Anyone have experience with BNI International (Scam)? (1 Viewer)

[Steve Tasker]

We are talking about this - Business Networking International

I have been approached by a friend/business colleague who is trying to set up a BNI group locally. He is a new-ish financial planner who is trying to build a book of business; I am a CPA. My understanding is that each of these groups can have only 1 member of each profession. He's unable to join a current group because the others all have financial planners, so he's trying to start his own. I've been invited to attend the informational session he's putting together.

Without injecting my own concerns/biases/comments into this, does anyone have experience with this? Thoughts?

 

[Steve Tasker]

Just a bump, I did some more research on this and it appears to be a bit of a scam.

It felt very pyramid scheme to me, something felt "off" in how he was describing it to me. I'm not sure it's a pyramid scheme because I don't understand the flow of money throughout the organization, but there's something that makes me uneasy about this thing. What I'm finding online is confirming my uneasiness about this.....this is a scam.

I had heard some positive anecdotal evidence from people I admittedly don't know very well, and agreed to go to this informational session without actually doing any research on it, and now I'm regretting it.

 

[The Big Guy]

I have coworkers who are a part of these groups and it is not a scam, but a decent way to leverage business contacts to refer to each other. They meet together once a week and I do know it costs to join the group. As you said, they only allow one of each type in the group and it does work well for one of the guys. Everything will depend on the people in the group and what they can bring to the table.

 

[Zow]

Is this like an Amway but for business?

 

[El Floppo]

A gb (insurance broker/financial planner) was involved with this and tried to get me involved as well.

Seemed to me at the time a decent enough thing if your rolodex was empty or stale and/or you were new to a city and needed to develop contacts.

Aside from a fee to join and time commitment- not sure what the down-side is? Didn't strike me as "scammish" or pyramidey. If I were doing my own work/office again, I'd definitely consider this.

 

[Steve Tasker]

Is this like an Amway but for business?

I think my characterization of it as a "scam" may be a bit harsh.

My understanding is that you pay membership fees ($500+) and get together weekly. You're expected to blindly refer work to the other people in your group. It's billed as basically taking your sales team and multiplying it by the x number of people in your group. They track all referral work and you may be singled out/ostracized if you're not referring enough work to other members. The meetings are very rigid, structured, and apparently cultlike. You're pushed to buy their books and other knick-knacks issued by their parent company. If you miss more than two meetings, for whatever reason, you start getting phone calls from the organization and they threaten to kick you out and keep your money. There is reportedly a ton of turnover in the groups. They push you heavily to recruit others to join (he has already mentioned to me to try to bring friends). From talking to someone at work about it, she has confirmed that it is very, very sales-y.

This part is a little unclear to me, but I think the individual groups are basically franchises. Within the parent company, there are high-level directors who have control over a certain area, and then individuals (like my friend) start a group underneath the "director". The membership dues that people like me would pay are funneled up through the directors and into the parent company. So while the actual bottom-level activity is just networking, the business structure itself is a pyramid scheme.

I'm sure it could work for people in the right line of work, but probably not for me. I could see it being good for people with no contacts, but I'm not hurting for work to the point where this would be useful for me, and I don't refer people I don't trust.

 

[El Floppo]

Is this like an Amway but for business?

I think my characterization of it as a "scam" may be a bit harsh.

My understanding is that you pay membership fees ($500+) and get together weekly. You're expected to blindly refer work to the other people in your group. It's billed as basically taking your sales team and multiplying it by the x number of people in your group. They track all referral work and you may be singled out/ostracized if you're not referring enough work to other members. The meetings are very rigid, structured, and apparently cultlike. You're pushed to buy their books and other knick-knacks issued by their parent company. If you miss more than two meetings, for whatever reason, you start getting phone calls from the organization and they threaten to kick you out and keep your money. There is reportedly a ton of turnover in the groups. They push you heavily to recruit others to join (he has already mentioned to me to try to bring friends). From talking to someone at work about it, she has confirmed that it is very, very sales-y.

This part is a little unclear to me, but I think the individual groups are basically franchises. Within the parent company, there are high-level directors who have control over a certain area, and then individuals (like my friend) start a group underneath the "director". The membership dues that people like me would pay are funneled up through the directors and into the parent company. So while the actual bottom-level activity is just networking, the business structure itself is a pyramid scheme.

I'm sure it could work for people in the right line of work, but probably not for me. I could see it being good for people with no contacts, but I'm not hurting for work to the point where this would be useful for me, and I don't refer people I don't trust.

what you just described sounds god-awful.

I didn't get that far in my "research" into this, since I knew I wasn't going to do it.

 

[chauncey]

The concept sounds good, meet weekly with other success minded business/sales people and share ideas and referrals. And if you are in a solid group it could be well worth the $500 fee if you get just one or a few new clients out of the deal

The only question I have is couldn't you just put together your own "mastermind" group for free? Between Facebook, LinkedIn, and real life contacts seems it wouldn't be too hard to get 5-10 people from various industries together for a weekly meal.

 

[El Floppo]

The concept sounds good, meet weekly with other success minded business/sales people and share ideas and referrals. And if you are in a solid group it could be well worth the $500 fee if you get just one or a few new clients out of the deal

The only question I have is couldn't you just put together your own "mastermind" group for free? Between Facebook, LinkedIn, and real life contacts seems it wouldn't be too hard to get 5-10 people from various industries together for a weekly meal.

with LinkedIn, do you even have to have that meeting?

 

[St. Louis Bob]

Stay away. Far away. HTH

 

[Jack White]

Stay away. Far away. HTH

No, that doesn't really help.

It's not a scam. It's another arrow to add to your quiver to get more business.

If you're a CPA, one client will pay for a year or more of your dues.

I will say based on my experience that B2C businesses tend to get more out of it than B2B businesses do.

If you need more clients, it's worth trying it for a year.

 

[D-Day]

PM sent. I'm in a group and it is paying off. It is a scam if all you do is pay your dues, show up to a couple a meetings a month, and not try to engage the other members of the group. This has been the most effective networking activity I have found. The once a month chamber meeting is not as effective.

If you are not networking, you're not working.

 

[Koya]

Concept is good enough, but BNI's franchise model taints the process imo.

I've been a part of a couple local networking groups which were run the same way. One person from each industry so as to not compete and all. However, all dollars for the group went to that group. There was not some funneled financial gain up top.

Definitely research some local groups that are not beholden to a parent company, but I agree that BNI is not really a pure networking group.

 

[Johnny Rock]

Is this like an Amway but for business?

I think my characterization of it as a "scam" may be a bit harsh.My understanding is that you pay membership fees ($500+) and get together weekly. You're expected to blindly refer work to the other people in your group. It's billed as basically taking your sales team and multiplying it by the x number of people in your group. They track all referral work and you may be singled out/ostracized if you're not referring enough work to other members. The meetings are very rigid, structured, and apparently cultlike. You're pushed to buy their books and other knick-knacks issued by their parent company. If you miss more than two meetings, for whatever reason, you start getting phone calls from the organization and they threaten to kick you out and keep your money. There is reportedly a ton of turnover in the groups. They push you heavily to recruit others to join (he has already mentioned to me to try to bring friends). From talking to someone at work about it, she has confirmed that it is very, very sales-y.

This part is a little unclear to me, but I think the individual groups are basically franchises. Within the parent company, there are high-level directors who have control over a certain area, and then individuals (like my friend) start a group underneath the "director". The membership dues that people like me would pay are funneled up through the directors and into the parent company. So while the actual bottom-level activity is just networking, the business structure itself is a pyramid scheme.

I'm sure it could work for people in the right line of work, but probably not for me. I could see it being good for people with no contacts, but I'm not hurting for work to the point where this would be useful for me, and I don't refer people I don't trust.

Oof! As others said, if you're that self-motivated to network just invite your top contacts in each discipline to weekly coffee or breakfast.

 

[Steve Tasker]

Stay away. Far away. HTH

Any stories?

 

[Steve Tasker]

Stay away. Far away. HTH

No, that doesn't really help.

It's not a scam. It's another arrow to add to your quiver to get more business.

If you're a CPA, one client will pay for a year or more of your dues.

I will say based on my experience that B2C businesses tend to get more out of it than B2B businesses do.

If you need more clients, it's worth trying it for a year.

I am not actively in the market for new clients or leads at the moment. I have more than enough to keep me busy with my current clients and established referrals. I had mentioned to this guy that I was trying to do a little more long-term networking, so he invited me to this.

 

[Mr. Pickles]

Is this like an Amway but for business?

I think my characterization of it as a "scam" may be a bit harsh.My understanding is that you pay membership fees ($500+) and get together weekly. You're expected to blindly refer work to the other people in your group. It's billed as basically taking your sales team and multiplying it by the x number of people in your group. They track all referral work and you may be singled out/ostracized if you're not referring enough work to other members. The meetings are very rigid, structured, and apparently cultlike. You're pushed to buy their books and other knick-knacks issued by their parent company. If you miss more than two meetings, for whatever reason, you start getting phone calls from the organization and they threaten to kick you out and keep your money. There is reportedly a ton of turnover in the groups. They push you heavily to recruit others to join (he has already mentioned to me to try to bring friends). From talking to someone at work about it, she has confirmed that it is very, very sales-y.

This part is a little unclear to me, but I think the individual groups are basically franchises. Within the parent company, there are high-level directors who have control over a certain area, and then individuals (like my friend) start a group underneath the "director". The membership dues that people like me would pay are funneled up through the directors and into the parent company. So while the actual bottom-level activity is just networking, the business structure itself is a pyramid scheme.

I'm sure it could work for people in the right line of work, but probably not for me. I could see it being good for people with no contacts, but I'm not hurting for work to the point where this would be useful for me, and I don't refer people I don't trust.

Nice. Who's your upline?

 

[Steve Tasker]

Is this like an Amway but for business?

I think my characterization of it as a "scam" may be a bit harsh.My understanding is that you pay membership fees ($500+) and get together weekly. You're expected to blindly refer work to the other people in your group. It's billed as basically taking your sales team and multiplying it by the x number of people in your group. They track all referral work and you may be singled out/ostracized if you're not referring enough work to other members. The meetings are very rigid, structured, and apparently cultlike. You're pushed to buy their books and other knick-knacks issued by their parent company. If you miss more than two meetings, for whatever reason, you start getting phone calls from the organization and they threaten to kick you out and keep your money. There is reportedly a ton of turnover in the groups. They push you heavily to recruit others to join (he has already mentioned to me to try to bring friends). From talking to someone at work about it, she has confirmed that it is very, very sales-y.

This part is a little unclear to me, but I think the individual groups are basically franchises. Within the parent company, there are high-level directors who have control over a certain area, and then individuals (like my friend) start a group underneath the "director". The membership dues that people like me would pay are funneled up through the directors and into the parent company. So while the actual bottom-level activity is just networking, the business structure itself is a pyramid scheme.

I'm sure it could work for people in the right line of work, but probably not for me. I could see it being good for people with no contacts, but I'm not hurting for work to the point where this would be useful for me, and I don't refer people I don't trust.

Nice. Who's your upline?

Hey I have a great business opportunity for you. But it's only for people who are SERIOUS about making MONEY. Come to my free informational seminar.

 

[Tom Hagen]

I'm sure it could work for people in the right line of work, but probably not for me. I could see it being good for people with no contacts, but I'm not hurting for work to the point where this would be useful for me, and I don't refer people I don't trust.

This is my biggest concern. If I refer a client to another professional, I feel responsible that they are receiving good service. If I don't trust that one of the people in the group is the right referral, I would never send my client to them.

 

[Joe T]

Nice. Who's your upline?

 

[Joe T]

How do pyramid schemes like this always work?

Hasn't everyone heard of a pyramid scheme by now?

 

[Jack White]

How do pyramid schemes like this always work?

Hasn't everyone heard of a pyramid scheme by now?

How, exactly, is BNI a pyramid scheme?

 

[Fat Nick]

We are talking about this - Business Networking International

I have been approached by a friend/business colleague who is trying to set up a BNI group locally. He is a new-ish financial planner who is trying to build a book of business; I am a CPA. My understanding is that each of these groups can have only 1 member of each profession. He's unable to join a current group because the others all have financial planners, so he's trying to start his own. I've been invited to attend the informational session he's putting together.

Without injecting my own concerns/biases/comments into this, does anyone have experience with this? Thoughts?

I wouldn't call it a "scam," but I do think the business model of BNI is a little silly.

I had a guy who did B2B sales for me when I owned my cellphone store. He was big into BNI in his previous job as a financial planner, so he stayed in the same BNI group when he moved over to do sales for me. When he quit working for me, I took over his seat. I found it to be minimially useful for my line of work, and the fees were unreasonable in my opinion.

Think of it as a frat for networking. Not to offend frat guys, but it's basically a way to pay some money to get a jump-start on meeting professionals to network with. A lot of what can be done in BNI can be done at Chamber of Commerce events and other business networking events for free. BNI just organizes the concept a little more and provides a framework for a fee.

My would be to skip the BNI group. Talk to other professionals and network that way. I was a financial advisor at one point too...When I was, I wouldn't refer them to a CPA just because he was in some networking group...I'd refer them to CPA's I worked with and trusted to treat them well.

 

[Steve Tasker]

I'm sure it could work for people in the right line of work, but probably not for me. I could see it being good for people with no contacts, but I'm not hurting for work to the point where this would be useful for me, and I don't refer people I don't trust.

This is my biggest concern. If I refer a client to another professional, I feel responsible that they are receiving good service. If I don't trust that one of the people in the group is the right referral, I would never send my client to them.

Right, and that's why BNI isn't what I'm looking for. As soon as I started reading up on it and how they track and quantify (and ostracize) related to referral work, my BS meter went off.

 

[El Floppo]

How do pyramid schemes like this always work?

Hasn't everyone heard of a pyramid scheme by now?

How, exactly, is BNI a pyramid scheme?

the perception is that money flows upwards through group organizers, regional organizers, etc. with increased revenue coming from increased members.

perception.

I have no idea about the truth of that perception- just relating what I've found when googling this.

 

[dancingbones]

My girlfriend was a BNI member for about a year when she was starting up her business (about 2 years ago). She found it very useful for honing her "elevator speech" about what she does for her line of work, and useful in honing her presentation skills.

As far as actually generating business though, I don't think she got any clients other than bartered services with other members in her chapter.

She found it more useful to visit different groups rather than go to the same one all the time.

After about a year, she stopped going altogether and found other ways to market herself that are better for her line of work.

I avoid those types of groups like the plague personally, but I think for the right business it might be of benefit.

 

[Johnny Rock]

For $495 I'll accept your LinkedIn invitation. $5 OFF!

 

[Jack White]

How do pyramid schemes like this always work?

Hasn't everyone heard of a pyramid scheme by now?

How, exactly, is BNI a pyramid scheme?

the perception is that money flows upwards through group organizers, regional organizers, etc. with increased revenue coming from increased members.

perception.

I have no idea about the truth of that perception- just relating what I've found when googling this.

I'm no BNI cheerleader. I was a member for a year and didn't renew.

But it's not a scam, and it's not a pyramid scheme. It's a franchise model.

Prospective members can attend two meetings for free. They can talk to other members and ask questions. The membership dues and expectations are clearly laid out. I would add that, like anything else, you can generally expect to get out of what you put into it.

All that said, I'm not a huge fan of networking in general. There are much better ways to get business.

 

[Johnny Rock]

How do pyramid schemes like this always work?

Hasn't everyone heard of a pyramid scheme by now?

How, exactly, is BNI a pyramid scheme?

the perception is that money flows upwards through group organizers, regional organizers, etc. with increased revenue coming from increased members.

perception.

I have no idea about the truth of that perception- just relating what I've found when googling this.

I'm no BNI cheerleader. I was a member for a year and didn't renew.

But it's not a scam, and it's not a pyramid scheme. It's a franchise model.

Prospective members can attend two meetings for free. They can talk to other members and ask questions. The membership dues and expectations are clearly laid out. I would add that, like anything else, you can generally expect to get out of what you put into it.

All that said, I'm not a huge fan of networking in general. There are much better ways to get business.

How can you recommend someone you don't know?

 

[Jack White]

How do pyramid schemes like this always work?

Hasn't everyone heard of a pyramid scheme by now?

How, exactly, is BNI a pyramid scheme?

the perception is that money flows upwards through group organizers, regional organizers, etc. with increased revenue coming from increased members.

perception.

I have no idea about the truth of that perception- just relating what I've found when googling this.

I'm no BNI cheerleader. I was a member for a year and didn't renew.

But it's not a scam, and it's not a pyramid scheme. It's a franchise model.

Prospective members can attend two meetings for free. They can talk to other members and ask questions. The membership dues and expectations are clearly laid out. I would add that, like anything else, you can generally expect to get out of what you put into it.

All that said, I'm not a huge fan of networking in general. There are much better ways to get business.

How can you recommend someone you don't know?

I wouldn't expect anyone to do that.

You get to know the other members by meeting with them weekly and having one on one meetings to get to know them better (coffee, lunch).

BNI has thousands of chapters all over the world. I assume its success is due to something beyond a scam.