In Part 1, I related my first formal networking experience. Now, I’ll tell you the results. Not surprisingly, now that I have more experience, only one woman met me later. She was one of the few I spent some time with. As far as the emails, I only got two or three lukewarm responses and a few that were quite dismissive. I have learned a lot since then about how to act at a networking event, as well as proper follow-up.
In this part, I will summarize four lead sources as a preliminary to Part 3, in which I will tell you about a lead source for which I created a process. That lead source is free, readily available, and doesn’t take much time initially, but requires ingenuity and initiative on your part to gather and utilize.
Referrals from family, friends and satisfied customers/clients are the Mt. Everest of leads to which all salespeople aspire because they have the lowest cost and highest likelihood of success. Referrals are hard to get when first starting out when you have no customer base. Also, getting a referral depends on the strength of the referrer/referee connection and how well the referrer can explain why the referee should meet with you. You don’t have any control over factor one, and may not have control over factor two, unless you can teach your family, friends and clients how to effectively refer you (there are several books and classes on just this point). This takes effort, know-how and their willingness to learn. A new entrepreneur is just learning how to present him or herself, much less teach others how to do so.
Business networking has two aspects; in-person and through social media. It has moderate success in producing leads, and require consistent effort. Both parties are eager to have an opportunity to make a presentation. At a networking event, you can control how you present yourself, but must quickly and skillfully make a good impression. This takes practice. Also, you can only make a few quality connections at each networking event. Through social media, you have limited exposure to prospects, unless you meet one-on-one. The likelihood of direct sales with business networking contacts is low, but you will build a network of referral partners and mentors. LinkedIn, Facebook and local organizations with periodic meetings fall into this category. There are costs in time and money involved and it takes typically 6 to 12 months of sustained contact to get referrals. Just as you want to only refer people you know, like and trust, the other party has the same concerns.
Social networking organizations and events are great ways to meet people, but you don’t want to appear to be there solely in order to make a sale. Choose only those social networking groups which you would join even if you weren’t in sales. It will take a lot of time for the relationship to build before you ask for an appointment or referrals. It’s not surprising to take from 12 to 18 months to build useful contacts. because contact is sporadic. However, you may find a helpful mentor through social networking. If you do make a viable sales contact it can be huge, because once one person wants what you have to sell, the rest are more likely to follow. Facebook and community-based groups fall into this category.
Purchased leads cost money that may be scarce when starting your business. You can tailor the lead list to the appropriate demographics and purchase only as much as you can afford. They are great for making cold calls, or for sending a mass mailing followed by a phone call. It is imperative that you have a great opening phrase to grab the prospect’s attention; otherwise the letter will go in the garbage or the next sound you hear will be silence. The return on investment is typically 2-4%, but purchased leads will get you started prospecting when you need the practice, don’t have much business, or want to prospect in a new territory.
If you have any other lead sources, or comments about any of these sources, please comment.
judy beck enterprises 