Cheryl Baumgartner   Medical...
Alright folks, this is a serious question.  I have talked about not limiting your networking to strictly off-line or strictly on-line.  This time the question is about who you network with.



Many people has different ideas about who they should network with.  Some only network with people in the same field, others will network with anyone, still others network in closed groups.  Each of these has pros and cons we should be aware of.



Let's take a hypothetical situation and apply networking in each of these ways and see how it works:  A young family (mom, dad and two kids a boy and a girl) are house hunting.



Networking with compatible businesses

Pro:This is a good way to pass qualified referrals.  The realtor who is showing them houses knows that they will need financing so the realtor refers them to a mortgage agent.  The mortgage agent secures financing but knows they will need insurance as a requirement of the loan so he refers them to the insurance agent.  Each of these businesses naturally generate leads for each other.

Con:Many other goods and services this family will need when they move into their new home are not addressed.



Networking with anybody

Pro:You can pass more referrals by networking this way since you have a wider contact base to work with.  So now when the realtor shows the house, he can recommend other services.  Maybe the daughter takes dance lessons, the realtor nows a dance teacher.  He also knows a mechanic, a pest control service and dozens more people he can refer them to.

Con:The people he knows and refers this family to may never refer business to him.



Networking in a closed group

Pro: You can control them members and therefore protect the referrals for your members.  You can agree that you will only have one realtor, one insurance agent etc.  You develop relationships that allow you to become friends and to truly understand each other's business.that way your group can see to all of the families needs through it's members.

Con:You get stuck with members who don't pull their weight.  Some members will get referrals constantly while others may not get them at all leading to resentment.  You will also have members who take from the group and never give, it can be difficult getting rid of these members.



The truth is a combination of all of these techniques will make you a stronger networker.  Build relationships with others who have compatible businesses.  But have a broad base of contacts to pull from.  Remember you don't need to know everybody because those you are networking with also know people.  Lastly don't try to know everyone in a field.  Get to know a few people that you feel comfortable with.  You want to trust that these people are going to properly handle the referrals you pass on.
Feb 5th 2008 11:10