Networking Clubs: Business Over the Eggs Benedict
When custom furniture maker Ian Walmsley sought to increase his business, he didn’t advertise in a newspaper or the Yellow Pages. Already dependent on word-of-mouth recommendations for his cabinetry and furniture, Walmsley joined the Brentwood chapter of LeTip International, a professional networking group that meets for breakfast every Thursday at 7 a.m.
In two months, he said, he has had a couple of “interesting meetings” and made many contacts. “Inevitably, it will lead to something,” said Walmsley, who works in Culver City.
Walmsley is one of the thousands of business people aggressively shaking hands and passing out business cards in scores of networking clubs throughout Southern California and elsewhere. The clubs allow business people to meet potential customers and promote their businesses in a social setting.
The clubs are not philanthropic or service-oriented. In fact, LeTip’s motto is “dollars in your pocket.”
LeTip, founded 11 years ago in San Diego, and The Network, started four years ago in La Verne, are just two expanding networking groups. There are networking clubs for minorities and others for women, such as Women in Business and the Leads Club.
“Networking is far from peaking,” said Ivan Misner, a management consultant who founded The Network. “People aren’t going to stop networking because they need to network to get business.”
Share Many Leads
Misner said about 1,700 members belong to 90 Network chapters in five states: California, Arizona, Hawaii, Montana and Indiana. Just 3 1/2 years ago, only 300 members belonged to The Network. Members pay a $50 registration fee and monthly dues of about $15. One day a week, at 7 a.m., they meet at a restaurant or hotel. The session begins with every member presenting a minute-long commercial describing what they do and what kind of business leads they are seeking.
Then, two members give longer talks about their products. Before the meeting ends, members and guests swap business cards and referrals. In 1988 alone, Misner said, members of The Network shared 63,000 leads.
“If you want to get business, you have to give business,” Misner said, adding that The Network’s motto is “givers gain.” But he cautioned that networking is not a quick fix for ailing businesses because it takes time to establish a relationship with other members.
Misner and other founders of The Network said that although there is competition for new members among the groups, there is room for many clubs because most admit only one member from each profession or specialty. The limits are set to improve the odds for the group’s one lawyer or one car salesman finding new clients or customers.
The early morning meetings are the bane of most networking club members, but, they say, they cope with the time.
Every Wednesday night, Linda Watts, a partner in Blasi & Watts Personnel Services in Century City, wonders why she is setting her alarm extra early for her 7 a.m. LeTip breakfast. “I go because the business referrals have been really good, and I’ve met some great people through the group,” Watts said. “I was really phobic about speaking to crowds of people, but this has really built up my confidence.”
Members Pay Dues
At a recent meeting in a West Los Angeles office building, about 40 LeTip members were smiling, chatting and shaking hands at a furious pace. No one wanted to miss shaking hands with everyone there because there was a “mystery greeter” at the gathering and those who didn’t shake the greeter’s hand would be fined.
In exchange for all the handshaking and card-passing, LeTip members pay $175 a year to LeTip International and $25 to the local chapter. They also pay breakfast dues of $130 each quarter.
Jeffrey Pomerantz, a Santa Monica dentist who sits on the ethics committee of a local dental society, said he joined LeTip because he can meet potential patients without advertising.
Santa Monica nutritional consultant Jennifer Jensen, who made a pitch for healthful eating habits that morning, said her LeTip membership has “definitely paid for itself.” Jensen, a registered dietitian, has built her practice through networking and word-of-mouth referrals. “It’s hard to get up early, but after I go to a LeTip meeting I feel very, very charged up,” she said.
David Rose, LeTip of Brentwood’s president, said that when he recently asked how many members had made money from a tip in the last few weeks, “a sea of hands went up” and “it was very rewarding.”
Rose, a partner in the Santa Monica accounting firm Gumbiner, Savett, Friedman & Rose, said his LeTip involvement not only brought his firm new business but also helped his clients make valuable connections.
“People turn to their accountant for a great, great deal more than financial advice,” he said. “Knowing all these people makes me more valuable to my clients.”
Wasn’t a Joiner
Rose says a key to the success of the referral system is motivation. “The mechanic will do a great job because he had to come into the room and face us every week,” Rose said.
Rose, who has been president of the group for about nine months, said he never joined organizations before LeTip. “I really am not a joiner,” he said. “I wasn’t active in anything, not in churches or country clubs.”
He decided to join LeTip, he said, because he felt that his means of finding new business were drying up. Now, he is so happy with the contacts he has made through LeTip that he recently joined the Santa Monica Chamber of Commerce. “I think we can’t just do one thing to market ourselves,” said Jeanne Paster, a Brentwood interior designer who joined LeTip in December. “Besides the business, it gives you a community group to connect with.”
Demand Loyalty
She said she will stay in LeTip at least two years to see how it helps her business. “It’s an intelligent thing for any independent business person to be involved in.”
Ken Peterson was a San Diego life insurance broker when he founded LeTip in February, 1978. Now he works full time for the organization, which has 100 clubs in Southern California and Arizona, each with up to 50 members.
“What sets us apart is that we demand the loyalty of the members and require at least one tip per person, per week,” Peterson said. “We try to get across the idea of supporting members of the club and going out of your way to help them.”
Peterson said LeTip suggests that local clubs kick out members that don’t produce at least two tips a month for fellow members. The club also sends an “inspector” to visit prospective members’ businesses to make sure they are not operating out of garages or basements.
“Dollars in your pocket--that’s what we are here for. We are not here to play games,” he said.
Peterson said he likes running LeTip International more than selling life insurance. “You help so many people,” he said. “I feel like I have helped everyone in the room be more successful in their lives.”
GUIDELINES FOR NETWORKING
Here are The Ten Commandments of Networking, from Ivan Misner’s book “Networking for Success; How to Become a Notable Networker.”
1. Have the tools to network with you all the time: a name tag, a cardholder full of business cards and a card file to carry other people’s cards.
2. Set a goal regarding how many people you’ll meet, and don’t leave until you have met your goal.
3. Act like a host, not a guest.
4. Exchange business cards with the people you meet.
5. Listen and ask the five “W” questions--who, what, where, when and why. A notable networker has two ears and one mouth and uses both of them proportionately.
6. Write comments on the back of the business cards you collect. This enables you to remember the person when you follow up the next day.
7. Give a lead or referral whenever possible. If you freely give business to others, they will give business to you.
8. Describe your product or service in 60 seconds. Be specific but brief.
9. Spend 10 minutes or less with each person you meet and don’t linger with friends or associates. Try not to get caught up in too much idle chatter.
10. Follow up with the people you meet. A simple follow-up letter or telephone call can mean the difference in making the time valuable. If you promise to get back to someone, do it.
