By Ivan R. Misner, Ph.D. and Vince Vigneri
Word-of-mouth advertising or, as we know it better, Referral Marketing is often touted as one of the
oldest and most powerful forms of marketing, and while most real estate agents
understand how it works, many do not know just how they can turn it into their
most powerful business tool.
If you want to be successful at developing word-of-mouth
through networking, you should be as organized and thoughtful about it
as you are about other types of advertising and marketing you do.
Here are 10 ways to be effective in networking groups.
Here are 10 ways to be effective in networking groups.
1. Know HOW to ask for the referral. There are specific techniques you can learn
and develop that will help you hone your ability to ask for the referrals you
want. One such technique is to ask “who do you know who...?” You would then list several types of people
you can help, such as someone who is new to the area, someone recently married
or who has just started a business.
2. Diversify your networks. When joining various organizations, make sure
you select a well-rounded mix of business groups in which to participate. These groups might include business referral
groups, chambers of commerce, community service groups, and or trade
associations. Try to avoid being in more than one group per category (i.e. two
chambers of commerce) as this will divide your loyalties and put you in a
position where you will be making promises to too many people.
3. Develop a creative incentive to encourage
people to send referrals your way.
A realtor in Northern California offers
his own estate bottled wine as gifts to people who give referrals. Others provide gift baskets or personalized
gifts as a way of recognizing the efforts of people who have passed on business
to them.
4. When attending meetings and other networking
events, bring the right networking tools with you. These include: an informative name badge, business cards and
a business card carrying case to hold others’ cards.
5. Spend time developing your networking skills. Read books and articles on networking, listen
to tapes and talk to people who network well.
Networking is an acquired skill.
6. When attending a business mixer, act like a
host, not a guest. You are
wasting your time at networking mixers if you stand around visiting with
coworkers or others whom you already know rather than meeting new contacts and
introducing them around. These
networking meetings offer a great way to increase your visibility! If appropriate, ask to be the ambassador or
visitor host in the organizations to which you belong. As such, it will be your official duty to
meet people and introduce them to others.
7. Invest time in developing a 60-second message
about your business that explains what you do. Try to think of a Memory Hook — a brief,
ear-catching phrase that so vividly describes what you do that people will be
able to visualize it in their mind. For
example, a real estate agent on the east coast introduces herself at networking
groups by saying, “if you know someone
who wants to move, tell them to call me and start packing!” When you meet people, use your Memory
Hook. Chances are this will help them
remember you and what you do.
8. Connect with people outside of business
meetings whenever possible. Drop
notes, letters and articles that might be of interest to them in the mail. Call to check in with them or invite them to
events you may be attending that might be of interest.
9. Monitor the referrals you give and receive. This tells you how often you are giving
referrals and to whom. Having this
information helps you focus on helping people who have helped you in the
past. It sets up the reality of the
“two-way street” nature of word-of-mouth marketing.
10. If you have the opportunity to distribute
your materials to clients or at networking meetings, do it. Bring brochures, newsletters and other
information about your company and your products and services. If people can see, touch and hear things
about your product and services, they’ll be more likely to use you or refer you
to others.
You are potentially linked to a vast network beyond your own
sphere. By implementing the tactics
above, you will receive benefits from that network. Maximize your opportunities to cultivate
networking relationships with others and you will see just how effective
word-of-mouth advertising can be!
Dr. Ivan Misner is the
Founder and Chairman of BNI, the world's largest business networking
organization, which has more than 4,900 chapters in 37 countries. Dr. Misner is
also the author of several books, including the most recent addition to the
bestselling Masters Series—Masters of Sales (www.mastersbooks.com), and the New
York Times bestseller TRUTH OR DELUSION? (www.truthordelusion.com); and he is
the Senior Partner for the Referral Institute (www.referralinstitute.com), a
referral training company with operations around the world.