Forget Facebook: NorthBay biz takes a look at Business Networks International, a face-to-face social networking institution that has a strong (and still growing) Bay Area presence.
The success of this networking phenomenon, which last year alone yielded 5.6 million referrals and generated $2.3 billion worldwide—more than 75,000 referrals and close to $50 million in business here in the Bay Area—is grounded in basic principles of successful human relations. To find out how BNI works, we asked Dawn Lyons, franchise owner of BNI San Francisco Bay, whom members describe as “amazing,” “charismatic,” “inspirational” and an “incredible speaker.” She was eager to talk about BNI when we caught up with her between speaking engagements in Australia and meetings in the Bay Area and Los Angeles. “BNI provides an environment of 20 to 55 like-minded members per chapter who want to help others grow their business,” she explains. “If they’re willing to help others become more successful by operating under our philosophy of ‘Givers Gain,’ then they, too, will achieve much, much more. It’s a simple concept that, when executed, works for all cultures worldwide.”
Getting to know you
“What keeps me in BNI is the relationships,” says Kathleen Horvath, a classically trained feng shui consultant and member of BNI by the Bay in Mill Valley. Horvath, like Lyons, seems always on the move, extolling the virtues of BNI as she speeds up and down Highway 101. A self-described “detective of space,” Horvath says she used her best intuition to find just the right chapter. BNI chapters only allow one member from any given profession to avoid competition. Beyond that, though, Horvath explains, the mix in each chapter is important. For example, in some chapters she visited, she didn’t find a sensitivity to what feng shui is. In one, an interior decorator considered her competition, so she wasn’t invited in. She finally found her networking home in the Mill Valley BNI. “They have health and wellness people—a chiropractor, a massage therapist, an acupuncturist, a nutritionist, even a sex therapist—and all of those people end up cross-referring to each other automatically.”
“It’s a lifeline,” says Mirjam de Rijk, a realtor and president of the Wine Country Connections BNI chapter in Santa Rosa. “The whole economic meltdown redefined so many industries, and pretty much everybody is in uncharted territory,” she says. For her, networking was an obvious response. Early on, she tried forming a networking group on her own, in a casual way, with meetings for lunch, “but it didn’t pan out.” She came to realize it was better to become part of BNI. “BNI is a smart way of working. The whole business network is a very smart thing to do. It’s part of the whole mix,” she says.
In her business, she continues, referrals are a matter of trust. “Say I refer my contractor to one of my clients, I’ll be following up on that. I put my name behind them when I promote them,” she says. “You want to be able to depend on the group, and BNI has a code of ethics. If you don’t abide by the ethics, your seat may be opened.”
“I’d never say this is a support group,” says Sue Markwood, a lively, bright woman who’s vice president of Napa Valley Networkers and a Mary Kay Skin Care consultant, “but I feel the support.” The comment, made during an informal chat with her BNI comember, Tracy Calkins of Mechanics Bank in Napa, is notable, as Markwood seems, to an observer, to always be supporting others. But perhaps that’s the BNI way. “As soon as you give, they want to give back,” says Calkins. “And what you give comes back to you tenfold,” Markwood says with a smile.
Think a moment: All this enthusiasm is about business—making connections. But when you look a little deeper, the excitement you see in BNI members stems from their learning and mastering a basic business premise: that the best marketing is word-of-mouth networking, and genuine networking is about creating and maintaining relationships. It’s Human Relations 101. It’s good for the soul and it’s good for business. So how does it work?
The proof is in the meeting
As members describe it, BNI teaches a whole way of working and relating to people—and they’re eager to share. “Visitors are so welcome at our chapter, they’re not just greeted by our members, they’re intercepted,” laughs “The Techno Wizard” Sam Slaughter, president of Napa Valley Networkers. You have to see it in action, he says; the best way to understand BNI is to go to a meeting.
It’s 7:30 on a chilly Napa morning. I’m at Downtown Joe’s, the restaurant on the river with the great, wide windows through which the Third Street Bridge etches itself into the fog in much the same way mornings creep in on a sleepy mind. Around the room, amid the aroma of sausages and coffee and the clinking of cups and cutlery, are well-dressed, nametagged BNI members chatting animatedly and exchanging cards and literature. Who are all these wide-awake people?
There’s no chance to wonder, as I’m immediately “intercepted,” greeted and swept into the group. I make it clear I’m only there to observe, and that’s perfectly fine. Someone pours coffee, we exchange whatever pleasantries we can at that hour, and then, mercifully, we all take our seats. Ah, now will come the boring part, I think, the long-winded introduction, where we can snooze behind open eyes and awake gradually to the action at hand.
No chance. Suddenly everyone is rising. They begin repeating in unison a pledge of allegiance—not to the flag, but to their code of business ethics: “I will provide the quality of services at the prices I have quoted. I will be truthful with members and their referrals. I will build good will and trust among members and their referrals. I will take responsibility for following up on the referrals I have received. I will live up to the ethical standards of my profession. I will display a positive and supportive attitude.” Applause.
Sitting down, I notice everyone is smiling. The people here seem genuinely at ease with each other.
The “elevator pitch” in practice
It’s said that, if you can’t sell your product or idea in the 30 seconds it takes an elevator to move between floors, you’re not going to make the sale. As part of the regular BNI meeting format, each member presents 30-second “infomercials,” and it’s obvious as these begin that BNI members are practiced to perfection with their pitches. Each person who gets up to speak is not only confident, organized, focused and concise, but has clearly given thought to entertaining, informing or offering some tip or another to the group before a chime rings and they slide into home plate with, “If you or someone you know is looking for…”
Marilyn Barnes, member of the mentor committee and owner of Hired Hands Homecare, gives a brief story showing how background checks of homecare workers is vital to the health of your loved ones. So, “if you or anyone you know is looking for home health care,” just know she’s there to help.
Bob Annick, a sales specialist from the BNI By the Bay in Mill Valley, who would later be giving a presentation, opens with a story that has everyone laughing: “Visualize this,” he says. “A house is completely burned down; the only thing standing is the frame of the front door. There’s mom standing there, hair frazzled, soot all over, holding on to her little child, her little Raggedy Ann doll almost completely burned. Then here comes Dad walking up the street. He has his tie all to one side, his jacket half off and his briefcase with samples spilling out. Dad is obviously a sales guy. And as he approaches, he looks at the wife and says, ‘Before you start, let me tell you about the day I had!’” Everybody laughs.
Annick explains that salespeople often get “beaten up every day by clients and prospects, and a frequently need to vent their frustration regardless of the circumstances.” He says his Winners Circle Sales Training Program is designed to reduce the stress by using one simple principle: “Ask, don’t tell. Then listen.” This supports the BNI principle that, “you don’t ask for something until you’ve given as much as you can.” That makes the process enjoyable. As Slaughter says, “Promoting your business doesn’t have to be an unpleasant task. It can be fun!”
The 30-second presentations show it’s possible to not just enjoy, but to learn something useful from a sales pitch. At the end of the round, I’m fully alert and involved in each person’s presentation—and their business. The second part of the program, also part of the BNI structure, ramps up the learning and the involvement. At each meeting, two people—in this case, Markwood and Dr. Timothy Yates of Yates Chiropractic—each give a 10-minute presentation about their work. Along with describing what they do, they each offer tips you can use, whether or not you plan to avail yourself of their services. Markwood reminds us that, “There’s no second chance for a good first impression. So, if you wear leather shoes, have them polished!” She also directs members to an intriguing feature on her website, where people can load their picture and then “try on” different hair styles and (for women) make-up tones. She wraps up her presentation with, “when you look and feel your absolute best, it’s so much easier to handle the rest.”
Dr. Yates, standing with his plastic demonstration spine at his side, explains the mysteries of chiropractic medicine and why his service is different. “Chiropractic promotes health naturally,” he says. “The purpose of care is to restore and maintain the health of the whole person. When a person comes in for treatment, that’s not just an elbow to me.” Laughter.
Yates concludes his talk with a pitch for BNI: “BNI is my base hit,” he says. “It’s not the only thing I do, but it’s the consistent thing I do.” He grins at the group. “You’re my target market. If I can help you maintain and do what you need to do, that’s my ‘cheese.’”
There’s hearty applause for both speakers, and then it’s time for another regular feature of the BNI agenda: the testimonials. There are several for Dr. Yates.
Dusty Kramer, whose business is art sales, calls him the nose-to-toes guy.” Another BNI member says, “You don’t just come in, lay down and get hammered. He really does come in and talk to you.” Optometrist Dr. Craig Sultan of The Eye Works in Napa gets a laugh when he says, “Dr. Yates helped me when I had one of these old guy moments and couldn’t get out of a chair. Then I couldn’t reach for my wallet,” he pauses. “His office helped me do that.” Laughter and applause.
Home inspector Dean Alm praises photographer Cristophe Genty for his fine volunteer work, which he witnessed at the 13th annual Benefit of the Napa Chamber of Commerce golf tournament. Realtor Wendy Lynch also praises Genty for his fine work. She qualifies herself—and increases the value of her referral—by saying she has a background in marketing and would recommend him to anyone.
Finally, the three visitors are invited to stand up and offer their comments. All, while admitting they’re not prospective members, are complimentary in their review of the meeting. One compares the meeting to Toastmasters: “I feel this group has it together. Takes it seriously, moves it along.”
The structure holds up
In BNI, certain rules rule. Meetings are once a week, last 1.5 hours and attendance is vital to success—if you miss more that six meetings in six months, you may be let go from your chapter. This is because commitment, follow-through and regular maintenance are crucial to developing successful business networking skills. As new members are inducted into the chapter, its code of ethics is stated and members are reminded that it’s their responsibility to be a positive and supportive member. The meetings, all around the world, abide by the same agenda—the welcome, the round of 30- to 60-second infomercials, the 10-minute talks, an educational component and then an updating on networking events. There’s also a tracking of the number of referrals, testimonials and thanks for closed deals. Visitors are welcome to view a BNI meeting, so long as their professional category is open in their chosen group. If their category isn’t open, they may be referred to another local chapter (BNI only allows one person per profession in each chapter). “BNI lets you work within a structured environment that will create credibility and profitability,” says Lyons. “And that’s when people refer you.”
Lyons elaborates on the requirements and benefits of BNI. “We’re the only referral organization that requires members to attend a member success program (MSP),” she says. “It trains our members on how to best promote their businesses, they’re given tools to refer the other members of the chapter, and the chapter keeps documented records of all the referrals that are passed within the group and how much revenue is generated from them. These are all very tangible items we’re extremely proud of within BNI.”
The genius in the background
BNI was founded in 1985 by Ivan Misner, Ph.D., a best-selling author who theorizes that business networking is like any social relationship; it thrives only where there’s reciprocity, maintenance and trust. After conceptualizing the BNI structure, Misner fine-tuned then franchised it. Today, there are BNI meetings in more than three dozen countries—more that 115,000 members worldwide.
“He figured out more than 20 years ago that meetings should be once a week, every week and should follow a certain agenda,” says de Rijk. “That idea took on a life on its own, and Misner has taken business networking to another level. So there’s a whole educational system behind it.”
“The great thing about BNI is we’re a franchise organization; therefore, the structure is the same wherever you go,” says Lyons. “The San Francisco Bay Area BNI region has a team of 28 assistant directors to help us cover 80 chapters with an average chapter size of 28 people.” The Bay Area region is constantly winning awards for enrollment. “We focus on high-level training,” she says. “Our members are thoroughly trained and have opportunities to receive additional training from the Referral Institute, which Dr. Misner also founded.” The Referral Institute, an international franchise company with locations in more than 50 regions worldwide, is an outgrowth of BNI. Lyons explains that the Referral Institute enhances the mission of BNI, offering more intensive information and training on networking. So the two companies operate in harmony. Lyons says it’s not necessary to be a member of BNI to be involved in the Referral Institute, but “most people find that it just makes sense.”
Trust is a key concept
Trust is a vital part of the BNI code. After the meeting at Downtown Joe’s, Slaughter explains that, when people refer your business, they’re putting their own reputations on the line. “So it’s important to know your fellow members, so you can refer them with confidence. The longer you’re in [the group], the stronger your relationships.” The network becomes like family, adds Tracy Calkins: “‘Givers Gain’ is your communication to that person that, ‘I trust you enough to share this card.’”
“When you join a BNI group,” says de Rijk, “you don’t automatically get referrals. You need to build trust. You build trust by following up with your referrals. For me, 80 percent of my business is through referrals.” Through their training, BNI members learn not only to give, but to qualify referrals.
“Say one of my chapter partners gave me a referral to a woman whose husband is a big developer,” says Kathleen Horvath, explaining that, even though a referral sounds fantastic, she still has to do some evaluating. “I’d write back and say thanks for the referral, then I’d ask, ‘Is she expecting my call? And ‘How much does she know about feng shui?’ That way, I can decide how best to communicate with her,” she says. “That’s how I’m finding I can use BNI to build my business with lifelong clients.”
The Givers Gain philosophy distinguishes itself from other forms of reciprocity (“You scratch my back, I’ll scratch yours”), says regional director for the Bay Area BNI Trey McAlister, in that BNI members come at it from, “I’ll give to you before I expect anything back.”
Dawn Lyons gets the last word. “Today, people are still doing business,” she says. “The only question is, ‘Is that business coming to you or not?’ Is someone in your industry producing results even in this economic climate? I’ve never heard a ‘No’ to that question. So if that’s the case, then the next question is, ‘Will it be you?’
“In spite of a difficult business environment, our BNI regions continue to experience double digit growth. I attribute this to all the successful business owners who get serious about their networking, learn the proper techniques to do it well and then implement that at their weekly BNI meetings. It’s not luck, it’s work—and it’s 100 percent worth it. Seeing and hearing so many business owners say that 23 percent, 42 percent, 88 percent of their business comes from BNI, or that they were going to have to close their doors if it wasn’t for BNI, that fires me up!”
Young Professionals Network: Beyond the Electric
Those who say networking for the post baby boomer set is just an online thing should come to a local meeting of the Young Professionals Network (YPN) organization. Started two years ago by the Santa Rosa Chamber of Commerce with the goal of reaching about 100 people, YPN’s roster of members ages 21 to 40 (approximately) has now reached 400. Kelly Bass, marketing and public manager for the Santa Rosa Chamber of Commerce, explains the huge response is as an indication of a need on the part of those just starting to build their business foundations for face-to-face contact with already established business leaders. This upcoming generation understands it needs more than online networking to cultivate the friendships that will help their businesses grow. “We’re not there to help people make sales,” says Bass, “but to help people make friendships [and] to offer the opportunity to know people who’ve been in the business community for a long time.”
