It’s going to take an investment of at least two to three years to build a good diversified contact database.

It takes time, but it’s worth it. To build your contacts, you’ll have to attend an average of five to seven networking events per month. Your event mix should include chamber, civic, professional group, referral networking group, and even spiritual and social events. Attending a variety of mixers will assure that you meet a good blend of professionals in your region. Remember, the farther you network from your office or home, the farther you’ll have to commute to make those valuable follow-up appointments. Keep that in mind when scheduling your activities.

Once you’ve completed your third year of serious network marketing, you should have compiled somewhere from 500 to 2,000 contacts for your database. You should have met with at least 10-20% of those contacts for a coffee meeting, depending on your type of business. There’s a good chance you’ll bump into some of your contacts, if they’re on the same networking circuit as yourself, at other similar events so you can continue to build ongoing rapport with them as well.

But what about the other 75% — or those 300 to 500 people you don’t have time to meet personally? What about those who are worth keeping in touch with, but who may not be your top priority?

Develop a plan, not only to follow up with, but to maintain constant contact with all those people in whom you invested your time and energy meeting. What’s the sense of doing all the work with early-morning meetings, after-hour mixers, or daylong conventions if you’re basically going to ignore your contacts?

Let me outline a plan that has continued to bring me referrals long after my first meetings.

1.      Subdivide your contacts into Tier 1, 2, and 3 connections. Tier 1 will be high interest: potential referral partners and direct clients. Tier 2 will be individuals who target similar clients as you or they could be potential clients (on a smaller scale than Tier 1), for your products or services. Tier 3 will be loose affiliations with whom you network in a variety of areas and who could potentially be good allies for your business. Take the time to break down your database so you know where to focus your energy.

2.      Get on the phone! The personal call is still your best bet for building strong connections and maintaining them. Rotate your calls, but make sure that your best clients and Tier 1 connections get at least 1-2 calls per month and more if business between you is building. I speak to one of my lender/referral partners almost daily.

3.      Develop an email newsletter or contact system so everyone in your database gets touched at a minimum of at least once per month. Up to twice a month is acceptable, but any more than that is annoying. I have some advisors who send out something almost every day and I have had to politely “opt out” of their program. Your entire database should receive your email communication (Tier 1, 2, & 3). This keeps you top of mind and your brand going in the right direction. Make sure any system you use allows the receiver to cancel (opt-out) of your emails.

4.      Send them paper mail! Mail that you send directly to your contact still works beautifully. Sending a postcard, greeting card, or letter is imperative in this day of impersonal contact technology. I plan one mailing per quarter. Basically, I try to send out three to four mailings per year, and more when budget allows. Send simple messages, such as reminders of things to come or to express your gratitude for their loyalty. I find postcards to be the least expensive means of doing this, and they still get the message across. Holiday greetings for any holiday still make a personal impact and are highly recommended.

My contact recommendations are simple, but how many people follow them? Based on my unofficial polls, most business people will employ one or two of these techniques, but not consistently. Make a commitment to yourself – make a point to follow through on all four of these action items for 12 months. Don’t skip anything: Make the calls, send the emails, send the cards. After one year without missing a beat, you’ll see your sales volume grow by at least 20%.

Make your customers and network contacts feel valuable, appreciated, and remembered, and they will honor you with business for years to come.

Lester Salvatierra is an experienced Finance Specialist with First U.S. Finance (http://www.FirstUSFinance.com). He helps small to mid-size companies lease or finance a wide variety of equipment and special projects for upgrades and expansions. He is also a networking pro and BNI Area Director in Ventura County, CA. Lester@FirstUSFinance.com Ph: 805-217-9896

Anyone who has been networking actively for a year or more will run into a dilemma: Depending on your profession, there may be many other businesspeople in your immediate circles who offer the same services that you do.

Of course, your goal is to package what you do in a unique and different way, but when it comes right down to it, the actual product is the same. Some professions —insurance, financial planning, real estate — are flooded with sales agents. Maybe you’re one of these folks or you’ve got a related job. Your predicament is that as you network and find multiple people in your regular contact groups who are offering the same product, whom should you refer when the opportunity arises? Who will you give business to?

The obvious answer is to refer the “best qualified person” for the job. Sometimes, however, it’s not that clear and simple. If someone stands head-and-shoulders above the rest and also refers business to you, then that makes it easier. But what if this person is well-skilled and knowledgeable, but not yet someone who refers? Should you make the referral to the one who gives you business even if he or she might not be the best qualified? Pledging loyalty to someone based on the amount of business he or she gives you has to make you question what you’re basing your loyalty on. Would you tell someone who refers you business regularly that you feel he or she needs to shape up? Not likely.

Some people sprinkle around referrals to all their contacts whom they feel are worthy. This can work, but it also dilutes building a solid one-on-one partnership for the long term. Depending on the volume of business you transact, you can have two or three strong referral partners in the same profession, but you should think through your overall strategy so you don’t get caught weakening your network.

Here are checkpoints that should serve as food for thought.

1) Refer the best candidate for the job based on the quality of work he or she does through your direct or indirect experience. If you have used this person, then you will know his or her strengths, and if you haven’t tested these services then you may have heard through testimonial how outstanding this candidate is and the great value he or she offers.

2) Refer the person who understands networking and the concept of reciprocity. That doesn’t mean you expect an immediate referral back; it means this person has taken the time to also understand your products and services and has his or her radar on alert for opportunities for you as well. Referring the best attorney in town all the business that comes your way without his or her even knowing what you do will usually not serve you well in the grand scheme of things.

3) If you get referrals from someone you would not necessarily refer back to because you feel something is lacking, then you have two choices. The first choice is to sit down with the person and explain what you’re feeling, and what you’re perceiving. Based on human nature, not many people will take this very well and you may not get any further referrals from him or her, but it might help him or her to become a better businessperson.

The second choice is to reciprocate the business he or she directs toward you with other types of benefits. Maybe you won’t refer him, but you could give him ballgame tickets, gift cards, dinner/theatre passes or a certificate for something he or she values. Basically, you are saying “thank you” for your efforts and you have done something, other than refer him, to show your appreciation. My experience is you will choose the path that fits your personality and also fits the type of relationship you have with the other person.

Based on these points, it should be clear that if you want to start to generate business and referrals from a particular person, then first get him or her a referral. This candidate will take note and want to reciprocate. On the other hand, if you get a referral from someone, make sure you acknowledge and thank him or her immediately and then learn about what he or she does so you can keep this person top of mind.

Build your referral partner network with quality in mind and be selective on who you team up with because a bad referral will create negative ripples about your credibility. Personally directing business to people only because they give you referrals or offer you money or gifts for those referrals without believing in their products and services will not enhance your business, reputation, or your brand, and will slowly tear it down.

Lester Salvatierra is an experienced Finance Specialist with First U.S. Finance (http://www.FirstUSFinance.com). He helps small to mid-size companies lease or finance a wide variety of equipment and special projects for upgrades and expansions. He is also a networking pro and BNI Area Director in Ventura County, CA. Lester@FirstUSFinance.com Ph: 805-217-9896

This is the networking disconnect.

If you attend networking events hoping to sell something, you’re dreaming. Do not confuse direct selling with networking. Effective networking is about developing relationships. I know, I know…there is always someone out there who says, “But Ivan, I’ve made a sale by attending a networking event!” Okay…I am not saying it doesn’t ever happen. It does. I’m simply saying it happens about as often as a solar eclipse. Face it, even a blind squirrel can find a nut. Any businessperson can stumble on some business at a networking meeting from time to time. However, when you have most of the people at an event trying to sell something and virtually no one there to buy something, you’re crazy if you think the odds are in your favor to “sell” at a networking event.

So why go to a networking meeting?  You go because networking is more about farming than it is about hunting. It is about developing relationships with other business professionals.  It is not about “direct selling.” This means you need to move the relationship through the VCP Process^®.  Visibility leads to credibility which, with time and effort, leads to profitability.

Many people have a significant disconnect between intent and reality relating to their expectations at a networking event. This kind of disconnect leads to poor results, which then leads people to say, “networking doesn’t work.” Well, from what I’ve experienced myself over the past the past 26 years, along with the results I’ve witnessed among hundreds of thousands of people around the world – networking works just fine.  One’s intention, however, must be in alignment with the reality of the particular circumstances. If nobody at an event is looking to buy something while you’re there trying to sell something – you have a disconnect. If you’re there to meet people and move through the relationship networking process, then your intention and the reality of the situation are more likely to be in alignment.

Sometimes you go to a networking event to increase your visibility and to connect with people you’ve never met, sometimes you go to establish further credibility with people you know, and sometimes you may even go to meet a long-time referral partner and do some business. In any case, the true master networkers know that networking events are about moving through the relationship process and not just about closing deals.

Someone recently said to me, “I’m still amazed at the number of people I run into at networking events that still don’t understand it’s not a sales event, it’s a networking event!  They come to the event, try to sell, don’t get any sales, and then they’re disappointed!”

Another person told me, “There is a great opportunity to be found in connecting with people and getting to know them. We need to start seeing each other as interesting human beings as opposed to a potential sale!”

I find it ironic that so many people are disconnected relating to a process that is supposed to be all about becoming connected.

There is a paradigm shift that needs to take place before you can make your networking efforts work. That shift is to move from a “direct sales” mentality to a “relationship networking” mentality. If you go to networking events looking to meet new people and move through the relationship process with people whom you meet and get to know, then you are working the process correctly.

Here are five things to remember when attending networking events:

1.     Don’t go there to sell, go there to connect.

2.     Have some meaningful conversations with people you meet.

3.     Follow up with people you find interesting or whom you can help in some way. Don’t follow up to sell them something.

4.     Meet these people in a one-to-one setting, learn more about them, and ask them: “How can I help you?”

5.     Go for the long-term relationship, not the short sale.

Remember, networking is more about farming than it is about hunting.  So, the next time you go to a networking meeting, think about how many people are there to “buy” something. Then remember to stop “selling” and to start networking.
Called the “father of modern networking” by CNN, Dr. Ivan Misner is a New York Times bestselling author.  He is the Founder and Chairman of BNI, the world’s largest business networking organization.  His newest book, Networking Like a Pro, can be viewed at www.IvanMisner.com. Dr. Misner is also the Sr. Partner for the Referral Institute, an international referral training company.

Those of you who work in organizations might be familiar with an increasingly popular position, that of chief networking officer (CNO). The CNO is the person who handles many corporations’ business networking and community-related activities such as these:

Community involvement            Diversity

Internal communication            Client/customer relationships

External communication            Developing a word-of-mouth campaign

Public relations            Departmental collaboration

Corporate culture            Relationship advertising and marketing

Social capital            Improve vendor relationships

Human resources            Referral generation strategies

In this article I will focus on two roles of the CNO:

(1) word-of-mouth campaigns, and

(2) referral generation strategies.

These roles should be top of mind if you’re going to network like a pro. They should be the principal job focus of your CNO.

First, however, let’s address the thought that’s probably just popped into your head: Hey, it’s just a 10-person (four-person/one-person) organization; how can I afford to hire a CNO to do my networking?

As business professionals ourselves, we remember what it was like trying to get a company off the ground. And quite frankly, there never seemed to be enough resources to take care of all the things the business needed, let alone hire an executive-level person.

What I’m suggesting is creating a CNO position in your company — and filling it yourself, at least in the beginning. In other words, don’t hire a CNO – just take on the mindset of a CNO.

How do you create a CNO mindset? Here are five actions you can take now.

1.            Engage in two-to-three networking events each month and follow up with people you meet.

As a smart, enterprising businessperson, you already know the importance of networking and how vital it is to meet new people. One of the biggest mistakes people make, however, is failing to follow up.

By adopting a CNO mindset, you recognize that meeting new folks while networking is just the first step toward generating more word-of-mouth business. The second step is meeting them later over coffee or lunch to learn more about their business and how you can help them. When you do that, you pave the way for future referral business.

2.            Touch base with past business contacts by making two personal phone calls each week.

Again, if you’re like me, you’ve got so much going on that the thought of making two more phone calls is almost too much. But remember, a CNO’s job is to maintain relationships and generate referrals. And that can’t happen unless you stay in touch.

3.             Use postcards and greeting cards to stay in touch with people throughout the year.

A good time to do this is on annual holidays. Not only for Christmas or New Year’s, but also St. Patrick’s Day (March), Memorial Day (May), Independence Day (July), Labor Day (September) and Halloween (October) as special occasions when a card can be an unexpected surprise.

You can start off by buying a pack of 20 cards and sending them to people you’ve fallen out of touch with or with whom you’d like to reconnect: past clients, past vendors, a friend of a friend, another business owner you chatted with at your local coffee shop a few months ago. Doing this will keep you top of mind with these people in a unique way.

4. Take good care of your database.

With all this talk about phone calls and greeting cards, it makes sense that a CNO should have a topflight contact database and contact management system (CMS) to help him or her stay organized and on top of things. For those of you who might not be familiar with these terms, a contact database / contact database is simply a storage facility that enables you to keep track of all the people you’ve met. It can be as simple as a physical card file or as high-tech as an online data site. It just needs to be something you can use so the business cards you’ve acquired don’t end up falling off your desk and onto the floor.

Using database management software can streamline and supercharge your referral-generation system. Because there are data entry fields for many different kinds of information (email address, phone number, profession, where you met the contact, etc.), you can sort contacts by many different criteria and target emails to particular segments of your database with a few clicks of the mouse. I have experience with several such systems, including ACT, Microsoft Outlook, and Relate2Profit.com.

The reason these systems are so important for a CNO is because his contacts are his business! You can’t get referrals unless you have relationships, and you can’t have relationships unless you stay in touch and up to date with contacts. A good contact database and contact management system enables you to do both while creating a powerful word-of-mouth marketing campaign.

5. Always thank your referral partners.

A “referral partner” is not simply a contact who gives you referrals every once in a while; a referral partner is someone with whom you have entered into a relationship that is mutually trusting, respectful and beneficial. Maintaining that relationship means, among other things, thanking your contact for referrals. It’s not only good manners; it’s good for keeping the benefits mutual.

A thank-you can and often should take the form of reciprocation, of course: Get a referral, give a referral. The Law of Reciprocity, however, doesn’t require such a quid-pro-quo response, and indeed it might even seem a bit artificial if it happened as a matter of course. The person being thanked might be inclined to think, “If my partner can send me one referral every time I send him a referral, how many might he be able to send me if he sent me all the business he knows I could use? Is he, in other words, holding back? Is he doling them out like dog treats every time I perform a trick?”

Rather than foster such ideas, make sure you send your partner a referral every time you have the opportunity; chances are the ones you receive from him (and others) will balance out in the long run. Gratitude by reciprocity should be given freely and abundantly and not in measured response to the number of referrals received. A referral partnership should never be viewed as a simple accountancy.

A simple “thank you” is always appreciated and should always be the first response given. It’s probably the single biggest action a CNO can take to maximize the number of referrals he gets. This will typically double the amount of referral business he or she gets from an existing referral partner.

This simple thanks can take many forms other than a spoken “Thank you.” There are many ways to show your gratitude, but it’s important simply to understand that thanking the person who gave you a referral in the first place is just as important as getting that referral. When you do that, that person will be more likely to refer again and provide another revenue boost for your business.

Called the “father of modern networking” by CNN, Dr. Ivan Misner is a New York Times bestselling author.  He is the Founder and Chairman of BNI, the world’s largest business networking organization.  His newest book, Networking Like a Pro, can be viewed at www.IvanMisner.com.   Dr. Misner is also the Sr. Partner for the Referral Institute, an international referral training company.

Networking is more than shaking hands and passing around business cards. Based on a survey I conducted of more than 2,000 people throughout the United States, United Kingdom, Canada, and Australia, it’s about building your “social capital.” The highest-rated traits in the survey are the ones related to developing and maintaining good relationships. For years I’ve been teaching people that this process is more about “farming” than it is about “hunting.” It’s about cultivating relationships with other business professionals. It’s about realizing the capital that comes from building social relationships.

The following traits were ranked in order of perceived importance to networking. They are the traits that will make you a “master networker.”

1. Follows up on Referrals. This was ranked as the NUMBER ONE trait of successful networkers. If you present an opportunity, whether it is a simple piece of information, a special contact, or a qualified business referral, to someone who consistently fails to follow up successfully, it’s no secret that eventually you’ll stop wasting your time with this person.

2. Positive Attitude. A consistently negative attitude makes people dislike being around you and drives away referrals; a positive attitude makes people want to associate and cooperate with you. Positive business professionals are like magnets. Others want to be around them and will send their friends, family and associates to them.

3. Enthusiastic/Motivated. Think about the people you know. Who gets the most referrals? People who show the most motivation, right? It has been said that the best sales characteristic is enthusiasm. To be respected within our networks, we at least need to sell ourselves with enthusiasm. Once we’ve done an effective job of selling ourselves, we will be able to reap the reward of seeing our contacts sell us to others! That is motivation in and of itself!

4. Trustworthy. When you refer one person to another, you are putting your reputation on the line. You have to be able to trust your referral partner and be trusted in return. Neither you nor anyone else will refer a contact or valuable information to someone who can’t be trusted to handle it well.

5. Good Listening Skills. Our success as networkers depends on how well we can listen and learn. The faster you and your networking partner learn what you need to know about each other, the faster you’ll establish a valuable relationship. Communicate well, and listen well.

6. Networks Always. Master networkers are never “off-duty.” Networking is so natural to them that they can be found networking in the grocery store line, at the doctor’s office and when picking the kids up from school, as well as at the chamber mixers and networking meetings.

7. Thanks People. Gratitude is sorely lacking in today’s business world. Expressing gratitude to business associates and clients is just another building-block in the cultivation of relationships that will lead to increased referrals. People like to refer others to business professionals who go above and beyond. Thanking others at every opportunity will help you stand out from the crowd.

8. Enjoys Helping. Helping others can be done in a variety of ways, from literally showing up to help with an office move, to clipping a helpful and interesting article and mailing it to an associate or client. Master networkers keep their eyes and ears open for opportunities to advance other people’s interests whenever they can.

9. Sincere. Insincerity is like a cake without frosting! You can offer the help, the thanks, the

listening ear, but if you are not sincerely interested in the other person, they will know it! Those who have developed successful networking skills convey their sincerity at every turn. One of the best ways to develop this trait is to give your undivided attention to the individual with whom you are developing a referral relationship.

10. Works Their Network. It’s not net-sit or net-eat, it’s net-WORK and master networkers don’t let any opportunity to work their networks pass them by. They manage their contacts with contact-management software, organize their email address files and carry their referral partners’ business cards as well as their own. They set up appointments to get better acquainted with new contacts so that they can learn as much about them as possible so that they can truly become part of each other’s networks.

Do you see the trend with these 10 points? They all tie in to long-term relationship building, not simply stalking the prey for the big kill. People who take the time to build their social capital are the ones who will have new business referred to them over and over. The key is to build mutually beneficial business relationships. Only then will you succeed as a master networker.

Called the “father of modern networking” by CNN, Dr. Ivan Misner is a New York Times bestselling author.  He is the Founder and Chairman of BNI, the world’s largest business networking organization.  His newest book, Networking Like a Pro, can be viewed at www.IvanMisner.com.  Dr. Misner is also the Sr. Partner for the Referral Institute, an international referral training company.

With social media, the key to success is outlining a strategy that takes into account the amount of time you can realistically dedicate each day to your online marketing efforts, and to be consistent.  People have a tendency to get online at random times and start clicking away. Then something mysterious happens in the “space-time continuum” and all of a sudden two hours go by and they have nothing to show for it!  Here’s how to avoid falling victim to that trap . . . have a plan and work it! Write up a plan for how often you will work your social media and for how long.

Sit down and map out a weekly schedule that outlines specific days and times during which you will spend developing your social media strategy. Figure out what’s realistic and what makes sense for your company and go from there. For example, you might schedule yourself simply to post one update at 9 a.m., one at 1 p.m., and one at 5 p.m. daily, and then dedicate 10 minutes to responding to comments and direct messages at 10 a.m. and 3 p.m. Mondays and Wednesdays.  On Tuesdays and Thursdays, you might then dedicate 10 minutes at 10 a.m. and 10 minutes at 3 p.m. to re-tweeting people’s comments that you find valuable and also thanking people for mentioning you or for re-tweeting your posts. This is just an example, but you should definitely take the time to devise a social media strategy along these lines that specifically makes sense for you.

Leverage your time! Be sure to utilize the various tools currently available that are designed specifically to save you time in your social media efforts. For example, sites like http://ping.fm, www.seesmic.com, and www.tweetdeck.com are designed to send your social media updates to multiple social networking sites, including Twitter and Facebook, with one click.

Some sites even allow you to link multiple Facebook and Twitter accounts (if you have more than one) to one desktop application where you can post updates to all sites as well as view and respond to your friends’ posts on those sites and keep a log of all your past posts. This means no more logging into multiple social networking sites . . .  you can manage all your social networking accounts from one place!

Also, there are sites such as www.cotweet.com where you can schedule updates in advance so your updates will be posting even while you’re not online. With all the traveling I do, this is a tool that I’ve personally found to be very useful.

Once you have your strategy in place, you will no doubt be anxious to start seeing a return on your online networking investment and it’s very important to remember one thing: Networking, whether online or face-to-face, is more about farming than it is about hunting.  It’s about cultivating relationships with people. The bottom line is – it takes time. It is about building the credibility of your brand. That doesn’t happen overnight.

Return on Investment (ROI) is directly correlated to either:

1.     Dollars spent (online paid marketing), or

2.     Time and/or effort spent – in saturating and building strong profiles on whatever social media channels are deemed effective for the brand (including blogging).

Don’t forget that some businesses will benefit much more from spending more effort on “niche” networks that may have less traffic, but that are more targeted to the brand’s ultimate consumer.

If your network is a mile wide and an inch deep it will not be successful. It is important that you create a network that is both wide and deep. You do this by being visible and engaging in the conversation. Over time, this gives you credibility that leads to building your brand and your sales and that will ultimately give you the biggest ROI for your online marketing efforts.

Most of what I’ve discussed so far has focused on what you should do in order to carry out an effective and profitable social media campaign for your business. But there are also some things you should be sure to avoid in order to be successful.

Below are the top five common mistakes that businesses make when it comes to social media networking—avoid all of these:

1.     Spending too much time on sites you enjoy and not fully evaluating whether those particular sites are the most effective ones for your efforts.

2.     Going onto a site for “work” and then running down rabbit holes getting distracted by friends who may have posted something interesting or something that requires a response.

3.     Not being able to properly define when it is more cost-effective to delegate certain social media responsibilities to someone else to handle.

4.     Setting up a blog, Facebook, LinkedIn, or Twitter page and then not keeping it populated – consistency and fresh content are key.

5.     Forgetting that social media is about engaging in the conversation and not just about selling.

Called the “father of modern networking” by CNN, Dr. Ivan Misner is a New York Times bestselling author.  He is the Founder and Chairman of BNI, the world’s largest business networking organization.  His newest book, Networking Like a Pro, can be viewed at www.IvanMisner.com.  Dr. Misner is also the Sr. Partner for the Referral Institute, an international referral training company.

I went to my first French literary evening earlier this week. I’m living in Paris for a few months, trying to get better at French and immerse myself in another culture, and a friend who lives here asked me if I’d like to attend, as a way of, in her words, “taking a bath in French.” Well, I’m eager – I’m here to learn– so I said yes, of course.

It was an evening to mark the publication of the final volumes of translations of Henry James, courtesy of a writer-scholar Jean Pavan, who has made a career out of the work of the great American expatriate writer.

The reading, which was actually a lecture and reading, took place on the second floor of an historic little spot, Café de la Mairie, across the street from the church of Saint-Sulpice (a church which, for fans of phenomenally successful action thrillers, figures prominently in “The Da Vinci Code”). The evening was part of an event called “Les Mardis Littéraires,” or “Literary Tuesdays.”

I got there about 20 minutes ahead of time, being over-punctual in my American way, which meant that I was almost unthinkably early by French standards (the French, especially the Parisians, are never early, though they’re rarely actually late). I chatted briefly in my bad French with M. Pavan, whom I’d met once before, and then the friend who’d invited me arrived, and we took our spots near the front, crowded into a little booth. The room filled up quickly.

Pavan began to speak, but then was interrupted by the waiter, who appeared to ask how many people wanted red wine, white wine, beer, water, etc. – in France, one must nourish the body before the mind. So different from the book gatherings I’ve attended in New York, where there’s usually an open bar. (Though, to be fair, increasingly, book readings are being held at pubs and such.) Anyway, the drinks orders done, the evening proceeded.

Pavan spoke about his work on James, and how James wasn’t as well known in France as he might have been, though one James story, “The Beast in the Jungle,” is very popular here. Then a woman at his side read a few pages of one of James’s stories that Pavan had translated. She read in a husky, smoky voice, bringing much more sensuality and breathlessness to the prose than it actually possesses in English, but it sounded beautiful nevertheless.

Following her reading, Pavan gave a brief explication of the story. She read three excerpts, and Pavan gave little interpretations of each work. Then he took questions.

It lasted about two hours. What was remarkable to me was how much attention everyone paid to Pavan, to the reader, to the subject at hand. This was so different from the many book parties I’ve been to in New York, where people are usually thinking “Whom do I know here,” “How can I network this party,” “Am I talking to the right person who’ll help me” or “Is there someplace better I should be than here?”  In contrast, this literary evening was just that: an evening devoted to literature.

I mentioned this to an American friend who lives in Paris, and he told me that writers are at the top of the celebrity scale, taken very seriously. Then come engineers (this is France, after all, where streets are named after writers, engineers, industrialists and politicians. Never actors.) My American friend said that writers have pride of place here comparable to a pop-music or sports star in the U.S.

The evening said a lot about the seriousness of cultural studies in France, vis-à-vis the U.S., especially today, when American culture is a powerful tool, but American artists always have to fight for attention. Especially in our digital, hyperactive age.

Over the next year or so, I’m going to be exploring the nature of arts in America today, and what writers especially are doing to be heard above the din of competition.

I realize that America is not France – nor should it be. I do wish that we could give attention in the U.S. to writers of all sorts – not just the big-name ones. But there are ways to be heard, and ways to create the kind of literary café that exists in France in a digital domain that exists in the U.S., and globally.

The second night we were anchored off Hope Island, and very strong winds came up. Our captain started the engines and backed the ship up, letting out more length of chain to the anchor. Curious (and I must admit, a bit concerned), I asked him how it was possible for such a small anchor to hold the ship in place with the winds blowing against it so strongly.

“It is the chain that is holding the ship, not the anchor,” he informed me. After the anchor is lowered, the captain looks to the first mate, who signals from the prow which direction the chain is laying on the bottom of the sea. The captain can then maneuver into the right position and let out the necessary amount of chain to hold the ship in the particular conditions at that time.

This particular night, with the winds growing stronger, he recognized that he needed to let out more chain.
Well, I began to see how this dynamic was relevant to networking. An anchor in any good networking program is the system, the process of doing business through relationships. But it’s not the system or the process that has the strength at all! It is the length of the chain holding the networking program in place!

As you take a look at the networking groups you may be participating in, think about the links or relationships you have formed with the individual members. How many links does your chain have? Do you have strong relationships with many of the other members of the group, or are you closely linked with some, but disconnected and detached from others for whatever reason?

So how do you go about letting out more chain during times when the economic winds have strengthened against our businesses? I submit that it’s time to get serious about developing stronger relationships with each and every member of the networking groups you participate in, even with the people you don’t think have the contacts you might want or perhaps are in a business that is not exactly symbiotic with yours.

Have you done one-to-ones with those people as well? Spending the time to do one-to-ones with each and every active member of your network helps you develop a longer and stronger chain. Each person in your network is one of the links that lengthens that chain.

The wisdom of laying down a longer chain to strengthen the ability of the anchor to hold strong is critical for the success of your personal network.

Another aspect of this anchoring process is watching the first mate. Look for networking organizations that have leaders who are qualified to signal the direction the chain is lying as the dynamic in your group changes. Watch for guidance in what adjustments to make to ensure that your network is pointed in the right direction. At one point in our anchoring process while at sea, the first mate literally dove into the water to loosen the chain where it had become hooked on a coral formation. You need qualified people in your personal network who are willing to dive in to help lead a network in the right direction.

So starting this week, try making your main focus the development of your “relationship chain” within your personal network. I guarantee it will be what anchors your business and your networking efforts for longevity, despite economic fluctuations. The old adage that a chain is as strong as its weakest link is true for a network as well as a ship.
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Called “The Father of Modern Networking” by CNN, Dr. Ivan Misner is a New York Times bestselling author. He is the Founder and Chairman of BNI, the world’s largest business networking organization. His latest #1 bestseller, The 29% Solution can be viewed at www.29PercentSolution.com. Dr. Misner is also the Senior Partner for the Referral Institute, an international referral training company (www.referralinstitute.com).

Many entrepreneurs are under the impression that if they just provide good customer service, people will refer business to them. Just like that. However, they only have part of the picture. Sure, customer service is important. But, good customer service is just a prerequisite…it’s a minimum expectation.

Think about it. Would you refer somebody to me if I provided lousy customer service? Of course not. You’d end up looking like a dope in the eyes of the prospect. Your own credibility would suffer.

Good customer service is part of what the prospect expects when you refer him to me. If you’re recommending me to him, I must be something pretty special, right? And if I want to keep that customer coming back, I’ll need to give him more than the minimum expectation of simply good customer service. I’ll need to provide great, outstanding, memorable customer service to really stand out.

On several occasions, my colleagues and I have discussed the point, which I made in my book, The World’s Best Known Marketing Secret, about how people were under the delusion that good customer service alone was enough to enable people to build their business through word of mouth. We shared stories about people we’d met over the years who had gone out of business by just sitting back, and waiting for good word of mouth to rescue them. This got us thinking and talking about all the other delusions people had about networking and referral marketing…including the misconception about customer service we are talking about here.

People don’t refer business to you because you meet their minimum expectations. They refer you because they expect you to do a good job which, in turn, enhances their relationship with the person they are referring. They may not even be doing business with you, so customer service may not be an issue with them personally—but of course they expect you to provide outstanding value to the prospect. They want the prospect to come back to them and say, “Thanks for sending me to Joe Trueblue. He had just what I needed, and the service was great. You sure know some outstanding people!”

Your referral source has a strong interest in making sure everyone comes out a winner. She knows that when the happy customer comes back to you again and again, you’re more likely to send business her way when the need arises. The great service you provide to the customer comes back to you in the form of a stronger relationship with your referral partner.

One of my colleagues is Bob Burg, author of Endless Referrals, and here is his take – on what it ‘takes’ – to consistently receive referrals:

We all know of companies and salespeople that couldn’t stay in business, despite having superior products. We’re also familiar with companies and salespeople that were remarkably successful with just an average product.

Of course, having an excellent product is important. However, technology today has made that commonplace and expected. In order to have qualified prospects “beating a path to your door,” you must be able to network and to market yourself and your product or service in such a way that it makes people want to do business with you and refer you to others. You need to provide them with such a great buying experience that they know they made the right decision. However, to get them there in the first place, it’s the networking and marketing that’s most important.

Being in a referral group like BNI is one of several important parts of an effective word-of-mouth marketing plan. One of the things these groups emphasize is that you need to be very specific in what you do and in how your product or service is uniquely valuable. If you use general terms, you’re at the lowest level of competitive effectiveness. And if you say, “customer service,” that’s not what people are buying.

Another of my colleagues, says that you don’t sell the process – you sell the result:

Talking about what you do does not motivate people as much as what happens to their client or friend as a result of what you do. I used to sell copiers, and I never met anybody who was buying good customer service. They were buying the ability to make photocopies quickly and reliably. They weren’t shopping for customer service, because that’s a prerequisite. It’s part of what creates that end result.

As I have pointed out for many years, unhappy customers are eleven times more likely to talk about your business than happy customers. Good customer service only reduces negative word of mouth; it doesn’t necessarily increase your business through positive word of mouth.

Now, it is important to keep this in mind: If you provide outstanding customer service, AND your referral partner has experienced that as a customer, it can definitely increase the number of referrals you receive. As already mentioned, good customer service is a prerequisite for cultivating your referral network…but great customer service to a referral partner can be a jump start!

Referral networks and other referral settings often feature third-party testimonials, in which someone who has used your product or service (in this case, your referral partner) tells the group, “I’ve used Moe’s products, and I’m here to tell you, they’re the best I’ve ever found.” Hearing it directly from someone they know is often enough to get people to believe it and act on that belief.

I often tell people that testimonials are a very important part of the referral process, especially within referral groups. Never underestimate the power of the third-party testimonial. When you stand up and say, “I’ve used this person, and you should use this person too, because . . .” and then go on to explain why, it makes a huge difference in how people view that service provider. Your experiences become my experiences. This, of course, makes it much easier for people to refer that provider…even if they haven’t personally used his services yet.

“My network’s not motivated.” Maybe so, but what are you doing to compel them to refer you? Do you follow up with them on a regular basis? Do you make sure they know you are interested in what they do, rather than just worried about how interested they are in what you do? Are you helping them in the same way you want them to help you. . . are you? Really?

“They don’t know my business.” What have you done to educate them about what you do? Have you kept them abreast of any new products or services you have added? Have you given them information in “bite size” pieces so that they won’t be overwhelmed and likely unable to retain the vital information needed to properly promote your business? Have you provided them with the right amount of collateral material in the form of brochures, pamphlets, and web-based information, so that they can not only educate themselves, but also educate those in their network and extended networks who may be perfect prospects for your business?

You may have met many of your referral sources at your business networking groups. But do you set up times in addition to regular meetings in order to meet with your referral sources, either individually or in small groups, in order to cover areas that you may not have time to cover at the networking meeting?

“The referrals are fickle…they used me only once and never again.” Hmm. Are you sure it is because those new clients were fickle, or did you not do enough to turn a single sale into a regular, loyal client relationship? Did you make sure that prospect was contacted in a timely manner? Did you ensure that the client saw the best you had to offer the very first time? Only you can answer that question.

“They just don’t have the contacts I need.” You’ve gone through their entire database of contacts and disqualified every one, right? Probably not. And if you underestimate who people in your network know—not to mention who the people they know might know, and so on—you are missing out on an exponentially growing number of possible buyers of what you have to sell! And with the explosion of internet marketing, the world is a whole lot smaller. You can now take advantage of contacts your referral sources may have not only in another city, but in another state or even another country!

Without question, it is your obligation to teach your fellow networkers how to refer you. If they’re not doing so, then you are not teaching them effectively. So, in the end, it’s your fault—or, as a passionate, New Age–type business coach once corrected me, “It’s all your responsibility.” OK, I can live with that. Responsibility is something people are sometimes reluctant to take. You’re responsible for many of the actions people take on your behalf. It’s up to you to choose the right people to have around you, to set the tone for your business, to educate your referral partners about what you do, to demonstrate competence and integrity for those representing you, and to maintain the effectiveness and strength of your referral relationships. If there’s a breakdown anywhere in your referral system, it’s because there’s something you overlooked or let slide.

You don’t turn over the responsibility to others and then blame them when things don’t turn out right; instead, you accept responsibility and work with your partners to ensure that the same mistake doesn’t happen twice. You also acknowledge responsibility to anyone who has been wronged, without equivocation. Don’t say, “Mistakes were made.” Say, “It’s my fault that this happened. I apologize for the mistake, and I promise to set things right.” This straightforward acceptance of blame has the added benefit of defusing the other person’s anger; and it’s honest. After all, you created the system that caused the problem. What the injured party wants to hear is acceptance of responsibility and a commitment to correcting the situation—and what the injured party wants to see is action.

One of the strengths of a referral network is that everyone becomes friends. And one of the weaknesses of a referral network is that everyone becomes friends. Only those groups and individuals who recognize that they have to take responsibility, and that there has to be accountability, are the ones who make this process work for them. The people who are constantly blaming someone else for what’s going wrong, who are not taking responsibility for changing or fixing it to make it work, will not do well in referral marketing. Remember, if your referral-marketing program is not working, it’s all your fault! OK, for the more tactful among you, it’s all your responsibility.