BNI & The Power of One: Episode 805 Summary Explaining the Value Through TYFCB to Visitors and New Members
Host: Tim Roberts
Release Date: April 7, 2025
Introduction
In Episode 805 of the BNI & The Power of One podcast, host Tim Roberts delves deep into the intricacies of demonstrating the value of BNI (Business Network International) through the metric of Thank You For Closed Business (TYFCB). This episode specifically addresses a listener's query about tailoring the explanation of BNI's value to different business contexts, ensuring that both visitors and new members can grasp its benefits effectively.
Listener's Query: Pete from Nashville
The episode kicks off with a question from Pete, a five-year BNI member from Nashville, Tennessee. Pete shares his experience, highlighting how the podcast has transformed his approach to BNI membership. He also raises a technical concern regarding audio balance between Tim and Mike in a previous episode, which Tim addresses promptly.
Pete's Message (00:25):
"Hi Tim, love the podcast. Been in BNI five years. Discovered your podcast about 18 months ago. Feel like it's changed my approach to membership, which is great..."
Understanding TYFCB and Value Proposition
Pete's primary question revolves around how different businesses calculate their TYFCB and how BNI's value proposition varies across industries. Specifically, he mentions his experience in the sign business, where one closed deal can cover the annual BNI costs, contrasting it with businesses that have smaller average sales but higher transaction frequencies.
Tim's Insight:
Tim emphasizes that explaining BNI's value solely in dollar terms is limiting because business dynamics vary widely. He advises against using a one-size-fits-all approach and instead encourages members to understand and communicate value based on individual business contexts.
Key Points:
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Avoid Monetary Exclusivity: "I would not be trying to explain the value simply in dollar amount to anybody because it is so different for everyone."
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Comprehensive Value Proposition: "The value proposition for anybody is this is a tool to help you achieve your desired level of success... it’s going to make your business more efficient, more effective and a whole lot more fun."
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Individual Variability: "What is $10,000 is different for every single member... those things vary so differently."
Calculating TYFCB Across Different Business Models
Tim breaks down the calculation of TYFCB into three primary categories to help members accurately represent their business values without inflating statistics:
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Commission-Based Businesses:
- Definition: TYFCB is calculated based on gross commissions before any deductions.
- Example: Real estate agents should report their gross commissions rather than the total sales value of properties sold.
- Quote (02:30):
"If I’m commission based, it’s my gross commissions... It's the commissions I make before I deduct any costs."
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Service-Based Businesses:
- Definition: TYFCB includes the gross income from services rendered before expenses.
- Example: A roofer would account for payments received before deducting materials and labor costs.
- Quote (04:15):
"If I’m a roofer and I own the roofing business, it’s going to be what I got paid to put the roof on the house before I deduct, you know, materials, labor..."
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Employee-Salaried Businesses:
- Definition: TYFCB might be based on factors like the percentage of deposits or the total interest generated from loans.
- Example: Bankers could track TYFCB based on the total interest from loans or deposits secured.
- Quote (06:45):
"If it’s a loan, it’s what would be the interest the loan would make the bank if it goes through fruition..."
Tim's Emphasis on Accuracy:
Tim stresses the importance of realistic and authentic TYFCB calculations to maintain the integrity of BNI’s statistics and ensure that members set realistic expectations.
Quote (08:20):
"If you try your best to make it as real as possible, that’s what matters. Because you don’t want to set misguided expectations... You shouldn’t inflate any statistic."
The Pitfalls of Inflated Statistics
Inflating TYFCB numbers can lead to misleading statistics, which not only distort BNI’s overall success metrics but also harm individual members' credibility and the perceived value of referrals.
Examples of Inflated Stats:
- Counting every personal interaction as a TYFCB.
- Recording recurring client payments as separate TYFCBs.
Quote (10:05):
"Like putting in a referral every single time, I’m just inflating a statistic... It has negative consequences when I’m inflating my 1 to ones."
The True Value of BNI Beyond Numbers
While TYFCB provides a quantifiable measure of BNI's effectiveness, Tim underscores that BNI's true value extends beyond mere numbers. It lies in the proven networking system, the supportive community, and the high-quality referrals that propel businesses forward.
Core Value Elements:
- Proven System: Access to a structured networking framework designed for success.
- Supportive Network: A community of professionals committed to mutual growth.
- High-Quality Referrals: Consistent and relevant referrals tailored to each member’s business.
Quote (12:30):
"The value is you get access to a proven system within a network of people who have said they want to help you... designed to help you grow your word of mouth marketing business."
Additional Benefits:
- Business Efficiency: Streamlining operations through reliable referrals.
- Business Effectiveness: Enhancing the quality and consistency of business growth.
- Enjoyment and Goal Achievement: Making business more enjoyable and aligning it with personal success metrics.
Quote (14:50):
"When you work it right and you invest your time right and you train yourself on how to do it the best way, your business will become more efficient, it will become more effective, it's going to become a whole lot more enjoyable..."
Encouraging Individual Accountability
Tim highlights that the success derived from BNI is contingent on individual members' commitment and utilization of the platform. Comparing oneself to others is discouraged, as it overlooks the unique factors influencing each member’s results.
Key Advice:
- Focus on Personal Metrics: Understand and track your own TYFCB without relying on others' performance.
- Avoid Comparisons: "One of the worst mistakes you can make... is comparing your results to anybody else's."
- Leverage BNI Opportunities: "BNI is the same opportunity for everyone who joins. It’s those members who take advantage of that opportunity that will outproduce others."
Conclusion and Call to Action
Tim wraps up the episode by reiterating the importance of understanding TYFCB within the individual context of each member’s business. He encourages members to focus on genuine metrics and leverage BNI’s resources to achieve their unique definitions of success.
Closing Remarks:
- Encouragement: Recognize the uniqueness of your business and utilize BNI accordingly.
- Feedback Invitation: "You can leave me a comment on what you think on Apple podcasts, Spotify, whatever... If you have more questions, comments, etc, go to bnipowerof1.com let me know."
- Gratitude: Appreciation for members’ engagement and participation.
Quote (19:00):
"I hope this helps. I hope it adds some value for you and for everybody else. And as always, look forward to hearing from you."
Takeaways
- Customized TYFCB Calculations: Tailor TYFCB tracking to fit your business model accurately.
- Value Beyond Dollars: Embrace BNI’s comprehensive value proposition, encompassing networks, systems, and personal growth.
- Authentic Representation: Maintain honesty in reporting to preserve BNI’s integrity and your own business reputation.
- Personal Accountability: Focus on maximizing your BNI involvement to harness its full potential for your success.
By addressing these facets, Episode 805 provides valuable insights for BNI members aiming to articulate the benefits of their membership effectively, ensuring that both visitors and new members can appreciate the true value BNI offers.