sometimes think my clients get sick of me preaching to them on the importance of relationships. But just the other day I met with the potential buyer and the seller of a business and the first comment the seller made to me was, "If you can't tell, we get along pretty well."

The same thing happens in all aspects of life and business. A banker told me recently that they are (after three meetings) finally getting comfortable with my client, the borrower. I got into my current niche after knowing my friend Ted for 5-6 years. My strategic alliances have come about after months, if not years, of knowing and working with people.

The bottom line is, we do business with people we like and sometimes we're willing to pay a little more for that privilege or forgive a mistake a little easier.

Some tips

Here's the main tips on relationships I gave during my talk. First, find the right person and find commonality. A person buying or selling $10,000 widgets or deals won't effectively network with someone whose contacts sell or buy $1,000,000 widgets or deals. You may become golfing buddies, but not too much will happen business wise.

Be sincere. Don't be like the person about whom the following comment was made, "He had a reputation for only calling people when he needed a lead."

Impress them with your competence by telling war stories, giving examples of how problems were solved, deals saved or the damsel in distress rescued. You can do this in writing as well.

Don't be smug and one way to do this is to use self-effacing humor. A few stories to show that you're human always help (especially when they show how you overcame your "predicament"). My example on smugness deals with politics and recent politics at that. About 10 years ago the Democrats were in complete control, had glorious plans and what do you know, the Republicans took over Congress in 1994. Lately, the Republicans got smug and at the end of 2003 I saw a number of articles (by Republicans) about how they had better watch themselves. Sure enough, the pendulum has swung back and this fall's election is a toss-up.

As a client once said, "I would never buy a business from or sell one to someone I didn't like." It's true for most goods and services we buy and sell also. Especially those where there is repeat business.

© Copyright John Martinka 2004. All rights reserved.