“Brains Over Bucks.”

In Networking Clubs

By Jeff Slutsky and Marc Slutsky

One way to increase business on a small investment is by becoming an active member of a referral network club or tip club. Jeff was recently the guest of our brother Howard, (CPA) President of the Gahanna, Ohio chapter of Network Professionals, Inc. Frank Agin, the Regional Director told us, "NPI's Pittsburgh based Eastern Region, is one of three. Nationally we have over a hundred chapters and 2000 plus members throughout Ohio, California, Florida, Pennsylvania and Minnesota."

There are several benefits from membership:

• Provides a consistent stream of qualified referrals.
• A stable of businesses you feel comfortable referring to your clients.
• An opportunity to develop business relationships for getting and giving feedback, insights and tips about business management.

 

As a member of your chapter, you get exclusivity in one of 144 different business categories. According to Eve Peterson, Executive Director and a co-founder of NPI, "the ideal size of a chapter is between 25 and 40 members." In Howard's chapter, they have members in different areas including personal services (accountant, lawyer, financial planner, realtor); business services (telecommunications, office supplies, bank, computer repair, advertising specialties, signs, printing); health care (chiropractic, message therapy, dental), and so on. Each member gives at least two qualified referrals a month. If you fall behind in your referrals, you pay a fine. If the gap persists, you're asked to leave and they fill your position with someone who can better benefit the membership with referrals.

In the meeting Jeff attended, the members generated thirty different leads. Eric Whittenburg (lawyer) ran a structured and productive meeting. Leads were referred, by filling out a three-part, carbonless, business referral form. There's a 20-minute presentation by one member about his or her business. These help members better understand how to refer business to that member. Also at that meeting each member gave a very brief “live commercial" of the ideal qualified referral. Since the referring leads are "qualified," Frank Agin claims a better than 75% closerate on those referrals.

Another benefit of membership is that you develop relationships with other business people in your chapter. Once you develop trust with members, you have a stable of businesses that you know will do a good job for your clients and customers. In this way you become a valuable resource to your clients. Besides, when you make a referral, one member said that she feels a special obligation to do everything possible to make that new customer happy, since the referring member is someone she's going to see each week.

Several members told Jeff that the social element of the club was a big advantage. Since they run their own small businesses, they don't get many interactions with other people at their level. The chapter provides them a sounding board for ideas and camaraderie with several other business people with whom they share the same pressures, passions, frustrations and growing pains.

Street Fighter Action Plan

1. Contact a networking organization and get their material.
2. Interview some members, preferably in a similar service, and see how they feel they've benefited.
3. Decide if you would benefit from joining an exiting club that has an opening for your service.
4. If membership makes sense but your service is already taken, consider helping to create a new club in your community.
5. Once you join, make a commitment to become an active member. Plan on attending weekly meetings.
   

 

Back to Others Articles