Lead generation and networking:
Expanding your business without a sales team
By Raffi Darrow
Dec. 2004
© R-Design, Inc.

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When a well informed client or associate recommends your business to someone else, it’s as though they’re acting as a free sales team for you. This type of lead generation, or word-of-mouth advertising, can help your business grow by leaps and bounds. There are many ways to increase such referrals, and to be sure those representing you do so correctly.

Effective networking can come from a structured networking group designed for that purpose. Groups established to generate leads are a great way to meet other professionals looking to develop effective business relationships. Some meet weekly, others monthly, some are private and some can be found through your local Chamber of Commerce. But they all have the same purpose: getting you referrals. Groups that meet frequently give you the best shot at building relationships. When others have a better understanding of what you do, they will be able to speak about you confidently when they know someone in need of your services.

If someone scratches your back, scratch theirs. If you attend a group function like this, you can be sure the other people there are dedicated to increasing their own business success through networking. They are hoping you’ll speak about their business to those you know as well.

When visiting a networking group, be sure to bring business cards and other marketing materials. These are tools which allow you to be represented accurately to others. You can use a brochure or the back of your business card to state specifically what you do, so a third party can get information straight from the horse’s mouth.

When you speak about your business to others, use plain English, not industry-specific jargon that they won’t be able to remember well enough to pass along. Also, make sure others know what you are seeking. If you can’t speak about your core goals and objectives in 30 seconds, no one else will be able to either. Let people know exactly what you are looking for by being direct and using the phrase, “A good lead for me is…”

Think about a recent complement you received at work. If someone considering your services had been there to witness those positive words, wouldn’t they feel at ease hiring you? Take compliments, put them in writing, and establish a list of client testimonials. These can be posted on your website or used as quotes on the sidelines of other marketing efforts. A good client testimonial about your business can increase your credibility in the eyes of a stranger. If you are honest and reliable, that news will spread. And if you aren’t, that will spread three times as fast, so watch your back!

You can also get the word out to strangers through online bulletin boards. The latest in networking is an online group that emails steadily back and forth but never meets in person. These people derive from your emails a feeling for your company, so be personable, but watch your spelling and type your emails with care. And if you can use the bulletin board to link back to your own website, they can do some one-click hunting and find out more about what you do.

By joining a networking group or an online discussion board, you will establish rapport with businesses that know and trust you. You can offer a monetary reward as a thank you for a solid lead that has generated business for you, or you can simply say thanks. That’s up to you. But be sure you let someone who has helped your business know what they did right so they can continue to act as your free sales team in the future.