William Buist, the chief executive of Abelard and founder of xTEN Club, said networking was one of the key tools of a service-led business.
The first most common mistake many people make is using the same pitch they use for sales, even when networking in a more social setting.
Mr Buist said networkers needed to remember that they were not selling to their network, but were teaching their network how to sell for them. The lesson was not pitch your product, but to ‘pitch your pitch’.
The second common mistake businesses make is not understanding who benefits the most from their products and services.
Mr Buist said networkers should seek to understand who the networking contact they are talking to is regularly in contact with. Then the networker can explain what they do and why the products they have will serve those people well.
The third mistake people make is in underestimating their own uniqueness.
Mr Buist said: “People often talk about having a unique selling proposition, but in reality most products and services are not dramatically dissimilar or genuinely unique. Therefore, it is important to highlight why a customer should choose you over your numerous competitors. In general, that comes from who you are and the approach you take.
“Nobody else will have had your particular education, the career and experience that you’ve had in business or the skills that you’ve developed to deliver the products that you now sell. Creating a story that highlights those strengths enables your particular implementation to be remembered and retold more easily.”
Fourthly, Mr Buist said networkers make the mistaking of parroting facts about their product and service, when, in general, raw facts are not remembered,.
He said networkers should instead stick to interesting stories with relevance that people can relate to and empathise with; stories that tell others about how their business or personal life has improved by working with you.
The fifth mistake that networkers make is failing to highlight what the market does, and sell the industry they work in as a whole
In the case of financial services, it might be explaining how protection insurance has saved many families from having to sell their home.
Mr Buist said: “You get out of your network what you put in. So, if you want others to share their knowledge and refer their contacts to you, it’s reasonable to assume that they are looking for the same kindness from you too.”
Adviser view
Ellen Roome, chief executive of The Finance Roome, in Cheltenham, said: “The best networking tip is really to be yourself. People don’t want to be sold to. Engaging people in small talk can also be a good way of getting them to open up. People do business with other people and it’s important to establish a rapport with them.”
