In this discussion of catalyst events, I'll be covering two types. The first is a strategic alliance event (external), and the second is a recognition event (internal) for top referral generators. The goal is the same: to create greater "referability" for your business with others by building relationships and increasing your social capital.
Strategic Alliance Events
Bringing people together who'll be able to create a symbiotic relationship with one another results in great visibility, which leads to credibility and, eventually, profitability for your company (the VCP Process of networking).
How do you capitalize on the potential of your strategic alliance events generating referrals for you? By inviting the right people to these events. A long-existing example of a strategic alliance event would be coordinating a foursome of golf between several business contacts you have that you know would be able to cross-refer one another, such as your CPA, your financial advisor and your real estate investment advisor. One or more of these individuals might have been trying for months to secure a meeting with one of the others, but the aspect of a golf game could be just the thing that'll bring them together.
Doing an event such as this calls for regularity and repetition. Others will hear about it through the grapevine and ask to be invited or feel very excited about being invited. Hence, you want to do this more than once.
Referral Recognition Event
When you have a pool of people who are already referring you regularly, doing something special for these people is a no-brainer! Some entrepreneurs have recognition events such as hunting trips or wine tasting trips. They have a reputation with their customers, and the customers actually vie with one another to be able to be the ones who get to take part in the event. That means, literally, that they're trying to out-refer one another. Not a bad place in which to be!
The Recognition Events can be held annually to thank the top referral generators each year, or they can be held once a quarter to encourage shorter-term results, which could quite possibly increase the total number of referrals your business would receive within the year. You may choose to reward the top five referral generators and allow them to bring a guest, or reward the top 10 referral generators and give them the chance to meet and mingle with each other over the course of the event. Or you may choose to reward just one person during each time period. The choice is yours. Experiment with what works best for you.
Be creative when choosing what your Recognition Event will be. If you live in an area where there are live shows, taking these people to dinner and a play is one idea. Use your imagination and don't be chintzy. If you want people to vie for attendance to your event, you must make it something worth competing for. You will profit from that in the long run, so it just doesn't pay to skimp when choosing what your reward will be.
Keep in mind that a Catalyst Event isn't about meeting people through the Yellow Pages; it's not a casual event. That being said, you can't turn the Catalyst Event into a sales pitch, either, or it won't work. It's all about making a connection vs. making a contact. Be sure you've let the other people you've invited know that they have to finesse the event, not strong-arm it. It's about developing relationships.
When done right, Catalyst Events can revitalize your word-of-mouth marketing efforts and garner for yourself a reputation in the business community for being the one to whom everyone loves to refer others. Now that's a great position in which to be in the business world!
