Today I went to a BNI meeting in Roanoke Virginia and the speaker was Dr. Ivan Misner.  For those of you who don't know Dr. Misner is the founder of BNI.  It was the first time I had the opportunity to meet him.  It was well worth the trip.

It has been said and most of us believe that we all only really six degrees separated.  We are all connected one way or another, just six degrees away.  Dr. Misner's book The 29% says that Six degrees Separation creates an Achilles heel.   He says only 29% of the people ( 1 out of 3) is really six degrees separated because in order to be connected you have to actively be doing something to connect.  It is not likely that someone new is going to walk up to you out of the blue and want to net work and build a relationship with you. 

One of the reasons this does not happen is because most folks don't know how to network.  Majority of people have no idea how to attract people to them.  Over 87% of college students have never had a class that even had a discussion about networking.  Yet 75% of business owners said referral marketing is important in building their business. 

Why is this?  Why aren't colleges teaching young professionals how to network?  I don't have a popular answer. But I think most professors have never been business owners.  Those older tenured professors are the ones that determine the curriculum.  The younger professors who may know more about networking don't have any control over the curriculum.  The younger Gen Y and Gen X know much more about connecting.  They are doing so via many medias and venues.

So what does networking entail? Friends, networking takes time.  In order to be successful you have to make a commitment.  Studies show successful business owners spend at least eight hours a week networking. Now I imagine many of you are saying eight hours, that is a lot of time!  "I don't have time for all that!"  Well, this may be true and my question to you is How is that working for you?  If you are not getting all the referrals you want than I would suggest you block out some time to network.

Diversifying your contact list could actually double your referrals.  All networks are overlapping.  This is good but the more variety of people you have in your referral sources the more referrals you will get.  You may think that the Mary Kay consultant could not possibly give you a million dollar referral but you just never know who they may know.  Diversity could be very profitable.

I am inclined to be a cave dweller left to my own devices. I have to make a conscience effort to get out and meet people.  I love people but I would not consider myself an extrovert.  I am more of an introvert.  But being an introvert has its advantages when it comes to networking.  As an introvert I am more likely to do more listening than talking whereas an extrovert needs to learn to do less talking.

Being a cave dweller is kinda like getting a hair cut over the phone.  Networking is a contact sport.  You have to show up. 

Have you ever heard of the 3 foot rule?  If you get within 3 foot of someone it is likely that you will start up a conversation. Some folks have a 5 foot rule and some have a 20 foot rule.  If the room is 50 foot long I know folks that will start a conversation with folks clear across the room!  My point is that you can't do that sitting in your cave.

Having an accountability partner has been good for me.  I regularly meet with my accountability partner and we talk about networking and what we have been doing to meet with people.  We help each other focus on goals.  Within your network it is likely that you are creating relationships and many of them are friends.  It is good and bad to be friends.  Friends don't like to hold friends accountable. Although I consider my accountability partner a friend we meet with purpose. As a result it is very helpful.

These are some simple ideas but not easy to implement.  You have to change the way you think about your business.  Working by referral means becoming visual instead of invisible.  It means becoming knowledgeable to gain creditability and profits.  It means being able to have more control over your business plan instead of allowing the economy to determine how you will run your business.  I believe it is referral business that will allow you and I to survive the economy and credit crunch we are experiencing.

 

 

 

 

 

 
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35 Comments on Referrals - Your Answer To The Economy Crunch

OCT
16
2008

I recently started an accountabilty meeting with a fellow realtor and I have to say it DOES make you think.....should I just watch the boob tube, read a book OR tell my accountability partner that I was too lazy to do what I need to do to make money?  I really believe accountability helps me stay on track and focused.

 

"Professionally Bringing Home Buyers & Sellers Together"

www.MarvelousMary.com

LIVINGSTON COUNTY MI REAL ESTATE ROCKS!

8:35pm • #1
112,099 Points 15 Featured Posts Outside Blog

Mary that is awesome!  As we connect to each other we become stronger individually!

8:38pm • #2
477,526 Points 41 Featured Posts Localism Sponsor Outside Blog Hit Router

Connections are important in our business and one way I make new ones regularily is my community involvement.  I'm a volunteer with a couple of different organizations and last week at an event one of the folks at the event turned to a couple of people I didn't know and said oh here is Cindy Jones she is the expert on Belmont Bay.  Turned out they were looking for a place to downsize to and viola a connection was made.

8:49pm • #3
366,631 Points 110 Featured Posts Outside Blog

This is a very good post and one we all need to digest.  I know my tendency is to remain in the cave, it sure isn't the best thing for a salesperson to do!

8:56pm • #4
151,413 Points 19 Featured Posts Localism Sponsor Outside Blog Hit Router

Nannette, Hey, I have been doing another Brian Buffini class and he talks about Dr Mizner.  I think they actually wrote a book together.  I totally believe in referrals.  I think there are a couple of ways to work them and they work.  It has been the lifeblood of my business, especially in this market.  I do not do BNI types of groups, but network other ways.  That is exciting that you got to see him.  Gets you pumped up you know.

8:58pm • #5
184,201 Points 31 Featured Posts Outside Blog Hit Router

Nannette, I struggle with this part of my business more than any other! I know I need to get out, especially now that the kids are grown and I don't have the "instant" opportunities provided via school etc. Good stuff!

9:05pm • #6
413,299 Points 21 Featured Posts Localism Sponsor Outside Blog

Nannette, I knew we were kindred spirits (from one cave dweller to another).  I do make myself get out and network though.  I was at a chamber after hours this evening.  I wish I could find a local accountability partner though. 

9:12pm • #7
6 Featured Posts

You make some excellent observations Nannette, thank you for this great post. I agree, referrals are often a key to individual success.

9:29pm • #8
585,330 Points 62 Featured Posts Outside Blog

Hair cut over the phone. That was a priceless phrase Nannette. Very cool.

10:00pm • #9
OCT
17
2008
522,477 Points 25 Featured Posts Outside Blog

I like the haircut analogy Nanette. Yes, as social animals, there is something about about wanting to start a conversation with someone...

4:42am • #10
112,099 Points 15 Featured Posts Outside Blog

Cindy I love to hear about people connecting!  That really is my passion.  I love connecting sellers to buyers and vice versa.

Kristal I enjoy spending time alone.  [sometimes it is the best company :-) ]  I force myself to get out and once I do... I talk to everyone!  I love people.  I want to know everything about them, I'm definitely not afraid to ask a lot of questions!

Audrey I use to do Buffini.  Great principals. I started BNI last year and it has been a great source of income in this market.  Probably the main reason I've survived and others did not. He is a great speaker!

Colleen I really have to force myself to get among people.  I do better with just one to one. Crowds scare me.  It has taken lots of practice to get comfortable.

Marchel with an accountability partner it has DOUBLED my income!  Well worth the search to find one.  If you need some help here just call me I have some suggestions to look for one.

DJ over half the deals I did this year were a direct result of a referral or past client. I am very grateful for them!

Gary I'm kinda weird I hate to get my hair cut.  It always takes so much time that I don't want to spend.  Kinda like filling the gas tank.  I wish I did not have to stop and get a hair cut or stop and put gas in the car I wish it was something you could just get over the phone and not be such a time waster :-)

Michael  I am one of those that will start a conversation with someone clear across the room.  I do it in restaurants all the time.  Embarrasses my husband all the time.  But that does not stop me.

6:34am • #11

Nannette I couldn't agree with you more about networking.  I tend not to be the cave dweller but this you already know it is the other types of networking that I am learning such as blogging here on the Rain and so forth.  I will keep at it and hopefully will achieve more success!

8:31am • #12
112,099 Points 15 Featured Posts Outside Blog

Hope implementing all the tools we have we can maximize our efficiency.  Dr. Misner said that BNI is going to be implementing social media and technology networking so you know if he is implementing this there must be a value!

9:02am • #13

This is a great post - I am sorry I missed Dr. Isner. He made a great point about colleges not teaching people how to network. I went to a huge Christian university where nobody gave a crap about introducing you to each other, etc. It was hard not to stay stuck in a "cave" - but I also think with social media the younger generations will learn to network in a new way

Jennifer Mills
10:47am • #14
112,099 Points 15 Featured Posts Outside Blog

Jennifer you missed a great presentation.  But clearly the younger generation has some techniques to make networking easier.

11:12am • #15
Localism Sponsor

Hi Nanette . . .   Well, I'm a long way from you but current market conditions are prevalent everywhere, right? What is the behavior of Buyers (assuming you have some) in your current market?  Thanks for your post. Keep up the good work.

Aloha

James Pycha (R)

REMAX Kauai

1:36pm • #16
654,309 Points 108 Featured Posts Localism Sponsor Outside Blog

Nannette - This is something that I have been preaching to my agents for years.  Also, you can't depend on anyone else to network on your behalf - you must do it yourself!  This is an excellent and informative post, and I appreciated the points here.  Great job!

1:48pm • #17
441,154 Points 2 Featured Posts Outside Blog

Hey, Nannette. Great post. You are so right, we need to be doing everything possible and we need to leave every door open. The more we network the better we become and we are then able to provide better service to our clients. Better service = more business. Have a great weekend, Jim

1:49pm • #18

Referrals have saved my butt during this market down turen and so has past clients moving.

1:59pm • #19

Nannette,

   It takes commitment, but this can be the best way to keep your business in a positive direction. I haven't used a lead source in over 3 years. I made a commitment to be known and to connect other people and it has given me the privilege of staying in the mortgage business. In fact, my networking has positioned me better than any other time during my 9 year career as a Personal Mortgage Consultant.

Always a great topic, keep up the networking!

-Sean

3:12pm • #20
115,580 Points 1 Featured Post

Thanks for the post. I've just finished reading The Tipping Point and the author talks about that in the book.

3:55pm • #21
288,981 Points 3 Featured Posts

Another thing they don't teach is finance or economics.

3:56pm • #22

I relate to the "cave dweller".  Every week I meet with an accountability partner and networking inevitably comes to the table - each week!  I envy those who are true naturals and I always look for ways to be creative in this department.  Thanks for the post!            

5:45pm • #23
1 Featured Post Localism Sponsor

Nanette, what a great post, Thank you for sharing. Very inspiring.

5:53pm • #24
Localism Sponsor Outside Blog Hit Router

Hi Nannette

I've been a BNI member for almost 2 years now, it's a great organization. After being there for 6 months and going thru the time confidence curve, I started to receive referrals. It is a wonderful network.

Thanks for sharing

Rich

6:01pm • #25

Nanette,

This post was so very helpful and informative for me. When I began my business, it was with the hope that I could work strictly by referral. I was extremely fortunate to have the very first Real Estate agent I ever worked with become my greatest source of referrals. But as much as I love the business he refers to me, I have to be smart and continue and market my business daily. Although I'm an extrovert, I found it didn't come as easily to me as I thought it would. When you first begin, it almost feels like a high school dance. You walk in to a networking event and everyone is already engaged in conversation, so you end up standing alone, not trying to look too pathetic. So your statement of "Working by referral means becoming visual instead of invisible" truly resonated with me. Now I just need an accountability partner!

 

 

6:23pm • #26

I belong to By Referral Only.  All of my marketing is done to attract referrals... It still is a very slow market.  Networking is a way of life.  I agree with your post.

6:32pm • #27

Great and very informative.  I am guilty because I haven't been networking like when I first started my real estate business.  I am going to start networking again.

Thanks for that reminder!

May your business continue to GROW.

Tijuana

Tijuana Evans
6:43pm • #28
214,014 Points Outside Blog

Nannette, Excellent!  I have been lucky to learn about BNI, through Brian Buffini.  It really is a core group that does refer business to eachother.  You did a splendid presentation on this, thank you!

It's a Good Life!

Fran

6:46pm • #29
417,564 Points 17 Featured Posts Outside Blog

Draw people to them? That could be just a matter of personality. That's one of the things I've been told by many people in my life. (I know this sounds really arrogant) People always tell me that there's just something about me that makes people want to be around me. Sorry. I can't explain it. I guess I could teach classes if I knew how to bottle it ,-)

7:44pm • #30
OCT
18
2008


Great blog. During these economic times the main stay of our business has been BNI, realtor and past client referrals. I liked your idea of an accountability partner! I'll try that. Thanks,

6:30am • #31

This is a great post!  I'm a cave person myself, but have forced myself to become involved in different groups to network.  And I have made contacts that I can develop.  Also, it's enjoyable and so are the new friends I've made.

Nancy Morgan
3:08pm • #32
OCT
19
2008
3 Featured Posts Outside Blog Hit Router

Nannette -- you are so accurate-- networking IS hard work.  Takes time -- and a plan, as well as listening to people at the  moment --and THEN following up.  Notes, calls, and taking what I heard and doing something with it. Thanks for a great post --

10:57pm • #33
OCT
20
2008

Great post. Accountability gets you out of the cave. We are doing that in the office with our weight. Everyone is getting into the program "get fit", we weight in on Wed and as a result the whole office is loosing weight. It works the same with real estate. If we team up with someone we will make more calls and network with others to get referrals.

Zeneida in Loxahatchee FL

11:28am • #34
OCT
30
2008

I make it a point to talk to a minimum of 5 new people a day. EVERYONE knows SOMEONE who is looking to buy or sell a home.

9:33am • #35

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Lynchburg, VA

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