Doing Things On The Cheap (DOTC): Leads (Referral) Marketing (aka "networking")

Leads (or referral) marketing activities can be one of the best, most effective tools in your arsenal as a small business.

These groups work by bringing together people in a variety of industries for the express purpose of creating relationships so you can confidently refer people to each other.

It is very common for these kinds of groups to be industry exclusive - once a member from a specific industry "locks in" membership (and how to do that varies from group to group) no other person in that industry is allowed to participate in the group.

It's a great way to meet other business people who are there for the purpose of meeting you and learning more about you.  They’re also great if you need to practice speaking in public (as you will usually do at least a 30 second “pitch” about you and your business).

So wait, which color of wine goes with my business card, again?

There usually are several groups in your area – some completely free, some cheap, some pricey.  I’m going to focus on finding the first two rather than the latter (if you are interested in the latter, check out groups like BNI or NetWorkz.  Also, many local Chambers of Commerce have these sorts of groups going for their members - if you are a Chamber member, use this service!) 

Go to Meetup and set up an account for yourself (do it as your business, not you, personally).  Make sure you use a good - and accurate - picture of yourself and fill out your profile completely.

Search for meetups within your target geography (typically not too far from your house or center of business) using the following interest keywords:

Referrals, small business owners, network marketing, business referral exchange, referral marketing, small business marketing, marketing strategy, business entrepreneurs.

You should also add any special terms related to your ideal customer base (as some groups may be industry specific).  Over time, additional terms will be suggested to you by Meetup in order to find more groups.

Several meetups should appear, unless you live in a very small place.  If none do anywhere near you, and you're the organized and outgoing type, you could try starting one yourself (I'll write about that another time).

Join a few on Meetup, go to the meeting, do one-on-one meetings with the people you meet there, develop relationships, and above all, learn as much as you can about the group members and do your very best to refer leads to them as much as you can.

They will pay you in kind, at least, a good group will (I talk about "bad" groups in "Five Reasons Your Leads Referral Group Sucks" Part One and Part Two).

Be aware it can take a while to get traction in a group, so don't expect a ton of leads on your first visit.  This marketing tactic requires patience and time to develop trust, and you must do your best to contribute to the group by bringing in new members as much as possible.

Many, if most, of the groups you find on Meetup either are free (they are at a restaurant and the expectation is that you buy something to eat - you can keep your cash expense down by ordering just ice water or a soda or something) or have a very small fee of some sort.  So, essentially, the major investment here is your time, especially as you also need to have stand-alone one-on-one meetings outside of group meetings to get to know the members better.

Of course, you will need to evaluate the investment in time and money versus the return (generally measured in leads) like any other tactic.  Be objective, but also don't discount the "vibe" of the group in your decision making process.

You may need more than one group, but don't do too many, as the "pool" of people you can refer business to will be too large to be meaningful.  The key here is building relationships and being known as someone who actively seeks leads for the rest of the group.

So sign up for Meetup and get going - let me know how it's working for you!