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Relationship Building And Referral Sales
go hand-in-hand on the internet
by Bob Burg
From the on-the-street salesperson to the doctor, from the
entrepreneur to the accountant, endless
referrals are the cornerstone of business. Without a business based on
endless referrals from present customers and
clients to everyday contacts, the fate of anyone's business is a
nerve-wracking mystery, dependent upon current
economic conditions and buying moods.
But a business based on endless referrals brings peace of mind. Endless
referrals is going to sleep at night knowing that
the chances are good that you'll have new business waiting for you the next
day, and the next, and the next for as long
as you desire.
But, in actuality, that is a confusing word, as misunderstood today as
ever. Does it mean handing out business cards?
Or aggressively shaking hands with everyone who comes within 3 feet of us?
Do we tell people we are networking?
Where can we do it? Exactly what is networking?
Networking: What It Is, and What It Does for You!
I like to define networking as cultivating mutually beneficial,
give-and-take, win-win relationships. The end result is to
develop a large and diverse group of people who will gladly and continually
refer a lot of business to us, while we do
the same for them.
We are not dependent on each other; nor are we independent of each
other; we are all interdependent with
each other.
Each of us has a personal sphere of influence of about 250 people. And
so does every new person we meet.
All things being equal, people will do business with, and refer
business to, those people they know, like, and
trust.
It isn't just what you know, and it isn't just who you know.
Business cards are not a big deal. We need them mainly to get the
other person's card.
Sphere of Influence
Are you familiar with the term sphere of influence? Sphere of influence is
simply the people you know -- people who
are somehow, some way a part of your life, directly or even very
indirectly.
Your sphere of influence includes everyone from immediate family members to
distant relatives: close friends to casual
acquaintances, the person who delivers the mail, the plumber, the tailor,
the person who cuts your hair -- practically
anybody who in some way touches your life and whose life you touch.
Those who know how to use the tremendous strength of a network realize this
very important fact:
"We are not dependent on each other; nor are we independent of each
other; we are all interdependent
with each other."
The true strength really comes through when we realize that all the people
in our network are also part of other
people's networks that we ourselves don't personally know. And that,
indirectly, makes each of those people part of
our network too.
Have you ever heard of Joe Girard? Based out of a Chevrolet dealership in
Detroit, Michigan, he was one of the
world's most successful car salespeople. Officially, he was actually the
most successful car salesperson in the world for
14 years. That's how long he was listed in the Guiness Book of World
Records for selling the most cars in the world
in a year's time.
In his book "How to Sell Anything to Anybody" Girard explains what he calls
Girard's Law of 250. Basically, the law
states that each of us has a personal sphere of influence of about 250
people.
Therefore, figure that every time you meet someone new, that person, even
that average person, also has about 250
people in his or her sphere of influence. You know that once that person
becomes part of your network, another 250
people indirectly become part of your network as well. Cultivate a network
of enough new people, and your personal
sphere of influence will soar to incredible heights.
This Network Will Increase Our Sales
Internet buyers are different. They are educated, trained, and skeptical.
They are backed by consumer protection
laws. The adage caveat emptor, "let the buyer beware," is no longer
apropos. Probably the biggest difference of all is
that Internet buyers are much more relationship-oriented.
"All things being equal, people will do business with, and refer
business to, those people they know,
like, and trust."
This is absolutely the bronze, silver, golden, and even platinum rule of
networking. Let's take this one more step
forward. We also want these people to want to see you succeed and want to
help you find new business.
You might say we want these people to be your personal walking ambassadors.
That goal isn't particularly difficult to
accomplish. All you have to do is put a link on your homepage that mentions
why you like doing business with the
other person. Promote them -- make them important. They, in turn, will
provide a reciprocal link back and refer
business to you!
It Isn't Just What or Who You Know
Sure, we've all heard the old axiom, "It isn't what you know, it's who you
know!" That saying was usually related to us
by a crusty old, macho businessman type, while he knowingly put his arm
around us, proud of himself for sharing his
eternal wisdom.
Of course, what you know is also important. We must be able to provide
proper guidance to our prospects,
customers, and clients. Also, if we can't provide excellent service after
the sale, we can rest assured we won't be
doing business with that person ever again. We will also lose out on the
business of those in their 250-person sphere
of influence.
Let's face facts, though. In today's world of sales and business, often, in
order to get the opportunity to do business
with someone in the first place, who you know has become vitally important.
But that's not all there is to it. Who you
meet can be equally important. Exchanging links on the Internet can quickly
build a worldwide sphere of influence for
you.
What Networking Isn't
Since we've been discussing the basics of what networking is, let's talk a
bit about what it isn't. You see, networking
really is the buzz word of the late 1980s and early 1990s. Everyone seems
to use the word, and yet many people
don't really know what it is and isn't. Generally, the term networking is
thought to be when a person hands his or her
business card to everyone in the world that he or she meets or comes into
contact with. The often aggressive shoving
of said business card in said contact's face is many times followed by,
"Give me a call. I'll cut you a deal," or "If you
ever need to buy a whichamahoozee, I'm the one to call."
That is not networking. That is hard-selling, which is the antithesis of
networking. For now I want you to forget about
business cards. Well, don't forget about them altogether -- they do serve a
purpose, albeit a very minor one. In fact,
as far as I'm concerned, business cards have three main benefits:
1.You can win a free lunch at a local restaurant by dropping your
business card into a fish bowl.
2.You can include your business card with your bill payments or with a
tip after your meal.
3.Finally, you can use your business card to get the other person's
business card. As far as I'm concerned, this is
the one truly legitimate benefit of business cards.
Although I make light of business cards, and totally believe they are not
worth much more than the paper stock on
which they are printed, when used correctly, they do have some genuine
value.
What I'm trying to point out, and even emphasize, is that business cards by
themselves are not about to make you, me,
or anyone else successful. They are simply an extension of ourselves and
what we are doing right.
What you'll discover is that networking involves giving to others and
helping them succeed in their lives and careers.
When accomplished in a pragmatic and organized fashion, we find that we get
back tenfold what we put out, both
personally and professionally.
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