Over three years, Nasse Chachoff of A.C. General Contractors, Cincinnati, has won nearly $180,000 worth of work from referrals received from a local networking group that has chapters nationwide.
Among those in Chachoff's 17-member Business Network International (www.bni.com) chapter are a CPA, mortgage broker, hair salon owner, landscaper, attorney, and florist. At weekly breakfast meetings, they learn about each other's businesses and about marketing, sales, and networking techniques. And they pass referrals. Chachoff says they call them referrals, not leads, because they come from trusted sources who have "pre-sold" the business.
So far this year, Chachoff, whose company does about $400,000 in business annually, has passed along 70 referrals and has converted 30 referrals into 15 jobs. He says he invests about four hours weekly in networking, but it has become second nature. Part of the BNI formula is that there's just one person from each profession in each chapter, so there's no competition for business.
Part of the reason the program is so valuable, Chachoff says, is because he's surrounded by people who are successful.
Dave Dunlap of Consolidated Construction Group, a St. Louis design/build firm, offers another perspective. He was a BNI member for three years but never won any business, although he and his partner, Kevin Franklin, did pick up good subcontractors through the group. He says BNI membership would be ideal for smaller GCs or for those who do replacement work.
Amy Brown, BNI operations director, says the organization has more than 54,000 members, in 2,584 chapters. Dues cost $240 for one year or $375 for two. The fee includes weekly meetings, online newsletters, and materials to help members grow and market their businesses. Members must adhere to stringent guidelines (weekly attendance is required) and an ethics code. "People expect to join and within a week, to have referrals, but it takes time," she says. "It's all about relationships."