Networking EventsIs attending networking events draining your business cash flow dry? Are you being eaten alive by the high cost of memberships, dues, and business dinners? Perhaps it is time to rethink your networking strategy.

Networking is perhaps the #1 way to build a business and career. I spoke about what real networking is all about in a recent post. It is not sleazy salesmen in cheap suits and it is definitely not business card exchanges that leave you with three inches of recyclable trash in your hands and no relationships to show for it.

With some networking events costing hundreds of dollars, mediocre dinner meetings costing $50 and up, and the cost of travel spiking with every moment that ticks from the funky Bush/oil company co-Presidency, you can easily drive your business budget in the ground. Any good business person knows that you need to have a real return on your investment of time, money, and energy to make any business undertaking worthwhile. So, how can you best apply those principles to the business of networking?

Well, in “Too much networking can waste time and money” by Laura Mutsko she shares her experiences when she was a newer business owner:

My biggest mistake was joining several networking organizations soon after I started my company. Networking on that level requires a lot of time and money. And you can network yourself right out of business.

Exactly. One of the most profound (but such a DUH when you think about it) things I learned from a coach who taught one of my business classes was that you don’t buy stuff if you don’t have the money to pay for it. Now that sounds so obvious. Yet, when you’re new in business how many people simply go wild buying things using the old adage “you gotta spend money to make money” to justify it? Sure you need to spend money and invest it in your business, but you need to do it consciously and with intention.

In the Cleveland.com article, Mutsko goes on to say:

It’s expensive with the cost of gas alone. Dues can be as high as $350 and monthly luncheons generally cost about $35. One group charges a monthly fee for access to part of its Web site. I even helped start a local chapter of a networking group, which required more time and energy.

I never seemed to get a return on my investment. But you start thinking it’s you. I just continued to participate in all of those meetings.

I know exactly what she means — you start to think it is you. What is wrong with me that I am not seeing huge tangible results? Instead, consider using insights like this to fuel your overall strategy for networking.

I can remember being part of an online GLBT business group a while back and we read “The World’s Best Known Marketing Secret” by Ivan Misner. I remember being so resistant to reading it because I am not a big fan of networking groups that are solely paid referral groups like BNI. They work for many people, but aren’t the right fit for me personally. Nonetheless, my peers twisted my arm and I read the book. The most important thing I gleaned from that book is the process of consciously choosing what types of groups to belong to and why.

In the book Misner talks about six kinds of groups and how to choose them strategically (hint: you don’t choose multiple organizations of one kind and then wonder why you don’t see results). Those six types are:

  • Casual Contact Networks
  • Strong Contact Networks
  • Community Service Clubs
  • Professional Associations
  • Social/business Groups
  • Women’s Organizations

Each group has a different feel and makeup to it. Consciously choosing the types of groups to include in your strategy and what results you would like to see from your investment of time in them is critical.

The other key point I took away from this book which I have found yields me many dividends is that of belong to a few key groups and then going deep. What that means is getting very involved in a few key groups so you really get known. That is how word of mouth, credibility, and connections spread. You become an instant expert because people know, like, trust you and have personal experience working with you side by side. They know whether you keep your word and follow through or not.

Don’t let random costly networking put you out of business, especially if you are in the “need to grow” early phase. Create a real strategy and then work it.

Paula Gregorowicz, owner of The Paula G. Company, works with women who are ready to create their lives and businesses the way the want rather than how they were told they “should”. Ready to learn how to achieve success on your own terms? Download the free 12 part eCourse “How to Be Comfortable in Your Own Skin” at her website http://www.thepaulagcompany.com.