Archive for the 'Social Networks' Category

Social networking and connecting people during a project

As we outlined in the previous networking article, the best way to identify new or potential customers is to have a loose network with wide spread and no redundant contacts.

In the “solution finding” phase during the sales process or the “project implementation” phase, a different network structure is more efficient.

James Samuel Coleman (US-American Professor of Sociology) has identified network characteristics that are important for success in these phases:

  • connected contacts (redundant contacts, contacts know each other)
  • smaller, dense and closed network (internal network at your customer)
  • higher contact frequency

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To find the best solution for a problem, the knowledge of a group of diverse experts is needed. First you have to identify theses experts. After identifying them, they must be connected to bring their knowledge together. Therefore it’s important to build up a project team. Now it’s essential to create a team atmosphere in which everyone is willing to share their knowledge and likes to work together. As these people often have to work together over a long time period, trust is essential for success.
In small, dense networks where everyone knows each other, trust and good team spirit is easier to create. These characteristics are fundamental to motivate people. In such an environment chances of finding a satisfying solution are many times higher than in a loose network.

As creating the best network structure for identifying customers as well as for connecting people during a project is time consuming, teaming up with your partner could be a successful option. One could concentrate on customer identification and the other one on the project itself.
So if you are not a very extroverted person or you find it difficult to generate new loose contacts you could be the best person for creating these smaller, more intimate networks. The Extrovert identifies customers and you build up teams.

In practice, you borrow the network of your partner at the beginning and then build up your own project team. You just need to know which network structure you prefer to build.

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Posted at July 18th, 2007

Identifying customers with social networking

For gaining customers the traditional way of cold acquisition is overtaken more and more by the very popular concept of social networking. Networking is on everyones lips. We experience it at the big online social communities like Xing or LinkedIn, and even at private parties. It’s an interesting topic to talk about.
Social contacts are very important, especially in sales. Anyone who has anything to do with sales will agree with that.

The concept of networking seems easy: the more people you know, the more contacts with customer or potential customers you can generate and the more you sell in the long run, no matter if you sell a service or a product.

But this is a very simplistic way of looking at networking.

Not just the number of contacts is important – of course number counts –but the structure of the network itself makes the difference. Mark Granovetter or Ronald Burt ( two of the specialists in this field) have identified the main differences between successful and unsuccessful networks.

Here are the main characteristics of a successful network for identifying new customers:

  • many direct contacts
  • direct contacts don’t know each other (loose network)
  • direct contacts have many other contacts (they have a bridge function to other networks)
  • direct contacts come from different fields or markets

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With this network you can gain more information from different fields and different people. So you quickly get new and exclusive information in an informal way. This is the best position to be in for gaining information about potential customers.

Once you have contact with a potential customer it’s important to get to know two or three additional people who will support you during the acquisition process. With that you will not just build a relationship with one person but with the company.


Besides the structure, the overall precondition for gaining information at all, is that people in your network do have to like you and that they want to do business with you. A point most of the theories are missing.

One should always have in mind that it’s hard to create a good reputation but easy to lose it.

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Posted at July 12th, 2007