Angels Den Blog

Just a quick snippet of a blog post that we feel is highly relevant at the moment, especially following on from our recent “Do You Twitter” post.

It is something that we all swear by……but too many of us swear at.

It is something that we all recognise……but too many of us fail to understand.

It is something that offers us so much potential……which too few of us manage to realise.

Some years ago, when I was the Managing Director of Business Referral Exchange, a national business network, one of our members, a bank manager, gave up his membership after a year.

“It’s been a complete waste of time”, he confided to his fellow group members. “I’ve only had six switchers from the group.” (A ‘switcher’ is a banking term in the UK for someone moving their account from a competitor to your bank.)

When this story reached me, I started asking contacts in banking what they felt a reasonable return would be from a year’s membership of one of our groups. I asked other business managers in the same bank. I asked business managers in other banks. I asked senior management figures in banking as well. They all shared the same view.

A reasonable return on investment for membership of such a group would be three switchers in a year. That figure would justify membership.

That’s right….three. Half of the figure the resigning member had achieved. He felt that his membership had been a “waste of time”, despite doubling what many agreed was a reasonable return of his investment. Why was this the case?

The answer would appear to be quite simple. The bank manager had not worked out what his return on investment should be. Quite simply, he didn’t know what success would look like.

This is all too common a problem. From talks across the UK at networking groups and events I have recognised two important factors that will prevent many businesses getting the most from their networking.

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