Local business development professional Richard Berger presents the fifth in a seven-article series designed to help Long Beach businesses successfully market themselves in a depressed economy.

8:23am | Networking. Ah, yes; a bane for some and a veritable business goldmine for others. While networking is prospecting of a different nature, it can and does pay-off big for many businesses.

“Many people find networking to be unproductive or, at worst, intensely frustrating,” explained Sander Roscoe Wolff, artist & Culture Agent columnist for the staging-live.lbpost.com. “I think that, for some people, they approach networking as purely professional, as almost a sales call, and I think that is often a poor tactic.”

Mr. Wolff is right. Putting your network “into action” can be tremendously beneficial, if undertaken in the correct manner. Let’s look at the dynamics of networking and how to make it pay off for your business.

Leveraging your entire network of contacts should be a daily practice for every pro marketer and business owner. With today’s communications tools and platforms, it’s easy to maintain an active role with clients and customers.

Networking of the more traditional type can be carved into two fundamental kinds: (1) Your client network; (2) Your business relationships – like vendor, partner and supplier networks. Those readers chomping at the bit to read more about Social Networking will have to wait until the next article.

One of the most immediately available and accessible networks you have is your base of existing clients. According to the Pareto Principle, 80% of your sales come from 20% of your clients. Cultivating repeat business from existing clients is easier, quicker, and more cost effective than developing new client relationships. As such, it is time to begin a serious marketing effort here. Review what we discussed in Article II on (Re)purposeful Marketing and help your clients to remember your brand.

In a Freakonomy, it is especially important to understand your clients’ needs and create methods to meet them. It demonstrates a clear understanding of their business and how to help them achieve their goals. When you do this, they will be eager for your products and services.

Going a step further, arranging periodic (monthly/quarterly) review dates with clients helps in recapping progress and establishing a solid relationship. If you’re truly a partner with your clients, it helps to solidify your relationship by investing yourself in their outcomes. Working together on a regular basis, you’ll uncover new opportunities for growth and success.

“Creating a personal relationship with someone based on shared interests will, in the long term, lead to more professional opportunities,” offered Mr. Wolff.

Asking your clients for referrals works, too. Besides, word-of-mouth referrals are widely considered to be the best kind of referral to get.

Everybody Knows Somebody. Somebody Knows You.

Networking events like mixers and similar functions help to remove the degrees of separation between businesses within a community and also serve to open doors of opportunity for its participants, which can help them grow.

Large networking organizations like the Convention and Visitors Bureau and the Long Beach Chamber of Commerce are obvious venues where networking flourishes. Typically, you’ll either know someone at one of these events, or you’ll know someone who knows someone that you’re interested in meeting.

“Our functions provide our members with multiple opportunities for business growth,” explained Barbara Mason VP Convention Service & Membership at the Long Beach Convention and Visitors Bureau. “It’s a win-win situation because people can meet and form relationships that lead to businesses opportunities immediately, in some cases, and also in the future.”

Ms. Mason explained that often at networking events, people make contacts and then these contacts pass along their name to their personal networks, which can also result in business opportunities.

Yet, despite the numerous opportunities to meet new business people and form meaningful relationships, many people are wary of networking face-to-face.

Ms. Jan Miller, Director Membership at the Long Beach Convention and Visitors Bureau says that getting involved in networking events is easy. “If you don’t know someone, or find it difficult to break the ice, you can always ask the event host or one of the greeters for an introduction.”

Mr. Jeff Forney, VP of Marketing at the Long Beach Convention and Visitors Bureau says, “Hooking-up with someone who goes [to networking events], or knows the people there is an easy way to get involved,” he stated. “You can be their wing-man,” quipped Ms. Miller.

“Be sure to wear a name badge, bring printed materials and have plenty of business cards,” Ms. Miller instructed. “Sample products or give-a-ways work well, too. Walking up to someone and offering a sample of your product helps,” said Mr. Forney.

Once introduced, you’ll need to “speak about and explain your product,” says Mr. Forney. Then, says Forney, one should also ask questions. “Collect as much knowledge as possible, make a note of what your contacts needs are,” he says. “The knowledge base you can attain at these mixers is great and it helps to expand and diversify your contact list,” he added.

Making sure you know your business is important. “You need to know your stuff and come prepared,” stated Ms. Miller. She refers to having not only your own story straight, but taking the time to learn about the event and its participants. “View the event website and find matches in companies and/or people’ come with a plan,” explained Ms. Mason. “This way,” added Mr. Forney, “You’ll be able to position your business to help them meet their needs.”

“At the end of the day,” said Mr. Forney, “You have to create relationships.” Mr. Forney is speaking directly about connecting with people at networking events in a non-sales-like way. “If you’re not genuine,” says Mr. Forney, “People will see that.”

While it is about creating meaningful relationships, it is also about expanding your network to increase your sales opportunities. “You may not think you can work with this person right now, but down the road, you may,” instructed Ms. Mason.

“In a small community like Long Beach, face-to-face networking provides a more personal feel. I never want to give up face-to-face; it’s a critical component to networking success,” added Mr. Forney.

Other networks you can tap are your partner and provider networks. One good way to do this is by creating an incentive for them to refer business. A “rewards” program, a referral contest, prizes and give-a-ways create a reason for people to refer their associates to your company.

Guy Kawasaki, originally from Apple, used the term “evangelize” to describe the method by which clients, employees, partners and others effectively represent the company’s goods/services and sell them passively and actively to others. They were, in Guy’s case, evangelists for Apple products. Guy’s theory is predicated on the presumption that, of course, the company being evangelized lives up to its evangelical aura!

“The truth is that networking is a lifestyle choice, one that extends out to every social contact, no matter the context. One can never predict where the next great idea, lead, or friend will come from,” offered Mr. Wolff.

Ultimately, tending to and cultivating your network of clients, vendors, partners and establishing new contacts regularly will help keep your name in front of people. It’s also a low-cost way of cultivating business in any economy – freaky or not.

Previous articles on Doing Business in a Freakonomy
How To Successfully Market Your Business In A Freakonomy
Success In A Freakonomy, Part II: (Re)purposeful Marketing
Success In A Freakonomy, Part III: Press, Press, Pull
Success In A Freakonomy, Part IV: Organic Positioning

Richard is co-founder of the digital business solutions firm ASTRALCOM, LLC, a published author and an avid socio-political marketing fan. Previously appointed to the Presidential Business Commission and recognized as California Businessman of the Year, Richard’s primary business focus is assisting clients achieve success through effective social intelligence messaging and customer experience management. Richard encourages your comments and feedback. He can be reached at 562.240.2114, via email through the staging-live.lbpost.com at Richard@lbpost.com, or by posting your comments here.

Disclosure: ASTRALCOM is an advertiser of the staging-live.lbpost.com.