250 x 250 Strategy

The objective of the 250×250 strategy is to build relationships; you want 250 people to know, like, and trust you and remember you when they meet someone who has the problem you solve. The strategy is one of giving: understand them so that they want to understand you.

We often complicate sales and marketing; we create complex, automated marketing systems and digital marketing strategies to lure strangers into our world. 

And, yeah, you’re going to want that. But it shouldn’t be your focus if you are still working on attracting and selling to your first 40 customers. There are better strategies to get started – one of the more powerful that we have discovered is the 250×250 strategy developed by Tim Templeton in his book The Referral of a Lifetime. This blog post covers the strategy and how to implement it for you and your business. 

The 250×250 strategy is a networking and relationship-building strategy.

If that makes you cringe, don’t worry; this strategy is about quality, not quantity. Networking typically creates weak bonds fueled by endless Zoom calls or Coffee meetings.

The beauty of this strategy is that you develop strong bonds with a core group of people. As a result, you end up with more business rather than caffeine jitters.

Here’s how to do it.  

Notes:

• Be sure your online profiles represent you and make it very clear what you do, the problem you solve, and for whom. Especially your LinkedIn profile and website should clarify what you do and sell you.

Why 250? 

The number is derived from anthropologist Robin Dunbar’s work. He postulated that humans could effectively maintain around 150 to 250 connections.

Within this range of 150 to 250, the specific number often cited is around 150, known as “Dunbar’s number.” This number represents the average maximum number of individuals with whom a person can maintain stable social relationships.

However, Dunbar suggests that in certain social contexts, particularly in modern societies with more complex social networks, the upper limit can extend to approximately 250.

The exact number isn’t important. It is the theory that matters: if people maintain 250 contacts, even loosely, then by nurturing your relationship with 250 people, you are actually marketing to 62,500 people (250 times 250 = 62,500). Even if, on average, that number is closer to 150, you would be marketing to 22,500.

So, this is networking? Not exactly…

If you are thinking, “But wait, networking doesn’t work… I have met more than 250 people through my efforts, and I end up with a piddling stream of business that barely keeps me from starvation,” I understand. That is why this strategy is so important.

See, what typically happens when you meet someone is shaking their hand and moving on. Maybe you have coffee and agree to help each other out or work together someday. These meetings are useless; they generate business ONLY when the person you are talking to has a need or happens to know someone who has a need at that moment.

The fact that people will forget is baked into the networking concept: you meet repeatedly, have coffee, go to meetings, have annoying cocktail parties in noisy restaurants, and generally keep in touch because the assumption is that they will forget you. You need these meetings to stay top of mind.

The 250×250 strategy is an active strategy in which you make yourself essential to your network so that they always remember you. You build deeper bonds with this network of people so that they will refer more business to you (oh, and you end up referring more business to them, so it is a win-win situation).

However, remember that the more you give, the more you get. So you want to be generous with your network and give as much as you can. Give referrals, give business, and give support, and your network will reward you.

This strategy does remove some of the horse-trading from networking; people refer others to you because they know, like, and trust you. You make referrals because you know like and trust them.

Before you move on, remember the problem you solve and for whom

The more clearly and precisely you can answer this question, the more effective all relationship strategies will be. So before you go further, know your Irresistible Value Statement.

A Summary Overview of the 250×250 Strategy 

The 250×250 strategy is based on the idea that you should build relationships with your top 250 contacts. The theory is that each of these contacts will also have a network of 250 people, which means you have the potential to reach 62,500 people. So by nurturing a relationship with 

The key to success with this strategy is not just about meeting and connecting with people but also nurturing those relationships and turning them into sales opportunities – developing strong bonds and deep, trusting business relationships.

Here’s how: 

1. Identify Your Top 250 Contacts 

Start by listing the people you know from various aspects of your life. These include friends, family, former colleagues, classmates, and acquaintances. Don’t limit yourself to your industry or profession; a diverse network is more valuable. 

2. Rank Your Contacts 

Once you have a list, rank your contacts based on their potential to help you drive sales. Consider factors such as their influence, industry, and network size. The goal is to identify the 250 people most likely to refer business to you. 

3. Nurture Your Relationships 

With your list of top 250 contacts, it’s time to invest in building and nurturing those relationships. This includes reaching out consistently, engaging in meaningful conversations, and providing value to each individual.

You may want to start with a confession letter.

4. Implement the systems that make nurturing these relationships easier and more automatic.

Nurturing is the bulk of the work in this strategy, so we recommend implementing a CRM system and automation to make this easier. So, in this section, I cover the systems you should implement.

Now, we move on to how.

Step 1: Create your 250 list

Start by gathering names from various sources, such as your phone contacts, email contacts, social media connections, business cards, and professional networks. Consider including personal and professional contacts, such as friends, family members, colleagues, clients, vendors, and acquaintances from industry events or conferences.

This might take some time, and that’s okay. You don’t have to do it in one sitting. You also don’t need to come up with a list of 250 right away: create a list of as many people as possible.

Verify contact information:

Ensure that the contact information for each person on your list is up-to-date. This includes phone numbers, email addresses, and mailing addresses. You can verify this information by contacting the contacts directly or using online resources like social media profiles or company websites.

Gather their social media information so that you can follow them on social media. One of the best ways to build relationships is to engage with other people’s content on social media. This is more powerful than posting your content. So, capture their social information.

This is, honestly, where a CRM comes in handy. It is a great way to manage your contact database.

Honestly, you need a CRM. We use ActiveCampaign; whatever you use is probably fine.

Keep building your list

As you meet people, add them to your 250 list. The key to making this effective is to do more than exchange a business card that you slip into your back pocket for review later.

Instead, when you meet someone, immediately follow up with them. Add them to your database as soon as possible. A tool we like for this is Popl; these digital cards allow you to capture contact information and connect instantaneously.

We recommend:

1. Add their contact information to your database and send a note telling them it was nice to meet them. If you have something like Popl, this will happen automatically; without Popl, you either type the information in yourself or send it to your assistant, and they type it in. As soon as the contact information is in your database, send a note telling them you enjoyed meeting them (you can easily automate this).
   
   When you enter their information, also add a note about where you met them and what you talked about. That way, you can refer to the conversation easily in the future.
2. Send a paper thank you note. There are a couple of ways you can do this. One of them is to have a bunch of pre-printed (as in your return address, company name, etc., on the card), pre-stamped notes available. When you meet someone, you jot down a quick thank you and their address and send the note.
   
   The other way to do this is with a service like Handwrytten. The beauty of a service like this is that you can automate the process. Once you enter the information in your database, you can automatically prompt the service to send a note. They send a handwritten note to your contact (they use robots to write. You can even have them learn your handwriting and signature).
   
   Using a service is more expensive and can be slower, but it is also very reliable. (Note: I have had some people complain that the paper isn’t the paper stock they prefer, the ink isn’t exactly the right color, or it takes 2 days longer. So they don’t use Handwrytten; they end up never sending the notes and don’t get results. My advice: get over it. Nobody cares about the card stock or ink color; it is sending the note that matters.
   
   The message should be something like “Thank you for the great conversation about what you talked about where you met; it was wonderful meeting you, and I look forward to getting to know you better. Please let me know if I can ever help you.” You don’t need to ask for a referral or a sale here. Just give and be generous.
3. Over time, categorize new contacts as below.

Step 2: Categorize contacts based on importance and potential for referrals:

This is an important step that you will continue to adjust over time.

Organize your contacts into groups A, B, C, and D according to their importance and potential to provide referrals. Here’s a general guideline for categorizing your contacts:

Group A:

These are your top contacts with high potential for providing referrals or have already referred business to you. They are well-connected and have a strong relationship with you. You like them, you believe in their ability to deliver the results they promise, and you want to do business with them.

Generally, you’ve already referred business to them, or they’ve already referred business to you; people belong in the A category when you are confident that the relationship you have with them will lead to more customers/clients for you and for them.

You will spend most of your time and resources on your A contacts. This will probably be your shortest list, and that’s by design: you want to dedicate your resources to the relationships that will give you the most benefit (and to whom you can provide the most benefit).

Now, there is a tendency to put people in the A bucket if they have more potential.

Imagine you target lawyers and meet someone in the industry who knows every lawyer in town. It is tempting to treat them as an A contact.

But if they don’t make referrals or you are reluctant to make referrals to them, then the fact that they know everybody is useless. You are better off putting your time, resources, and effort into supporting those you respect and who support you.

An A contact doesn’t need to be in your industry or even directly related to your target market. Remember, they know people, and you are connecting not just to your one contact but to all the people they know.

In Tim Templeton’s book, he talks about having a printed list of companies that you would hand out to the people you know when they need something. The people you put on that list are your A list contacts.

Group B:

These contacts have some potential for providing referrals but may need more nurturing to strengthen the relationship. They might know your business but may not have referred anyone yet. They are great people to know but may not be as active, connected, or engaged as your A-level contacts.

Categorizing someone as a B contact doesn’t mean you think less of them; it just means you will dedicate fewer resources to them.

Think of it this way: if you only have space in your calendar for 20-30 A contacts, then your Bs are the ones that don’t make the cut.

You might include a few B’s in that same list of companies: you still like them; they just aren’t your top sources of referrals.

Group C:

These contacts either have limited potential for providing referrals, or you don’t know their potential. They may be acquaintances or people you’ve met at events but haven’t built a strong relationship with yet. They may become As or Bs or drift off into the D category.

Ideally, you move people out of the C category over time as you get to know them, their business and the potential for them to make referrals to you and you to make referrals to them.

Group D:

These are contacts with little to no potential for providing referrals. They might be people you’ve lost touch with or those who are not relevant to your business.

They might be people you don’t like.

That’s okay: you don’t have to do business with anyone you don’t want to do business with. You won’t keep up with these contacts; categorizing someone as a D is permitting yourself to take them off your list.

Remember that these categories are not set in stone; as you nurture relationships with your contacts, they may move from one group to another. Regularly review and update your list to ensure it accurately reflects the current state of your relationships and the potential for referrals.

By creating your 250 lists and categorizing your contacts based on their importance and potential for referrals, you can focus your relationship-building efforts more effectively and maximize the potential of your network to generate leads for your business.

Step 3 Nurture your contacts.

Nurturing your contacts is the bulk of this strategy and the most crucial part. Consistency is critical, so if you struggle with consistency, hire someone to help you.

There is no point in having or creating the list if you aren’t nurturing your list.

Here is what that looks like:

Develop a 12-month nurture program:

Outline the tasks needed each month to engage with your contacts consistently. This program should include personalized communication, such as emails, newsletters, greeting cards, and other materials that reflect your brand.

Here are a couple of things to keep in mind:

• Make referrals. Keep your contacts in mind and refer business to them when you can.
• Don’t just email; send postal mail as well.
• Your messaging should focus on keeping in touch, connecting, sharing information, solving problems, and providing referrals, not sales or promotion.

There are two reasons this nurturing process is so effective. The first one is that you stay top of mind actively; you don’t require that they come to a networking meeting; you are always connecting.

Reason two is that you create a social obligation. When you give, there is a psychological response in the recipient that will make them more likely to give back.

Importantly, you can also be too passive here. You want to update your contacts on your business, you want to solve business problems, and you should occasionally add a business request. You want to nurture the relationship, but you also want this to be professional. Updates about your kids may be nice, but they don’t necessarily deepen the business connection.

When you first reach out to people, it can be useful to send out a confession letter.

The confession letter

Hi …

Recently, I’ve been thinking about what really matters, and I realize that it actually comes down to relationships. I like working with people I like. 

But I’ve also done a not-great job at connecting with you on your needs and what you are looking for – so haven’t been nurturing our business relationship. 

My thinking is to refocus our communications at [OUR business].  I’ll send the occasional email but also plan on more phone calls and am cooking up a postcard concept.  I’d love for you to see us as a resource supporting you in business, in your job, and in helping others.

If you need a referral or have a question, please let me know.   

Talk to you soon,

A twelve-month nurture program may look something like this:

Timing varies:

• Send birthday cards
• Note and send cards for any other personal celebrations your contacts may have.
• Send greeting cards for holidays relevant to your contacts OR create a list of random holidays: rather than a Christmas card, send a happy “Burger Day” card.

January:

Early in the month: Send a New Year’s greeting card or email, sharing your goals for the year and wishing your contacts a successful year ahead, let them know you are available to support them. This should be in every update email.

Mid-month: Email a helpful tool, observation, or article.

February:

Early: Newsletter update with a valuable article or resource related to your industry and a personalized note.

Mid: Celebrate someone else’s win.

March:

Early: Send a spring-themed greeting card and a newsletter with some business updates.

Mid: Email checking in on your contacts and offering assistance if needed.

April:

Early: Newsletter with updates on your business or personal achievements, and ask your contacts about their recent accomplishments.

Mid: Email a relevant article or resource for your industry.

May:

Early: Newsletter with interesting updates.

Mid: Send a special offer or promotion exclusive to your contacts as a token of appreciation for their support.

June

Early: Share a summer-themed greeting card. Email your update newsletter. Wish your contacts a great start to summer.

Mid: send an email with a relevant article or resource for your industry.

July:

Email your newsletter and offer a helpful tip or advice related to your industry, demonstrating your expertise and willingness to help.

Mid: Celebrate someone else’s success or make an observation about your industry.

August:

Early: Email your newsletter, and offer a helpful tip or advice related to your industry, demonstrating your expertise and willingness to help.

Mid: Send a special offer or promotion exclusive to your contacts as a token of appreciation for their support.

September:

Early: email your newsletter, and relate it to going back to school. Share an interesting case study or success story from your business, highlighting the value you provide to clients.

Mid: send a note asking if there is anything you can do to help.

October:

Early: email your newsletter with updates.

Mid: Send a fall-themed greeting card, checking in on your contacts and offering assistance if needed.

November:

Early: email your newsletter with updates, and incorporate gratitude to your contacts for their support.

Mid: Send a gratitude-themed card with a personalized note.

December:

Early: Send holiday greetings and well-wishes for the upcoming year, along with a recap of your business highlights from the past year.

Remember to tailor the program to your specific industry and audience and adjust the content to reflect your brand and style. Get creative, and allow this process to be about you and your contacts; you don’t have to follow the outline above… do something.

What you send is less critical than maintaining consistent communication and providing value to your contacts throughout the year.

Implement a program to show your appreciation

Set an appropriate budget for gifts, referral rewards, and holiday gifts in addition to your communication program. Select one or two online catalog companies to help you develop and deliver appreciation items. Connect these to your CRM to quickly send appreciation gifts when needed.

Send personalized thank-you notes:

Purchase personalized thank-you notes and send them after every meeting upon gaining permission to add the person to your database, receive a referral, or say thank you.

You can also do this using a service like Handwrytten. They aren’t as personal, but they do the trick and are easier to send. We’ve tested automated and manual cards and have seen no difference in response.

Remember that the key is consistency:

Communicate consistently, personally, and systematically: Make sure everyone on your list gets touched somehow every month. Your A-list contacts should receive special attention and hear from you each month – you could call them to schedule a meeting with them every month.

Follow up with everyone in your database: Develop a plan to follow up with all your contacts. Ask for birthdays (not years) and anniversaries if appropriate, and enter them into your database.

By implementing these programs, you can maintain strong connections with your contacts and increase the likelihood of referrals over time.

Systems you should implement

You can successfully manage this process with paper and a pencil.

That is, if you don’t want to have a life and want outreach to be the only thing you do.

To make the strategy work for you and your contacts, you should put these systems in place:

According to Tim Templeton, to stay in contact with your 250×250 list, you should put the following systems in place:

1. A contact manager or CRM system: Select a system that allows you to set custom ABC fields and groups to easily manage your contacts.
   
   We recommend ActiveCampaign, and our training will focus on implementing this strategy in ActiveCampaign, but anything that allows you to keep track of your contacts will help.
2. Hire a trusted virtual assistant: They can help manage your mail and print services, ensure consistent communication with your contacts, and make the process work. A good VA is worth their weight in platinum, but it costs a lot less. You can hire one here.
3. Implement automated messaging and email. Most CRMs will have some form of this; again, we like ActiveCampaign, but you will be fine as long as you can automate sending e-mails and postcards.
4. Create accounts with one or two appreciation services that can link to your CRM. A few suggestions are: Thnks, appyrewards.
5. Create an account with a service that can handwrite cards for you; we recommend Handwrytten.
6. Find a good printer, such as Zazzle or Vistaprint.
7. Use a digital card such as Popl, and link it to your CRM.

Utilize email and regular mail for communication: It’s not about choosing one over the other; instead, use both methods to stay connected with your contacts.

Follow up with everyone in your database: Develop a plan to follow up with all your contacts, including asking for birthdays and anniversaries if appropriate and entering them into your database.

And that’s the strategy.

The 250×250 strategy benefits your business by leveraging the power of your network. By nurturing relationships with the 250 people you know and motivating them to refer you to the 250 people they know, you create a vast network of potential clients and referrals.

This approach helps generate leads and fosters long-lasting relationships that can significantly benefit your business in the long run. By consistently applying relationship-building principles and staying connected with your contacts, you can unlock the value in our network (while bringing value to your network) without the constant drone of networking meetings and tiresome introductions.

And, yeah, you will eventually want your shiny marketing funnel. But once you get there, the revenue you’ve generated from this strategy and the contact you’ve nurtured will help you fill it.