MRL #048- Why Traditional Networking Is Stupid

I’ve been thinking a lot about networking lately…

And I’ve developed a controversial theory about it.

I’m going to use this week’s newsletter to flesh out my ideas on why traditional networking is stupid…

And next week I’m going to share (what I think at least) is a much better way to network.

But before we dive in…

Let’s Define The Term “Networking”

According to Mr. Google “networking” is defined as:

The action or process of interacting with others to exchange information and develop professional or social contacts.

Mr. Webster defines “networking” as:

The exchange of information or services among individuals, groups, or institutions, specifically for the cultivation of productive relationships for employment or business.

Boiled down to simplest terms…

Networking is building relationships with the hope of writing more business.

Fair?

Fair.

Ok, with that in mind let’s think about…

How Networking Is Traditionally Done

It usually involves joining a group and attending their events and/or meetings:

• Local Social Groups

• Local Biz Dev Groups

• Local Chambers of Commerce

• etc.

Here’s Why It’s A Gigantic Waste Of Time

You are at the mercy of the other group members.

What if the other people in your group aren’t worth “networking” with?

For example, when I first got started I was encouraged to join a local BNI, so I did.

During my first meeting I counted only 1 out of 40 business owners there were worth pursuing.

Most didn’t carry enough premium to hit my agency minimum.

I realize that’s not the same for every networking group…

But it ain’t far off.

From a percentages perspective most networking groups would be lucky to be made up of 25% mid-market business owners.

Now Let’s Do Some Math

Let’s say you’re a real extrovert and you’re involved in 5 different networking groups…

And each group is made up of 50 people.

That’s 250 people total.

Now, let’s multiply that by our very generous 25% “qualified prospect” percentage…

And you’re only looking at roughly 65 people.

That ain’t enough people to prospect to be successful.

Hell, triple that number to 195 and it still ain’t enough.

Not only is that not enough people…

You’d better like being a generalist, because you’re gonna be writing lots of different accounts.

Some may be plumbers, some accounting firms, others restaurants…

Who knows?

Like I said, you’re at the mercy of the other members.

Now, I know what you’re thinking…

But, Max…

“Your Network Can Introduce You To Other People You Don’t Know”

Valid point.

But again you are at the mercy of others.

Think about it…

Just because you ask them to make introductions with other people doesn’t mean they will!

Or, that they even know someone you want to meet with!

Plus, by relying on others to make connections for you you’re giving away your agency to someone else.

I don’t want to put my success in the hands of somebody else.

I want to have both my hands around success’s neck and choke it into submission.

Another likely objection you might have is…

“What About Industry Associations?”

Great question.

I will admit industry associations do make some sense.

But even they have downside.

First, you’re gonna be just 1 of 15 other Producers at every event trying to kiss ass and rub elbows.

Second, they’re geographically bound to specific states or regions.

Lastly, unless you’re niched in a risk-heavy industry a lot of members won’t meet your premium minimums (if you’re at a true mid-market agency).

So sure, they’re better than your local BNI, but they still ain’t optimal.

A Better Way To Network?

So, with all that said…

What’s a better way to network so that you optimize your time, target a higher percentage of your ideal prospects, and show up as the go-to in your industry?

Well my friend, as I stated at the beginning of this newsletter, that’s exactly what I’m going to share with you next week.

So tune in next Sunday… same place and time.

Until then…

Give em’ hell.

Kick ass take names, 

Max “No Networking” Revenue

P.S.

If you found this letter helpful… there are 3 other ways we can help you:

1. The Producer Playbook- The Step-By-Step Guide To Building A $1,000,000 Book of Business (From Scratch)

2. The Max Revenue Show- Our weekly podcast (available just about everywhere).

3. The Max Revenue Channel on YouTube- Weekly videos from Micah “The Zen Master of Commercial Insurance” Salas, including his new series “Diary of a New Producer.

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