Discover Your Networking-To-Sales Conversion Rate and A Way to Improve It

Do you know how many people you need to network with before you make a sale? If you've studied some of the best sales trainers, they encourage you to track your sales conversions from your sales prospecting activities such as cold calls. These metrics will tell you where to focus your efforts.

Networking can also be a prospecting activity. There are two ways to figure out a sales conversion rate from networking. One is based on an approach of using networking purely as a selling tool. The other one is based on the process of building long-lasting, mutually beneficial relationships.

Have you been approached by someone at a networking event who introduces themselves with their business card in their hand? Then they immediately give you their business pitch along with an invitation to give them a call, try their product or refer a friend? This is the "selling" approach. It's not really networking, but is much more like direct marketing in person. Instead of the brochure or sales letter appearing in the mail, it is handed to you.

In fact, it's even more like cold-calling. Instead of doing it by phone, it's being done in person. All the awkwardness of a cold-call with the addition of not being able to hang up the phone and move on.

If this is the networking approach you are going to use, start with your cold-calling sales conversion rate. For example, some professional sales people can make 100 cold calls and get 20 or 30 appointments if they are very, very targeted in their calling. If you're networking at general events, figure that your audience is much less targeted and you will need to pitch 100 people in person to get maybe 5 or 10 appointments. If you're a great closer, you might have 2 or 3 sales. Therefore, your sales conversion rate is 2%.

How many people can you talk to at one event? If you attend a two-hour mixer and you are very good at working a room, you might be able to talk to 30 or 40 people. You'll need to find at least three such events every month, just to make one or two sales. Not a great use of your time.

Instead, concentrate of building strong relationships with a few key people. Show them your value and prove that they can trust you to work in the best interests of their friends, family and business partners. Instead of 100 cold-calls, you'll have referrals that will convert at rates you've never before dreamed of.