The History of Networking

Networking has been around for a long time in business. Some of the names you may recognize (Benjamin Franklin, Andrew Carnegie, Henry Ford, and John D. Rockefeller) were prolific advocates of networking.

Trade shows date back to the 1800s. The American Medical Association was started in 1847. Another AMA (American Marketing Association) was formed in 1937.  Another notable professional group, Toastmasters, was started in 1905 in Bloomington, Illinois.

Associations are generally formed to help grow and promote ideas and professions and even to advance societal ideas and groups. Associations hold conferences that are primarily funded by tradeshow exhibitors who wish to sell to that niche audience.

As we know it today, networking started taking hold in the 1970s. More formal groups like BNI (Business Networking International) started in 1984.

Tradeshows, associations, and even chambers of commerce are all forms of networking.

Networking Beats Not Working

Networking, one of the most powerful tools in a business arsenal, requires you to get out and meet people. This may be uncomfortable for introverts, but it’s a necessary and integral part of relationship marketing.

I have started participating in and met many leads networking, and through mastermind and think tank groups.

Add to that volunteering for boards and committees, then tack on two to five monthly opportunities to do presentations or teach a class. That all added up to dozens of hours—almost a full-time job per month—spent building relationships.

I know it sounds insane for a solopreneur to spend that much time not directly earning income, but it’s time well spent because I get to reconnect with those I already KNOW, LIKE, and TRUST. I also get to meet new people who will hopefully and eventually KNOW, LIKE, and TRUST me and my business!

Networking is about meeting people. Not about people you can sell to (although that would be nice), but to people who are connected to other people.

In the book, “The Square and the Tower”,  subtitled “Networks and Power, from the Freemasons to Facebook” by Niall Ferguson. It argues that most organizations are hierarchical. “It's about emperors, presidents, prime ministers, and field marshals. It's about states, armies, and corporations. It's about orders from on high.” Networks have nodes and have always been with us. From our families and founding fathers to Facebook, it's about who you know and who they know that forms your network.

Face it, We all get busy. Why would you network unless you expect to get something from it, something like new business or a connection that could lead to new business?

But for some reason (maybe it was all those business books about kissing frogs or closing sales), we think that we can have one meeting and achieve the most significant sales and wealth ever.

So networking is not about you and your sales. Networking is about building network nodes and connections.

Pre and Post Pandemic

Pre-2020, networking was mostly done in person. Although there were some online groups, they were generally webinar and training-focused.

Zoom became a necessity for conducting business during the pandemic. Microsoft Teams and other meeting tools were also on the scene, but they all started to look and function more like Zoom, which was more popular and easier to use.

During the pandemic shutdowns, people spent 8 to 10 hours a day in front of their screens and 2 to 6 hours daily in online meetings. As the pandemic continued, live webinar and online meeting attendance declined.

Two factors played into this decline. People started binge-watching TV since they were stuck in their homes. That helped people become more comfortable with the concept of on-demand video. Why block out an hour when you could register for a live webinar and then just watch it when you had time or just wanted to? Secondly, people were getting burnt out on online meetings. I started affectionately calling them Zoom-bies.

Fast-forward to today and in-person networking is making a resurgence. Tradeshows and conferences are coming back strong. In-person and one-on-one events are growing as people crave more human interaction that does not involve a screen. Have you tried to find a seat in a coffee shop lately?

B2b is Really H2h

One of the best philosophies I have ever learned about networking is that business is not B2B (business to business); it’s H2h (human to human). People do business with people, their knowledge, experience, and expertise, not their businesses. Businesses are not people, they are organizations by which people translate their schooling, training, knowledge, and trials and tribulations into products or services that best suit a customer’s (or potential customer’s) needs, wants, and desires, at the time and place of the customer’s choosing!

Humans are complex beings. They have emotions, biases, experiences, expectations, fears, hopes, and random acts of kindness or stupidity (depending on the planet's alignment and inspiration from higher powers). In face-to-face networking, we get a tiny glimpse into the complexity of a person's overall being.

It takes multiple engagements to peel back the layers of an emotional onion and really get to know a person.

Social networking is an extension of face-to-face networking. To succeed, you must master the face-to-face part before the social networking part will work for you.

Growing good relationships can have an ROI

Networking means getting out of your office (and your comfort zone) and meeting people. You can find dozens of free and paid-for networking opportunities right under your nose. Join a chamber of commerce or an industry group where you can get out and reconnect or meet new people.

I’m sure you understand by now that networking on a local (and even national) basis can help you grow your business. But to really get value out of it, you have first to ask yourself a couple of questions:

  • What are my expectations?”
  • What defines a good networking group?
  • What constitutes success?
  • When do I say enough is enough?

There are no easy answers to any of these questions. In marketing, I like to promote what I call the 3 to 1 rule. If you spend $1 on marketing, you should make a total of $3 in return: $1 to pay for my services, $1 for your time and expenses, and $1 in profit beyond that. If you spend 1 hour networking, could you sell 3 hours of your time? Or an equivalent value of products?

Think of it this way: If you walked into a bank, deposited $100, and came back a week later asking for $300, you would be arrested for attempted robbery (or at least get some looks indicating you were acting crazy). At today’s 1% interest rates, it would take a year to make $1, let alone $200.

I guarantee you will be disappointed if you walk into every networking event expecting immediate results according to this equation. It may take weeks, months, or even years to get people to KNOW, LIKE, and TRUST you.

Once you start to create a buzz and get some referrals and recommendations, this could balloon to five times the sales. So, let’s say you invested 50 hours (an hour a week for 50 weeks) for a year and created $30,000 in new business. Depending on your business model, you would probably consider that a successful investment in time. (If not, then you may be in the wrong networking group.)

Listen twice as much as you speak.

You may have heard, seen, or read dozens of philosophies on face–to–face networking. I want to offer you a piece of advice from other networking experts: God gave you two ears and one mouth, so listen twice as much as you talk!

You probably didn’t marry your wife or husband after only one date (if you did, then I apologize). Marriage grows from dating, courting, and meeting the parents, siblings, and maybe even the kids. You take time to get to know each other and each other's quirks until something eventually makes you realize you’ve fallen in love.

Relationships are complicated, time-consuming, and work! But GOOD relationships are worth their weight in gold, or more. I have clients I’ve been doing business with for 20+ years. They have followed me through all the changes in my life and career, from when I ran my own businesses to when I worked for corporations or small companies. They have followed me, and I have followed them. We have realized that we are in it for the long haul, through thick and thin, and we have each other’s best interests in mind.

Invest the time to become a resource.

So, how can you get that second networking date and start building genuine relationships with mutual value?

First, you should be able to identify and verbalize the WIIFM (what's in it for me) on both sides. Not every relationship will be balanced and 100% mutual, but if you can identify what can come out of a continued conversation, you at least have a chance to have a follow-up meeting.

Back to the, “Listen twice as much as you speak” concept, walk into the conversation thinking about your current network and who you could connect this new connection with to provide value for both. If you can't find that, chances are that the relationship has limited value to both of you.

By becoming a resource and utilizing your connections, you are training people how to reciprocate with connections they currently have or will meet in the future.

Capturing Connections

If all of that sounds like a lot of work, well, it is. But I am about to add more work to your plate.

Humans are great at relationships but terrible at capturing, storing, and repurposing data. That's what computers are for. Having a computer and software is just the beginning. You need to have and define a system that works for you. Whether you are capturing data locally or in the cloud, if you don't have a way to capture, categorize, and revive when relevant, this all is just an exercise in futility.

When you meet someone, you may have a business card that you exchange. How does that data get captured? What tools can you use to segment, follow-up, and continue to capture data on follow-ups and action steps? I even have a way to create an online personality profile for connections with whom I feel I have a reason to continue and dig deeper.

I will outline some of these concepts in later chapters, but I think it's essential to at least plant the seed now.

For Consumer Business

Networking has a different take for retailers versus consumer services. Retailers are hoping to find and build repeat buyers, while service businesses may only get one bite at the apple per year or quarter, but they have some things in common.

Collecting names and emails is key to staying in touch. The point of listening comes from purchasing preferences (payment methods, time of day, color, or model). Networking comes in the form of reviews, recommendations, and referrals. The value can be a referral bonus, a coupon, or free samples when appropriate.

You must capture and maintain constant data on status, intersection, and interactions between you, your brand, and the customer's network.

For B2b Business

Networking in the B2b world is a bit more challenging. Most networking events favor companies that sell to consumers. Chambers of commerce often have a B2b wing, but it suffers from atrophy. Associations are filled with people and companies vying for the same clients and audience as you probably are.

Masterminds and other networking groups are dedicated to business, so it takes a little research. Using networking to ask new connections about what they do is a great way to provide value, improve the chances that your networks will intersect, and create more value for each other.

Build new relationships; nurture existing ones.

Think of networking as a relationship bank! You have to make deposits to create interest. Every quality network you can tap into creates a foundational asset that can and will help grow your sphere of influence.

You must become intentional about who you network with and how you maintain, build, and grow additional networking nodes that create value for others.

Then, there is the concept of reciprocal value of goodwill you can create by helping others become more successful. It's a system, a process, and a valuable tool in your relationship tool belt.

Remember, it's not about you; it's about building an ecosystem of community that propels you and your business forward.

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Comment below and share your thoughts, ideas, or questions about business-to-business sales and marketing today! Do you have a sales or marketing communications strategy that works for you? What tips or techniques can you share that work for you and your business?

To learn more about this and other topics on B2b Sales & Marketing, visit our podcast website at The Bacon Podcast.

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