|
|
Like this article? PLEASE +1 it! |  |
|
The Importance of Sales in Networking
| Guest post by: Ivan R. Misner |
Article Overview: Truth or delusion? If you’re getting all the referrals you need, you don’t need to sell. Delusion. Anybody who’s experienced and successful in referral marketing will tell you that sales skills are absolutely essential. And they’re needed in every part of the process--not just in closing the sale with the prospect.
 |
Free Download - Sorting Out Who's Who By Ivan R. Misner |
The Importance of Sales in Networking
First, you have to sell yourself to your potential referral source--she has to buy the concept that there’s value in introducing you to someone she knows. A referral is not a guaranteed sale; it’s the opportunity to do business with someone to whom you've been recommended. You still have to close the deal.
You have to make it clear that you know how to sell, that you can and will provide the products or services you're expected to provide, and that your customer will be happy with both the process and the result--which will reflect favorably on the provider of the referral. If you can’t make that first “sale,” your potential referral source won’t become your referral provider, because she won’t be inclined to risk her relationship with the prospect. That is, she won’t do her part to sell the referral. Two separate studies, the one I conducted in the early '90s and another one conducted in Florida in 2006, found that approximately 34 percent of all business referrals turn into sales.
This is an outstanding number, but it’s still not 100 percent. Therefore, sales skills are still important in networking. Having the knowledge and skill to generate the referral, then having the knowledge and skill to close the sale, gives you the one-two punch.
Beyond selling yourself to the referral source, you have to sell yourself to the prospect to get that first appointment. Yes, the referral helps a great deal, but you’ve still got to convince the prospect that the appointment is worth his time and likely to result in a favorable outcome. You should avoid being aggressive, indecisive or evasive at this point; the prospect, having been in contact with your referral provider, is expecting a high level of respect and professionalism in your approach. You can and should be confident that a mutually beneficial deal is in the works, and you should communicate this to the prospect by your attitude and actions. Strive not to embarrass your referral source.
Then, once you've made the appointment, you have to persuade the prospect to buy your product or service. This is the part that usually comes to mind when you hear the word "sale."
Your integrity is paramount at this stage. The prospect should know exactly what to expect--no hidden charges, no unexpected exceptions, no bait-and-switch.
Even if you’ve created a highly efficient system of generating referrals for your business and you see a steady stream of referrals being funneled to you, there's no guarantee you'll be capable of closing any of them.
Note, however, that in referral marketing, closing the deal with your prospect is neither the beginning nor the end of the selling process. To get to this point, you'll have made at least two other "sales," as noted above. And in order to build and maintain the long-term relationships that characterize referral marketing, you have to follow up with both your new customer and your referral provider--again, part of the total sales process.
Remember, the number-one rule in referral marketing is to make your referral provider look good. You need to demonstrate that you know how to sell to the prospect in a way that doesn’t embarrass the source of your referral--that you’re going to consult with the prospect, discover his needs, offer solutions based on those needs, give him some options and not force a sale if you know you can’t provide a good solution.
On the other hand, if your technique is to hold the prospect hostage at his kitchen table until he breaks down and buys, your referral source won't be pleased that you’ve abused your relationship with her and damaged her relationship with the prospect. You may get the deal, but you’ve shut yourself off from further deals with that client--and with any future referrals from your source.
The bottom line about sales in referral marketing is this: If you’re not comfortable with sales, or if you haven’t been professionally trained, sales training is an investment worth your while. It'll serve you well in every aspect of relationship marketing and referral networking.
________________________________________
Called the father of modern networking, Dr. Ivan Misner is a New York Times bestselling author and Founder of BNI (www.bni.com), the world’s largest business networking organization. His latest book, Truth or Delusion can be viewed at www.TruthorDelusion.com. Dr. Misner is also the Sr. Partner for the Referral Institute, an international referral training company (www.referralinstitute.com). He can be reached at misner@bni.com .
Home Business Expert: Importance Of Video Social Networking
Home Business Expert: Importance Of Social Networking
NETWORKING ISNT SELLING OR IS IT
Sales Reluctance Is Not a Two-Letter Word Named No!
SALES TIPS AND TRICKS
Article Tags:
|
About the Author: Ivan R. Misner RSS for Ivan's articles - Visit Ivan's website Dr. Ivan Misner is the Founder & Chairman of BNI, the world's largest business networking organization. BNI was founded in 1985. The organization has over 5,800 chapters throughout every populated continent of the world. Last year alone, BNI generated 6.5 million referrals resulting in $2.8 billion dollars worth of business for its members. Called the "Father of Modern Networking" by CNN and the "Networking Guru" by Entrepreneur magazine, Dr. Misner is considered one of the world's leading experts on business networking and has been a keynote speaker for major corporations and associations throughout the world. He has been featured in the L.A. Times, Wall Street Journal, and New York Times, as well as numerous TV and radio shows including CNN, CNBC, and the BBC in London. Dr. Misner is on the Board of Trustees for the University of La Verne. He is also the Founder of the BNI-Misner Foundation and was recently named "Humanitarian of the Year" by a Southern California newspaper. He is married and lives with his wife Elisabeth and their three children in Claremont, CA. In his spare time!!! he is also an amateur magician and a black belt in karate. Click here to visit Ivan's website   Building a Think Tank for Your Business Howand WherePeople Network Sorting Out Whos Who Becoming a Master Networker Generating More Referrals |
Related Forum Posts
Online Sales and Marketing vs Traditional
- Hi Evan,
I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing
Re: Make Friends...Literally BUILD them!
- I agree!
Networking is definitely the key word here.
What does everyone feel about the different Networking platforms out there?
Twitter
Facebook
LinkedIn
what are some others?
Re: Online Sales and Marketing vs Traditional
- [quote="ltrahan":31w9r2iz]Hi Evan,
I am noticing that many of the posts in the Sales/Marketing section deal with online marketing, SEM and and SEO and Affiliates. I was wondering if it might be a good idea to separate that section into two; 1) Online Sales and Marketing; 2) Traditional Sales and Marketing[/quote:31w9r2iz]
I second the request...
Re: How can a social networking site make serious money?
- Hi There,
It is quite interesting, that some Social Networking do produce an income. I think testimonials are always a benefit to share. See one below:
This Social Network has changed my life! Every night is a Friday night and everyday is a Saturday!! Because of it, I have been able to leave the workforce 10 years early.It has given me back my life.
Many of us would like to retire early. I am sure there are many more. The point is of focusing with great determination. The ongoing challenge is to stay focussed and not be sidetracked into a newer scheme or so. Also I have read, during this financial turmoil, more people turn to Social Networking for various reasons.
Re: Make Friends...Literally BUILD them!
- [quote="burnsrunner":1zobscwk]I agree!
Networking is definitely the key word here.
What does everyone feel about the different Networking platforms out there?
Twitter
Facebook
LinkedIn
what are some others?[/quote:1zobscwk]
I am on Twitter and Linkedin, have not joined Facebook yet as my time is fairly limited and one needs a lot of time to devote to all these various networking platforms. Unless you do this full time (the networking I mean).
MichelleJ
Share this article with your friends. Fund someone's dream.
Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.
by: 
4 Building Blocks of an Effective Talent Management System
Simon Fuller Quotes
Lesson #3: “Tell ‘em quick and tell ‘em often”
Searching for the Stars: How Yang and Filo Took Their Business to New Heights
Salesperson Wimp-Out: I Need Help 
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Track Your Time for Increased Productivity
The Future of Online Marketing
An Intelligent Contact Sheet
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.