Thursday, March 12, 2009

Networking Your Home Business within Circles of Influence

When you need an auto mechanic or an air conditioning repairman,where do you turn for help? Sure, some people turn to the yellowpages. But most will turn to friends and family and ask if theyknow of anyone who can do the work.

The best place for your business to be positioned is to be thebusiness on the tips of the tongues of the people asked to makethe referral.


Preachers, funeral directors and people in a few otherprofessions have learned "the 300 rule" through their ownpersonal experience.

"The 300 rule" states that the average person knows 300 peopleon a friendly level. Wedding planners tend to make reservationsfor 300 guests. Funeral directors tend to need to make room for300 mourners. You get the idea.


Imagine your circle of friends, family and acquaintances, a.k.a.your circle of influence. Now, draw your circle of influence asa circle on a blank piece of paper.

Next, contemplate the people in your parents` circle ofinfluence. Some people who know your parents also know you.Therefore, you will share some influence with the people yourfolks know. Now draw your parents` circle of influence on yourpiece of paper.

Your circle and your parents` circle will intersect in one area,although the larger majority of the two circles will notintersect. If you are like most people, the two circles on yourpage at this point looks very similar to the MasterCard logo.

Now imagine drawing a page full of intersecting circles, eachcircle representing the circle of influence of the people whoare within your own circle of influence. Imagine trying toencapsulate an accurate rendering of where your circle and thecircle of your friends will actually intersect.

Some circles will share a large area of space, while others willbarely cover one another.

Actually, you can only imagine at this point what your piece ofpaper will look like. The actual layout of the circles imaginedin this analogy is simply too overwhelming for the mind tocomprehend.


300 multiplied by 300 equals 90,000. By using the analogy ofdoodles in the previous section, the average person can actuallynetwork with up to 90,000 people! Even factoring in the overlap,one can still probably network with 50,000 people through theirown circle of influence!

Simply amazing, isn`t it?


There are 300 people on this planet whom you have a reasonableamount of influence. Take advantage of this fact. Make darn surethat every person within your own circle of influence KNOWS thatyou are in business for yourself, and make sure they understandwhat your business offers.

When your friend is asked to make a referral, they willrecommend you.


When people ask your friends for a referral and your friendmentions your business, that is passive referral networking.

Active referral networking is when you can get your friends godirectly to their friends and say "Hey, I have a friend who juststarted a business. If you are in need of what he offers or youknow someone who will need his services, would you please givemy friend a call or make the referral to his business?"

If you can get even a portion of the people in your own circleof influence to actively refer your business, then you havebuilt the foundation to build an advertising campaign even moreeffective than the average local television advertising campaign.

Think about that for a moment.

Most people only dream of reaching 50,000 potential customerswith their television advertising dollars. You now have theknowledge to reach 50,000 people without spending a single penny.

About the Author:------------------------------------------------------------Stone Evans, The Home Biz Guy has helped thousands of peoplein over 200 countries around the world start and run asuccessful home business. Discover 3 easy steps to startyour own home business and subscribe to The Home Biz Guy'sFree Home Business Secrets Mini-Course at:


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