If a significant proportion of your business stems from referrals or word of mouth, then business networking is something you should be involved in.  Business Network International is an organisation that specifically assists its members to find and exchange qualified business referrals for each other and develop word-of-mouth marketing techniques.  BNI currently has 36 chapters (groups) and almost 700 members in Melbourne, with 149 unique businesses represented.  A chapter for businesses in Werribee, Hoppers Crossing, Point Cook and Wyndhamvale is currently getting off the ground. 

The focus is in training a sales force (other business owners) to generate referrals for you, and follows a structured weekly meeting:

• Everyone shares a verbal 60-second commercial each week about who their ideal referral is.
• A short education / training session.
• One person has a 10 minute presentation each week to go more in depth about their business.
• Members are encouraged to meet with each other once a week to learn about their businesses.
• Once you join, your competitors are not permitted to be involved in your chapter.  (For example, if you a physiotherapist, no other physiotherapist can join that group.)
• You can share your attendance between various staff members in your business.

I recently had the opportunity to interview David Byers, Director of BNI Melbourne, about the group.

Thanks for your time David.  I'm interested in how the BNI concept differs from other Networking groups, like the Local Chamber of Commerce Events or Biznet, that are out there?

DB: Good question, and one we get asked a lot. We believe that you don't get business just because of who you are or what you do or how well others know you, you get business based on trust. In BNI, we have put together a structure and meeting format that is designed to build trust and knowledge of the other members businesses. It's based on that trust that the referrals start to come. 

Unlike networking functions where the focus is on passing out business cards to as many of the others in the room as possible and then waiting for them to call you the next day, the BNI process is around farming for business, not hunting. By getting our members to build the relationships between each other over time, the trust that builds up generates long term business for everyone.

How long does it take to see a return on investment and what's typical for my industry?

DB: A tricky question, and one that really depends on what people do. Let me give a couple of examples. Firstly, let's take a florist. If I was to give a referral to a florist in my chapter and it didn't work out, the worst case scenario is that the person I sent the flowers to would never get them, or not like them. The loss or damage to me is probably not that great.

However, if I was to recommend a financial planner to my infirm mother and the fund was mis-managed, that would be a problem. As well as having my mother come to live with me and having to look after her, the family inheritance will be lost. Even though it wasn't me that lost the family inheritance, the family would probably still blame me for the situation, because it was me that recommended the financial planner.

And herein lies the dilemma most of us face: how do we get to know others well enough to be comfortable passing referrals to them? It always amazes me when we get a new chapter started and people who have known each other for 10, 15, 20 years in an area join and start to focus on business, realise just how little they knew about each others businesses. So, to answer the question, the length of time it takes to see a return on investment depends on the type of business and the person.

What sort of businesses do well out of the group?

DB: It depends.  Last year one businesswoman had obtained a business referral worth $204,000 through the group.  We have some members who consistently receive between 40% and 80% of their new work from the word of mouth referrals from fellow chapter members. 

As far as the networking and referral group in Werribee is concerned, we  currently have applications from a graphic designer, web designer, marketing consultant, accountant, bookkeeper, life coach, sign writer, conference venue, and acupuncture provider.  However, realistically, we need 3x as many businesses to assist with getting the group up and going.  There is a full list available from the BNI Website.

What's the most "unique" business that is a member of BNI?

DB: Interesting question. Until recently we had two pole dancers.  Now, before you get the wrong idea, the two women involved ran it as a party plan, there was no stripping involved and no men were allowed in the room.  

Can home based businesses, and people just starting out in business, join the group? 

DB: Yes to both questions, although with a qualifier.  There are a lot of businesses out there that operate from homes, and I believe it takes a lot of organisation to run a business from home.  There's a lot more needed than just setting up a computer in the spare room.  It's also quite incredible just how big some home based businesses are - I've learnt to stop trying to estimate the success or otherwise of a BNI member just because they operate from home or fancy commercial premises. 

And yes to the just starting out part of your question, although we need to be careful that we don't take on too many brand new businesses as members.  In fairness to the small to medium businesses that join, we don't want to fill chapters up with too many micro businesses that only have one or two clients.  A BNI chapter works best when there's a mix of business types and ages.  However, having said that, in the end it comes down to attitude.  A micro business operator with a giving attitude will contribute more than a large business who wants to receive work and is reluctant to give referrals.

How can someone interested in the group get started?  

DB: The best way to get started is to visit an existing chapter.  I've been told that trying to explain too much about BNI over the phone or in person is a bit like trying to give someone a hair cut over the phone: you really need to be there to get the experience. 

My suggestion is that you visit either the BNI Essendon chapter or the BNI Kensington chapter and sit through a meeting as a guest. 

Full details on how to find the chapters can be found on the BNI web site (www.bni.com.au), then go to Find Your Local Chapter, click on Victoria, then Melbourne West and then click on the chapter you want to visit and the details of where, when and what time they meet will show.

Thanks for your time David.

DB: Thanks for the opportunity.  I hope to meet some of your readers at the group sometime.