One of our team has a potential place at a newly set up BNI meeting, and we are at the stage where we need to sign up to hold the place at the meeting.
In theory it all sounds very good, but what we wonder about is if in practice it's actually worthwhile and is a good way of getting more of the 'right sort' of business?
From my understanding the aim isn't that the other members necessarily move to the accountant member (for example), but that the other members recommend the other accountant member to their business contacts, in preference to their own accountant.
Does this actually happen?! I can't help wondering if someone is happy with their own accountant, why would they recommend someone else?
I'd welcome peoples' experiences of BNI and other networking organisations.
Do you think they are a good use of marketing resources?
Thanks
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Replies (8)
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yes, worthwhile
Provided the chapter director and leadership team run the chapter strictly the useless members drop out quickly. I only left due to retirement. My expertise was tax which produced useful tax investigation work which led to recurring GP accountancy work as well as several juicy CGT advice assignments. The accountant is able to build up contacts and work pretty quickly, but do not make the mistake of offering special terms.
Not my cup of tea
I find the whole concept of BNI meetings rather offputting and the pressure on members to use the services of other group members quite inappropriate.
Not my idea of open market business.
Depends
1. You need to be the sort of person who can be bright and breezy at 6.45 in the morning and like mixing with other people, some of whom can be very irritating and a few of whom may be dishonest.
2. You need to assess the other members of the chapter to see whether they are the sort of people you can work with - you will have to recommend people to them after all if you are to last the course.
My own experience of 3 separate chapters: 1. First chapter containing 10% dodgy/dishonest characters, one of whom rooked me and another member, after which I walked out because the chapter wanted him to stay and said he was honest as the day is long. However before that, I got a lot of business from the other honest people and it was the most productive of the 3 if you ignore the fraud.
The other 2 chapters were full of 100% honest people, but neither of them really had the commercial spark of the first one and I left both of them because I couldn't see how to make money out of them.
My conclusion - if your team member can say yes to 1, then it's worth giving it a go. He will get a lot of low level business from members but if the rest of the chapter has some good businesspeople in it then he should get the sort of referrals that geoffmw talks about and they will soon pay for the membership fee/breakfasts.
BNI
It has certainly worked for me (now in my third year), although I did join a well established chapter, with some useful local commercial contacts. Yes, there were some fairly 'random' referrals that were never going to lead to anything but if you accept this and are happy that you are not going to get a referral every week then it is definitely worth trying. The fees that I have generated have not all been those of dealing with the accounts of fellow members, although there have been some. Equally I have had referrals whereby we've been at least given a chance to have a go at getting the business as well as the referror's own accountants. Its then down to you to prove yourself!
You may also have to accept that you cannot promote certain aspects of your business at the meetings, i.e if there is a bookkeeper represented you will have to concentrate on tax and accounts/audit compliance work at the meeting.
Our practice have membership at two chapters. From a personal point of view it has been an excellent way in improving confidence in speaking in public and lead me to present seminars on other (non BNI) occasions.
On the whole good
However, there are some problems:
Some members treat it as a bit of a discount club and expect cheap rates.
Some referrals you get passed will be pretty weak.
Its only as strong as the people in it.
It attracts a certain number of professional networkers who make a lot of noise but have pretty crap businesses, or provide services which are frankly laughable.
Dont forget you will be expected to refer at least one piece of business each week on average to other members, and if you dont like some of the members, or dont believe in what they are offering this might be difficult for you.
Also you might have existing referral arrangements with, eg, an IFA outside the chapter. This will annoy the BNI IFA if you dont give him any business.
However, that said, if there is a decent IFA/mortagage broker/Business banker/corporate lawyer in the chapter and one or two other savvy business people you will do pretty well, assuming you are yourself personable and know your stuff!
BNI and other alternatives...
... were discussed in this article on AccountingWeb: Which breakfast networking group?
I think the above comments on this thread are a fair summary of the pros and cons re BNI but it's not the only option. The article may also help - especially when considering alternative options.
Mark
Pressure to get referrals for others
I was in BNI for about 7 years and left because our group kind of fell apart.
There needs to be a certain number of members in the group to get a critical mass. I'm not an expert, but is possibly around the 25-30 mark. Our group was quite small so it was difficult to get referrals for other members each week. We had about 15 members towards the end, which gradually decreased.
I found the pressure to get referrals for others very stressful. I have no problem referring someone I trust to a client when they are in the market for a product or service. However, trying to find a referral every week out of thin air became more difficult as time went on because our group membership declined, the recession hit and our clients/contacts were tightening pursestrings. I was relieved when it was all over.
BNI
I belonged to a BNI chapter for a year. As there was already a Chartered Accountant in the Group I attended as our other business,The China Parade, retailing china & gifts (which was a BNI dead loss). However, apart from putting on masses of weight through eating large breakfasts, I worked in co-operation with the CA and received quite a bit of work from him - ie messy clients he did not want and I passed over Ltd Companies as I only do sole/partnerships. Strangely I received more business after I left the BNI as people in the group remembered me and got in touch. Some businesses did really well out of the BNI, others did not.
TheAncientOne