One of the most complete books on networking is Dig Your Well Before You’re Thirsty by Harvey Mackay. He says, “If I had to name the single characteristic shared by all the truly successful people I’ve met over a lifetime, I’d say it’s the ability to create and nurture a network of contacts.”22 Networking skills are of special importance to new salespeople who cannot turn to a large group of satisfied customers for referrals and leads. Professionals (accountants, lawyers, consultants, etc.), entrepreneurs, managerial personnel, and customer service representatives also must develop networking skills. Networking skills are also of critical importance to job seekers because, at any given time, about 80 percent of all available jobs are not posted in the classifieds or on Internet job boards.23

In simple terms, networking is the art of making and using contacts, or people meeting people and profiting from the connections. Although networking is one of the premier prospecting methods, some salespeople are reluctant to seek referrals in this manner. In addition, many salespeople do not use effective networking practices. Skilled networkers suggest the following guidelines for identifying good referrals:

1. Meet as many people as you can. Networking can take place on an airplane, at a Rotary Club meeting, at a trade show, or at a professional association meeting. Don’t make the mistake of limiting your networking activities to business contacts. The term social network refers to your set of direct and indirect contacts. An indirect contact might be the brother of a close friend. The brother works for a large company and can help you see more clearly into the operation of this firm.24

2. When you meet someone, tell the person what you do. Give your name and describe your position in a way that explains what you do and invites conversation. Instead of saying, “I am in stocks and bonds,” say, “I am a financial counselor who helps people make investment decisions.” Listen more than you talk. Developing and perfecting an elevator presentation, mentioned earlier, can be very effective when networking.

3. Do not do business while networking. It usually is not practical to conduct business while networking. Make a date to call or meet with the new contact later.

4. Offer your business card. The business card is especially useful when the contact attempts to tell others about your products or services.

5. Edit your contacts and follow-up. You cannot be involved with all your contacts, so separate the productive from the nonproductive. Send a short e-mail message to contacts you deem productive and include business information, brochures—anything that increases visibility.25 Make sure your materials are professional. Use inexpensive contact management software, such as Salesforce.com, to organize your contact information.

There are three types of networks salespeople should grow and nurture (Figure 9.3). Every salesperson can be well served by networking within his or her organization. You never know when someone in finance, technical support, or shipping may be needed to help solve a problem or provide you with important information. A second form of networking involves establishing contacts inside your industry. Make contact with experts in your field, top performers, leaders, successful company representatives, and even competitors. The third form of networking involves business contacts with people outside of your industry such as bankers, government officials, developers, and other people in your community. The local golf course is frequently a good place to make these contacts.26