This is the second in a series of articles we will be publishing relaying thoughts and ideas from the Internet Retailer Conference in Chicago, which occurred June 5th through June 7th. Peter Kosciewicz, Director of E-Commerce for the Eastwood Company, and Chris Saito, Senior Director, Shopping Products for Yahoo! Shopping, delivered a presentation entitled “Social Networking: The Peer Pursuasion Marketing Tool.”

According to Kosciewicz, the Web today has grown into an “architecture of participation” that facilitates social networking through devices such as blogs, wikis, RSS, podcasts, and more. Forrester Research has published studies that show that traditional marketing is continuing to lose credibility. For example, in 2002, 78% of respondents in a survey said that ads are a good way to learn about a new product. In 2004, that number had dropped to 46%. In 2002, 14% of respondents agrees that companies generally tell the trust. As pathetic as 14% is, in 2004, it had declined even further – down to 7%. Social networking as a means of marketing overcomes this lack of consumer trust because it relies on the word of the consumer rather than the word of the producer. Research from Datamonitor reported that 85% of repondents in a survey indicated that word-of-mouth from friends, family, or colleagues is more trustworthy than corporate-generated content.

So how do you take advantage of social networking to sell more product? Simple – you open yourself up. You plant the seeds of a community to grow up around your site by using devices such as blogs, customer reviews, and forums to give a voice to your customers or prospective customers. The caveat is that you must be high quality. You must have high quality service and a high quality product. If not, avoid this marketing method.
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In “On Networking Groups – Part One”, I spoke briefly about the four types of networking groups. Now, let’s take a look at a category of networking groups.

One category that most people are familiar with is the Chamber Of Commerce. Chambers serve a long standing role in the business community. It is a role of development and support. A Chamber Of Commerce can offer business both small and large with networking opportunities, training programs, legislative assistance and a host of other benefits. A Chamber Of Commerce can be a local, statewide, national, or international organization with separate memberships for each. If you belong to an area Chamber of Commerce, you do not belong to a state or national Chamber. Each plays their own role in the business community.

Some Chambers of Commerce take more of a role in the community to influence policy while others might focus more on business development. Most of them however have a wealth of information for the member that goes unused by most.

For example, let’s say you have a business and you have a question about a city ordinance that relates to your business. Most often a Chamber of Commerce can provide you with the answer to your question. Each of them has a database of members that can often be accessed through some point. Usually computers are made available to members with databases that can be searched for information on other members.

When looking for networking opportunities within a Chamber Of Commerce, most people think only of leads groups or the common after hours. The reality is that any function hosted by a chamber of commerce holds opportunities for networking with other business owners and business leaders.

Chambers of Commerce generally have a yearly membership of several hundred dollars for an individual or company. There are various levels of membership that can be had. Most Chambers offer an executive level membership that includes exclusive meetings between a more elite level of business people. When looking for this type of prospect, you can often gain access to them by joining at this level. The problem you might have is actually paying for this level or attending the functions as they are provided.

I and many other experts on networking recommend anyone who networks to be a member of several groups. This should include a Chamber of Commerce. Keep this in mind when considering a Chamber of Commerce. If you are involved in your community in other business networking organizations like the Rotary Club, a local Merchant’s association, or smaller networking group, you might want to consider joining a Chamber of Commerce in another part of town. This will make you a part of that community as well and open the doors to increased prospects and opportunities.
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I have been trying to think about how I can talk about this subject and address it in a way that would be fair and balanced without injecting too much personal opinion and have decided to first talk about the types of groups and then later on be more specific. It is important to remember that you will have preferences that may not align with mine, but that each of us share a common goal in our networking. More business and possibly more friends.

So lets begin by analyzing the various types of groups. There are many different types of groups, but it is easier to categorize them by the meeting format rather than using individual categories like chambers of commerce or women’s groups.

Most groups fall under one of 4 main categories. These are Social Networking, Business Networking, Leads Groups and Networking with a Program.

Social Networking

Social networking is a part of our daily lives whether we realize it or not. Each time we attend any function that involves a group of people we are networking on a social level. Whether we are attending a charity event, going to a party at a friends house, going to a religious service, or attending an organized social networking event, we are in a networking environment.

In most cases a large part of participation in these groups is not related to business. However, there are always opportunities to meet people who could be or know prospective clients. When you attend these types of functions, it is advised to have some business cards in your pocket in case you meet someone else who is networking for their business, but remember that business networking is not the primary purpose of the function, so be very casual in the way you approach others about your business.

Social Networking Tip:

Never assume that any individual at these functions is not a good prospect for your business. You will find many opportunities there. It is just good to remember that people are there for many reasons and may not want to talk about business.

Business Networking

Believe it or not there are very few groups or organizations that are simply “business networking groups”. This category, for the purpose of our discussion is reserved for groups that do not have speakers or programs. An example of business networking would be similar to a chamber of commerce after hours. In business networking, you simply gather together with other business associates to talk about your businesses.

I find it much better to have a lot of time to talk to people about my business rather than have a brief period to talk and then have to sit down and listen to a program. This format enables you to really get to know people in the allotted amount of time. In some cases you can even do business with someone who you have met for the first time.

This format allows you to get to know people very well and sometimes helps to jump-start the relationship without having to meet for lunch or coffee at a later time. The only thing that makes this format difficult is if you are shy. For the shy individual it is sometimes not easy to just walk into a room and start talking to people they do not know.

Business Networking Tip:
Build a core contact group of people that you see at several different meetings. This will give you a broad base of contacts through these people as they are building their networks. Always get to know the “most popular people” in the room. They will often know most of the others and can help to expand your network quickly
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I am about to share with you something that I talk to people about a lot. It is focused networking.

In each business, we have a target market or the perfect prospect. If you have been in a particular business for any length of time, you should know what type of person or business owner falls into this category for you. If not, it is time to figure out who this might be.

In networking for business it is important to have a well rounded networking schedule. You should attend many different types of groups in order to reach a broad spectrum of people. If you only attend a business after hours, you may run into several people who provide the same product or service as you. In this environment, it is important to know what makes you different from them. In most cases this is not a company thing, but a personal thing. When you have reached the point that you can relate what makes you different, you will do very well in a competitive environment.
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