So, you’ve been along to your first BNI meeting and seen how it works. A few days later someone from the chapter calls you up to ask if you’re interested in joining. What do you say?
You’ve asked around your business network but you can’t seem to get a clear fix on whether it has worked for others, and most importantly, whether it will work for you.
The simple truth is that although BNI structure appears in over 60 countries, with over 7,000 chapters, and the structure and proceedings are more or less exactly the same at every single chapter (due to BNI’s emphasis on consistency, which we will talk about later), the reality is that there is a huge difference in results that occurs from chapter to chapter, and the reasons for this variance can be very subtle and difficult to detect if you don’t ask the right questions.
A Tale of Two Chapters
I have been a member of two separate BNI Chapters in my professional life. At the first chapter, which had approximately 40 members, we set a goal to achieve $10 million in ‘closed business’ (ie business that is referred between members that subsequently results in a sale), and a stretch target to achieve $20 million in closed business. We ended up exceeding the stretch target and closing over $20m in a single year. At this chapter, it is worth noting that I was given an award for the largest number of referrals passed. That chapter gave me a clear idea of how BNI could function at the highest possible level.
Another chapter that I was involved in years later after I had returned to New Zealand didn’t function quite so well. There were great people there and a decent range of professions represented – around 20 in total – but the chapter as a group struggled to close more than $200,000 in a single year.
So how com one group generates $20m and the other struggles to generate $200,000? The reasons for this dramatic difference in the level of closed business are well worth exploring.
What BNI Offers That Other Networking Associations Don’t
Before we look at the factors that make a successful chapter, we need to have a look at the underlying factors that make BNI successful in over 60 countries.
Many members, irritated with the cost and perceived lack of flexibility of BNI, have at times explored the possibility of setting up alternate business networking models to BNI. Without a doubt, virtually all of these networking models have failed. Here is BNI’s special sauce.
Clarity
It is clear that BNI Chapters exist for one purpose – to help members to gain business. It is not about sitting around having a coffee date, or talking about new developments on the tech front. New networking models often struggle to get past this hurdle and get to the point.
Consistency
BNI Chapters follow a simple model that produces results, and repeat it week after week. This consistency is the backbone of long term results. New networking models often drift apart after a couple of months because they forget to keep it consistent.
Regularity
You may not like the idea of waking up at 6am to get to a working breakfast at 7am – every single week – but it is this regularity that ensures that BNI Chapters succeed. Other networking models almost always fall apart because they forget to keep it regular. As a result – you lose touch with your network and their evolving needs – you forget what people are looking for and how you can help – and the model even if it stays together dramatically underperforms in sales closure over time.
Clear Metrics
Many BNI Chapters are successful because they have clear KPIs that result from a clear vision. How many One-on-One meetings (or “Dances” as they are called in NZ) have occurred in the membership over the last month? How many referrals were passed? What dollar sum of closed business resulted?
Other networking models fail because they never measure these essentials. They can’t really tell if their second year was better than their first.
Spaced Repetition
The repetition that occurs from the regularity, clarity and measurement of results assists in the formation of beneficial habits among the membership. This further amplifies the effects that BNI members produce as distinct from other networking groups.
Structure (Rules & Enforcement)
The truth is that conflict and disagreement is more prevalent in networking chapters at all levels than one would like to believe. This conflict can often sow the seeds for that Chapter’s failure.
The way that BNI Chapters guard against disagreement and conflict is by having rules and clear parameters for their enforcement. These rules have been created after extensive experience across thousands of chapters globally, and are generally very comprehensive.
Nevertheless, the effectiveness of rule enforcement differs from chapter to chapter. Many chapters have undermined their long term performance by failing to enforce the rules, for example, by failing to manage time properly.
The rules and enforcement of the rules helps to provide clarity and assist longevity.
The 80/20 rule and how it applies to BNI Chapters
Even with all the above factors considered, and the positives of BNI taken into account relative to the strengths of other networking associations, the fact remains that some BNI Chapters are (by far) more effective at closing business than other chapters.
It is important to understand that it is not the whole BNI model you are evaluating – it is the specific BNI Chapter you need to evaluate. That chapter will make the biggest difference to your success or failure as a BNI member.
Every chapter carries within it the seeds of potential success. Yet it is the dynamic among members as well as the practical reality of how business is carried out on a day to day basis that makes the difference between success and failure.
The Pareto Principle – which holds that 20% of factors generate 80% of results – applies equally to BNI Chapters as it does to many other areas of business.
Why Small Chapters Can Be Great Chapters
There is something to be said for getting in at the ground floor of a great or potentially great BNI Chapter. Starting your time at BNI early gives you a huge advantage when it comes to building relationships and credibility within the group and establishing your reputation locally.
Having said that, getting involved from a new chapter’s inception can also be a poor decision, as it prejudices you to stick with the chapter no matter what, regardless of the metrics it is or isn’t achieving. The decision to join and also to remain a BNI member must always be a business one – that is, you need to weigh the cost and benefits of long term membership.
That being said, there is nothing better than a proven BNI Chapter with an established business system and proven results for consistently delivering superior outcomes for its members. The thing you are looking for is Critical Mass – at least some evidence that the chapter has achieved some impressive milestones and has positioned itself well for future growth (if not almost reached the peak of its growth).
What Role Should BNI Play In Your Business
Never forget to take some time to jot down your own business’s strategic vision, and how these relate to the larger goals of the group. This is important because it will help you clarify specifically what you want to get out of BNI. In my opinion, this one question leads to as many missed opportunities as it does poorly considered commitments.
Are you using BNI to close business? To influence the outcome of proposals? In other words, do you expect BNI to do all your selling work for you on the referrals you are handed?
Or do you expect to be able to close business off your own bat, and simply rely on BNI as a form of lead generation?
Clarifying this will play a huge difference in your outcomes at BNI, and will also change the way you ask for and accept referrals.
Essential Things You Should Ask For Before Deciding to Become a Member
What are the chapter’s group goals?
The first thing you should ask is around the chapter’s goals. Have the members outlined any specific goals for what they want to achieve? Do these goals sound reasonable and achievable based on all the factors in play, and furthermore, do they impress you?
Ideally, goals should break down into group and individual goals. The sum of each member’s closed business adds up to the total closed business for the chapter. And you will only get closed business in the first place if each of the members are putting their weight behind generating referrals.
How well has the chapter performed in relation to its goals in previous years?
You need to ask the hard questions about the chapter’s performance in terms of closed business. Without this key metric, you can’t make a suitable decision.
What industry segments are particularly strong in this chapter, and how do they relate to your business?
Having a specialisation in one field can make a world of difference in terms of closed business – however it can also distort the value of closed business for you if you aren’t connected to that field.
For example, at the first BNI Chapter I joined, there was a very strong focus on property development, which is how the group made such high numbers. Although there was nowhere near as much closed business for other industries within the group, there was enough trickling down to make it worthwhile. But this may not be the case for all groups, even if the numbers are high.
What are the chapter’s plans for growth?
Does the chapter have a clear direction? Or is it dissipating? If you ask this question, watch for sign’s that the person promoting the chapter does not have confidence in the group’s eventual growth.
How regularly do new prospective members attend the chapter?
Over 20% of total referrals come from new or visiting members in some chapters. How well does this particular chapter attract members on a weekly basis? How well do those prospective members respond to the invitation? Understanding the appeal to new members is critical to understanding whether or not the chapter is soon to reach critical mass.
How well does the chapter enshrine BNI’s core principles?
The core principles discussed above are what make BNI stand out and stand the test of time in a world full of networking organisations. How well does the organisation achieve its day to day adherence to these principles? In particular, how well does the chapter manage time? One key difference between the two chapters I discussed in the introduction was that the first chapter used a hand held ringing bell to measure time. As soon as someone’s speech went over time, the bell would sound and cut the person short. This small, virtually outdated technique for time administration, went a long way towards ensuring order and good feelings among the people seated at the table.
How many members are in the chapter?
Keep in mind first of all that it’s not the quantity of the members that is important, it is the quality. Having said that, a chapter benefits exponentially by having a large number of highly engaged members representing different professions. The potential for requests for referrals being answered often doubles when you double the size of the audience. Witnessing a number of members hand out a significant number of referrals (I once saw a member hand out nine referrals in a single meeting) also helps to foster a healthy level of competition among members.
How likely am I to gain business worth my return on investment, on average?
Divide the amount of closed business by the number of members in the chapter. How much is the amount? What is this amount compared to the level of investment you will have to put in (time and money)? If it’s not a healthy ratio, keep looking. There needs to be another chapter out there that can deliver superior results.
Are there any limitations that would stop me from generating referrals?
A lot of accountants and lawyers feel very cautious about handing out referrals, because there is the potential that doing so could result in the violation of their professional indemnity insurance. Whether this is reality or simply an excuse for complacency, you need to weigh its impact in advance, before committing to a successful chapter, because once you join, you will not succeed if it’s a one way street.
Do any member specialisations conflict with my specialisation?
This is a tricky one, because like many things with BNI, it can work for you or work against you.
In my first BNI chapter, I had a person who was in a similar category to me (financial services). Rather than blocking my membership to the chapter, he fostered it, and even served as my mentor in the early days of my membership.
In my second BNI chapter, I had a person who deliberately changed the category he was representing to allow me to join as a member. Once I had joined, however, and paid the membership fee, he continued to promote services that lay within my category, at a lower price point than I could offer, and this was a big factor in my decision to leave that chapter.
There is no simple answer. It often comes down to the camaraderie that the team fosters and their true commitment to the giver’s gain ethos.
Do they succeed, and then celebrate their success?
When a chapter achieves its stretch goal, what does it do? Move on to the next thing? Or take some time to celebrate the success?
Does the chapter hand out awards for high performance? How does the chapter recognise performance on a team and also an individual level? Figuring this out is critical to discovering whether you are in the right boat.
The True Cost of BNI
In addition to the cost of membership (which is a monthly cost or an annual cost), there are other hidden costs you need to consider.
The cost of breakfast
The venue doesn’t come free. They rely on breakfast purchases to make money. Sometimes, the cost of a breakfast can run as high as $20 per head. This may not sound like much but is actually far higher than the actual membership cost if extrapolated over a year. (Don’t forget you’ll likely also have to pay for the breakfasts of the people who attend when you can’t attend.)
The time cost
For many entrepreneurs, the biggest cost by far will be the cost of their time. While yes, it is unlikely that your presence will be required at the office at 7am on a weekday morning, this time is nonetheless something you could have spent on something else, such as quality time with your family. A typical meeting will run for an hour and a half, and will even occasionally go overtime.
The travel cost
Although traffic isn’t so bad when you choose an early morning chapter, you still have to factor in the cost of going to and from work.
It may be worth travelling a long way (and paying extra dollars) to reach a chapter that truly delivers results – but never forget the costs of parking, etc, that also go hand in hand.
Given all these factors, even if annual membership is available for less than $1,000, it is likely that the true cost of your membership per year will come to as much as $3,000.
Can You Make the Commitment?
Figure out what your ratio is of closed business to cost. Don’t forget to consider the long term angle – the connections you make through BNI may last you a lifetime.
How To Tell If a BNI Chapter Has Reached Critical Mass
So the answers to the above questions are generally positive, and your prospects of joining the chapter look good. Nevertheless, to ensure you get best value for money, you need to decide whether the business has reached critical mass.
To do this you need to assess the underlying dynamic of the members. This can often hard to do – smiles can be faked, hearty welcomes can be rehearsed, and even numbers can be inflated.
It will take two meetings (the maximum you are allowed to attend without becoming a member under BNI rules) to assess this.
While first impressions count, their value can be overestimated. As per the questions above, look closely at how the dynamic operates between members on a meeting by meeting basis.
Are the members working together to reach a common goal? Do the achievements touted by the members seem substantial and actually impress you?
Perhaps more importantly, are there any subtle signs that the membership may be exhausted?
At your first meeting, grab a couple of cards. Talk to two or three members outside of the meeting to get their viewpoint on how things are operating.
One Subtle Thing You Need to Look Out For
If you are looking to join a membership that has reached critical mass, there is one distinguishing feature that they possess.
They qualify new members.
Rather than simply letting any old person join, at any level of business, regardless of experience, they effectively force new members to jump through some hoops, in addition to paying their membership.
This may take the form of some rigourous questioning, some examination of the track record of presenting members, or some special induction process.
In my case, at the first chapter I joined, I had to get up and make a speech about why I would be a great addition to the group.
This small criterion makes a huge difference to the group, because from the outset it forces you to take your membership far more seriously. Your dedication to the group’s interests starts from day one, which is important in an organisation that as its sole focus takes the philosophy of Giver’s Gain, or you get out what you put in.
Hi Richard,
I felt that this was a very balanced and well written blog. I very much appreciated your considered comments and insights and your advice on what to look for if someone is looking to get involved in BNI. At the end of the day – BNI is a proven way to grow your business through qualified word of mouth referrals – our members passed $73 million in closed referral business in NZ last year. BNI is founded on the principles of trust and integrity – and the underlying philosophy that you can get whatever you want in life if you are willing to help others to do the same – something we like to call ‘Givers Gain’. An individuals’ success in BNI requires commitment and work – if someone is willing to put in the work – they can expect to reap the rewards, and have a lot of fun along the way. That said, I would echo your suggestion that someone looking to grow their business through BNI should take the time to visit a few chapters and to find one where they feel comfortable.
Graham Southwell
National Director – BNI New Zealand
Thanks Graham. I truly believe there is a lot of opportunity out there for BNI members.