Business Networking Internation (BNI)

[djs]

Please note, I prefaced paragraph 1 with the term 'Properly done'. My experience is not unlike yours.

To its credit, BNI does emphasis that the referral should be known to the referee before the referee is referred to the referal partner. Unfortunately, many chapters place to much emphasis on number of referals, rather than on quality of referals.

Dan

 

[Hefe]

Dan is correct that the referral should be qualified before any information is passed. To use the mortgage broker example, I would sell my client on the merits of my mortgage broker before the mortgage broker even knew that I had a potential referral. There is no chance that I'm giving out client contact information without their consent. If the client says they're not interested, I don't pass on the referral.

I'm currently in a BNI group for P&C. Like others have said, it's good to write the policies for the group but outside referrals typically only come from the realtor, mortgage broker, title insurance guy, and some from the financial planner. We used to have a commercial real estate guy that introduced me to nearly every client of his as well. It lead to a few BOPs.

One of the other problems with BNI is that they segment the insurance category into several smaller categories. If they can get it, they would bring in different people for personal lines P&C, commercial lines P&C, life, health, accident & disability, LTC, senior market, etc. I don't want to be a part of a group with 7 insurance guys since most of those products I can write in house or refer to an associate who will give me a cut. I got lucky and am the only insurance person in my group other than title insurance.

All that said, I am keeping close track of the business generated from the group and have about a 300% ROI for first year commissions. The total cost is about $1200 per year including membership fees, room fees, etc. The first year I wrote nearly the entire group because the P&C guy that left was with Farmers and their rates are terrible here. After I got to know the realtor and mortgage broker, they have been pretty good about throwing an insurance pitch into their closing.

I'm happy I joined but I can see how it wouldn't be worthwhile if 1) there were 6 other insurance agents in the group, 2) the group didn't have the focus to pass qualified referrals, and 3) you didn't give it enough time to build a relationship with the realtor and mortgage broker in the group.

 

[Air Jer]

I agree with Dan & Hefe on this. I was in a new BNI group that before I knew it had dropped from 14 members to 9 of which 5 of us were in insurance. I know of another chapter in town that has over 40 members so they all do well. If you can find the right BNI group it is golden. If you wind up in something else than the right one, BNI really sucks.

I have started my own group with help from the local Chamber and my own recruiting efforts and we have 26. No dues and we meet twice a month. We are still very new but it looks like we are off to a good start.

 

[cmcgee]

Does anyone have any thoughts and opinions on joining a BNI chapter to help increase the amounts of referrals? I have gone as a visitor and seen that it provides some however I don't know if it is worth the time and money to join one. Any information will be greatly appreciated.

-T

I have only been in the business for 7 months, I dont buy leads anymore and cant work the referrals i have. Maybe check out some books on referrals, thats what i did .... or come to work for us - I am getting 3-4 per sale.

 

[TA2727]

I went to another BNI chapter today, I guess the guys who seat it was quiet the business recently. It was the same guy who worked for the same company as I am now. haha thats prob not a good thing
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I agree with Dan & Hefe on this. I was in a new BNI group that before I knew it had dropped from 14 members to 9 of which 5 of us were in insurance. I know of another chapter in town that has over 40 members so they all do well. If you can find the right BNI group it is golden. If you wind up in something else than the right one, BNI really sucks.

I have started my own group with help from the local Chamber and my own recruiting efforts and we have 26. No dues and we meet twice a month. We are still very new but it looks like we are off to a good start.

Good to hear, perhaps I can message you in the future to gain some knowledge on starting me own group?

 

[Air Jer]

Be glad to help if I can.

 

[TA2727]

So I attended another BNI group, and it dawned on me when I was sitting around looking at all of these people. Why is it that 18-30 individuals who take the time out of their schedules, take on roles such as president, treasurer etc, who come together on their own free will, PAY a company such as BNI a membership fee? Why am I paying BNI $365 a year when they aren't really doing anything? Why cant these people meet up and just pay the location fee?

 

[Guest]

BNI is probllay good for a year, it will teach you some of how to make yourself a good networker, but to stay in it after 1 year I think is a bad decision.

Remember, how much the BNI cost, the lunches you will probally have every week, the gas to and from.

Better hope you come out breaking even....

 

[djs]

BNI provides structure.

A person who owns a McDonalds franchise can sit back and think, why pay the franchise fees? I can make burgers without paying them.... While a bit of a stretch, BNI provides the same thing as McDonalds, a process to make things work.

I've done both, was in a BNI group for 3 years, gave up on it, worked in a group that was more of a power partner group, nobody paid to be a member. The BNI group actually did better, people were more committed.

No, my experience isn't necessarily the same as yours would be. Also, timing for me was bad, the power partner group was during the real estate collapse, hard to get solid referrals going during that time.

You'll find the $365 to BNI isn't terrible. I'd be more concerned about the time spent. It's not just the time in the meeting, but they want you to do a lot of one on ones with members, then there is the time spent growing BNI (i.e., recruiting others for the group).

Basically, BNI works for some, but not for all.

Dan

 

[Ron Van D]

In BNI, you pay for the structure. This is what gets the results. There is no quota on leads given, but you will want to evaluate your participation. If you are giving bona-fide referrals as opposed to leads, you will reap good referrals.

This is what I posted two years ago:

I joined in 1992 and had a great meeting this morning. In April when I came up for renewal, I chose the 2 year option. Needless to say, it has worked for me. You have to be willing to show up early (for the open networking time), stick around long enough to build relationships, and practice the "givers gain" mindset. I'm a believer and drink the Kool-aid every Wednesday morning.

I still feel it is a good investment (although, it is best suited for an independent P&C agent. Not a lot of life or health leads, usually). That being said, I would not feel the same if it were a lunch meeting. Then it would take too big a chunk out of the middle of my day.