Building genuine connections through networking isn’t just a business tactic; it’s a powerful tool that fuels sales and amplifies word-of-mouth referrals. When professionals (like you and me) make it a priority to cultivate meaningful relationships, we create a network of advocates who naturally promote our products/services and we do the same for them. This organic form of marketing not only enhances credibility but also drives sustainable growth.
When I began using social media 15+ years ago, I was bootstrapping my business and I quickly realized it was a more efficient way to network, meet new people that I would never have met otherwise, and put myself out there professionally without always having to do everything in person or by phone. I could leverage social networks to build a network of trusted connections.
Networking in a sea of too many connections.
Have you ever heard of Dunbar’s Number? It’s a suggested “cognitive limit” to the number of people with whom one can maintain stable social relationships—relationships in which an individual knows who each person is and how each person relates to every other person. By using the average human brain size and extrapolating from the results of primates, Dunbar proposed that humans can comfortably maintain 150 stable relationships.
I fear today’s social media has forced us beyond our capabilities. The platforms NEED us to connect with every possible user (their profitability depends on it). They sow outrage because it keeps us on each site. But fear not, there’s a way back!
We are simply not meant to have so many connections. Sure, the number of connections you have makes it look like you’re popular or a “thought leader” and if your goal is to get as many followers as possible so you can monetize yourself, more power to you. But that’s not true for most people, especially business owners.
Quality over quantity.
I’ve been on LinkedIn for nearly 20 years. I’ve collected over 5,000 connections and I can’t tell you who a lot of them are. It’s the nature of social media to attract and engage people and, because the platforms WANT you to connect with every possible person, it’s easy to amass connections like you would collectables. These platforms know that more connections equals more people coming back to their site so you’re up against a formidable foe.
I believe we are returning to a time where meaningful relationships are more important than how many connections you have.
Taking into account that only 150 of those 5,000+ connections are manageable, I’ve been pruning so I can develop the ideal connections I prefer – who I can influence and who can influence me. This is called a contact sphere or a Sphere of Influence.
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Creating a Sphere of Influence.
There’s something very powerful that happens when two people sit down together (virtually or in person) and share each other’s book of business. With the right system, you can build a very valuable asset for your business.
Sadly, through lots of trial and tribulations, I’ve found that networking is an uncommon skill. Most people want to jump to the sales portion of the conversation too quickly. It’s easy to do because our culture demands it; we all want what we want right now, and many people aren’t willing to put in the work to build a “sphere of influence.”
Which is why I was so pleasantly surprised recently when I met a dealership labor attorney named Courtney Leyes on LinkedIn and she practiced the same approach I work at everyday.
Here’s our exchange after we connected with each other:
Me: “It’s rare that I meet someone with true networking skills as I very much appreciate that approach to business.”
Courtney Leyes: “I believe in the power of connections and in knowing/befriending as many people as possible, and especially people outside of your industry. I approach these connections with the attitude of what can I do to help get you business, and it has been transformational.”
Doesn’t that sound so much better than an immediate sales pitch? It got me thinking and this post is the ultimate result of my contemplation.
I’ve only ever gotten business from word of mouth.
It’s difficult to effectively advertise what I do (for many reasons, but partly because I sell car dealership operations services that are highly specialized and tailored to fit each client’s unique needs), so I’ve had to build my business through other means like networking, my newsletter, my blog, writing for automotive media, speaking at conferences and 20 Groups and social media.
Courtney and I are planning to meet online soon. She’s already introduced me to a colleague of hers, an automotive CPA, and we’re going to meet soon as well. This is the power of networking and building a Sphere of Influence. I encourage you to practice it because it’s super motivating to help others get what they want. It takes work and you’ll kiss a lot of frogs, but it’s a great long-term strategy for business growth.
Understanding and building a Sphere of Influence for yourself.
What is a Sphere of Influence?
A “Sphere of Influence” refers to the network of individuals who you can influence or who can influence you. This network includes colleagues, peers, mentors, clients, and other professional contacts who can provide support, opportunities, and guidance. The concept extends beyond direct connections to include the extended network of your contacts, effectively amplifying your reach and impact within your industry or community.
What are the steps to create and manage a Sphere of Influence
Your sphere of influence cuts through the sea of connections but only through deliberate effort and a strategy that works for you. Here is a step-by-step process I use to establish and nurture a Sphere of Influence.
1. Identify Your Goals
Start by defining what you want to achieve with your network. My goals were business development, but other goals could include career advancement, personal growth and learning. Clear goals will guide your networking efforts and help you identify the right people to connect with.
2. Map Out Your Existing Network
Take stock of your current contacts. Categorize them based on their relationship with you (e.g., mentors, peers, clients) and their potential to help you achieve your goals. This mapping will help you understand your current Sphere of Influence and identify gaps where you need to build new connections.
3. Expand Your Network
To broaden your Sphere of Influence, actively seek out new connections, but be deliberate about who you choose. Here’s how you can do it:
- Attend events: Participate in industry conferences, seminars, webinars, and networking events.
- Join professional associations: Becoming a member of professional organizations can provide access to a larger network of like-minded individuals.
- Utilize social media: Engage with industry leaders and peers on platforms like LinkedIn, Twitter, and relevant online forums.
4. Develop Strong Relationships
Building a robust Sphere of Influence is about cultivating strong, meaningful relationships with those that can help you and who you can help.
- Be authentic: Show genuine interest in others and be yourself.
- Add value: Offer help, share knowledge, and support your connections.
- Communicate regularly: Keep in touch through emails, messages, and/or meetings. Share updates and check in on their progress.
5. Leverage Technology
Use technology to manage and grow your network effectively:
- CRM systems: Customer Relationship Management (CRM) tools can help you track interactions, follow-ups, and important dates. I use Trello but there are other great options like Nimble. I also use an app called Remember The Milk for a To-Do list.
- Social media tools: LinkedIn can be used to engage with your network, share content, and join relevant groups. If you can spare the cost ($100+/mo) their Sales Navigator works well for prospecting, selecting and keeping track, but it’s not required.
6. Seek and Offer Mentorship
Mentorship is a powerful way to strengthen your Sphere of Influence.
- Seek mentors who can provide guidance and insight. A great tactic to meet someone like this is to connect with them and offer support – “Help them get what they want.” During this process you may discover a mutually beneficial way to refer each other.
- Offer to mentor others when appropriate. Reciprocal relationships enhance trust and mutual respect, which can also lead to referrals.
7. Be Consistent
Consistency is key in maintaining your Sphere of Influence. Engage with your network at least three times per week, attend events, and keep up with industry trends. Consistent effort ensures you stay relevant and top of mind with your connections.
I keep a list of my sphere connections so I can keep track of when we last checked in with each other.
8. Provide and Ask for Referrals
Actively provide referrals and introductions within your network. This not only helps others but also positions you as a connector, increasing your influence. Don’t hesitate to ask for referrals when you need them, as people are often willing to reciprocate.
9. Monitor and Evaluate
Periodically assess the effectiveness of your network. Are your connections helping you achieve your goals? Are you providing value to your network? Adjust your strategies based on your evaluations to continuously improve your Sphere of Influence.
10. Stay Positive and Professional
Maintain a positive and professional demeanor in all interactions. Your attitude and behavior significantly impact how others perceive you and your influence. Positivity and professionalism attracts others and fosters strong relationships.
Bonus: Build a “Power Team.”
A Power Team is a small group of professionals from complementary but non-competing businesses who actively work together to serve the same type of client. They naturally have reasons to refer business to each other and work to exchange referrals and support each other’s businesses.
The difference between your Sphere of Influence and a Power Team is minor, yet impactful. Your Sphere of Influence is all the possible connections you can team up with, while your Power Team is the group that you have actually teamed up with.
What specific tactics and approaches can be utilized to assemble and cultivate a high-functioning Power Team that consistently achieves success?
- Define the purpose and vision
Clearly define the purpose and vision of the Power Team, such as generating referrals, cross-promoting, or supporting each other’s businesses. Ensure all members understand and align with this shared vision to work cohesively towards common goals. - Select complementary members
Choose members from complementary but non-competing industries that naturally have reasons to refer business to each other. Aim for a small group of around 5-9 members to maintain close relationships and effective collaboration. - Foster open communication
Establish a structure with regular meetings and an agenda to facilitate open communication. Encourage transparent sharing of ideas, challenges, successes, and feedback to build trust and accountability. - Leverage collective networks
Understand each member’s sphere of influence and ideal client profiles. Actively look for qualified referrals and cross-promotion opportunities within the combined networks. - Build rapport and trust
Invest time in building genuine rapport among Power Team members. Create a safe environment where conflicts can be addressed constructively to strengthen the team. - Provide value and accountability
Ensure all members are actively contributing value, whether through referrals, advice, or support. Implement systems for tracking goals, commitments, and results to maintain engagement and accountability. - Celebrate successes!
Regularly review and celebrate achieved results, successes, and milestones as a team. Recognize and appreciate each member’s contributions to foster a positive team dynamic. This really helps to solidify the team!
With these strategies, you can build a successful power team that consistently achieves its goals.
Remember, the key to a high-functioning power team is collaboration, mutual support, and a shared commitment to success. With the right approach and dedication, your power team can become a powerful engine for growth and opportunities.
A powerful Sphere of Influence and Power Team are valuable assets for your business.
Building them both is an ongoing process that requires time, effort, and a strategic approach. Stay focused on your goals, be genuine in your interactions, and consistently nurture your relationships. Keep reminding yourself that it’s way out of all the noise, overwhelm and lack of results from too many connections.
Controlling expenses is the #1 concern for dealers. Get your FREE DEALER SELF-ASSESSMENT to see how you measure up against manufacturer-specific benchmarks. Get it today!