Part 1 of a 4 part series in building a Network Powerhouse

Parts and Pieces

You’re building your network; it’s growing but now what? How do you manage it? Is your network balanced enough? I’ll tell you I’ve always had a problem maintaining an acceptable balance in my network. Mainly because I see my network in three categories: Information, Support, and Referral. It’s tough work maintaining all three categories at the same time but it is worth it.

Most people think that having a network is only gaining referrals however it is not the only network to work on. Obviously, the goal is to have a powerhouse referral network but that doesn’t happen without cultivating your other networks. To break it down quickly, there is a reason why you should categorize your network. First, it makes it easier to manage your network, if you need help on a project you immediately know who to access in your Information Network. Second, it provides balance to your professional life, giving you options when you need help from growing as a professional or getting a reference for a new vendor. Third, allows you to save time, you won’t have to search and call a bunch of people when you need something, you already know what everyone does and to what extent. Fourth, it allows you to assess strengths and weaknesses, enabling you to put people into situations that they will succeed in.  Fifth, it helps you remember everyone in your network, as you’ll constantly be referring to your network.

Definitions

So now you know why you should categorize your network, here are the definitions for each category. Information Network: your source of expertise and experience. Support Network: your source of help and encouragement. Referral Network: your source of business opportunities.

Information Network

What does your Information Network comprise of? Being a business samurai requires you to know certain important pieces of information. Whether it’s trends, issues, every changing technological and economic conditions; it keeps you on the cutting edge enabling you to always stay competitive. For instance, I am in the technology and design industry; I have contacts that specialize in technology and design, we share information helping each other when needed. I also have contacts that are not in my related field such as fashion who I speak with often to find inspiration and diversification. Having people at this high level of contrast enables you to refine who you are, where you are going, and how you can help your clients. Fortunately for me, my lack of knowledge is always one of my contacts specialties. It is one thing to have a large network; it is an entirely different thing to know whom your network is and how to tap into each other’s resources.

Support Network

What does your Support Network comprise of? In business we learn to rely on certain people, some who build us up and others who bring us down. Knowing the difference is an example of your business maturity. This part of your network should consist of people who respect, love, and think highly of you. These people like you for who you are not what value you bring them. Most often these people are not your ideal prospects nor are they your information powerhouse. They offer you emotional, practical, business, and/or financial support. They extend what many cannot and will not do for you; they give you their time. These people are the ones you’ll call on when you’re in need. They can also be your crutch when business is crushing you. It is important to remember that these people give a lot to you, never take it for granted, ensure they know how much you appreciate their time and advice.

Referral Network

What does your Referral Network comprise of? Sustaining a business through referrals is ideal but often never achieved because of the time and dedication required. A sale in referral marketing/networking is slightly more complicated as the prospect always comes from someone who tells them about you. That sale will depend on many variables; the quality of the referrer/prospect relationship, previous purchasing history, economic conditions, ease to purchase, and so on. Your Referral Network is the most profitable aspect of your network as a whole. It is important to know who your largest referral sources are, treat that relationship appropriately; don’t be a taker!

What To Do?

Remember to give back to your sources cultivating your network; don’t hunt it. Know that you may not fall into the same category that your source does. Such as you may be in an Information Network to one of your sources that is in your Referral Network. This path doesn’t create a large network quick but it does build a strong influential network that yields real results.

So what’s my call to action? Get off your ass, stop whining about the economy and cultivate the land you have and yield your own amazing results. You get what you put into it, everyone knows someone who can help somebody else.

Like A Fine Wine

When you mature your perspectives change, your physical appearances change, your taste in music changes, your style changes; in relationship marketing when your relationship matures it becomes profitable.

Worth Your Time

Profitability can be defined in multiple ways whether monetarily, mutually rewarding in referrals, or a place where both parties benefit from each other in some way. If a relationship does not profit you can guarantee that the relationship will not endure the test of time.

Proof In Numbers

What relationships do you have that are not profitable? How do you know? Are you measuring, using some form of metrics to help you make these decisions? Many people will immediately default to the de facto standard of profitability – money. That is not the only metric to use, I suggest keeping track of referrals received and given. Of those referrals what was the outcome of them. How hard did you have to work to convert those referrals to customers? Sometimes these are better metrics to help you decide whether a relationship is worth continuing to pour energy into. A relationship that is yielding poor profitability may not be due to the referrer but to you not effectively communicating to the referrer what your business capabilities are. This more often seems to be the problem rather than simply a relationship does not make enough money from the referrer.

See Clearly

Avoid being shortsighted during this evaluation period, it can seriously damage or hinder the development of the relationship. Consider all of the ancillary services or benefits a relationship offers you. I had a relationship that I once considered useless and was considering limiting my time spent on the development of that relationship. But one day I was speaking with a client of mine and found out that this other relationship I was considering limiting was actually one of the main sources of my income. At that point, I had to revise my standards for a profitable relationship. Profitability must be cultivated; it takes incredible amounts of patience and determination.

Many want to rush the process of profitability; I often get asked how quickly does it take for a relationship to reach the profitability stage. My answer is not a timeline but more of a gray area that is only understood when it feels right. It’s not entirely easy to determine when you’ve reached the profitability stage. Often times it depends on the frequency and quality of the contacts, and the desire of both parties to push the relationship forward. When the relationship feels comfortable, then and only then, can it transform into being a profitable one. If rushed, one party will feel awkward or weary of giving referrals to the other party; this can result in damaging the relationship.

The Bottom Line

Overall, this stage is vital to the success of relationship marketing but it is not the only piece of the puzzle to fit together. If anything, you should know and remember that all relationships must be cultivated in order to gain anything of value.

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Photo credit - Johnny Grim

credibility |ˌkredəˈbilitē|

The quality of being trusted and believed in. 

The Journey

As you begin to delve further into building your network the next important task is to create, nurture, and maintain your credibility. Once expectations form, your credibility stage begins. It is important to understand how vital this stage, if each party is confident of attaining fulfillment from the relationship, it will strengthen it. How is credibility attained? When appointments are kept, promises are acted upon, facts verified, and services rendered. Then and only then does credibility get whittled out in small, meager, diminutive portions.

Don’t Mess This Up

If there is any lesson concerning credibility it is knowing how to manage expectations. If there is any quicker way to throw away your hard work, it is to fail at living up to expectations. Expectations, whether explicit or implicit, must be kept because people remember when expectations are not met. They remember when a phone meeting was skipped or an email not sent.

Determining How Credible You Are

What people say about you when you are not there is a great indicator of how credible you are. People often turn to third-parties to get a second opinion about you so knowing what other people think is crucial to improving your network. People in your network want to know if you’re reliable and honest, they want to know if your products and services are effective. Basically, everyone wants someone they can count on in a crunch. If have been called upon in the midst of someone’s crisis multiple times then chances are you’re pretty damn credible. One of the defining factors of your credibility is repeat business. If someone uses you once it only establishes that they can navigate a phone book and the internet. If someone uses you repeatedly, it demonstrates your reliability, dependability, and integrity.

Fixing Up Your Credibility

If you have read this and found your credibility lacking then I suggest you immediately put a plan together to fix it. I suggest you start small. When expectations are created for you or by you, ensure you meet them with exceeding excitement. As you create a reputation of consistency you’ll find that your credibility will thrive.

What’s Next?

Continue building your network, next is profitability.