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Networking groups, a review

Background
Minuteman Press attended various organised networking events as a guest, the conclusions of which are detailed below. Comments have been generalised across networking organisations whose practices vary and do not relate therefore to one specific organisation.

Objective and cost
The primary objective of the structured networking group is to provide business for its members. Formal organisations in the UK require a paid membership (e.g. Business Network International BNI, 4Networking, NRG, Business Referral Exchange BRX) typically in full and in advance of becoming a member. Membership sums vary, but a charge of £500 per year (often double in the first year) plus a charge to attend each meeting is not uncommon.

The question as to how membership fees are spent is an interesting one. It is not to pay for the venue or catering.

Offer of sales leads
The networking group membership payment offers no guarantees of quality sales leads, or any sales leads. Where existing sales leads and current opportunities are highlighted as an inducement to join, the prospective member should request a guarantee of how many leads will be handed over at the point of payment.

Membership
Groups typically consist of 20 members and actively avoid duplication of products. Network group members are penalised for non attendance and the ultimate sanction is removal from the group.

The quality of members varies. Members appear desperate for business and identify the decidedly poor quality of leads provided by fellow members. The pressure to supply quantity of leads being identified as a specific weakness.

The organised networking experience works well for members where products are complimentary (e.g. plasterer and painter, solicitor and accountant) but this should (and does) occur ordinarily.

For the networking group to succeed it requires members who meet large numbers of new clients every week, to supply products in the local geographic area and most importantly to recommend members who offer highly relevant products which have been experienced.

Lead generation
Members are required to recommend the products of members of the group at every opportunity and identify leads that they have supplied in group meetings together with those that they have received.

Recommendations for goods and services are best made by an individual who has client experience of the organisation that is being recommended. The result is that rather than proven high quality and service suppliers being recommended, networking members simply recommend their fellow member who best fits the category required. It is astonishing that networking club members are willing to stake their commercial and personal reputation on suppliers which they have zero firsthand experience of and this to friends and associates.

Recruitment
New members are often recruited, having attended meetings as guests. The meetings allow a restricted input from guests but can conclude with a pressured discussion to solicit commitment to attend, followed by numerous emails and telephone calls.

Recommendations
Networking should not require a membership charge or blind commitment to other members’ products; it should be born of experience.

The author would never recommend a supplier to clients with no experience of the quality of their work, their qualification being just that they were members of the same group.

An interesting question for the prospective member is to understand what percentage of members actually uses the services of each other?  Further, what happens when you have matched and shared your appropriate contacts with the group and vice versa. Does the group stagnate or are members required to solicit further associates to attend?

To conclude, the author would recommend that the prospective members’ finances are spent elsewhere where the return on marketing investment will be higher and its source more ethical.

Networking is an important tool in the marketing mix, organisations should be sourced that are fundamentally free, no pressure, have large membership and many buyers and sellers (e.g. gyms, churches, academic groups, professional groups, charities, sports clubs, drama group, etc). Join a group which will offer a pleasurable experience. Enjoy yourself, have fun and be relaxed; networking will become a highly enjoyable social occasion.