Many folks use the term “networking”, but fail to explain what that really means and what the benefits of “networking” really are. I prefer to call this “relationship building”; what good is a network if you have not built relationships with the people within your network? A good analogy would be having a very large pile of firewood, but never lighting the wood or if you light the wood, letting it die down and never stoking the embers. Like a fire needs to be tended to in order be a functional source of heat, we need to build our network with a focus on functionality.

Networking encompasses several aspects and some connections require more relationship building than others. So, what are the benefits of networking? Key benefits of networking include having many connections (contacts), referrals, references, advisors and your next job opportunity. Many of these points relate directly to LinkedIn, but all of them can be applied to any type of rolodex.

Many Connections and Contacts (Stockpiling Wood)

Adding contacts would be akin to having a large pile of wood. Building your network will allow for greater functionality once you know how to utilize that network. You should add acquaintances, people from your school, people from your past and current employers, people in your industry and people with similar roles in different industries. Next, I will discuss how to use each of those groups and why you want to build certain relationships within those groups.

Referrals (Building a Deep Pit to Trap Heat)

Most employers offer some sort of incentive to refer people to open positions. While having a large network is great, it is also important to know many connections in your network. Take time each quarter to review some of your connections to see which companies people are at and what roles people have. Using the “Advanced Search” feature within LinkedIn allows you to view connections (and potential new ones) with certain titles, keywords and the companies they work for. This will allow you to search your network to maintain an understanding of sources for generating referrals.

References (Stoking the Fire)

At some point in your career, you will need references to verify that you are a qualified employee; whether it is your first job or your fifth one, you will need individuals that can speak to your top attributes. These references generally need to be professional (so friends and family are out); these can come from former professors, coaches and employees. Keep in touch with these key people periodically; aim for 5-10 that can speak on different attributes.

Advisors (Air Vent for Oxygen)

Advisors are a group that a lot people do not take advantage of. Advisors are key people that you can reach out to discuss business with, discuss and recommend software and applications for your company and even seek career advice. Advisors are people that know your business and are usually professors, current/former managers and even competitors. One of my top advisors was a competitor; we discussed current hurdles we were seeing, policy advice/tips and shared knowledge such as training, software and compensation. Like an air vent for a fire, advisors are often overlooked, but also the most powerful.

Job Opportunities (Stoking the Fire)

Lastly, your next job opportunity may very well come from one of your connections. Consider how to use your network to optimize job opportunities and it will become easy to see how new employment opportunities can come your way from several different angles.

References and referrals will be the most likely source of job opportunities. If your references are at different companies and are open to speaking on your behalf, they might refer you to their current employer as well. While you keep an eye out for possible referrals, others within your network are doing the same thing and they may refer you to their employer. From a global perspective on employment, this is an on-going give-and-take relationship that can be mutually beneficial.

Advisors, while an unlikely source, may prove to be the most relevant referral as they have in-depth discussions with you about your business and industry. Further, they can use this knowledge as leverage when referring you to their employer as they know your skill-set and business acumen better than anyone else (other than your current employer).

Summary

While it is important to have a large network, it is more important to know the different groups of people you will connect with and how you can leverage these connections. “Networking” is not just adding names to a list, but rather, it is building relationships that can be a resource for you and your career. Rather than focusing on the size of your network, focus on the strength of your relationships and the purposeful presence of the people in your network within the big picture of your career.