Seven Ideas for Networking

“Patience, persistence and perspiration make an unbeatable combination for success.” – Napoleon Hill

Networking is an integral part of many financial advisors plans for growing their businesses. In fact, when I ask advisors to indicate their primary sources for acquiring new clients, invariably networking or some form of social prospecting is high on the list. This, of course, makes sense. We all enjoy doing business with people we know or meet in a friendly environment. Turning an acquaintance into a client seems much more palatable than calling strangers on the phone or inviting a group of suspects to an expensive luncheon seminar.

Unfortunately, when I extend my questioning of advisors to include when, how and how often they engage in networking, I receive quite a few blank stares. It seems a common view is that networking is an inexact “art”, not a systematic method for uncovering new relationships. Many believe you need to go with the flow and hope something happens, not plan your activities and risk offending someone with follow-up.

Consider an example…

A number of years ago, I was asked by a financial advisor I was managing to “invest” in a chamber of commerce membership in a small town he was prospecting. The advisor was convinced it would be a terrific way for him to network because all the “movers and shakers” in this community belonged to this organization. I agreed to support his efforts and the advisor did his best to stay active with the chamber, including regular attendance at monthly “business after hours” functions.

Several months into the effort, I asked the advisor how is work with the chamber was coming along. He told me it was “awful”, no one had CALLED HIM to do business. In fact, he was thinking of resigning from his committee assignment. When I further inquired as to what he had done to follow-up with the contacts he was making, he admitted to having done little to nothing. He didn’t want to make it seem as though the only reason he joined the chamber was to prospect (even though it was).

My subsequent suggestion was very simple. The next time he attended a “business after hours” event, he should exchange business cards with each person he met and send them a personal note with his bio card the following day. He didn’t need to be pushy; it was only a matter of positioning himself to take advantage of a business networking event. After agreeing that a function called “business after hours” was designed to be a social prospecting opportunity (he wouldn’t “look” bad), the advisor decided it would be okay to take my advice.

The results were terrific. People he met through the chamber actually began to call him. When he participated in other chamber activities, fellow members were anxious to know more about his business. His personal (handwritten notes) and professional (bio card with his story) approach helped him stand out from the crowd. The follow-up wasn’t viewed as pushy; it demonstrated a genuine interest in building relationships. Something the “movers and shakers”, as business people themselves, could truly appreciate.

If only…

This may seem like an isolated example of a financial professional who wasn’t exercising common sense, but in my work with advisors I hear countless tales of lost opportunities. If only…

…I could remember the name of the person I sat with during the charity luncheon. I could send him the magazine article we discussed.

…I wouldn’t appear to look like a salesperson; I would call the lady I met at the church picnic. She had nothing but bad things to say about her current financial advisor.

…I had asked for the business card of the guy I met at the political fundraiser. He flat out asked me for a second opinion on an investment he was considering.

Have you ever had thoughts similar to these? Has lack of organization, a good memory or systematic follow-up allowed potential business to slip through the cracks? If so, you are certainly not alone.

Networking is not just “art”…

Sure, some financial advisors appear to be “naturals” when it comes to networking. These folks have the ability to spin a web of connections from a single point of contact. For them, networking is instinctive; it is almost an art form. But this is more uncommon than common.

On the other hand, all financial advisors can become good social prospectors if they follow a few simple rules. When you decide to make networking a priority in your business development process, you need to treat it like any other activity. Plan for it, practice it and give it the time it deserves.

Here are some steps for getting started…

Get involved – Join organizations in which you have a genuine interest and believe you could make a difference. Attend the same social functions your current clients. Quality of involvement and participation is much more important than quantity.
Be proud of your work – You should never feel like you have to hide your talents under a bushel basket. This is NOT to suggest you dominate conversations with sales pitches. You are your own best salesperson; let people you meet know you are “open for new business”.
Schedule your activities – I recently spoke with a second year advisor who schedules 3 networking opportunities each week. This process is generating more new business than any of his other prospecting activities. If networking is important to your business, plan your opportunities in advance.
Be prepared – When you interact with someone you believe would be a good client for your practice, be prepared to exchange business cards. Don’t be pushy, but be open about your ability to help your clients achieve their goals. Develop and use an “elevator pitch”.
Take notes – Keep a small notepad in your coat pocket or your glove compartment. When you leave an event, jot down notes of your conversations as reminders for follow-up. Don’t just “hope” you remember.
Personalize a follow-up note – As soon as practical, send a brief, personalized note to each of the people you meet. Reference the salient points of your conversation. When possible, include a copy of your story.
Don’t hesitate to pick up the phone – If you don’t get immediate bounce back for your efforts, go ahead and call your new connection. Lunch, coffee or an agreement to meet at a future networking event could all be logical next steps for uncovering new business opportunities.

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