Networking 1
Networking: What It Is and How to Do It
Successfully
By
JULIA KAGAN
Full Bio
Julia Kagan is a financial/consumer journalist and former senior editor,
personal finance, of Investopedia.
Learn about our editorial policies
Updated April 14, 2024
Reviewed by MARGARET JAMES
Fact checked by
KATRINA MUNICHIELLO
Investopedia / Julie Bang
What Is Networking?
Networking is the exchange of information and ideas among people with a
common profession or special interest, often in an informal social setting.
Professionals use networking to expand their circles of acquaintances, find
out about job opportunities in their fields, and increase their awareness of
news and developments in their fields.
Networking is one of the main benefits of joining a professional
organization or attending a trade fair or convention. However, networking
most often occurs spontaneously when two or more like-minded
professionals cross paths.
KEY TAKEAWAYS
Networking is used by professionals to widen their circles of
acquaintances, find out about job opportunities, and increase their
awareness of news and trends in their fields.
Business owners network to develop relationships with people and
companies they may do business with in the future.
Professional networking platforms provide an online location for
people to engage with other professionals, join groups, post
blogs, and share information.
The coronavirus pandemic drove many to network solely online
rather than in person.
Many colleges and universities provide opportunities for alumni to
network with one another.
How Networking Works
People generally join networking groups based on a single common point
of interest that all members share. The most obvious is a professional
affiliation, such as stockbrokers or social workers. Many find effective
networking opportunities in a college alumni group, a church or synagogue
social group, or a private club.
For professionals, the best networking opportunities may occur at trade
shows, seminars, and conferences, which attract a large crowd of like-
minded individuals. Networking helps a professional keep up with current
events in the field and develop relationships that may boost future
business or employment prospects.
Needless to say, it also provides opportunities to help other people find
jobs, make connections, and catch up on the news.
Business owners network to develop relationships with people and
companies they may do business with in the future. These
connections help them establish rapport and trust among people in their
communities.
Successful business networking involves regularly following up with
contacts to exchange valuable information that may not be readily
available outside the network.
Business owners and entrepreneurs often join their local Chamber of
Commerce to promote their business interests and help others in their
communities do the same.
Online Networking
Professional networking platforms such as LinkedIn provide an online
location for people to engage with other professionals, join groups, post
blogs, and share information. And, of course, they provide a place to post
a resume, search for jobs, or identify job candidates.
These days, a business-to-business (B2B) customer pipeline can be
developed almost entirely through the use of a social networking site.
Online networking forums allow professionals to demonstrate
their knowledge and connect with like-minded people.
LinkedIn is the largest professional network, but there are many
others.1 Some cater to particular subsets of people, such as Black
Business Women Online. Others, such as Meetup, try to combine online
networking, real-world networking, and video conferences.
The term computer networking refers to linking multiple devices to share
information and software resources in an immediate way.
Special Considerations
Given the growing number of networking opportunities available to people
looking to start or advance their careers, it's important to take some time to
explore your options before committing to a specific networking group.
While it's tempting for a new business owner or someone looking for a
dream job to join as many networks as possible, a better strategy is to
target your time and efforts toward those groups that best fit your needs
and interests. Many networking organizations will host special meet and
greet events for prospective members.
Once you join a networking group, it's important to become a contributing
member. Rather than just using the association to further their own goals,
people who use networking effectively look to offer something of value to
other group members.
Networking can help you identify opportunities for collaboration,
strategic joint ventures, partnerships, and new areas to expand your
business.
How Can I Network Efficiently?
Take the time to explore your options before committing to a specific
networking group. Target your time and effort to the group that best fits
your needs and interests.
Remember, networking is a process of give and take. Don't just jump in
when you're looking for a job. Be generous about sharing tips,
recommendations, and insights that benefit others in the group.
Why Is Networking Useful?
Networking helps a professional keep up with current events in the field. It
develops relationships that may lead to business or employment
prospects. At its best, it achieves this in a relaxed social environment.
What Is Online Networking?
Sites such as LinkedIn provide a platform for people to engage with other
professionals, join groups, post blogs, and share information. And, of
course, they provide a place to post a resume that will be seen by
prospective employers. Online networking forums allow professionals to
share their knowledge and connect with like-minded people.
