According to a study completed by St. Thomas University, members of a typical networking group will range from 20 to 60 with two thirds being over 40 years old. It’s not surprising that the seasoned pros recognize that networking gives them the edge in the marketplace.

The benefits of a good networking strategy help you to form mutually beneficial relationships, develop new connections with a sizeable number of people, and connect you with resources and others who can help your business. It’s a common misconception that simply attending a networking event brings new business the next day. Expecting to land business the first time you meet someone is like asking someone to marry you on the first date. Critical to any good networking strategy is to adopt the right networking mindset.

Mistake #1: If I give referrals, I’ll immediately get referrals.

Many inexperienced networkers have a misconception about the principle of reciprocity. According to Weber’s Dictionary, reciprocity is “a mutual or cooperative interchange of favors or privileges,” This leads inexperienced networkers to believe giving referrals will bring an immediate return for any referrals they give to another.

One strategy to remember while adopting the principle of reciprocity mindset: focus on the other person. The act of giving is the most important part of this mindset. Networking isn’t about what you can sell or get, it’s about what you can learn about others and what you can give to them. Learn how you can help the other person.

At an informal networking lunch, I helped a colleague make a difficult decision. I just listened to her thoughts on her business, provided some advice (that she asked for) and she made a huge shift resulting in a significant increase in not only revenue for her business but in how she could have her purpose lived out more fully. There was no expectation in return. It was just a genuine concern for her success. But something happened months later, she referred me to an organization who hired me for a big speaking engagement.

The next time you’re networking, actively seek out avenues to help other people. Volunteer to help out someone in your network or offer support in a time of need. The next time you meet someone, think to yourself, “Who could I connect them with?” These simple steps will bring benefits to your business in ways that will positively affect your business relationships for the long term. You will also be known as a trusted resource to which people refer others.

Mistake #2: It’s My Territory and You Can’t Have It

Many new entrepreneurs find themselves attending events, meeting new contacts, accumulating business cards, and providing referrals. One day you feel discouraged because you’ve put out all that energy giving referrals but you received nothing in return. Further, you’re a bit cold to someone you perceive as your competitor.

But savvy entrepreneurs adopting an abundance mindset realize there’s enough business to go around. The next time you’re networking, consider approaching someone you think is a competitor. Explore the possibilities of referring business to them.

But first, be very clear about your own offerings so you know exactly what kind of client or customer you want to work with (and the ones you don’t.) Second, you very well may find that they offer a service or product you don’t and vice versa offering each other cross referrals.

You might find they prefer to work with the clients you don’t so you can refer those people to them, realizing the abundance mindset in action.

Mistake #3: I don’t have time to follow up

It is important to systematize your referral marketing so you devote time to building and maintaining solid professional relationships – a key in successful referral networking. Many entrepreneurs have heard of financial capital. Networking is your social capital that has a profound impact on your financial capital. According to “Networking Like a Pro” by Ivan Misner, PhD, David Alexander and Brian Hilliard, “social capital is the accumulation of resources developed in the course of social interactions, especially through personal and professional networks. These resources include ideas, knowledge, information, opportunities, contacts, and, of course, referrals. They also include trust, confidence, friendship, good deeds, and goodwill.”

Your social capital is created by design, not by luck. Seasoned networkers realize that social capital is acquired through focused networking and developing a strategy that’s brings the strongest return. To build your social capital, consider these simple steps to get started that have a high perceived value with your networks and only take a minute to implement:

• Write a short thank you note to those people who referred business to you. It’s often forgotten, but a highly-regarded gesture that is sure to leave a good impression.

• Call the people you referred business to. Ask them how the referral worked out and if not, how the referral could be better in the future. They’ll appreciate your concern for giving solid referrals.

• Send an article that someone can use in their marketing. One of my connections worked with large corporations and just launched her book. I read an online article that was a spot-on match for her to use in her marketing and relevant to her new book’s content. It only took a second, but the thank you note I received from her expressed genuine gratefulness and a time-saving marketing idea for her to implement right away.

• Put together a list of strategic partners you’d like to stay in touch with this year, including those people who have given you business in the last 8-12 months. Keep notes of their birthday and send out a card each year on their special day.

Once you establish a solid reputation as someone who cares about other people’s success and consistently nurture your referral networks, you will have a strong line of people singing your praises and multiply your results many times over.

Work on scheduling events after the introductions. Networking events can make your business profitable, if you work them the right way. So let’s go over the ground rules.

Attend the event with your calendar ready, a note pad, and your business cards in hand. When you introduce yourself, be sure to have an event planned and ready to invite people to participate in. Usually, this event will need to be FREE, but it could be a low cost event that brings them information, informs them of business information, or just an opportunity to visit where you can get to know them better.

Introductions -

Have one person interview the attendees, by asking questions similar to the following:

* Name and Business Type

* What can we do to help your business be more profitable right now?

* What can you offer other members that would make their business more profitable today?

You’ll get some interesting answers -

I need four new clients today, with enough money to pay for my services before they walk out the door.

I could give each of you a referral for your products or services…

These are helpful answers. You can actually build on these answers to help people build their businesses, or even to build your own business.

Schedule Appointments -

Arrive at the location with a few appointments blocked out in your calendar and fill those appointments with names from the event.

Susan Kildahl suggests, “Have a place where you’re comfortable working and always schedule your appointments for that location. Get right to the point. Skip the chit-chat and give your appointments quality and value.”

The easiest way is to select a location and a date. Plan to be at that location on that date, and invite others to show up and fill your appointment calendar. Part of those appointments will be simply visits to start the process of building a business connection. Others will be paying appointments that make your business work and build profits. These are called billable hours.

You have to let people know you exist. Obviously one of the major reasons for networking! Unfortunately, going to visit a group once and expecting everyone to remember you, isn’t enough. And you need to keep reminding them you’re still around by attending regularly.

You must get good at listening. If you want people to be interested in your products or services, you have to be interested in theirs. Networking is about showing interest, not about waiting for your turn to speak.

And while you’re listening, you should be asking yourself these three questions:

1. Who do I know that this is relevant to?

2. Who do I know that they could help?

3. Who do I know who could help them?

You also need to let people know what you do. A lot of people are ill-prepared to explain what they do and they miss a golden opportunity to make a great first impression.

They use a label, like “I’m an Accountant”. Now, the problem with using a label like that is we have our own pre-set thoughts on what Accountants do, so we tend to tune out and the conversation falters before it has even got going.

How much more interested would you be in what they do if they said, “I save business owners money.”?

The idea behind what is called the elevator pitch or audio logo is that it gets the response “That sounds interesting, tell me more.”

There’s a really easy formula you can use to design an attention-getting elevator pitch:

I work with (type of person/business)

Who want to (what the need is)

What I do is (give the solution you provide)

So that (give the results they can expect to get)

So our Accountant might say:

“I work with business owners who are fed up paying so much tax. What I do is help them identify all the allowances they are entitled to so that they can keep more of their hard-earned money.”

OK, so you’ve told each other what you do. Then what? You don’t have to talk about business, so ask them what they do for fun or if they have a hobby. You may find some common ground in unexpected topics.