May 18, 2004, New York Real Estate Journal
Remember the days of the rubber chicken lunches and
business card exchanges. Yes, these events do still exist, but they are
quickly being supplanted with more sophisticated events. Thanks to pioneers
like Harvey Mackay, author of “Dig Your Well Before You’re Thirsty”, and internet companies such as LinkedIn, networking is a buzzword again and it can be a powerful tool in a sales person’s
marketing mix.
There is a definite resurgence in the popularity of networking as a form
of new business development. Networking and relationship building has
always been a cornerstone of the real estate profession, but during these
harsh economic conditions, even more of an emphasis is being placed on
its importance. Judy Troiano of New Jersey based NAI James E. Hanson
says “Individuals are definitely looking to make more contacts these days. Business is not just dropping in people’s
laps and real estate professionals are looking for more ways to generate
business.”
Wide Net or a Fishing Hook?
There are simply too many events, seminars and luncheons to attend, so be selective. From CoreNet to ICSC, you need to balance your use of time with the potential for new business. Too many groups can also be a good thing. Whether you are focused on a specialty, specific companies or other brokers, there will be appropriately targeted groups for you.
Some individuals only attend only lead-targeted events. Other individuals prefer
to cast a wide net, going to events that are totally unrelated to their specialty
or profession. Sarah Currie of Eemerge, a division of S.L. Green which rents
temporary office space in New York City, says “I go to events within many different industries and specialties. For me, the diversity has really paid off. As a result of networking outside of my normal circle, I have been able to open up an entirely new market I never knew existed.” Just remember, behind every real estate deal there are developers, brokers, attorneys, architects, engineers and a host of other people that are “in
the know.”
Try before You Buy
Out of 20 events, you may find only one that you enjoy. That is okay. Now commit
to it and become a regular. Don’t stop there. Keep looking for more groups
that feel good. Once you have two or three terrific groups, put all of your energy
into those few groups.
Consistency
Going to a group on a regular basis speaks of your commitment to the group and it allows the other members to get to know you. People do business with people that they know and trust. Through consistency you will develop friendships that lead to new business.
Be Patient
The benefits from networking do not appear overnight, or sometimes even within the year. The effects are cumulative and you must allow your efforts time to reach a critical mass. This can take up to two years or more. View this as a long-term strategy that will yield benefits long into the future.
Watch the Cost
Events range in cost from zero to thousands of dollars. Event fees add up so budgeting how much you can afford is a good idea. One important observation to note: the more expensive an event, the higher caliber of people that attend.
Follow Up
Just because you picked up a business card does not mean that you have a relationship. Forming a strong and lasting relationship after the initial meeting takes effort and skill. You have to work hard at developing your contacts. It is very easy to become overloaded with new contacts.
Before You Hit the Road
There are a few things that you will need for effective networking.
• A good looking business card.
• A way to manage your contacts be it on index cards or in a computer.
• Good looking company literature that clearly articulates what you do.
• An email address and a website.
• A compelling 15 second elevator pitch
Have Fun
Meeting new people and talking to new people should be fun. Many people hate it with a passion. They feel awkward at approaching new people. Relax. If you are not skilled at first, with practice you will become a veteran. Assume a pace that is comfortable for you and always have fun. Others will sense that you are having fun and will naturally be attracted to you.
