Have you ever experienced running from one networking group to another and when you filed your taxes it suddenly became clear that you had not made enough money to pay for all the fees, lunches, dinners and breakfasts? That happened to me too and it didn’t make me very happy. To be honest I felt pretty defeated and decided that there had to be an answer to doing a better job of networking.
Over a period of 5-years I spoke to hundreds of entrepreneurs about what they thought was the answer to my networking failure and here’s what I found.
First of all we aren’t alone. In fact the majority of the entrepreneurs I spoke with felt the same way. There were however, some who had some great ideas to share and I’ve added my own proven ideas as well.
5 Networking Myths
Myth 1: The more networking groups I attend the more money I’ll make. It’s the only way I can find someone to buy.
Truth: First of all it’s not about how many groups you attend. It’s about the quality of those groups, the size, and the biggest question of all; are they in your perfect demographic? Seeing networking members weekly may be cofortable but it can also fool us into thinking we are really making an impact so the money is soon to come.
Myth 2: Breaking bread with other #entrepreneurs is an effective way to network.
Truth: Most of the networking groups have a cost. If you’re paying for breakfast, lunch and dinner like I was, you can’t help but go in the hole. We don’t realize how much this adds up until the end of the year when we are forced to file our taxes and look at reality. Remember, numbers don’t lie. If your numbers aren’t adding up it’s time to rethink the amount of time and money spent on networking groups. Don’t forget that driving there has a cost in both time and expense as well.
Myth 3: Staying with the same groups allows people to know, like and trust you.
Truth: We don’t think to evaluate each group after 6 to 12 months. Ask yourself, “How much money did I make in the last 6 months from this group’s members? How much did I make indirectly through referrals from these members?”
Weigh each group independently for profitability while weighing your income against the expenses to attend the group. What are the results? Are you losing the money game or are you a winner? If you’re a loser find another group and move on. Chances are the same people will be in the next one.
Myth 4: There’s plenty of money to go around and plenty of clients to serve.
Truth: We’re all circulating the same money among these communities and we can’t afford to pay everyone we associate meet. To limit costs many #entrepreneurs trade. Yes, we gain a great deal of knowledge and benefit from trades but we may have a challenge paying our bills and feeding our family.
I’m not saying don’t trade. Sometimes it’s the smartest thing to do if you need something for your business and you don’t have the money to pay for it. Think before you trade and get it in writing so no one feels cheated.
Myth 5: We don’t need to play a bigger game. All we need to do is raise our prices.
Truth: We are playing way to small and way to safe in our little networking groups. It’s better to get more exposure to a broader range of people to make a bigger impact and more income.
If you have your programs and your pricing set to go it’s time to go bigger. Dare I say that some entrepreneurs even move to a new area to meet and mix with new people and find new clients? Yes, move. I did it myself and it made a world of difference.
In my next article I’ll give you tips from the entrepreneurs I interviewed that changed the networking game for themselves and give you suggestions that worked for me.