Networking: Word of Mouth Advertising
Advertising that works!
I can’t believe that I still hear “Networking does not work for me.” I am here to set you straight.
Tip: Analyze where your leads came from last year
I do this every January. I print out my client list from my accounting software and actually figure out where each client came from (I ask when I get a new client). Then I count up all the clients and figure out the percentages. Here is my results from all my efforts this past year:
- Networking / Referral / Word of Mouth: 78%
- Internet Activities (Website, SEO, Social Media) 20%
- Tradia: 2%
Since the most expensive form of advertising gives the least return (2%) that is what I will be dropping. I have personally never purchased print advertising or any phone book ads so I cannot speak to their effectiveness.
Networking Wins Hands Down
For those of you out there that refuse to do Networking activities (Leads groups, Chamber events, Industry Association events) you are really handicapping your business. People do business with people they know and like. I would not be in business without 78% of my income!
If the thought of Networking makes you sick to your stomach then search your local area for classes that will teach you how to become a better networker. There are several professionals here locally that provide free Networking for Newbies workshops. I would highly advise you to start participating and watch your business grow.
Marketing: What Works
Marketing That Works
I took some time today to analyze my business for the past year. I printed a report with all my customers then went through one by one and wrote down where that customer came from – yes I know each customer and how I earned their business.
I basically have 3 sources of business:
- In person Networking
- Online
- Tradia (an online Trade website)
I counted up everyone and came up with percentages that I would like to share publicly.
- In person Networking won hands down at 80% – of that 32% were Word Of Mouth – referrals that people I have met while Networking gave me to follow up and convert to a client.
- Online efforts was 16% – these are people that found my website either by a search or through a Social Network of some kind.
- Tradia came in at 4% – not really worth my efforts here since this is the most expensive form of advertising that I did all year.
I often get people asking me if I think going to leads groups is worth the time investment for the business gained. I can say for sure that my business would have not made it through the year if I had lost 80% of my income.
Some might also say that if only 16% of my clients came from online efforts then is that a good use of my time – it takes time to have a quality presence online. What these numbers do not tell is how many of the 80% looked me up online before actually deciding to use my services. How many compared me to another designer, how many got to know me better through Social Media?
These are questions that I can’t answer, but I do know that the combination of In Person Networking, Online Networking, and having a quality website that actually reflects my business gave me 96% of my total business last year.
Where do you think I will be this year? Out meeting people and carrying the relationship Online ~ I have another year of experience under my belt and I expect to get better results than last year. Stay tuned…I will let you know in another year!
Dotty
