Network news puts in a good word for business

By AINSLEY THOMSON

Word-of-mouth may be one of the oldest forms of advertising, but a new variation on the theme is producing remarkable results for businesses.

Business Network International, a referral organisation with about 600 members, takes the basic concept of word-of-mouth and structures it so members market each other's businesses.

"Word-of-mouth advertising is nothing new," said national director Graham Southwell. "What we are doing is putting in place a structure and training people to network.

"We believe that to grow your business you have to help other people."

BNI has been in New Zealand since March 1999, and now has 30 branches here.

Mr Southwell said BNI was different to other business referral organisations, such as the Chamber of Commerce, because each branch had only one person from each profession.

The branches, each with about 25 members, meet weekly to discuss their businesses and provide referrals.

Auckland cabinet maker Grant Peacock, who has belonged to the Takapuna branch for two years, said he got 80 per cent of his business from BNI referrals.

He joined because advertising in the Yellow Pages was not working.

"Belonging to BNI has increased my customer base dramatically," he said. "I like the exclusivity of BNI - the fact that in my branch I will be the only cabinet maker."

Ponsonby mortgage broker Sue Tierney said she joined to meet business people she would not normally have contact with, but it had also provided financial rewards.

"In one month I completed $10 million worth of home loan applications, and I can attribute half of it to BNI referrals."

This type of success did not just fall into the laps of members, Mr Southwell said. They had to work hard to find referrals for the other members.

"It requires a change of mindset - you are not just thinking about your own business, you are looking out for business for other people.

"We have a slogan, 'Givers gain'. If you make referrals for other people they tend to spin back to you."

Despite the hard work involved, BNI is growing in popularity. Mr Southwell said that this year the number of BNI members had doubled. Some places had waiting lists of people wishing to join.

This demand for places meant pressure was on existing members to perform.

Mr Southwell said members were expected to give one referral a week and attend the weekly meeting. If members were not making referrals, or if they had a poor standard of professional work, they could be asked to leave the organisation.

"It is important there's a system of quality control," he said. "When you refer someone you are putting your reputation on the line. You have to know they will do a good job."

He said BNI had initially focused on setting up branches in Auckland. The city now has 22 branches, which he said was close to the maximum. There are eight branches in other parts of the country, and he hoped to increase this number.

Branches are planned for Whangarei and Rotorua.

Although BNI is still growing in New Zealand, it is well established overseas. It was started in Southern California in 1985 by Dr Ivan Misner, who was looking for a way to generate business for his consultancy company. Today BNI operates across four continents and has 36,000 members.

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