Contemporary businesspeople have so many demands on their time that they often find themselves asking “what’s in it for me” when approaching a new task. What will this cost me in terms of time and money and what will the return on these costs be?
New BNI members or those considering joining are very likely to ask these sorts of questions of our organisation.
ROI
In general, these types of questions relate to the concept of ROI (return on investment).
This concept means different things to different people. Put simply, ROI is calculated by getting the number of times the net benefits are gained, minus all the costs involved, as compared to the price of the initial investment. So for BNI members the ROI relates to the amount gained from referrals minus the costs of joining and participating in a chapter.
More contemporary definitions of ROI include the notion of the “risk of ignoring”.
This is seen particularly with marketing efforts through such things as social media where a business’s followers expect social interaction. Businesses shouldn’t blindly get involved with social media; there needs to be a plan to get to know your followers and what interests them so in return you will get their interest in your business and offering.
It’s about authentic interaction across these platforms, in a similar way to interactions within a BNI chapter. The most successful BNI members are those who genuinely reach out to other businesses in a chapter. These are the members who will see the greatest ROI for joining BNI. Remember, the ROI in BNI shouldn’t include just the financial return but also the personal return on the investment of time and money.
PALMS reports
To calculate ROI, referrals at BNI must be tracked. This can be simply achieved by keeping your PALMS reporting updated. PALMS as a reminder stands for Present, Absent, Late, Medical Leave, Substitutes and also includes all of the referrals given and received. To see your PALMS log into the website, go to the Members Section and select MY PALMS Report and then have a look at what your Personal ROI is.
Geoff Sherlock
One BNI member who has achieved exceptional ROI from BNI is Geoff Sherlock. Geoff’s Nelson based landscaping and maintenance business, Sherlock Landscaping Ltd, has experienced significant growth in the last couple of years; growth that owner Geoff Sherlock largely attributes to his relationship with his chapter, BNI Network @ 9.
At Geoff’s first BNI meeting he was offered a contract for maintenance worth $2500 per year. It more than paid for his membership and he still has the contract today. Geoff says the spider web effect of referrals offered through BNI has been what has really grown his business. In two years the business has gone from turning over $280,000 with 2 other staff to having 13 staff, a business partner, $250,000 worth of equipment and a turnover projected at $1.2m this financial year.
Stories like Geoff’s are inspirational because they show the extraordinary ROI that can be gained from BNI. Be proactive and positive at BNI and you too can enjoy the success that Geoff has achieved.
