I just ran across a good e-book on word of mouth that I definitely think is worth a read. The book is called the Word of Mouth Manual by Dave Balter and is available free as a downloadable here. You can also buy a hardcopy version of the book from Amazon.

The process of word-of-mouth marketing and networking are, in many ways, inextricably tied. I teach people how to network to build visibility and credibility in order to generate referrals (word of mouth). Although this book doesn’t really talk about networking, it thoroughly covers the process of word of mouth, primarily from an advertising and marketing perspective. However, it offers several valuable insights for both networking and word of mouth.

Here are a few key points from the book:

• There is a growing emergence of the “shared collective experience.” People love to share their experiences–good, bad, and otherwise.

• What is a word-of-mouth conversation actually worth monetarily? One study says it’s “worth 1,000 times more than a standard ad impression” (arguably a high estimate). Dave offers a formula on page 33 that is worth consideration.

• “From the outside, word of mouth seems like an awfully easy channel to tap into . . . But the reality is that the power of the medium is affected by the most subtle of social norms. It’s about how we talk to each other and what makes us willing to share our opinions, which makes it a more flexible and fluid medium than any other.”

I don’t completely agree with the comments about word of mouth and cultural differences. Often people point to the fact that every culture is different and, therefore, there are concerns about “word of mouth” transcending cultural differences.

In my opinion, what is generally overlooked is that word of mouth in different countries doesn’t happen outside the cultural context; it happens inside the cultural context. Cultural differences become an issue when Americans are trying to work with Brits, Brits are trying to work with Scandinavians, Scandinavians with Malaysians or Malaysians with Australians, etc. But word of mouth tends to work well when it happens primarily within a specific cultural context (There’s a whole blog I can do on this subject!).

Suffice it to say that I’m not in complete agreement with Balter on this issue, but I completely recommend the book as a valuable read to anyone who wants to build his or her business through word of mouth.

I have a series of surveys on networking up at my company website. One of them asks, “What is your primary objective for networking?” I have to admit I’m a little surprised that 75 percent of the responses were for “new business” (see below). I would have guessed that would be the largest percentage, but I didn’t expect it to be that high.

I understand that most entrepreneurs and salespeople network to some extent for all three reasons (new business, education, career advancement), but I didn’t realize that most networked primarily for new business.

What are your thoughts about networking for new business, education or career advancement?

Over the past few months, I’ve been doing quite a bit of research about online networking. And the more I read (and work on the net), the more I realize that if you’re in business today, you definitely need to be on the net (in addition to good, old-fashioned, face-to-face networking)! The problem is, an entire technology, vocabulary, culture and marketplace have been born in only a few short years. This has left many business owners at a loss about what to do and how to do it when it relates to the internet and their business.

If you’re finding it hard to grasp ways to utilize the net to network your business, spend some time checking out social networking sites (particularly business-related ones such as Ecademy.com and LinkedIn), along with various bulletin board and chat room communities. These sites and communities allow people to connect on a regular basis, exchange information and ideas, and get to know one another a little better. By browsing through some of these sites, you’ll get an idea of how others are using the net to build social capital and promote their businesses, and you’ll no doubt come up with some ideas of how to do the same for yourself.

The internet flattens the communication hierarchy while broadening people’s access to ideas, information, products and services. Understanding how to network on the net is quickly becoming a must. I’d recommend starting out by Googling “social networking sites”–and then start clicking!

While reading an older edition of an online newsletter affiliated with my networking organization, I ran across an article that stood out to me because it creatively compares networking to swimming and gives some useful advice on how to network successfully at events. Michael Goldberg, the author of the article, is a speaker and writer who founded his own consulting business. I’ve paraphrased his 12 very simple rules for successful networking (You may also CLICK HERE to read the full article).

1. Dress appropriately.
2. Always equip yourself with business cards and a pen.
3. Network only–no selling allowed.
4. Be prepared to ask questions–about them.
5. Greet and introduce others with passion.
6. If there is a connection, ask for his or her business card.
7. Hand out your business card (when asked).
8. Have a buddy system, and help others.
9. Know your purpose, and only share it when asked.
10. Spend more time listening, and less time talking
11. Know when the conversation is over, and mingle with others.
12. Make a friend (or two), and have fun.

To learn more about Michael, visit www.MichaelGoldbergspeaks.com.

Networking is simple; it’s just not easy. If it were easy, everyone would do it and do it well… and people don’t! This not a blog piece about the step-by-step process you need to employ to network effectively. No, this is to get you to stop and think about all the articles, books, blogs, podcasts and audios that you have read or listened to and aren’t following. This is an article to get you to stop and think about what you should be doing rather than what you know (or should know).

I do presentations around the world talking about how to apply networking to your everyday life. Sometimes I have someone come up to me and say, “I’ve heard people talk about some of those things before.”  Hearing it for a year versus doing it for a year are completely different things. Success is about the “doing,” not just the “knowing.” In fact, I believe that ignorance on fire is better than knowledge on ice! The only thing more powerful is knowledge on fire.

There are so many things in life that look simple but are, in fact, not easy. Cooking is one of those for me. It always looks so simple. My wife can go into the kitchen and put a gourmet meal together in 30 to 40 minutes. Then I get into the kitchen and burn water.

Small repairs around the house–these things look so simple. Then I pick up a hammer and, well, it’s just not pretty. That’s when I’m reminded that I’m missing the”handyman gene.” It skips a generation in my family. My dad can fix anything. He’s incredibly capable with a toolbox. I’m not. When I was 17 he brought me into the garage and solemnly said to me, “Son, you’d better go to college, because you’re never going to make a living with your hands!” Good advice, Dad. Thanks.

Golf. Looks simple, right? I’m not talking about professional competition, I mean just going out and smacking the ball around some grass. Looks simple. I’ve learned however, that it’s not easy.

There are so many things in our lives that look simple but are not easy. Networking is one of them. It’s a skill. A skill that takes commitment and effort to learn and apply consistently.

So I’m giving you an assignment (sorry, my inner professor is coming out). Your assignment after reading this blog today is to think of one idea in a book, article, recording–anything–that you’ve read or heard over the past year or so that you wanted to apply to your life but never got around to doing. Your assignment is to find that article, locate that “something” you wanted to do and do it within the next seven days. If it’s something you do on an ongoing basis, then find a way to incorporate it into your life and/or your business. All excuses are equal – just do it.

Success is the uncommon application of common knowledge. You have the knowledge. Now apply it with uncommon commitment. It won’t be easy. But I assure you it’s simple.

I was invited to a very unusual event recently. It was a meeting about “storytelling.” It was hosted by Peter Guber. Peter is an Academy Award-winning producer of movies, including Rain Man, The Color Purple and Batman. He is the past CEO of Sony Corp. and currently chairman and CEO of Mandalay Entertainment.

Peter is clearly passionate about the power of “story” and considers it the “secret sauce” that has enabled him to achieve his success. Consequently, he decided to create an opportunity for a diverse group of experts to come together to exchange ideas–be inspired, enlightened and enriched–but, most important, to share stories!

Peter invited about 16 people (including “yours truly”) along with individuals such as Warren Bennis–one of the world’s foremost experts on leadership; Keith Ferrazzi–author of “Never Eat Alone“; and Mark Victor Hansen–co-author of the “Chicken Soup for the Soul” series, as well as many other “storytellers” from various businesses, backgrounds and areas of expertise.

Effective storytelling is an important part of one’s emotional intelligence. I’ve always believed in using stories to make a point but never really gave a lot of thought to some of the “hows” and “whys” of their effectiveness. There were a number of “take-aways” for me from this meeting that I would like to share with you.

Storytelling is about tapping into a passion about some topic. It is about taking the listener to a place that is viceral, visual, concrete, emotional and possibly unexpected. One of the participants, Dr. Mark Goulston, said that “a story is a portable storage unit for one’s dreams, fears, hopes, humor and sorrows that people visit–or visits people–from time to time for them to stay in contact with their humanity.” [The group really liked this definition, and so did I.]

Mark Victor Hansen said that when the authors were working on the Chicken Soup series, they were looking for stories that gave or gave people:

• God bumps or goose bumps
• Happy tears
• A change in perception
• Weakness in the knees
• Change in your life

One of the best comments of the day came from Peter, who said, “what if” is more powerful than “how to” in a story. Very true, indeed. Getting people to think of the possible rather than simply look at the present can truly help make a great story.

After spending an entire day talking about what it takes to make a good story, I verified the fact that it is very difficult to describe to someone “how” to tell a good story. However, you sure know one when you hear it!

The number one thing entrepreneurs need to remember relating to networking is that people who take the time to build their social capital are the ones who will have new business referred to them over and over again. Based on a survey of more than 2,000 business profesionals (published in Masters of Networking), master networkers possess the traits listed below (ranked in order of descending importance). If you follow their example, you will master the art of networking, as well.

1. Follows up on referrals
2. Has a positive attitude
3. Is enthusiastic/motivated
4. Is trustworthy
5. Has good listening skills
6. Networks always
7. Thanks people
8. Enjoys helping others
9. Is sincere
10. Works his or her network

See a trend with these 10 points? They all tie in to long-term relationship building, not to stalking prey for the big kill. The key is to build mutually beneficial business relationships. Only then will you succeed as a master networker.

While attending the Kuala Lumpur Global Networking Conference for BNI in Malaysia last week, I heard a presentation that really resonated with me. The presentation was given by Penny Power, founder of Ecademy.com. Penny is not only an extremely knowledgeable and successful entrepreneur but also a good friend of mine.

Penny’s presentation focused on the concept of entrepreneurs “staying in their flame.” She explained that an entrepreneur’s “flame” is where he or she is the most passionate and excited about his or her business and where he or she truly enjoys what he or she is doing. When an entrepreneur is in his or her flame, work doesn’t really seem like work and the entrepreneur perceives his or her tasks as effortless. If entrepreneurs are able to focus on the aspects of business which keep them within their flame, it allows them to achieve their best.

On the flip side, Penny explained that entrepreneurs  can get caught up in aspects of business that don’t come naturally to them and that they aren’t good at. Working their way through such tasks takes away their energy and leaves them exhausted and devoid of passion. Entrepreneurs  stuck in this situation are “working in their wax,” and they are not nurturing their full potential or doing what will allow them to thrive.

The solution to this problem is that “your wax is someone else’s flame.” In other words, your weakness is someone else’s strength, someone else’s passion. As your business grows, the key to staying in your flame is to delegate the things you don’t like or aren’t good at to employees who actually enjoy doing those tasks and are great at them. Learn to recognize what kind of work keeps you in your flame and what kind of work keeps your employees in their flame because, as Penny says, “flamework” is infectious!

I’m aware that it’s not just the networking die-hards who may be reading my blog, and I wanted to post something that I think is very important for networking newbies. (Don’t worry, it’s a good refresher for you die-hards as well.) When you’re just starting out in the networking world, finding a networking group can sometimes be intimidating and confusing, but it really doesn’t have to be. For those of you looking to join a networking group, here are some networking group basics.

There are at least seven types of business networking organizations to consider joining to develop your business through networking. Depending on your time constraints, you should select at least two or three groups to participate in. There are:

• Casual contact networks. These allow many people from overlapping professions and meet monthly.
• Strong contact networks. Their primary purpose is exchanging referrals. They meet weekly.
• Community service clubs. They provide an opportunity to give back to the community you do business in while making contacts and getting PR.
• Professional associations. They tend to focus on one specific industry. The primary purpose is to exchange information and ideas)
• Social/business organizations. They combine social activities with business or networking.
• Online networks. Includes groups such as Ecademy, LinkedIn and Ryze, which are social networks for businesses.
• Women’s business organizations. They are non-threatening groups for women to increase business. Many also allow men.

Don’t let chance decide where you’re going to spend your time and effort. Diversify your activities and consciously select a well-rounded mix of organizations. If you have associates, partners or employees, consider their participation when deciding which groups each of you will target.

I am attending the Global Networking Conference in Kuala Lumpur, Malaysia, this week. Roughly 550 people from more than 22 countries are attending the event. It has convinced me that “thinking globally and acting locally” is no longer true for entrepreneurs. We are living in a global economy, and it is becoming easier and easier to do business around the world.

When a local dentist can give an international referral, you know this is true.

This is a great video showing the power of networking in a global community!