Fees for Referrals?
As an SME, marketing on a restricted budget can be tricky. You need to understand which marketing techniques are working for you; run with those that have a positive ROI and drop-kick those that don’t. But when you’re out in the field of marketing, you may not begin to see results immediately. Can you justify spending those monthly fees to meet and greet and generate leads? Let’s talk business: you may not have to. Free networking events and organisations are springing up across the UK, allowing local businesses to connect without cost. But how do they measure against paid networking options? Or do they indeed, surpass them?
The first question is, ‘does free really mean free?’ And almost always it doesn't. Aside from travel and possibly refreshment expenses, your time is your most valuable resource and this expenditure still exists. However, the return on the investment of your time may be greater for free networking than paid, due to something called the network effect. Without a fee, more businesses are likely to sign up. The network effect is the impact that the number of these users has on the value of a service. As more people join a networking organisation, the value of the membership of that organisation in turn increases for the other users. This then leads to a bandwagon effect: people jump on board and a wonderful positive feedback loop is created. More value leads to more members; more members lead to more value, and so it goes.
With this in mind, free networking groups are likely to grow more rapidly, and become more valuable to your business. You might start seeing results more quickly than at networking events with a steep monthly fee. Some of you may still be wary, but don’t be fooled. Just because you aren’t paying to network, you won’t be making less valuable connections with low calibre contacts. You will only be meeting wise and like-minded business people who are trying to effectively create a profile for their company: just like you.
Free networking is easily available in the Reading area. With a number of options like Business Biscotti and First Friday Club, you could fill your diary with networking events immediately and prepare to work the room, confident that your time is being spent well, and your money not at all.
If you have any comments please post them! Any questions, advice or opinions from your own experience would be great to share. This is, after all, a free networking opportunity in itself.
