Marketing and Networking Both Have Their Place… But Don’t Confuse Them!

Service-providing business owners have many options when they decide to increase their revenues. They can work harder and… well… not at all smarter by taking on more and more work at low prices from clients who can’t afford them or they can be the superstars they want to be by getting the word out about their services and taking on just a few clients with handsome budgets.

Know the Difference Between Marketing and Networking If they decide to do the latter then, after patting themselves on the back for their good judgment, they have to get to work on that whole, “getting the word out” thing. Most of their efforts to promote themselves to the right people (you know, the ones with the full pockets) will fall into one of two promotional camps: Marketing or Networking. Both are extremely effective ways of generating business but the confusion behind their differences often creates an ocean of missed opportunity as business owners focus on one approach only.

Marketing

Marketing is best described as the forthright, open and insistent act of promoting and selling your goods or services. The most important words to pick out of this definition are “promoting” and, “selling.” Both of these words describe a process of proactively presenting your services and asking potential clients for a sale. When you think of marketing, think about that kid who tugs on his mom’s shirt begging for a cookie over and over. While your marketing efforts should not involve any slap-worthy behavior, they should make your desire just as clear as that child’s sugar addiction is. Some of the activities you might take part in when marketing your product or business are:

Cold calling: calling potential clients whom you do not know to introduce your service.
Direct mailings: mailing advertising materials directly to a potential client.
Direct emailing: same as direct mailing but an email goes to the potential client instead of a regular mail advertisement.
Buying ad space: this includes buying banner space online or ad space in a publication or phone book.

In each of these examples you are doing nothing more than displaying the message that you are “For Hire” and asking for the sale. Well, maybe you are doing something more because you are, hopefully, getting clients. But you are being very clear about your desire for them and sometimes, that’s not the best method.

Networking

Networking is a lower-key activity than marketing and the difference is similar to the difference between meeting a potential mate at a friend’s party and meeting him (or her) at a speed dating event. At your friend’s party, neither one of you is there to advertise your availability. You simply meet, start a small conversation, find out that you have something in common and possibly hit it off. When you meet a potential mate at a speed dating event, you know this person is there to find someone, to have a relationship, and to become involved. While marketing, like speed dating, is a fantastic way to attract some prospects, other prospects see it as desperate. Networking is a much more subtle approach to drumming up business since it really just describes a form of social interaction and communication within a group. You’ll notice there is no selling or promoting within that definition. When networking, you do not ask for the sale or promote your service. Instead, you participate and communicate within a set group of people. This interaction leads to your ability to establish yourself as an authority within the group. As you become a valued and trusted member of the group, it eventually leads to referrals and solicitations for work. Common groups to network in include:

Toastmasters
Industry and professional groups and gatherings
Twitter, Facebook or other social networking groups and meet-ups
Forums

One of the best aspects of networking is that it increases your value because not only are you valuable for the actual service you provide, you are also valuable to the people that you meet simply because they can recommend you to one of their associates which makes them look good. It’s like recommending a good book or movie to someone—the person who recommends something great receives intangible reputation benefits.

Any social gathering or professional group can be used for networking. In order for networking to work, it must not be confused with marketing. A professional, networking setting is not generally the appropriate place to “cold converse” with people and attempt to sell your services. Instead, you can mention them if they come up or are relevant to a conversation, but in a factual manner rather than a sales manner.

Yolander Prinzel is a finance and insurance writer as well as a series 7, 66 and 2-15 licensed financial representative. During her decade of financial industry experience she has been an insurance agency director of marketing and director of operations, a life insurance underwriter, and a trading service specialist for Raymond James Financial Services. She was a featured speaker at the 2006 Hartford National Sales Conference and the 2006 Brookstreet Securities Annual Conference. Her e-book for freelance writers, “You’ve Found Your Specialty—Now What? Tips and tricks to finding and scoring clients while making a living writing what you know” is available on her website.