The decision to invest in networking is strategic and requires careful consideration of both financial costs and time investment. While monetary outlay can facilitate networking opportunities, the true value lies in fostering genuine connections and building and maintaining relationships.
Utilising what Tony Robbins refers to as N.E.T. time (No Extra Time) can be a game changer for personal and business growth. This time includes commuting, running errands, exercising, and similar activities. By using this time to listen to high-quality coaching and powerful information, you can work towards achieving your goals.
The financial investment.
Networking costs vary significantly depending on the types of events attended, organisations joined, the stage of your business, the goals you’re looking to achieve, and the size of your marketing budget.
Figures range from upwards of $15,000 for some mastermind groups, to once-off free or pay-as-you-go events for under $50, to regular events like BNI with a total annual investment of well under $5,000 for in-person events.
In recent history, businesses have spent, on average, 10-13% of their revenue on marketing, according to a key takeaway from Deloitte’s September 2024 CMO Survey. While there is no established percentage for regular networking as part of your marketing budget, there are some likely cost considerations.
- Membership dues: Joining professional networking organisations or groups usually involves membership subs / fees.
- Venue/networking event fees: Groups that meet regularly must also consider fees for the venue hire & catering package.
- Event costs: Additional events such as conferences, workshops, and seminars can all have participation fees.
- Marketing materials: Business cards, brochures, and other promotional materials can incur printing and design costs.
While financial costs are important, the ROI from networking can be tangibly measured with the right reporting systems. Strong relationships can lead to valuable opportunities, referrals, and partnerships that may far exceed the initial expenses.
The time investment.
Although the time investment in networking is often overlooked, it is equally, if not more important, than the financial cost. While effective networking requires consistent effort and dedication; if marketing and / or sales is your responsibility, then you can reasonably consider Networking to be a N.E.T. time activity.
- Attendance: Regular attendance at industry functions, conferences, and networking events.
- Relationships: Investment in building genuine relationships with contacts.
- Participation: Active engagement in online forums, LinkedIn groups, and social media.
The power of referral-based networking.
Referral-based networking organisations, like BNI, can be highly effective in generating business. By remaining actively engaged in referring business, prioritising relationships with other members, and receiving referrals in return, members can significantly grow their businesses.
In fact, a study by BNI’s Dr Ivan Misner found that people who networked an average of 6.5 hours a week gained more than 40% of their business from networking and referrals, while people who averaged 20 hours a week traced more than 70% of their business to those sources.
BNI operates on the “Givers Gain©” principle, which emphasises giving value to others without expecting immediate returns. BNI members create a culture of reciprocity and abundance by focusing on helping others, building relationships, and generously referring business to other members.
The decision to network requires careful consideration of business strategy, financial outlay, and N.E.T. time activities incorporating referral-based networking. By understanding the costs involved and implementing effective strategies, individuals can maximise their return on investment and achieve long-term success.
If you’re open to exploring networking opportunities in Adelaide, then you’re invited to look for a suitable event at bnisas.com.au
Let’s talk!
If you’d like to know more about BNI, or some help in finding the right networking event for your business – please fill in the form below. One of our Executive Team will be in touch within 1 business day to help.