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By Root 849 0

for getting business a pain in the rear? People talk about it like it’s a chore. If I have a choice of marketing my business by spending lots of money on advertising for the hopes of a significant return on my investment or spending a lot less on advertising by networking with those in my local community, it is a NO-BRAINER, especially since the lasting effects of business gained by networking are more solid than those of paid advertising!

The message I’m about to give is really for men, but should be considered by women, too. Spending money needlessly on marketing is just stupid. The benefits of face-to-face networking not only outweigh paid advertising, but stretch far beyond just growing your business. Guys, if you persist in discounting networking and some of the small challenges that accompany it, you’re foolish!

First, let’s take a hard look at financial benefits. As you know, in any business there are both soft- and hard-money costs to consider. “Hard money” is that which you take out of your pocket and includes credit cards, cash, checks, and other possessions with monetary value. The term “soft money” is used to assign value to services or invested time, otherwise known as sweat equity. It’s not a tangible financial extraction from your bank account or pocket; rather, it’s your very valuable time. People tend to invest larger dollar amounts in the form of sweat equity or soft money than they may want to spend in actual greenbacks, dough, clams, or Benjamins. Catch my drift? The riches that invested time reaps are greater than hard money spent. You also get more value for your soft-money investments than you would for spending what you think the equivalent is in moolah.

If you were to add up the soft-money investments of labor, networking, connecting, and building relationships you may be surprised at the financial value you’ve delivered to your business.

Wait a minute. Does that contradict networking being a no-brainer that saves us money because we are “spending” more soft money? Absolutely not, because when networking is practiced effectively, especially for the small-business owner and sales professional, it yields richer, more lasting results than just advertising.

Let’s look at the array of positive wealth effects that networking brings, beyond just sales numbers.

• Added sales volume

• Higher average transaction amount per sale

• Greater closing ratio

• Referrals tend to be very qualified professionals

• Higher occurrences of leads and referrals

• More repeat business

• Greater positive word-of-mouth marketing benefits

• More customer loyalty

• Stronger community recognition

• Greater perceived value

The more solid relationships you build, the more credible you are. The more your credibility grows, the more people will hire and recommend you. The impression of quality is created through networking. By the validation of many people vouching for you, your name is passed along with more and more frequency and confidence. After you have repeatedly established proof of quality, you’ll be referred in such a manner that neither your rates nor quality are questioned.

ILLUMINATE YOUR QUALITY AND ETHICS

The impression of quality is a powerful one. It is well-known that consumers are willing to pay more for services and products that they equate to be high in both ethical and product value. From locally grown organic produce and safer foods to fair-trade-produced coffee and businesses that donate a portion of their proceeds to philanthropic ventures, consumers, by their spending choices, are showing the market that ethics and quality are what they want. What better way to convey the image of quality for your business than with the vote of those who believe in you so much that they can’t stop talking about you?

Advertising is a powerful and important asset to a business, but cannot replace the credibility and reputation that is built by physical, social interaction, which can enhance your reputation and create a higher awareness