The Green Sheet Online Edition
November 09, 2015 • Issue 15:11:01
When networking, think ROT
When is the best time for an entrepreneur to begin networking? Before he or she even opens for business. That's right. Making mutually beneficial connections is so vital to the success of an enterprise that the work of building a network and establishing new relationships should begin well in advance of a budding payment professional's launch into the marketplace.
Now, I realize this isn't always possible. Maybe you lost your job, answered an ad for a sales position at an ISO and just began working the field; maybe you were so busy hammering out the technical aspects of creating a killer payments app that you didn't feel you had time to network; or perhaps you own an established ISO and have been networking but feel your results have been lackluster. That's OK. You can begin or revamp your networking starting today.
I recently returned from an industry tradeshow, where I was struck once again by how critical networking is to building a thriving payment business. Industry conferences and shows provide some of the best networking opportunities available. But how do you network effectively? How do you join the ranks of those who enjoy the greatest returns from networking? You devise and implement a networking plan.
Following are six pointers that should help you either begin or enhance your networking efforts:
- Think ROT, not ROI: With networking, it's all about return on time (ROT), not the return on investment (ROI) used as a financial measure. When choosing groups and activities for relationship building, ROT should be a payment pro's reigning concern. Compare and contrast networking opportunities, and make an educated judgment about where your time will be best spent, based on your interests and strengths, as well as the potential opportunities the various organizations and individuals present. For maximum results, be sure to engage with a wide variety of groups.
- Participate: Attend networking events often. Get out there; be seen. Nurture friendships. The more often people have an opportunity to enjoy your company, the more easily you will become part of their circle.
- Don't expect instant results: Effective networking takes time; you need to be patient with the process. Someone has to become genuinely comfortable with you before a trusted relationship can grow. What seems like a waste of your time one month can easily lead to new business six months down the road. Once people are confident in the expertise and personal qualities you bring to the table, they won't hesitate to help you expand your network. They will also help their own networks when they do, something they're eager to do. It just takes time to reach the point where they'll share their loyal followers with you.
- Realize that risk is part of the process: When someone brings you into a network, that person is taking a risk by introducing you to a group of people with whom he or she has developed trusted relationships. If you do not act appropriately, that could damage relationships within the network. In a sense, I view people in my network as extensions of me, and I'm very careful when I introduce anyone into that network. I don't want to be associated with people who don't present themselves well.
- Focus on giving, not receiving: Don't be the person who lunges for leads and never returns the favor. Years ago, an insurance executive joined a networking group I belonged to. Directly after his first meeting with the group, he called each member to ask for new leads. He was asked to leave the group before the next meeting.
Instead, be like the networking pro I know who touches base with people at conferences and meetings by introducing himself, offering his business card and saying, "If there's anything I can ever do to help you with potential leads or contacts, please let me know." He never asks for business or help with introductions. He is an example of someone who is growing his business by using networking effectively. He realizes you cannot predict when a special contact is going to happen. It could be on an initial meeting, by pure luck, or it could take years—but when you focus on giving, it will happen. Some people refer to this as the law of reciprocity. It's simple: people instinctively want to help others who have helped them. It is powerful, and it is real.
- Follow up: After you've done the essential groundwork of building your network and you begin to receive referrals, it is imperative that you follow up on any introductions you receive through your network. The need to follow up may seem too obvious to mention, but I'm amazed at how many people fail to do this. Like many other payment professionals, I'm careful when I refer my connections I've amassed over the years. If I offer a connection, I want that person to follow up and make a good presentation. Some failures to follow up come from pure laziness, and who wants that quality brought into a trusted network?
It goes without saying that you'll meet many direct competitors at industry events. Some payment professionals fear they might share too much information with their competition on the exhibit floors or at after-hours parties. This worry even stops some people from networking at industry events.
It's important to keep in mind that networking with competitors doesn't mean sharing confidential information. What it can mean is making friends with people who respect you and fully understand the unique challenges and opportunities you face. It can mean having a group of peers with whom you can converse candidly, exchange "war" stories and share advice.
Two of my best friends are my direct competitors. We would never attempt to steal accounts from each other. We gain far too much from our interactions and support to do that. As far as other competitors go, with a market of approximately 20 million merchants, if I lose an account to a competitor occasionally, it doesn't bother me if I've done the best I can with the merchant. There are plenty of customers to go around for all of us.
If you remain concerned about merchants inside and outside of your network, find ways in which you can make what you sell and the way you follow up uniquely yours. When you do this, your customers will want to remain with you; your competitors won't be able to poach your business. This is because merchants have difficulty finding great service providers.
I've been told, "Clients would rather buy an average product or service from an extraordinary company than buy an extraordinary product from a bad company." Remember this: there are plenty of competitive products; merchants want to buy from those who value their relationships and provide stellar service.
In addition to networking in person as often as possible, it's also important to use today's technology for networking. Social media, LinkedIn for example, can help build networks when used correctly. One rule of thumb is to research people who want to join your social media networks before letting them in. Some people are concerned only with the number of connections they have and not with the quality of those connections.
Email also remains a highly useful way to reinforce network ties. And it makes it easy to send thank-you notes when people introduce you to potential business partners or help you in other ways.
Today, with so many tools at our disposal that didn't exist less than a generation ago, there's no excuse for not touching base in meaningful ways with potential clients and other people you want in your growing, dynamic sphere.
Jeffrey I. Shavitz is Chief Executive Officer of TrafficJamming LLC, which is a virtual business group for entrepreneurs and small business owners to help grow a company's sales (traffic = customers in his language). His experience in payments includes co-founding Charge Card Systems Inc., which was sold to Card Connect in 2012; Alternative Merchant Processing, dedicated to high-risk merchant processing; and Charge Card Funding, involved in the cash advance space. Jeff has published four books: Size Doesn't Matter — Why Small Business is Big Business, which became an Amazon No. 1 top release in both the business and entrepreneur categories; Small Business Aha Messages; The Power of Residual Income – You Can Bank on It!, and Networking – Get Connected. He can be contacted at 800-878-4100 or email@example.com; his websites are www.jeffshavitz.com and www.trafficjamming.com.
Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.