Entrepreneurs using the Web to get well connected

Even though there are more than six billion people living on planet Earth, the world is actually a very small place. At least, that’s the premise of what some say is the Internet’s “next big thing” – online networking. Based on the idea that it’s not what you know but who you know, free online networking sites have sprung up quickly over the past year.

by Shannon Scully

http://www.mybusinessmag.com/fullstory.php3?sid=1016

Each site has its own unique set of applications, but all are aiming to become your virtual good-ole-boy network. And they all especially have their sites set on small-business owners.

Most work this way: A colleague sends an e-mail invitation inviting you to join a group, or you register without an invite. After a quick online application, you’re in. Now it’s up to you to invite your trusted contacts to join, who in turn invite their colleagues, who invite theirs and so on. Soon you’ve built a network based not only on your contacts, but on your contacts’ contacts as well. The theory is that you’ll turn to this trusted group next time you need a vendor referral, a new employee or just basic business advice. You’ll also hope those in your network think of you first if they need a service or good your business provides.

“Small-business owners don’t have a big brand behind them, so they’re using the network more than those at large companies,” says Konstantin Guericke, vice president of marketing at LinkedIn.com, a networking site launched in August 2003 that currently has almost 400,000 members.

“If you’re IBM, and you’re calling a potential partner, people are going to pick up the phone and talk to you, because you’re IBM,” says Guericke. “But if you’re XYZ company, and you’re trying to call someone at IBM, you’re probably not going to get through.”

Unless, that is, you found in your network a friend of a friend who knows someone at IBM. Then, you’re golden.

Take My Advice
Bootstrapping is an understatement when LeeAundra Temescu describes how she started her communication consulting firm one year ago.

“I was bartering for everything,” says Temescu, owner of The Contrary Public Speaker
(http://www.thecontrarypublicspeaker.com), and author of a book by the same name.

A friend recommended she join Ryze, one of the oldest online networks that got its start in San Francisco three years ago. Low on cash and desperate to get the word out about her firm that teaches clients professional speaking and presentation skills, Temescu created a profile for her business on Ryze.

“Dollar for dollar, it’s one of the cheapest ways to market yourself and get your name out there,” says Temescu, who credits the site for scoring her clients from as far away as India, a place she’d never reach through her own marketing efforts. “Even if you’re only going to get one or two customers out of it, why not do it? It’s so cheap.”

In the early days of her business, Temescu needed basic advice almost as much as she needed clients. For instance, she wanted business cards but didn’t have a big budget. Staring at a massive Los Angeles Yellow Pages book, Temescu had no idea how to find the most affordable printer.

“I went to Ryze and my contacts there helped me find the vendors I needed,” says Temescu, who now facilitates an 800-member discussion group on Ryze about public speaking. “I found a place to print my business cards and a firm to optimize my Web site. When I was just starting out, this source of information and intelligence was incredible for me to have.”

Paola Miranda also looks to her online network when she needs help at Prestige Maid Service, a Tampa-based cleaning business she started a little less than a year ago. Before becoming a business owner, Miranda was in the apparel sales industry, which is where she first learned about the Tampa Bay Business (TBB) Group, a listserv with 200 members who own small businesses in the Tampa Bay area. Listservs are basically message boards that allow large numbers of people with similar interests to have conversations without having to send e-mails.

Recently, Miranda was looking for rates on health insurance for her six employees.

Within hours of posting a message to the group, she had an affordable quote from a fellow TBB member.

Miranda has never met anyone from her network in person. So why does she trust their recommendations about something as important as health insurance?

“We’re all in the same boat,” says Miranda, who likes the online group because she says she doesn’t have time to attend traditional networking events. “Someone who just sends you a spam e-mail about a product or service has no idea about your situation. But people in this group are very familiar with my business. They’re all working hard and striving to get their companies to the next level just like me.

Ken Toren also turned to virtual strangers for advice when he started his San Jose, Calif.-based company in early 2003. As a member of LinkedIn, Toren found a half dozen contacts in related industries who offered him extremely helpful advice on everything from price points to industry trends and market research.

“Would I have found these people if not for Linked In? Probably not,” says Toren, co-founder of REDmedic (http://www.redmedic.com), which provides portable patient medical records for emergency medical situations through an online database.

Unlike some of the other services, LinkedIn uses an extensive gatekeeping mechanism that only allows users to contact those in their immediate network. If you want to reach someone who is separated from you by three degrees, then you must work your way through the line of connections, asking each person to pass your request onto the next until you reach your target. The site’s representatives say this legitimizes the contacts and assures high-level users they won’t be inundated with requests.

“That’s the beauty of these services,” says Toren. “You’re meeting people you haven’t met before, but you’re also leveraging all the contacts you already have.”

Learn to Share
Ken Toren lives an altruistic life. He never minds helping others, because he believes goodwill is reciprocated. “It’s always about giving and getting, not just in business, but in life in general,” says Toren. “I know the odds are I’ll get more in return if I give something.”

The fundamental concept of traditional networking — the you-scratch-my-back-I’ll-scratch-yours mentality — is true in virtual networks as well. Online networking participants say you can’t join a group and expect to be flooded with new clients from the start. You have to offer something first.

“Being introduced to someone doesn’t mean you’re automatically going to give them your business,” says Howard Rheingold, a well-known online community expert and author of several best-selling books, including The Virtual Community, which he wrote in 1992. “What’s promising with these online networks is that there are message boards and chats. That’s where you’re going to get to know people.”

But spammers beware. Anyone accused of harassing fellow members can hang it up.

“It’s important not to sell yourself too much,” says Joanna Pineda, who founded the 5-year-old Matrix Group (http://www.matrixgroup.net), a Web design and development in Alexandria, Va. “It’s all about giving back and sharing knowledge. Along the way, others in the group get to know you and your business.”

Pineda participates in several industry-specific online communities. She recommends joining groups your clients are likely to be involved in. Since her 28-employee firm targets non-profits, Pineda makes a point to participate in online networks for like-minded associations. “That way, we’re seen as a part of the community, and not just a vendor or supplier.”

Pineda was scanning the message board of one of these groups a few years ago when she noticed a post from a member who was looking to hire a medium-sized design shop. Pineda knew her company was the perfect fit. But instead of contacting the potential client immediately, she asked a few customers who were members of the same network to put in a good word for the Matrix Group.

After her clients sent ringing endorsements, Pineda contacted the company to introduce herself. “It was enough to get our foot in the door, and we got the $75,000 account, which is pretty big for us. I never would have gotten the business if I hadn’t been a part of the group.”

Pineda won’t pretend online networking doesn’t eat up valuable time. But the connections she makes are worth enough to sacrifice a few precious minutes out of this small-business owner’s day. “Your traditional networking group might meet for breakfast once a month. But online is everyday.

“Sure, I have ten-thousand other things to be doing, but not being a part of these online groups is too much of a flag nowadays. A few years ago, it would have been like not attending a certain trade show or being listed in a certain directory. Not participating is not optional now.”

Yet even though online networks allow members to communicate at any time of the day or night, Toren believes they’re still more time-friendly than traditional methods.

“It’s always good to be face-to-face, but that takes time, and it doesn’t always yield results. Online networking is a razor sharp way to find what you’re looking for.”

The Real Deal
No matter how good it makes us feel to help a colleague by offering advice or connecting them with someone you know, the real payoff of online networking is increased revenue to your own bottom line.

LeeAundra Temescu can point to several clients she wouldn’t have gotten without Ryze.

“The real value in online networking is that it widens your universe exponentially,” she says. “You can use the power of technology to focus and refine your networking so that you’re spending time on the people who are most important.”

Nina Camp saves valuable windshield time by vetting potential clients for her disaster-recovery business through her online network.

“Look at the price of gas these days. It’s somewhat cost prohibitive to get in my car and drive out on a cold call only to learn the potential client doesn’t need me,” says Camp, owner of Computer Consultants and Merchants Inc. (http://www.ccm2.com) in Kissimmee, Fla.

“With online networking, I can be introduced to a customer and see if they need my services. Then I can schedule that face-to-face meeting.”

Camp is a member of ecademy, one of the few online networking sites that actively encourages commerce among members.

While Ken Toren has yet to score an actual client from his LinkedIn connections, membership does have its privileges, he says. REDmedic found and hired one major revenue-generating employee within two weeks thanks to connections in the network. And Toren is negotiating a deal with a consultant (also found through LinkedIn) who has the potential to bring value-added experience to the young company.

“Online networking has already changed our business, and we’re still just scratching the surface of its potential,” says Toren.

Web Extras: Learn more about leveraging your business online in the "Web Extras" section of
http://www.NFIB.com/toolsandtips.

Net Worths: Which networking site is right for you?

There are lots of networking sites out there, so pick the one you’re most comfortable with and devote your time to it. Most experts recommend getting familiar with the site first before inviting your contacts to join you. Basic membership for all sites is free, and most offer a nominal monthly fee for advanced search options.

ecademy.com
http://www.ecademy.com
Founded in the United Kingdom in 1998, ecademy gives each member a homepage to fill with descriptions, photos and user-generated content. Users like that they can link to their own Web site from your ecademy page. The site also allows you to export your entire network.

LinkedIn.com
http://www.linkedin.com
The strictly business atmosphere is what draws many of LinkedIn’s users. The network claims to have recruited many business “celebrities” because of its extensive gatekeeping mechanisms that don’t allow you to directly contact anyone outside your network without asking for referrals.

Orkut.com
http://www.orkut.com
Proof positive the online-networking trend is going somewhere: Google has thrown its hat into the ring with the new Orkut.com. This invitation-only site is still in beta testing.

Ryze.com
http://www.ryze.com
Known for its emphasis on face-to-face networking, Ryze doesn’t offer mixers nationwide yet. But the site is growing, and users like that they can customize their pages.

Spoke.com
http://www.spoke.com
Dedicated to improving the selling process, Spoke claims to help users close deals faster by improving productivity and complementing CRM solutions. It also offers associations and companies the ability to create private networks.

For more information about these and other online networks, go to http://www.onlinebusinessnetworks.com

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