Informational Capital

Many of today's most valuable companies, such as Google, Facebook, and Amazon, operate primarily on information. These organizations leverage the data they gather from users, selling it to marketers at premium prices. The more data they collect, the more they can charge. This underscores the immense value of information; if it weren’t valuable, these companies wouldn’t be worth billions—if not trillions—of dollars.

Over the past few years, I’ve reached out to over 200 professionals across various fields through cold emails and calls. I was fortunate enough to receive responses from more than 85 individuals who generously shared their time and experiences with me. Some of these connections evolved into friendships or mentorships. This count does not even include the valuable relationships formed through work, the gym, conferences, or school—all built on goodwill.

Through these discussions, I gathered insights into diverse sectors such as consulting, investment banking, equity research, sales and trading, data science, product management, marketing, and more. Each interaction provided critical information that has shaped my career trajectory.

Reframing Business Models

The business landscape often uses acronyms like B2B (business-to-business) and B2C (business-to-consumer) to describe models. However, at its core, every business is fundamentally about people connecting with people.

Hiring and firing are also human-centric processes. As technology automates routine tasks, the emphasis will shift towards creativity and critical thinking. This means that individuals' personalities and work ethics will take precedence over mere technical skills. While technical abilities can be taught, traits like character and personality cannot be fabricated.

It's important to acknowledge that networking is not always simple, and that’s perfectly fine.

Self-awareness is a key theme in my life. If you’ve followed my writings, you may have noticed my emphasis on this topic. I identify as an extrovert, though not in an overtly sales-driven way. You might assume that sending 200 emails would be a walk in the park for me, but it was anything but easy!

My initial job involved cold calling for a media startup, where I faced rejection repeatedly. Such experiences can heighten anxiety, making outreach daunting. Even now, I find myself hesitating to connect with others, whether for networking or inviting guests to my podcast. The anxiety of how others will respond often overwhelms me, despite knowing that the worst outcome is usually benign.

Once I secure a meeting, however, I thrive in those interactions. The process of reaching out, though, often feels like a marathon, leading me to consider automating my outreach efforts. Yet, I value personal connections too much to sacrifice intimacy for efficiency.

The Value of Intentional Conversations

When I reach out to someone, I carefully analyze their background to determine how they might help validate or refute my ideas. Each conversation should have a clear purpose, ensuring that both parties benefit from the exchange.

Here’s what I’ve learned from my networking experiences:

1. Warm Introductions Matter: A mutual connection can significantly enhance response rates. Many have told me they'd have ignored my outreach without an introduction.
2. Shared Backgrounds Enhance Connection: Highlighting commonalities can improve engagement. I’ve noticed higher response rates when reaching out to individuals with similar backgrounds or experiences.
3. Offer Value Upfront: Providing something valuable, like my investment analyses, has proven effective in initial outreach. Demonstrating that I bring something to the table can mitigate concerns about wasting someone’s time.
4. Follow Up with Gratitude: Since 2018, I’ve made it a point to send thank-you notes to those who meet with me, which fosters memorable connections.
5. Take Notes: I once believed note-taking during conversations was impolite, but I’ve come to realize that failing to remember valuable insights is far ruder.

Paying It Forward

My grandmother once said that a person’s worth is reflected in their relationships. Just like financial investments, the relationships we cultivate can grow over time. In his book, "Givers and Takers," Adam Grant argues that successful individuals often give generously within their areas of expertise, while unsuccessful givers lack boundaries.

Every relationship is a two-way street, and nurturing these connections can lead to mutual benefits. The key is to remain thankful and willing to give back, whether to the same person or someone else seeking guidance.

As you embark on your networking journey, remember to focus on building meaningful relationships that can enrich your life and the lives of others.

Explore effective strategies for cold emailing professionals to build valuable connections in 2024.