Why is networking important when you’re self-employed

Even before the internet, the power of the “network effect” impacted businesses and services. It refers to the principle that when more people use a product or service, it becomes more valuable. And if large numbers of people have a telephone or internet access, those services instantly become more useful than if only a handful of people are using them.

This is generally applied to large economies of scale, such as social networks and big data-based projects. The more people that use Facebook, Amazon, or Uber, the better the service can become due to the amount of content and data that will be shared, and it enables stronger relationships to be formed.

But you can apply something similar within your own network. If someone benefits from knowing you and your business, they’re more likely to mention you to others. That could be from directly working with you, from offering them help and advice, or by introducing them to someone else in your network who could be good for them to know.

Every person you can build a positive relationship with could potentially mention you to hundreds of their own contacts.

And while it’s likely you’re particularly close to your family and best friends, studies have shown that more jobs and opportunities often come from ‘weak ties.’ These are the people you have less frequent interactions with, and was first studied in the 1970s. Essentially, those individuals in your inner circle are likely to already have lots of shared contacts and information with you, so it’s those in your outer circle that will bring you new opportunities.

This lifts some of the pressure to make every new business acquaintance into a lifelong friend. You don’t need to immediately close a sale or establish a collaboration to benefit from bumping into people occasionally and infrequently.