‘Networking’ – The origin, a definition and busting some myths about what it is and what it isn’t

If you took the time to ask a dozen people what they thought networking is in the context of business (*) then you would probably hear the following common answers.

• It’s about connecting with new people
• It’s about going to networking events
• It’s about building relationships
• It’s about selling yourself face-to-face to individuals and small groups
• It’s about getting referrals

There is a degree of inconsistency about what the actual act or art of networking is and why indeed anyone would want to participate in it.

Networking -The origin

It is reasonable to suggest that the origin of the term ‘Networking’ became popular following the launch of spread of the popular BNI (Business Network International) organisation fathered by Ivan Misner.

He noticed that when business people (especially in the service sector) came together regularly they formed relationships that often led to recommendations being offered in the form of referrals.

He put a structure around this process in the form of an agenda for regular weekly breakfast meetings and then began to spread this model from city to city. BNI then became the ‘McDonalds’ of the networking world with Chapters appearing across the globe.

Essentially if you attend any meeting then you will go through the exact same agenda with the exact same outcome to generate direct or referred business.

It wasn’t long before similar clubs and organisations sprang up with their own versions based around the original BNI model.

However prior to BNI there have always been clubs, associations and ventures where people get together to talk about business; e.g. trade fairs, exhibitions, social events, conferences, dinners, charity functions, lunches and training events. The fact is that is you put enough good business people together for long enough in the same room then networking will take place.

After all, humans are social creatures and, given the opportunity, people will naturally engage in meaningful discussions which result in some form of value exchange. Successful sales people are always on the lookout for prospects and have their antennae tuned into new opportunities or formal and informal events, on the train, in an aeroplane, at parties increasingly online and indeed just about anywhere.
Here is a definition of Networking in the context of new business generation.

"The act of two or more people getting together to talk about subjects of common interest"

A good outcome from a networking discussion is [say] ‘person A’ highlighting a problem or need they themselves have or someone they know has and they believe that ‘person B’ can help them via either their own products and services or they know someone who can help. A good outcome is an agreement to continue further contact that may eventually result in a business transaction.
Networking business conversations can therefore take place at anytime and anywhere and indeed that’s how the majority of business has been done since the dawn of time and guess what? it is how much of it always will be!
When we took time out to research and develop the online video programme ‘How to Build a Profitable Business Network’ we wanted to know what top salespeople actually did.

Interestingly we found ourselves busting some myths.

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Myth number 1

Networking means attending networking events
Top salespeople are ruthless with their time and laser focused on who they need to meet to sell their products and services. Consequently they are very choosy about which events they will/will not attend. At events they will make the most of opportunities which present themselves.

Better to say;

Networking means deciding what people you want to build relationships with and then choosing what events to attend and create to make it happen!

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Myth number 2

Networking equals selling

Unless a conversation between two people has been set up as ‘I have a need and you are the person I want to help to address it’ then the conversation will simply be the start of two people getting to know each other. They will explore what they do, how they do it and what makes them different. Naturally it will be a good outcome if two or more people subsequently find out that they can help each other.

Better to say;

Networking equals taking every opportunity to sow the seeds of potentially profitable new relationships

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Myth number 3

Regularly attending networking events means that the people who you will meet there are in the market for what you do
This may be the case and you will not know until you get there however in many cases people will be there for the same reason as you; to sow the seeds of new relationships.

Better to say;

Regularly attending networking events offers you the opportunity to become known for the products and services you offer.

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Myth number 4

If I regularly attend networking events people will give me referrals.

Not unless you have become ‘referable’ e.g. you have demonstrated excellent value and have an excellent reputation for both your products and services and doing what you do very well.

Better to say;

If I regularly attend networking events then people will understand and experience what I do (preferably directly) increasing the chances of my benefiting from referred business opportunities

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Myth number 5

Networking is all about meeting new people

Yes of course but many people use events to catch up with people they need to cement a relationship with. The smart ones also use events to engineer introductions to new people they wish to talk business with.

Better to say;

Networking is all about connecting and reconnecting with people and utilising my existing advocates to open up opportunities with new people I would like to do business with

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(*) If you ask an IT whizzo what they think networking is then you’ll probably get an entirely different answer to the above!