Three Reasons Networking Events Increase Your Referral Business

As every entrepreneur knows, referrals are the lifeblood of
small business. Events hosted by professional associations,
college alumni groups and your local chamber of commerce
are the perfect opportunity to expand your network of
professional contacts.  Networking leads to a direct
increase in the number of referrals you receive for new
customers, earning you new business.  Yet as a business
coach, I’ve learned that small business owners rarely take
the time to attend networking functions.

There are three key reasons that networking for referrals
makes good business sense-especially for entrepreneurs:

1.  Referrals come to you pre-sold.

When a network contact sends you a referral, they’ve
already done a good part of the selling for you.  This is a
fantastic concept if you don’t enjoy prospecting for new
business.  With every networking event you attend, have a
goal of meeting new people whose business contacts
complement yours.  With a robust network, you’ve got your
own pro-bono sales force enthusiastically working for you
seven days a week.  You couldn’t build a better sales team
than that!

2.  Trust is built faster with a referred client.

A key buying motivation with every consumer is reducing
risk.  No one wants to feel they’ve made a poor buying
decision.  A prospect who has been referred to you sees you
as a friend of a friend, so you are instantly viewed as
trustworthy.  A referred customer feels more comfortable
during the buying process and tends to purchase more.

The social aspect of networking events is designed to build
trust and friendships among business contacts.  When
attending functions look for ways to assist others in their
business-growth objectives, and you’ll find yourself
surrounded by professionals eager to send business your way
as well.

3.  Referrals clone more referrals

For long-term revenue growth, nothing beats the multiplying
effect of referrals bringing new business directly to you.
Your reputation for quality and integrity grows with each
new “generation” of referred business.  The loyalty factor
helps protect you against the fads and gimmicks of your
competitors.

Remember that each new referred client has their own circle
of influence that represents a whole new door of networking
opportunities for you.  Find out what professional or
social groups your new clients are involved in and offer to
provide a short seminar, presentation, or article content
for its newsletter.  Your valuable insight will win you the
enviable reputation of “expert in your field” within that
group.  And when they need assistance, you’ll be the one
they call.

The time you spend building relationships within your
professional network pays off better in long-term revenue
growth than any other marketing strategy.  Instead of
thinking of networking events as a chore, think of them as
a chance to put more money in your pocket.  The old adage,
“Work smarter, not harder,” certainly applies when it comes
to networking.

To find great networking opportunities, keep an eye on the
schedules published by your local professional association,
chamber of commerce and business newspapers.  Once you are
at an event talk to as many people as possible about your
business; it may surprise you how often they need your
services or know someone else who does.   Dedicate time
each week to meet with others in networking activities, and
you’ll see your referral business grow in ways you never
thought possible.

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Deborah Walker, veteran coach and revenue building expert
helps entrepreneurs and small business owners to improve
sales, revenue and profits. Her long-term experience as
small business owner provides insight on avoiding the
pitfalls of starting, growing and maintaining a small
business enterprise.  To learn more about revenue coaching
visit
http://www.RevenueQueen.com