Top 7 Reasons Why Business Networking Organizations Fail

Business networking is a great way to meet your business to business target market. These groups can literally become an unpaid sales force for the small to mid size business owners depending upon their industry, After being involved in several business networking organizations, I have observed these 7 common reasons why so many fail.

Number One: Bad leadership is probably the primary reason for the failure of these groups. Unless the leadership is ethical and results driven, the group will eventually whither away and die. Remember, the old adage people do not leave companies they leave managers. This is also true these business networking associations.

Number Two: Emphasis on the social versus the business is another trait. Yes, human beings are social creatures and maybe this is why some associations turn to emphasizing the social events because they feel comfortable with their fellow members. Yet, the purpose of these business networking groups is to grow business from the outside. Personally for me, I prefer to find my own social activities and not invest time where it cannot return a significant result.

Number Three: Formation of cliques also contributes to failed business networking associations. This trait is very much connected to bad leadership. In many cases, the leadership is also involved in the cliques and this in turn creates disharmony within the group.

Number Four: Incestuous referrals are the fourth reason why business networking groups fail. Again, this is a result of bad leadership and clique formation. Referrals internally do increase sales for some members, but at the expense of others. Incestuous referrals becomes a one way street and leaves those non-incestuous members short sales revenue.

Number Five: Not understanding the business of the other members is the fifth trait. Again, those in the cliques and those benefiting from the incestuous referrals have really no reason to understand the businesses of the other members.

Number Six: Inconsistent accountability is an outgrowth of bad leadership, emphasis on the social and clique formation. Who wants to vote out a member who another member considers a friend? Why challenge the inability to make the minimum number of referrals.

Number Seven: All of these previous six reasons lead to the seventh that being forgetting the purpose of the business networking. These business networking associations are formed to increase sales for all members and not just some members.

If you are a member of a formal or informal business networking association and begin to encounter any of these experiences, then you may wish to reassess your membership and maybe even your own sales skills. Visit several other networking groups, talk to other business owners. Invest your time wisely to secure the greatest results and yes you can increase your sales.