What’s the ROI of business networking?

I’m launching a new networking group in Cobham, and one of the questions that comes up is ‘how much business could I expect to receive?’

As always in a challenging economy, people are looking at what Return on Investment (ROI) they are likely to get from different marketing methods. They want to make sure that both their time and money are well invested.

As the group is part of the world’s number one networking organisation, which has been in existence for over 25 years, that’s actually a fairly easy question to answer as they have the data on record.

With data going back over a quarter of a century we know that when we reach our target group membership of 45+ members, they can expect to receive on average 2 referrals per week each.

Taking taxhelp.uk.com as an example, our most popular package is the Silver one which has a price of under £500 – so we could expect to receive £1000 a week or £50,000 per year from a group of 45+ members.

This is a great result, but that’s forgetting an important point – repeat business.

The £50,000 of business is new business, and as we usually act for a client on an ongoing basis after helping them it means in year two the business networking will actually  generate £100,000 for us. And in year three it’s £150,000 and so on. And remember that these figures exclude spin-off referrals, where you receive even more referrals from satisfying those clients who have been referred to you.

Considering that this is based on only a £500 average sale, there will be many members in the group making considerably more…

What is your average sale value? Remember too that each referral might not be for only one average value sale – I saw a tree surgeon in Surrey receive one referral once… for 13,000 trees!

 

If you’d like to find out more I am holding our second information meeting for the group in Cobham on 20th March, please contact me to reserve your place.