Starting Your Own Networking Group - Be Sure to Weigh the Risk and Reward and Begin With a Bang!

Networking and connecting can be incredibly rewarding.  And as you get the hang of it you may determine that the time has come for you to start your own networking group.  While many who choose to will succeed, the risk involved should be measured against the potential reward before jumping in.

There are many rewards for starting your own group should it succeed.  You may be in a highly competitive field like banking, insurance, or real estate and all the positions in the established closed groups are filled.  Starting a group would provide you with an opportunity to participate in a closed or exclusive group.  Of course when you start a group you have the added luxury of determining who will be allowed in the group.  And by starting your own group you can determine when the group meets, where it meets, and virtually all other logistical aspects of the group.

While there are many other benefits to starting your own group, one final benefit is that you have the opportunity to demonstrate your leadership skills.  This will make you instantly more likely to receive leads and referrals.  Everyone wants to associate with a leader.

With benefit we often find risk, and the risks are many when it comes to starting your own networking group.  You may not succeed and those you attempt to bring into a group will be disappointed.  This may lead to fewer leads and referrals.  You may alienate a friend or networking partner if you do not invite them to your new group.  There may be power struggles and difficulty moving the group to action from time to time.  And if you choose to charge a fee to be apart of the group you will have the headache of maintaining the books for a new business venture that will make little if any money for some time to come.  If you don't charge a fee you may find it harder to get participants to take the group seriously.

While the risks are many the reward in many cases will outweigh the risk.  You should choose to jump in if this is the case.  But you should do so after careful examination of all the factors that will impact your success.  The most successful launches of new groups always begin by identifying a core group of key participants that will bring excitement to the group.  These participants should be people you know well but don't network with as often as you would like.  Once you've identified a core group, choose a day of the week and time that works for everyone and stick to it.  Have an initial meeting to get the group going and to determine the other business categories you wish to fill.  Then plan a launch party with at least four weeks notice.

Begin with a bang by inviting more people than you need to fill the group.  Each person in the core group should invite at least ten people to the launch party.  Make this truly a party atmosphere full of fun and excitement.  Plan this meeting well and invite more than one person from each business category.  What should result is a competition for the open slots between the invitees.  This creates buzz and desire to participate.  These newly drafted members will add excitement and enthusiasm to your group.  Do this as many times as it takes to fill the group.  Don't be overly ambitious about membership.  Most closed groups function best with between six and twenty members.

You may notice we have made no reference to open groups in this discussion.  We believe there is an abundance of open networking groups and no need to create more.  If you're looking for an active, powerful, open group, look no further than your local chamber of commerce.  If it isn't functioning at a high level, volunteer to super-charge the networking for them.  You will have an instant audience and you will be more likely to succeed.

Starting a group is typically the last resort or only necessary if you cannot find what you are looking for in another group.  It is an option if your category is filled in all the exclusive groups or if there is a lot of competition in your industry.   You can set yourself apart by starting a group.  Be sure to identify the potential risk involved and measure it against the potential reward before jumping in.  Starting your own group can be fun and rewarding so long as you know how to do it and what you hope to accomplish.


Observe the Multiple Networking Group Law: No Double-Dipping

As you begin to find success in networking you will undoubtedly expand your network to include more than one group.  Becoming active in several networking groups focused on varying interest, geography, or industry is a wise move that will broaden your exposure and increase your effectiveness.  We encourage and highly recommend that you are involved in more than one group, chamber of commerce, or both.

 

With expanded exposure comes the opportunity to share your network with a wider variety of people. You will provide more solutions to more people and they will provide you with more connections.  Your network will grow.  This benefits you, your network, and your new networking partners. 

 

However there is one rule that you must never violate if you are to succeed in multiple groups. Never under any circumstances give two people in the same business the same referral. If your friend Sam is buying a new house, you cannot refer Sam to two mortgage brokers in different groups.  That is just like double-dipping chips at a party; you just shouldn't do it.  It is not cool and everyone gets hurt when you share the same referral with two people in the same industry.

 

Your friend Sam gets a mixed message and begins to feel like he is just a number to you.  He is likely to think you are not trying to help him as much as you are trying to help yourself.  The two mortgage brokers end up embarrassed and looking like little more than glad-handing salespeople.  And you end up with a loss of credibility that will lead to fewer referrals and potential expulsion from both groups.

 

But do not be confused. It is appropriate and desirable to share the same referral with solution providers in similar but different industries.  You most definitely should share Sam's name with one mortgage broker, one realtor, one insurance agent, and one moving company provided you know that Sam has an interest or need for these services.  Your knowledge of Sam's needs is a direct result of your relationship with Sam.

 

Your relationship with Sam may not be close enough for you to know all his needs and interests. You may have recently met Sam and you only know he is in the market for a new home.  It stands to reason he may have a need a mortgage broker, insurance agent, realtor, and mover.  But you are not close enough to Sam to know for certain.  You should still share Sam's name with one provider for each service from your network.  In doing so be clear with each person that Sam is a lead, not a referral.  In either case, sending resources to Sam that can solve his problems helps him, the referral partners, and you.

 

Understanding how and when to share referrals is essential to your success in networking and in life. Observing the law of  "no double-dipping" will ensure you have greater success.