Originally Posted by Bette C
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I've been part of referral Networking Group (BNI type) for the past year. I lucked out and in my first month got one client that paid for my yearly dues (which was over $600) and then any clients since then have been profit for me. You have to be careful not to join too many of these paying type of group, 'cause it can really eat into your profits at the end of the month. Even at $5 per visit, if you go twice a week, that will be 40-50 for the month.
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I joined BNI last year and dropped out after 5 months as I saw no referrals of any quality. I considered using my credit to join another group recently but decided against it. People should be aware that it is more than just $600 per year, it is also the cost of the weekly meetings and time. The group I looked at charged $20 per week for meeting fees (including cost of lunch). It was also 2 hours of my time in the middle of the day. You have to count those costs too, that is time you aren't billing clients. I did a cost-benefit analysis of this group and came to the conclusion I'd have to get over 140 hours of billable referrals just to break even and decided it wasn't worth the cost.
I'm limiting my networking to evenings or mornings (with the occasional Chamber of Commerce lunch thrown in). That way networking doesn't interfere with my business day.