Networking – To Lock Out or Not Lock Out? The pros and cons of one-seat networking groups

To lock out or not lock out; that is the question!

As a business consultant specialising in helping women utilise technology in their micro and small businesses, I’ve always been a big believer in collaboration over competition. In my decade of experience, I’ve steered clear of “lockout” networking groups (those that only allow one member from each industry). This was partly due to my collaborative ethos and partly because, let’s face it, the VA/OBM seat is always the first to go!

However, earlier this year, I stumbled upon a new group that seemed absolutely perfect for me, despite being a lock-out group.  Intrigued and a tad nervous, I decided to take the plunge and committed to a full year’s membership. The launch event was fantastic and I left feeling incredibly optimistic.

But then, just a few hours later, the group leader contacted me with some unwelcome news. Another member had objected to my presence, claiming my services were too similar to theirs.  As they had joined first, I was out.

To say I was shocked and upset is an understatement.  I checked out this member’s business and frankly, we offer completely different things! The only crossover was websites, which I already knew I couldn’t promote within the group. I had even spoken to this member at the event and felt we could potentially collaborate.

After a couple of hours of mulling it over, I decided I wanted no part in such a group. I requested a refund and moved on. This experience got me thinking: what are the real pros and cons of lock-out versus no lock-out networking groups?

Reduced Competition: A Double-Edged Sword?

On the surface, eliminating direct competitors within a networking group sounds like a dream. As the sole provider of your particular service, you have a captive audience of potential referrers after all.

This can create a sense of security and allow you to showcase your expertise without fear of someone else undercutting you or stealing your limelight. Sounds good, doesn’t it? However, this lack of competition can also lead to complacency.  When you’re not challenged, it’s easy to become comfortable and less motivated to push yourself and innovate.

Lock-out groups, by their very nature, limit your networking potential. While the idea of being the only web designer or social media manager might seem appealing at first, it can actually hinder your growth in the long run.

Think about it: who better to understand your challenges, share valuable insights and offer support than someone who walks in your shoes?  By excluding others in your field, you miss out on the chance to forge strategic alliances, collaborate on projects and learn from each other’s experiences.

In a no-lock-out group, the presence of others in your field can actually be a driving force, encouraging you to constantly improve and refine your offerings.  It keeps you on your toes and ensures you’re always striving to be the best.

But here’s the thing: a little friendly competition can actually be a good thing.  By bouncing ideas off each other and learning from different approaches, you can develop new strategies and solutions that you might not have thought of on your own.  This can lead to greater innovation and ultimately benefit your business.

Referral Pathways: Streamlined or Strangulated?

With only one representative per industry, lock-out groups aim to simplify referrals.  The logic is clear: if someone needs a web designer, they know exactly who to contact within the group. The aim is to make the referral process more efficient, especially for those who value a direct and straightforward approach, thereby giving group members a good return on their networking investment.

However, this streamlined approach can also be limiting.  In a no-lock-out group, you have the opportunity to build relationships with multiple people who offer complementary services. This can lead to a more diverse range of referrals and create a powerful network of support.  For example, if you’re a copywriter, you might connect with several web designers, each with their own niche and style. This allows you to recommend the perfect designer for each client’s specific needs, strengthening your reputation as a trusted advisor.

But here’s the catch with these “one person per industry” groups: What happens when the only web designer in the group isn’t the right fit for your client? You might feel obligated to refer them anyway, potentially jeopardising your client relationship.  In a no-lock-out group, you have the freedom to recommend the most suitable person for the job, regardless of their membership status.

Conflict and Contention: When One Seat Boundaries Blur

Even with the best intentions and clearly defined categories, disputes can arise in lock-out groups. As my own experience demonstrates, there’s always potential for overlap between different services. What one person considers “social media management” might encroach on another’s “content creation” territory, leading to friction and resentment.

This inherent exclusivity can exacerbate these tensions. When members feel they’re competing for a limited spot, they may be more likely to guard their territory and perceive others as a threat. These conflicts can then create a toxic atmosphere within the group, eroding trust and hindering collaboration. Instead of focusing on building relationships and supporting each other, members become preoccupied with protecting their turf and policing boundaries. This can be incredibly draining and detract from the overall networking experience.

And it’s not just about competition, this exclusivity can stifle diversity within the group. By prioritising certain industries or professions, lock-out groups risk missing out on valuable perspectives and connections.  A truly vibrant and successful network thrives on a mix of backgrounds, experiences and skill sets, fostering a richer environment for everyone.

Ultimately, the best type of networking group for you depends on your personality, business goals and preferred networking style.  Do you thrive in a competitive environment or prefer a more collaborative approach?  Do you value a wide range of connections or prefer a smaller, more exclusive group?

Personally, my experience has solidified my preference for no lock-out groups. I believe in the power of collaboration and find that a diverse network offers more opportunities for growth and learning.

What are your thoughts? Have you had any positive or negative experiences with lock-out networking groups? I’d love to hear your stories!