The Networking Equation: How to Calculate Your ROI

have you ever went to a networking event and asked yourself did I just waste all my time or Worse did I just spend my entire evening on the world's smallest cheese cubes hi I'm Jana Hennemann and today we're talking about the networking equation how to know if networking is worth your time and being able to equate it down into real numbers so you can decide for yourself here's the deal we all want to network smarter not harder and why is that because you're network is your net worth according to Porter Gale it's not about how many people you know it's about having the right people know you one valuable connection can open doors you didn't even know existed at the same time this is why it's called Biz sinness yes I do value relationships yes I do want to meet people and having a variety of people in my network from various backgrounds can help me in my business but I'm also there to make money so where do you find that balance where do you find that fulcrum so let's break down the networking equation the networking equation is this time spent plus money spent divided by the number of valuable connections made equals your networking Roi so before we jump into this how much is your time worth what do you charge for your hourly rate for example let's say that you charge $80 an hour you spend 2 hours on an event plus another 30 minutes driving to and from said event that's 3 hours total so right there you've just invested $240 of your time now add the money bit so what's the cost of admission food and drinks gas that you put in parking let's tack on another $80 and that's being generous so now we're around $320 that's what this event has really cost you now let's say you leave the event and you've made two valuable connections so if you plug that into the equation you have 320 / 2 equals $160 per connection so if one of those connections turns into a long-term referral partner let's say your first deal with them you make $500 then you've definitely come out on top my Roi or return on investment is greater than what I put into it but if neither connection goes anywhere it may be time to rethink how you network and what is a valuable connection anyway it's not the person who hands you a business business card and then disappears it's someone who genuinely wants to build a professional relationship with you they're excited to collaborate they're ready to pass you referrals you're excited to work with them or y'all want to work together they're people who understand the value of a mutual win not just what they can get out of your relationship and vice versa and again this is where the fulcrum comes in and I love talking about the fulkrum this is where effort meets reward where the time money and energy you invest in networking actually balances out with the value that you get in return to find this fulcrum you need to be strategic for me I stopped going to random networking events a long time ago and then I decided I was just going to throw my own and I remember at the very first business mixer I ever threw I met a gentleman and he was he was kind of intimidating to me he was very prim and proper but I reached out anyway after the event and asked to have coffee with him just so I could get to know him and his business years later this man has passed me numerous referrals and he's been a great center of influence not just for me and my business but I made a friend out of it as well that's the power of intentional networking it's not about going to every event that's on the calendar it's about being picky doing your homework and focusing on professionals who can really move the needle for your business and vice versa yes it's about building relationships but again we don't want to waste our time or our energy so your challenge start tracking the time and expenses you pay for every single networking event that you go to is your networking Roi paying off or do you need to change something and again the networking equation is this time spent plus money spent divided by the number of valuable connections equals your event Roi thank you so much for tuning in uh please feel free to like follow And subscribe to our social channels and at the end of this video there's going to be a QR code where you can sign up for our newsletter I'm Jana Hennemann and I will see you this time next week [Music]