When you're growing your business and you start looking around at the different groups you can get involved in, you'll see some clear differences. Some are focused on expanding your network. Others are focused on deepening relationships you already have.
So how are you supposed to tell the difference — and more importantly, how do you know which one is the right choice for your business?
Growing a Business Is a Challenge
For all my focus on networking and referrals as a path to growth, it sometimes seems like it should be easy. Just get out there and meet people. But like almost everything, there's nuance to actually getting the job done. There's a subtle but important difference between networking and relationship-building, and as you start to grow your network, you'll really see that play out.
The bottom line: networking groups are typically more events-based and are perfect opportunities to meet new people. Relationship groups (often called referral groups) are smaller, focused on group connections, and meant to develop deep connections between you and the other members.
That's the high level. Now the details.
Networking Groups
- Tend to focus on events
- The primary goal is meeting new people and expanding the network
- You'll rekindle connections and deepen relationships too, but that tends to be secondary
- You want to maximize your time at these events — don't get locked into long conversations
- Save the longer follow-up conversations for 1-on-1s afterward
- Follow-up is everything
Pro tip:Set a goal for the number of new connections you want to walk away from each event with. Three to five solid new contacts is a great target. Anything more and you're probably not going deep enough on each one.
Relationship (Referral) Groups
- All about getting to know a smaller group of people really well
- Typically limited to 10–20 people in the room at a time
- Often industry-exclusive (one realtor, one CPA, one attorney, etc.)
- If you put the work in, more of your referrals will start coming from the people you've gotten to know in these groups
Pro tip:Don't skimp on the 1-on-1s. The group meeting is the surface. The 1-on-1s are where the actual relationships get built.
Hybrid Groups
There are some hybrid groups that combine both models. They mix large-format networking events with smaller, more intimate group meetings. Most hybrids do one of the two better than the other — figure out which one you actually need, and lean into the side that delivers it.
So Which One Should You Pick?
Depends on where you are. If you're new in your market or just starting out, you probably need volume — get into networking groups, meet a lot of people, build the top of your funnel. If you've been at this a while and you've got a base of contacts but nobody's sending you business, you probably need depth — find a good referral group, do the 1-on-1s, build the relationships.
Most people end up in some mix of both over time, and that's fine. Just don't mistake activity for results. Showing up to events isn't the same as building a network. The relationships are where the business comes from.