Making money by networking online
28/10/2008 send to a friend
Each week now we receive emails from members who have picked up new business on account of being profiled on the site or meeting fellow business owners in the forum. The link between online networking and new sales has just been confirmed in research from business website businesszone.co.uk
Entrepreneurs ditch lead generation stalwarts for networking online
Small business owners looking for new customers are shunning traditional techniques like cold calling and direct marketing in favour of building relationships online, new research by BusinessZone.co.uk reveals.
According to the poll, conducted in association with UK Business Forums and WeCanDo.Biz, entrepreneurs ranked internet communities as more effective for generating new customers and clients than telephone cold calling, door-to-door selling and direct mail, all methods once viewed as the backbone of new business lead generation.
Three fifths (59%) of business owners revealed they had won customers as a direct result of networking websites with two thirds (67%) saying that such services had brought them closer to their target market.
In addition, three quarters (78%) admitted they were open to purchasing from contacts made via web communities, while more than half (52%) said they planned on increasing the amount of time they dedicate to online networking in 2009.
"Our study confirms that online networking forms a key part of the modern business owner's life," comments Dan Martin, editor of BusinessZone.co.uk and administrator of UK Business Forums.
"Clever entrepreneurs are ditching traditional methods such as cold calling and direct marketing and recognising that building relationships on the web is much more beneficial for the future growth of their business.
"The report indicates that it is the networks with a primary business focus like BusinessZone.co.uk, UK Business Forums and WeCanDo.Biz (Dan – you forgot to mention enterprisenation.com here!) that will continue to attract the most entrepreneurs compared to more mainstream sites like Facebook and LinkedIn which have much less relevance to company owners."
- To download the survey results in full, click here
- Source: Dan Martin, editor of BusinessZone.co.uk and administrator of UK Business Forums
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Comments
Author: Dan Martin
Date: 28/10/2008
Comment: Many thanks Emma for publishing our survey and apologies for leaving out the fantastic Enterprise Nation!
I certainly believe that it is business-focused websites such as yours which will be the major driver of new business for modern entrepreneurs. Relying solely on cold calling and direct marketing simply doesn't work anymore. It is the business owners who embrace online networking that will come out as the winners.
Dan Martin
Editor, BusinessZone.co.uk
Website: www.businesszone.co.uk
Author: Ian Hendry
Date: 28/10/2008
Comment:
Thanks for the coverage Emma.
What I hear from our users and I think a key benefit over direct marketing or cold calling is that social networking is permissive -- that is, business people are there specifically to network and make contact with other interesting, relevant businesses. If someone reaches out to you on WeCanDo.BIZ, for example, you can see what they do before you accept their invitation to connect. Not relevant? Then don't connect. There is no way of getting spammed through the site, so nothing is lost. However, it's just possible you might gain a valuable new business relationship.
Ian Hendry
CEO, WeCanDo.BIZ
http://www.wecando.biz
Website: http://www.wecando.biz
Author: Warren Cass
Date: 28/10/2008
Comment: Good to see this research, and I agree this is the trend we are seeing on Business Scene also.
We are definitely dealing with a relationship economy now and online is a very effective way to start the ball rolling.
I do think though that building trust is an essential part of winning business and is more difficult to do online although not impossible. Face to face networking will always be the most effective strategy and online networking is a useful starting point (A virtual handshake/Introduction).
People are spending more and more online but this tends to be more for products than services. One thing is for sure, whatever you are selling, always be mindful of your online reputation!
Website: www.Business-Scene.com
Author: Ian Hendry
Date: 28/10/2008
Comment:
True Warren. Our recent survey showed that face to face networking remains popular even with the rush to network online.
The thing to remember is that it is way easier to research who you'd like to be dealing with online, because you can investigate the profiles of many in a short space of time without having to instigate conversation. You'll most likely want to meet them face to face before you start doing business, but you can at least get some of the qualification out of the way beforehand, quickly and effectively.
A high number of our website users are also members of traditional networking groups and find the combination of the two works wonders for them.
Ian Hendry
CEO, WeCanDo.BIZ
Website: http://www.wecando.biz
Author: Warren Cass
Date: 29/10/2008
Comment: Completely agree Ian.
I work hard at a good online reputation for that very reason. You have to be so careful. I commonly receive comments from new contacts telling me they researched me online prior to meeting or doing business.
90% of recruiters google potential candidates before putting CV's forward for a job. I rejected a potential investor recently because of what I found out about them online.
Website: www.business-scene.com
Author: Jo Bauser, Skillfair
Date: 05/11/2008
Comment: Interesting research – our members (consultants covering a wide range of services and industries) would tend to agree that referrals and networking generate the best new business leads. Online networks such as www.skillfair.co.uk, professional institutions and business forums are really useful. Once that contact has been made, it is always worthwhile making the effort and investing the time to meet people face to face.
Website: www.skillfair.co.uk