Making a Business out of Networking
Posted on | August 23, 2009 | 1 Comment
This article first appeared in Fresh Business Thinking on 13th August 2009.
The idea of turning your need to network into a business is one that tempts many people but it is harder to do than it may appear. Many try and a few succeed. If you are considering networking as a business, here are a few things to consider before you jump in.
‘Build it and they will come’. I caught the final act of ‘Field of Dreams’ on one of the Digital channels last week and was reminded of the blind faith that the lead character, played by Kevin Costner, exhibits in building a ‘ghost’ team of baseball immortals. There is no question that it is a great thing to have faith and devotion to a goal but first it is worth understanding if it is the right goal and if it is worth pursuing.
As people leave corporate careers or start to look at new business directions, one of the first things they’ll need and one of the first things the advisors will suggest is to build a network. They often start by suggesting you make a list of everyone you know but sooner or later you’ll need to get out and seek out people that you don’t already know and where there may be a synergy. Some will take that literally and think that they will make a business from networking. I know this because new networking groups are appearing constantly – it is a boom time for networks. But is it a good business idea to start a new one?
As with all business ideas, whether it is or is not will depend on your objectives, on your needs, on your resources and on the attractiveness of the proposition. One thing is for certain; it is NOT a licence to print money. The business model for networking groups can be tricky. Your target audience don’t want to invest large amounts in networking unless they can see a clear return, and many don’t have the money anyway. There are too many networking propositions that promise much and deliver less and too many options to network for free.
If money is not the purpose, then doing it to get noticed and to build profile and reputation may be an option but the question then is what will you become known for? Being known as a networking group owner rather than for your main skills may be counter productive. If profile and reputation is your need, then it may be much better – and less expensive – to join existing networking groups and maybe get involved in leading one if the opportunity comes up.
There is a lot involved in the business of networking. It is not just about networking and socialising, in fact that may be the least part of it. Recruiting people for events and following them up afterwards with the intention of converting enough of them to membership and income generation has to be the main focus for most. If that sounds like a ‘real’ job, that’s because it is and it can be a very hard way to make a living.
You’ll need a good proposition, something to differentiate you, some success stories and a ’soft but firm’ sales approach. All of that will need to be backed up by a credible business and income plan.
In fact making a business from networking is like making a business from anything and often (as Michael Gerber observed in E Myth Revisited) it involves leaving behind the thing you’re good at and concentrating on creating a profitable business. The best networks that I know are run by people who have come to understand that they are running a business and that they need to get the dinner jacket off and roll up the sleeves of their dress shirt. It is not something to ‘drift’ into without preparation, determination and a large dose of realism, but if you’re feeling strong enough, and it really is your passion, don’t let me stop you!
I’ll raise a glass to you at your next big event!
Andy Coote is a professional writer and publisher and co-author of A Friend in Every City (2006), a book about Social Networking and Business. As a commentator on leadership and networking, Andy provides writing support and services for a number of Business Leaders. You can reach him at andy [at] bizwords [dot] co [dot] uk.
Original article on Fresh Business Thinking
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April 15th, 2010 @ 5:06 pm
Andy, I couldn’t agree with you more. I run a network and a successful one at that on a voluntary basis.
I am good at it and I therefore thought that I would set one up for myself as a business. There is a lot of work and preparation that goes into running a successful network with little return, so to those of you who haven’t tried it out first, I suggest that you do!