There are so many options out there for business networking, from week-long seminars with hundreds of people to hour-long groups with a small group of people.
How do you decide which is the best kind of networking for you and your business? Below, we have 7 different things to consider when choosing how you want to network.
Regularity
Networking events are usually held infrequently. Depending on the type of event with determine the frequency. Conferences are usually held annually or even biannually. Something like seminars and mixers are often just as they come up. These kinds of events can last anywhere from a few hours to a few days! Irregular meetings like this are often great when you need a decent amount of time to prep, for example, if you had a stall or you were speaking at a conference, but aren’t always great for creating long-lasting relationships that provide you with ongoing connection and support.
Networking groups are regularly scheduled meetings, often weekly, fortnightly, or monthly. They usually only last for an hour, although some may be longer. One of the benefits of these groups is that you’re usually meeting with the same group of people each time. That, plus the frequency of the meetings, means that you can make better connections with the group members. Better connections with the members mean that you’re able to ask for help, and you’re more likely to give and receive referrals from within the group.
Membership
Most business events are open to everyone, unless they’re industry-specific. This means that anyone can register or buy a ticket and head along to the event, meaning that you might be meeting lots of people from the same industry. It’s not necessarily a bad thing, but it does make it harder to refer someone when you know 20 other people in the same industry.
The majority of business networking groups have a defined membership. Most of them have a one person per industry rule, although there’s often a little leeway in there. This makes the group more exclusive and niche, but it’s also a benefit to the members as they don’t have to think about their competition during the meetings and can therefore be more open and honest about their successes, challenges, and opportunities when talking to the other members in the group. It also means that the members of the group are more likely to refer that one member, instead of having to decide between many.
Format
Events where you can network aren’t always particularly structured. There are usually two different formats for a networking event. They’ll either consist of short formal introductions before or after the main event, or if they’re focused on networking, it’s usually casual mingling, which can be tricky to navigate the first few times you attend, especially for an introvert. Going to these events with someone that you know can often help with any nerves that you might feel about heading along to something like that.
Networking groups almost always have a structured agenda, with some being more structured than others. A common structure is: opening the group, Health and Safety, introducing members and visitors, presentations or speakers, and activities designed for connection, collaboration, and business growth. There’s usually space for the group members to discuss their businesses and news in a way where they can receive support from their business community.
Intention
A lot of business events are usually designed around something specific that networking happens around. Seminars or conferences are traditionally something to support businesses, either within a certain industry or in general. If the event is specifically about networking, it’s usually designed to connect a wide variety of people quickly through mingling or speed networking. Often, the likes of your Chamber of Commerce will host events like this, something like a Business or Connect After 5, where you mingle and meet new people.
Business networking groups are all about networking. They’re more relationship-focused and aim to build deeper connections that foster ongoing support and referrals between members. Often, there will be time to present on a topic in your business so that you can educate the group about your products or services. These groups aren’t all about referrals and making money; there is also a level of support that you receive from being able to discuss the successes, challenges, and opportunities that you’re facing so you can learn from other business people who may have experienced something similar or are experts in that specific field.
Connections Made
“Events help you shake hands; groups help you build business.”
Due to the nature of networking events, the irregularity, loose format, and unfocused intention, it can sometimes be a challenge to see the benefit of the connections made. Because these events usually pull a larger crowd to them, they can be fantastic for making initial connections with a lot of people and expanding your network very quickly. One thing to note with these kinds of events is the importance of following up with the different people that you meet – organise to catch up for a coffee or beer outside of the event, or connect on LinkedIn.
Networking groups are better suited for creating long-lasting relationships and support. Due to the frequency, plus the focused formats and intentions of members, it’s much easier to nurture genuine relationships with other business professionals. When you create these genuine connections, it’s much easier to ask for business support when you’re facing business challenges, as the other members actually want to help and see you succeed. Giving referrals to people you have good relationships with just comes naturally.
Depending on who is in your group, there is also the potential to create some great collaborations and synergies that can help both of your clients. We have an entire blog on that topic that you can read here.
Return on Investment (ROI)
The investment that you spend in networking comes from several sources. Firstly, the price of the event, large networking events fall across a range of price points, from free to several thousand dollars for some of those multi-day conferences. Secondly, the time commitment, these events can range from a few hours to several days, which is time that could be spent working instead. Thirdly, if the event is out of town and it’s not included in your ticket price, you must consider extra costs like travel, accommodation, and food. Luckily, these events often have other reasons to attend outside of networking, like speakers, industry updates, and workshops, which can also be included in your ROI.
These events often have a good short-term ROI as you’re meeting lots of new people in a short timeframe. But you have to spend time to follow up with these connections to create better relationships and hopefully convert them.
Similar to networking events, there are several costs to joining a networking group. Most networking organisations have a cost to join, the value of which varies across the different organisations. If you join a group, there is also an expectation that you attend regularly, so you need to make sure you can spend the 2-6 hours a month out of the office and at a networking group. Depending on where the networking group is being held, it’s also usually expected that you buy something from the venue; some groups only expect a coffee, and some expect that everyone buy breakfast.
This might seem like a large cost and a lot of time spent networking, but these groups usually have a long-term ROI. Because the quality of the relationships tends to be higher, they’re more likely to result in referrals, collaborations, and repeat business.
Deciding between networking events and networking groups
As a business networking organisation, we’re a bit biased with what we think is best! But it’s really up to you to decide which style of networking event will work best for you and your business.
“With networking events, you’re casting a wide net. With networking groups, you’re planting seeds.”
Business networking events are a great way to meet a large number of people in a short time. So if you’re new to business or an area, they can be great for initial introductions. While you’re at these events, you’re likely to learn lots of new things, especially if you’re at a conference or seminar. If you’re attending specifically for networking purposes, this isn’t always ideal, but can still be useful for your business.
Business networking groups are a better way to create deeper relationships with a smaller number of people. You’re able to have more in-depth conversations and get both practical business and personal emotional support. You can learn from other people’s experiences and knowledge base, and build working relationships with members in similar industries to you. All of this results in a higher likelihood of receiving warm leads and referrals from the other members in your group.
