Why Sell? Leverage Your Network to Generate Revenue

One of the best ways to generate business is word of mouth or referrals.  Most organizations don’t have the brand name to generate significant revenue by cold selling.  Therefore, you need to leverage your network (or others’ networks) to find clients.

It is critical that you are always building relationships because you never know when they will come in handy.  Over time, your relationships will help you achieve more success. Most entrepreneurs find their first few clients in this way.

In order to leverage your network, you need to take stock and find out who is in your network. Below are a few groups that you should review:

• Friends
• Family
• Former co-workers
• Existing co-workers
• College alumni
• Service providers you have done business with
• People you met at networking events
• Other professionals in your industry that you know

Take the time to see who you know. Chances are that you know more people than you think.  Categorize people based on your needs and priorities. You will then know who to reach out to and why you want to talk to them.  As you are building relationships with people in your network, make sure that you also offer to open up your network as well. It cannot be one sided.

Another way to increase your sales is to leverage your network to find a good channel partner. If you can find partners who can act as your sales force and leverage their own relationships, then you will be able to scale your efforts. Many businesses have a lot of success with these relationships.

Why you can have some success with cold calling, you shouldn't have to rely on this method to generate sales. Take your relationships serious and find ways to leverage them to reach more success.

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Comments

[Andy Lopata]

You are absolutely right about this Jason. I don't know what the feeling is in the States but people in the UK can sometimes be very reticent to turn to their personal network, such as friends and family, for help with their business. This despite the fact that friends and family have more desire to help us than anyone else.

My additional advice would to ask yourself who do your contacts know. If you can understand the reach of your network you can make the key connections you need, and find them far more easily.

[Jason Jacobsohn]

Some people in the U.S. are also not comfortable turning to friends and family for any help. However, when it comes to raising funds for a business, U.S. entrepreneurs go to friends and family first.

Yes, good point about thinking about who your contacts know. Sometimes those second level contacts can be more powerful.