Who You Know is More Critical Than What You Have

Business Relationship Management

We all need money to buy bread, to pay the mortgage and to pay our taxes. Money is definitely important. However focusing on making money can often be counter-productive; it is better to focus on the conditions needed to make money than the money itself.

Money is only one of five currencies. If you look after the other four, the money will look after itself.

The 5 Currencies

  • Time
  • Knowledge
  • Reputation
  • Contacts
  • Money

Time – Time is limited but we all get the same 24 hours of new Time currency to spend each day. Time cannot be “banked,” so we have to convert it into the other 4 currencies; Knowledge, Reputation, Contacts, and Money.

Knowledge – We convert our Time to Knowledge when we acquire new skills, absorb new facts, and apply those new ideas in a different context. Coming from a different perspective on-board is another example of acquiring the Knowledge that is essential for business success.

Reputation – Online, each of us is only as good as his or her reputation. Your reputation takes a lot of hard work to acquire and is very simple to lose. Nobody will employ or buy from anyone whose reputation is less than pristine.

Contacts – Gradually, people will add you to their email white list, will talk to you, and will ask for your opinions or for your help.

Money – Some of your contacts will offer to pay you in cash. Everyone will pay you by contributing to your improving Reputation, but we do need Money to pay the bills.

Time

No matter what you do or where you live, you get 24 hours a day to invest in yourself and your business. You cannot save this time: In paid employment, you trade your time directly for money, but if you are self-employed, direct payment for your time is not always possible. When no direct Time/Money trade is possible, you can still use your Time profitably to increase your reserves of Knowledge, Reputation, and Contacts.

Many of us fail to use our time wisely – We spend hours watching TV or randomly browsing the Internet. Chill-out time is important, but we need to make a conscious decision to chill out rather than wasting too much of our precious 24 hours on non-productive activities.

Understand your body and when you are at your most efficient. Many people are at their most efficient early in the morning and could benefit by starting work two hours earlier in the day. I get up at 4 am most days because I am a morning person and do my best writing before 9 am.

Knowledge

Knowledge has two components; acquiring it and passing it on. Both are equally important.

Knowledge includes information and being able to apply that information in different situations. It also encompasses any new perspectives you acquire or skills that you learn.

We all have a unique body of knowledge, unique perspectives, and unique skill sets because we have all had different experiences, met different people, and led different lives. We owe it to humanity to pass on our unique knowledge before we die to prevent it from being lost forever. It is only the passing on of Knowledge from one generation to the next that has allowed humans to progress.

Reputation

How others perceive you is important whether you work online or in the real world.

In the real world, nobody will employ tradespeople who are seen as dishonest or shifty. Sometimes we make judgments based on body language or tone of voice when we talk to someone on the phone.

Online, we rarely see or hear the people we meet, so your Reputation depends on your actions and what others say about you.

You can build your Reputation by being helpful to people. This might be by sharing your Knowledge, offering insight or just talking to others. Your website is one way to build your Reputation, but few people are going to visit that until you have established yourself as legal, decent, and honest.

You can grow your Reputation by spending Time in Google G+ communities or in an industry-specific forum. You need to approach the community in the spirit of giving; if you share your Knowledge freely, other community members will see you in a positive light.

Contacts

In the real world, Contacts are the people you meet and those who have heard of you. The same applies online; your contacts are the people in your G+ community and those who read your posts in the community.

Never, ever ask for anything in any community; always give of your Time and Knowledge without asking for any compensation. This might sound like an unproductive use of your Time, but believe me, your Reputation and your Contact list will grow.

Your Contacts are all the people you help. They pay you in different ways; all will speak highly of you, improving your Reputation, some will share their own Knowledge, others will share their Contacts and a few will offer you Money to do a job for them.

Money

If you have nurtured the other four currencies, the Money will come without you doing anything else. You really do not have to do anything more than keep your eyes open.

Most people are very fair and want to pay you back for the favors you do for them. Everyone would rather pay someone they know to do a job they need doing than a stranger, so don’t be a stranger. Talk to people you have not spoken to for a while; remind them that you are still around and still looking to help them.

Full Circle

By investing Time in growing and spreading your Knowledge, you have grown your Reputation, developed Contacts and earned Money. You have done all this without thinking about Money at all.

The 5 Currencies and Me

I learned all this through experience. I was made redundant in 2010 and set about learning how to make an income online.

I am a teacher, so I can write. I joined an article writing site (InfoBarrel.com) that pays you by embedding Adsense ads in your articles. I earned a few dollars, but I spent hours in the forum, learning from others and sharing my own knowledge.

I joined up with a few other InfoBarrel writers for a project and learned about the 5 Currencies from another writer (Andrew Walton). I was also offered paid writing jobs by other active forum members; some of these were short term but others have been ongoing for the past three years.

Every job I have had over the past three years has come about because of the way I have shared my Knowledge and grown my Reputation and Contact list.

Every paid job originated in a forum discussion.

Where Do You Start?

Start by adopting a spirit of giving. Find a Google G+ community or a forum of like-minded people.

Learn and share everything you have freely and without expectation of any reward. You can call this “paying it forward.” It is counter-intuitive at first but it works.

As you check your community each day, even every few hours, you just need to keep your eye open for people who are offering paid jobs.

Conclusion

It is very tempting to obsess about Money, especially when you have bills coming in that you are struggling to pay. Thinking about finances affects your thinking and behavior and actually makes it less likely that you will be offered paid jobs.

People are more likely to give jobs to people they know, like, and trust. Using your Time to grow and spread your Knowledge will build your Reputation and Contact list. This list of people who trust you will be the source of every dollar you earn.

You may have heard the phrase “The money is in the list.”

Even if you have no website, the money is in your contact list.

[signoff][/signoff]

Author

  • Phil Turner

    Phil Turner is a writer and blogger from Ireland. His articles can be found on many websites including his own site, TimeMoneyProblem.com.

    He built Time Money Problem to help people like him who have been made redundant and need to make a job for themselves either online or in the real world.

    Phil writes and edits articles for others and is always looking for new opportunities. He is passionate about the need to talk with other writers, to help each other in every way possible in forums and in other online communities.

    View all posts

46 Responses

  1. Nicholas P. van Vliet says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    Making relationships is more important. If you can develop good relationships with people, more of them will want to do business with you. The same goes for employees. If you treat them well and work to foster a sense of community they will become more productive. If your employees are hardworking, productive and enjoy what they do, and you have built good relationships with clients and potential clients, then the money will follow. Money is the “reward” of having built good and caring relationships with employees and clients.
    By Nicholas P. van Vliet

    • We have the same hymn book then. If only more employers saw the value in making their employees happy the world would be a much happier place.
      Thanks for taking the time to comment

  2. Bonita Telford says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    They both go hand in hand building good relationships however they must be forever – lasting, this is work a lot of effort goes into building a relationship, but once it is cultivated it is forever, you must stay in touch, whichever way works. Then making money is the other part to this – developing trust gives us the money part, many of those same relationships created will want to do business with you. For our business it has worked – we get referrals from folks who do not even know us but hear from others. Cherish those relationships.
    By Bonita Telford

    • Real World businesses have always understood the value of referrals and relationships. Online businesses sometimes seem to forget them, perhaps because they are run by people who are new to business. I agree with you that a relationship will die unless both parties work at it. It must be beneficial to both if it is to last.
      Thanks for reading and sharing your comments.

  3. Dennis Perez says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    Really good question! Obviously making money is one of the goals of any business (even non-profits) if for no other reason other than being able to keep going. But establishing relationships is where everything starts. People buy from people thy know and like whenever they have a choice to do so. I’d like to see some more discussion around the process of building relationships in our new on-line world.
    By Dennis Perez

    • We agree then, that money is the necessary end-product, but that businesses, online and offline need to focus on relationships with clients and customers as a pre-requisite to earning money from them.
      Thanks for reading and commenting

  4. Emmy Bill says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    I read a statistic today that 93% of marketers are using social media in business. I think what this is telling us wholeheartedly is that businesses are keyed into that fact that building relationships is of the utmost importance, hence the participation in social media. As a marketer myself, social media is never about the hard sell, it’s about humanizing my company and building relationships and trust.
    By Emmy Bill

    • I agree on your take on social media use. They are channels through which to interact with clients and potential clients on a human, 1 to 1 basis.
      Thanks for reading and leaving a comment.

  5. Ron Beard says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    Building relationships

    Our definition of Success:

    Success should never be measured by what you buy or what you own
    But in the pride you feel for the person you’re with …
    When you’re all alone.

    All the best
    By Ron Beard

    • I love your definition of success. I agree whole-heartedly. We all have to live with ourselves, so it is never worth being untrue to what you believe in. Honesty and a generous spirit are everything.
      Thank you for reading and taking the trouble to comment.

  6. Ron Beard says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    We think the world would be a better place if everyone would use this definition of Success:

    Success should never be measured by what you buy or what you own …
    but in the pride you feel for the person you’re with …
    when you’re all alone.

    All the best
    By Ron Beard

  7. STUART ANDERSON says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    Making money. Money can buy friends, but friends will NOT pay your debts.
    By STUART ANDERSON

    • The kind of friends that money can buy are not real friends. If you were to start asking friends to pay your debts your contact list would shrink very quickly.
      My point was that people only buy services from people they know, like and trust, whether they are online or in the real world. You must grow your contact list because the people on that list will be your best customers, the ones who will buy most services from you.

    • The kind of friends that money can buy are not real friends. If you were to start asking friends to pay your debts your contact list would shrink very quickly.
      My point was that people only buy services from people they know, like and trust, whether they are online or in the real world. You must grow your contact list because the people on that list will be your best customers, the ones who will buy most services from you.
      Thanks for reading and commenting.

  8. James Johnson says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    The most important to me is delivering a product/service to a relationship that produces “delight” to both parties to the business transaction.

    I have and will lose profit to sustain a future profitable mutually beneficial business relationship.
    By James Johnson

    • I agree totally with what you are saying. Businesses make money by pleasing their customers. Customers are willing to pay a fair price for services and to buy again from the same company. Building relationships is a necessary step to making money.
      Anyone who tries to make money without first nurturing a mutually profitable relationship is doomed to little success.
      Thank you for your comment.

  9. Stuart Atkinson says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    I have been a relationship builder from the start. Building the relationships in business develop that X factor – the connections and networks that you make through your friends can turn out to be far more valuable than the money that you make. What I’ve found is that the chance encounter with someone with whom you network can lead to things which were only dreamed possible. Making money is a side effect of making friends.
    By Stuart Atkinson

    • You are totally right Stuart – With so many businesses failing in their first year we all need the X-Factor and building relationships is definitely part of the X.
      I have also found that people I know have passed on my name to others who I could never have reached otherwise.
      Thank you for your insightful comment.

  10. Marcus Salette says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    Building relationships is more important, money is a by product of that, but later- it’s not going as well as I had hoped! People are under alot of pressure these days!
    By Marcus Salette (YourLifeCoach)

    • I agree Marcus – Things are difficult in the current climate, but I think relationships are still the *only* way. It might take longer than we hoped, but relationships are still the foundation stones of your business.
      Thank you for commenting.

  11. Robert Schuster says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    You are right on when you say relationships are more important than money for your focus. People buy from, assuming we all have something to sell, people they trust much more easily than the person with dollar signs in the eyes.

    Having owned a real estate company for 30 years with a staff of professional brokers to train I disliked the question “how much is my commission on this deal.” My answer was always the same, “you assisted someone for which you will get paid, that is why you are here; now go help someone else and the checks will keep coming.” Worry about how much this one is and there will be no more.

    Locate someone with a need, want, and assist them in solving the pain. You will get paid
    in direct proportion to the wants and needs you satisfy and the pain you help alleviate. INJ
    By Robert Schuster

    • That is a great approach – Trying to persuade employees that their jobs depend on meeting customer needs is difficult but is essential for any business to succeed.
      Thank you for your comment.

  12. Terri Lively says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    Building relationships, particularly in business. Once you build the relationships, in my experience, you end up making money.
    By Terri Lively

  13. Kim Messeri says:

    Via LinkedIn groups
    Group: Succeed: Small Business Network, Powered by Staples
    Discussion: What’s more important to you, making money or building relationships?

    Although I love to eat ;-)…you can’t make money without first building solid relationships. Solid relationships are the foundation of any successful business.
    By Kim Messeri

    • Thanks Kim
      Yes, it is difficult to focus on relationships when you are worried about money, but they are a necessary step on the road to a healthy income.

  14. Wally Barr says:

    Via LinkedIn groups
    Group: Small Business & Independent Consultant Network
    Discussion: What’s more important to you, making money or building relationships?

    Agree. You do jobs to get money. You have a career to become financially well off.
    Money is not wealth. It is through relationships and long lasting connections that you
    can become wealthy. Look at the big picture
    Just my thoughts.
    By Wally Barr

    • Thanks Wally.
      I agree there is much more to being wealthy than being rich. Reputation and relationships are major components too. It is too easy to focus on the money and to forget the rest.

  15. Sybil Shearin says:

    Via LinkedIn groups
    Group: Writers World
    Discussion: What’s more important to you, making money or building relationships?

    My mother taught me very early in life that money had destroyed many famous people. We were not rich but I had wonderful parents. I had Polio at the age of three so my Dad borrowed all he could borrow to pay for my medical needs. I was paralyzed from the waist down and I remember my mother crying and praying a great deal. God looked upon me and healed me of the disease that was causing my distress. I was able to walk again after a year or so. I know that money can help and make life a little better but building relationships is definitely the better choice. I’d like a little of both to finish out my life.
    By Sybil Shearin

    • Thank you for your insight Sybil. A serious illness always changes someone’s perspective and I am happy that you can walk again.
      I think we would all like both relationships and money. In business relationships lead to money, never the other way around.

  16. Nicholas P. van Vliet says:

    Via LinkedIn groups
    Group: Small Business & Independent Consultant Network
    Discussion: What’s more important to you, making money or building relationships?

    Dennis Perez – I do not know a great deal about building online relationships (yet). However I know that honesty and transparency are key. I am currently reading a book on this subject (“Trust Agents: Using the Web to Build Influence, Improve Reputation, and Earn Trust”) to learn more. This book or a similar one would be helpful to anyone interested in learning about building relationships in an online world.
    By Nicholas P. van Vliet

    • None of us did when we started Nicholas. To me it comes down to helping people when they need it. People remember that help and will come back to you months or years down the road, when you might be looking for help.
      It’s about paying it forward and helping people without any expectation of reward.
      Thanks for taking the time to comment Nicholas

  17. Kathleen Kline says:

    Via LinkedIn groups
    Group: Writum
    Discussion: What’s more important to you, making money or building relationships?

    I do both, I guess. Having moved a lot over the last 25 years I have learned to build relationships quickly and, in part, is it because I quickly prove I can do the job I am asking someone to give me. When it comes to Editors… I was taught to be their “girl Friday”. Again, proving I can get “it” done when it needs to be done, which, in turn, builds my circle.
    By Kathleen Kline

    • Most people do both Kathleen. You seem to be saying that you are valued and well-paid because you do a good job and your job involves relationships . . .

  18. Harry Walden says:

    Via LinkedIn groups
    Group: Business Owner’s Toolkit
    Discussion: What’s more important to you, making money or building relationships?

    I have many customers who trust me and their friends trust me by buliding this relationship on that same level. I agree
    By Harry Walden

  19. Gwen Hawver says:

    Via LinkedIn groups
    Group: Business Owner’s Toolkit
    Discussion: What’s more important to you, making money or building relationships?

    Agreed, we have been working on building relationships for 3 years now… can’t say the money has always followed.
    By Gwen Hawver

    • No, Gwen, sadly I have to agree that there is no direct proportionality involved and there can be a lag. Not every relationship will lead to making money, but every positive relationship you build is one more person singing your praises and building your reputation. Thanks for taking the time to leave a comment.

  20. Kimberly Sutton says:

    Via LinkedIn groups
    Group: Business Owner’s Toolkit
    Discussion: What’s more important to you, making money or building relationships?

    Building relationships is definitely more important. The clients I have connected with have given me referrals which have been far more lucrative than clients who don’t know me from the next girl.
    By Kimberly Sutton

    • Thanks Kimberley – I am glad you agree. Relationships lead to money, and people do want to employ people they know at least slightly. I know always prefer to work with people I know and I imagine most people are the same.

  21. Lateif Dickerson says:

    Via LinkedIn groups
    Group: Business Owner’s Toolkit
    Discussion: What’s more important to you, making money or building relationships?

    The key to making more money IS building and nurturing the right relationships.
    By Lateif Dickerson

  22. Thanks for taking the time to comment Lateif. We agree then on the importance of relationship-building. I think people sometimes confuse automated Tweets with building relationships.
    We have to nurture every relationship partly because we don’t know which are going to earn us money but mostly because every relationship contributes to our reputation and reputation is everything!

  23. Marc LeVine says:

    Via LinkedIn groups
    Group: Jewish Professionals
    Discussion: What’s more important to you, making money or building relationships?

    I have always lived by the credo that “money follows value.” This fits well with relationship-building. It’s hard to do business with strangers. But, if one is genuine, a good listener, truly interested in what the other person is about and willing to help others succeed with no strings attached there is often a pot of (business) gold at the end of such a rainbow. The value you bring to others positions you to be on the receiving end of good will and opportunity.
    By Marc LeVine

    • Thanks Marc for taking the time to comment. Yes, you and I are working on the same principles. This is the principle behind local chambers of commerce and similar groups, everyone helps each other.

  24. Rajendranath Mehrotra says:

    Via LinkedIn groups
    Group: Writum
    Discussion: What’s more important to you, making money or building relationships?

    To me, important is to be successful in life through “Inside out” route, in which I constantly try to gain better control on my ‘short comings’ and improve myself so that relationships, fame, power, money etc. automatically come my way.
    By Rajendranath Mehrotra

    • Thanks for taking the time to comment Rajendranath. I know all about shortcomings. We all have them, but other people are not even aware of them on most cases. We build relationships by being positive and an influence for the good.