Do you prefer gumballs or slot machines? Now that’s a strange question. Or is it? If you just LOVE gumball machines, you probably require an immediate payoff for your nickel. A quarter these days. You want instant gratification. Effective business networking works more like a slot machine. You invest your time, your membership, and your dues. Eventually it pays off. Sometimes with small jackpots. Sometimes with big jackpots. Sometimes it pays off right away. Sometimes you have to play it for a while. It takes time to build a reputation, to be known, to make friends, to become respected.
A strong networking organization is designed to provide members the tools that enable members to build the kinds of relationships and friendships that pay off — now and later. When you need a lawyer, or a car dealer, or a personal coach, or a florist, or a dentist, or a financial consultant, or a real estate agent — or when your friends do — you have a built-in network of people you know and like and trust to turn to, or to refer.
These are traditionally found to be chambers of commerce, trade organizations, social benefit clubs and country clubs, sort of. The value of a chamber or a networking group is in the way it will allow you to market yourself to other members. The key to these types of organizations is in how well they foster growth among the members and let you develop your reputation in the organization.
683,I am president of one organization and we encourage the members to send letters to each other, e-mail, communicate freely, and use the organization as a touchstone point of reference so that the letter, phone call or e-mail is not a cold call. The reason for this is that when you can contact another and you have a commonality, the letter is more likely to be read closely, the phone call will be taken, and the e-mail will be opened. The point of a good organization is for the members to communicate with each other.
I also have been the member of a chamber of commerce that would not allow the transmission of e-mail to other members. I was shouted down, literally, by the person running the organization, and told by the president that I was not to use the organization’s name in any of my marketing to other members in writing. This completely defeated the purpose of being a member and was a frighteningly bad experience for me.
As an entrepreneur I have used quite successfully the direct mail approach to build a business. The use of e-mail and direct mail is a very powerful tool if done correctly. One of the most powerful ways is to build a database/mailing list of the members so that you can customize a letter with a proper salutation, make your labels look nice and build in the connections with information about the other party. This was frowned upon by the organization I was with, but they were more than willing to sell me their plain white labels which scream “junk mail” and virtually guarantee a quick trip to the trash bin for the letter. I know, because it is precisely what happens to the letters I receive with those cheap labels on them.
45C, When I wanted to use the e-mail list I had created from their printed directory of members, they told me that I was spamming people. I tried to point out that you can’t, by definition, spam a membership group to which you belong. I got yelled at for that one too. When I was no longer allowed to use my connection to other members of the organization in my marketing materials there was no purpose in my continued payment of dues to this organization.
I wrote a few weeks back about the effect that Wal-Mart is having on our economy. And after a Thanksgiving road trip through Nevada, Utah and Idaho, where the super centers were spread heavily, I want to encourage the buy American theme. Wal-Mart is taking over this country, and soon there won’t be many American businesses left unless we start to support our own companies, and unfortunately that means staying away from Wal-Mart and shopping in the more expensive and smaller shops closer to home. If you are reading this and if you have your own business — I want to encourage you to support doing business with members of our community and your neighbors.
5D1,A good organization will provide the opportunities for you to meet and make friends with a wide variety of professionals, learn about their services, and share your company and its services with them. Business follows naturally. But be sure to find a good one, they are not all the same in their philosophy.
I highly recommend service organizations as a great way to meet people and get known. They are not as conducive to the full frontal assault of marketing that some people like, however they tend to create a longer lasting relationship. I strongly suggest that people take a view of networking as a slot machine, where you have to put in your time, pay your dues and eventually it will pay off.
The problem most people have with chambers, networking groups and trade organizations is they believe that they can show up one or two times, and should be walking out the door with new clients. This is rarely the case. It is more likely that you will have to appear often and eat many a rubber chicken dinner before you garner a good clientele.
There are many social service organizations, including Rotary International, Kiwanis, Lions Club, Elks, Eagles, Moose, to name just a few of the better known ones. They all provide wonderful opportunities for a business owner to give back to the community and to build their business.
(David Pisarra is a partner in the Santa Monica law firm of Pisarra & Grist. He (310) 664-9969 or by e-mail at).
Originally published in the Santa Monica Daily Press print edition on December 9, 2003. Read the original PDF.