Networking groups can definitely help businesses generate referrals. However, I've talked to many people who've told me that despite the fact that they are giving business for other members of their networking group, they are not getting business from other members of the group.
For those of you who want to get more business from the networking groups you belong to, keep this in mind: When attending referral-related networking groups, remember that your efforts should focus more on "training a sales force" than on trying to "close a sale." In other words, if you want to get business from the fellow members of your networking group, it is key that you educate these people about some of the specifics of your business and what to look for in order to refer you effectively.
Let's say you're training a sales force. What would you say in this training process? How would you describe your product or service to your salespeople that would enable them to fully understand the benefits of what you have to offer? This is what you should be doing at a networking meeting.
The only way people can pass referrals is if they know as much about your business and you as time allows. No one expects a referral group's member to be an actual salesperson for all the members; but, if you want referrals, the other members do need to be trained. Thus, the way your introductions are done can substantially impact your results in generating referrals from other networking group members.
I have personally seen people participate in referral groups who were in businesses so unusual that I didn't think it was possible for them to do well; however, what I didn't take into account was their personal commitment, attitude and ability to teach people how to refer them.
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