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May 28, 2004
The more Connections, the more Transactions - Ecademy
The more Connections, the more Transactions - Ecademy
Theory vs. reality
by Christian Mayaud on 28-May-04 11:05pm
I am new to Ecademy and only started using LinkedIn as a Beta tester about 6 months ago. I would argue I only have a few close friends and I don't believe my current number #1 status in the USA and #2 (after TP) globally will change the number of close friends I have ... however, I do feel it changing my "outer sphere interpersonal influence". Let me share some of the observations I've made about my "Online Networking" as a "top networker" on LinkedIn --
1) As a VC/Entrepreneur in the US, over the last 10 years I have grown a large database of contacts in my rather small and closed industry and always keep the contacts electronic (from the mac to the newton to the palm to the treo ...) rather than in Roladex form as many of my colleagues still do ...
2) As a member of the US private investment community we, as a group, are very interested in new things, so when LinkedIn went "live," a high percentage of us went on line, at the same time, to test it.
3) Since I had a large contact database, in electronic form, of my "private equity" peers, I quickly became #1 in terms of connections -- not because of my real world connections (which would pale in the face of my rolodex peers) -- but merely because (1) I am a member of a community that tends to be first to test anything new and (2), my contact database was in electronic form ...
4) OK, so now I'm on page 1 and at the top -- nothing has changed in my database of contacts or my real world relationships ... I don't feel any different ... nothing seems to have changed in my world -- AT FIRST ... then I did begin to notice some things ...
5) First, quite a large number of referrals and dealflow began to go through me, since, having a "supernetwork" often made me the shortest distance to any given person on the network.
6) Suddenly, lots of new people (whom I have never met) began to request a link to me ... most of these seemed to be somewhat self-selecting for relevance in that they were indeed in my industry but I just hadn't ever met them ...
7) the motivation to link to me seemed to grow as people figured that by including me in their network their network reach would grow ...
8) I also noticed several "front page effects" -- the first was "Hand Holding at the Top" -- everyone else with large networks on front pages would try to link to each other to create an even larger "super-supernetwork" -- this would increase everyone's reach while simultaneously decreasing the number of "refer through" referrals (ie decrease the work) each of us had to process since shorter paths could be now be found ...
9) Also, being on the top page has a pure visibility advantage that continues to promote those on page one beyond those on subsequent pages (an effect fought over in search engine results)
Okay, so now let's test the hypothesis that "Increased Connections leads to Increase Transactions" ... in my case --
I have increased the number of "superficial" relationships by several hundred ... and it grows steadily on a daily basis ... so I would say that is an increase in connections -- most of which I do very little to maintain ... However, out of those new superficial contacts, come a stream of about 30 new deals per months (most of which I now share with "older and deeper relationships" which I didn't used to do - so these "old real world relationships" are benefiting and getting deeper than they were before) ... Also these deals lead to real world phone calls, meetings and, in some cases, actual funding and development of long term investor relationships ... Also, for someone who has always considered himself a "bad networker", I've begun meeting new people, offline, at a rate of 5-10 per week, above my normal rate of about 5-10, (not at Thomas's rate, but, then he is a guru and actually works at it) ... for me, this rate feels natural, unforced, and maintainable ... So I would argue, I have seen increase in the number of Real Transactions ...
Now, there are clearly several important caveats ...
1) Venture Investors often maintain phone and or email relationships with each other, without ever having met each other in the real world -- I have several closer relationships with individuals I can call or email at anytime and we have never, and probably never wil,l meet ... and then there are many relationships which are maintained via phone and email after only one chance meeting ...
2) Some of the effects seen here may be a property of "critical mass" effects of "vertical market online communities" -- ie when a high proportion of a given real-world community actual connect to each other online (something I saw on Physicians' Online in the early 1990's") ... ie it is no longer random if 50% of the VCs are actually communicating on the same system ... this is not serendipity (ie this may be a major distinction between Ecademy and LinkedIn... LinkedIn may have a much broader base but may miss the critical mass effects brought about by specialized online communities)
3) Most importantly: Most of these effects may be TRANSIENT!!!! ie As everyone's network becomes bigger and bigger, the early transactions that came preferentially to me may begin to go down to a level that is actually proportional to my "true real world value" (heaven forbid!) and not to this transient online value attributed to me by the mere number of connections that have snowballed onto me ---
I'm human and busy and often thoughtless and insensitive to others around me both offline and online --- just like anyone else -- I think these social networks WILL deliver increased universal access to individuals BUT those who market themselves effectively will benefit from online access more than those who don't ...
I apologize for the length of this "rant" ... I've said my peace and I will now crawl back into my offline world of "just a few close friends, my family, and one soulmate"
PS -- In a shameless act of self promotion you can click on the links below to "keep me on top..."
Christian Mayaud | Managing Director | The Verticom Group
cmayaud@theverticomgroup.com | 914/309-6385 | Skype ID cmayaud
#1 US networker (#2 Globally) on LinkedIn – join my 1100+ network on LinkedIn
I'm new to Ecademy Networking – please join my network on Ecademy
Posted by cmayaud at 01:16 AM | Permalink| Comments (1)
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Comments
When invited to 'join' the network of Christian Mayaud, I thought "Who's Christian Mayaud?" - hey but anyone that calls their Web Log "Sacredcowdung" must be on my wavelength and worth exploring.
Then I noticed Thomas had endorsed Christian which for me, as a supporter of the Founding Ideas of Ecademy, does add weight.
Arriving here, virtually, at the site of the Sacred Cow Dung, whilst in reality, located at the Place of the Dirt Common Sheep Dung in Mid. Wales, UK, I read the first Web Log on your site.
It's clear.
It's also clearly thoughtful. I too have similar thoughts towards Networking. But one thought that dominates my own Networking is that we need to be connected. Whether connections are first level or 100th level, the work ahead for the global community requires an ever strengthening web of links. We need to be Neighbours as the World puts us ever closer together.
We need (should I type 'NEED' in caps) to form a future that shares, that provides, that grows optimally, that ensures genius doesn't die un-noticed, that reaps the harvest from all effort, that turns each new corner and that makes progress based on the linked minds of a World Ecademy open to all those that care for the best Global tomorrow.
It is a mere challenge to keep in 'close' contact with a network of 60 Billion 'friends' but when we learn to do this, each of us, we will be on the brink of using the processing power of 60 Billion human brains.
Awesome progress can be made for those who take this networking baby and feed it the right food.
Ever the best and only the best wishes to you, your family, your company, your friends, your thoughts, your genes and your expanding network
Grant of the HoBB, UK.
Posted by: Grant of the HoBB, UK at June 3, 2005 03:48 AM
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