Social Arbitrage: This is How to Become More Indispensable!

Today, we are going to combine a couple of concepts that can make you more indispensable to those around you. The concepts that I am going to combine are called social arbitrage and connectors.

Speaking of being indispensable via social arbitrage and being a connector, those of you who follow American politics may be familiar with a man by the name of Vernon Jordan.

An article in the Financial Times called Jordan “a whisperer to the powerful, the man who can make the introduction, give the straight talk and soothe the egos of business titans.”

It went on to add that “His powerbroker persona is most manifested in his decades-long friendship with Bill and Hillary Clinton. To jaded voters on the left and right, he is the ultimate Washington insider, a man whose seamless waltz between business and politics has fueled resentment at an incestuous system. Yet his successes in the boardroom and the smoke-filled backroom have, by now, obscured a distinguished role in the civil rights movement — and an upbringing in the segregated Deep South. Born into a world that had little use for his talents, Vernon Jordan would make himself indispensable.”

But how does he make himself indispensable?

Author Keith Ferrazzi said of Jordan in his book Never Eat Alone:

“According to Time magazine, Jordan earns a seven-figure income from a “law practice that requires him to file no brief and visit no courtroom, because his billable hours tend to be logged in posh restaurants, on cellular phones . . . making a deft introduction here, nudging a legislative position there, ironing out an indelicate situation before it makes the papers.” He doesn’t just talk a good game. He makes things happen.” ²

That’s right, much of Jordan’s success and being indispensable can be attributed to social arbitrage and being a connector.

Let’s Start with the Concept of ‘Connectors’

In his bestselling book, The Tipping Point, author Malcolm Gladwell discusses types of people he calls ‘connectors’. We all know these types of people who seem to know everyone. They are almost always able to help us with something and if they can’t, they can hook us up or ‘connect’ us with someone who can.

As Gladwell says:

“These people who link us up with the world… who introduce us to our social circles—these people on whom we rely more heavily than we realize—are Connectors, people with a special gift for bringing the world together” ¹

He Then Goes on To Add Something That I Disagree With…

…when he says:

“But in the case of Connectors, their ability to span many different worlds is a function of something intrinsic to their personality, some combination of curiosity, self-confidence, sociability, and energy.” ¹

He makes it sound like connectors like Vernon Jordan have something innate that allows them to connect and help out others, which I don’t believe is necessarily true.

I believe that we can all channel our inner connector to help bring the world together using social arbitrage.

Which Brings Us to The Concept of Social Arbitrage

You can think of social arbitrage simply as an endless and open exchange of favors and intelligence.

As Ferrazzi says:

“How does this work? Think of it as a game. When someone mentions a problem, try to think of solutions. The solutions come from my experience and knowledge, and my tool kit of friends and associates. For example, if I’m in a conversation and the other per- son mentions they’re looking to buy a house in Los Angeles, the first thing I think is “How can my network help?” And there’s no time to linger. Mid-conversation, I’ll pull out my cell phone and locate someone who can help my companion buy a home.” ²

So, instead of trying to make yourself successful, the idea is to think about how you can make everyone else around you successful. It is similar to advice that Dale Carnegie when he says: “You can make more friends in two months by becoming interested in other people than you can in two years by trying to get other people interested in you.”

As the Old Saying Goes…It’s Not What You Know, It’s Who You Know

Gladwell mentions a classic study done in the early 1970s by sociologist Mark Granovetter. In his study, he found that 56% of people that he spoke to found their job via a personal connection. Another 20% applied to the job directly – and 18.8% got it via advertisements or headhunters.

What’s even more interesting is of those who found their jobs via personal connectors, the majority were what he calls ‘weak ties’.

As he says:

“Of those who used a contact to find a job, only 16.7 percent saw that contact “often”—as they would if the contact were a good friend—and 55.6 percent saw their contact only “occasionally.” Twenty-eight percent saw the contact “rarely.” People weren’t getting their jobs through their friends. They were getting them through their acquaintances.” ¹

It makes sense if you think about it. Our good friends have the same acquaintances and networks as we do. So, by leveraging those we aren’t that close to we are gaining access to a whole different network of people.

It’s All About Career Karma

The more you give to those around you will not only determine what you receive but it will make you indispensable as well.

As Ferrazzi says:

“Real power comes from being indispensable. Indispensability comes from being a switchboard, parceling out as much information, contacts, and goodwill to as many people—in as many different worlds—as possible.” ²

You can think of it as a shift in mindset. Instead of it being about you and getting what you want, it is about making sure others get what they want by meeting people they wouldn’t have otherwise met.

Keys to Creating Social Arbitrage

There are two parts to creating social arbitrage.:

First, you need to build and maintain the network which consists of 3 steps according to Ferrazzi:

(1)  Connect 3 Ways

At the start of a new relationship, the other person needs to see or hear from you in 3 different ways before there is significant recognition. He suggests email, a call, and a face-to-face meeting.

(2)  Keep it Going

Once a relationship is created, call or email once a month to develop it even more.

(3)  If You Want Something Deeper

Like them becoming a friend or business ally, he recommends at least a couple out of the office face-to-face meetings are necessary. Obviously, the more time invested, the greater the chances of developing a closer relationship. Duh!

Second, is the part that Ferrazzi refers to as “a game” as we discussed earlier where you try to think of solutions when they mention their problem and you try to come up with a solution. A quick structured process you can use is as follows:

(1)  Identify the problem

This will usually occur during a conversation with someone. They may state the problem and explicitly ask for help or casually mention it in passing.

(2)  Figure out who you know that could help with it

At this point, you can quickly go through your mental Rolodex to figure out who you know who may be able to help them.

(3)  Get both people’s permission

This step is critical as you want to make sure the person wants the help. And you want to make sure the other person is able to and wants to help. So, first ask the person if they want help. If they do, reach out to the second person to see if they want to help and are able to help.

 (4)  Connect them!

Once they both agree, send an email introducing them with enough details as necessary. Then turn it over to them and get out of the way. Let them know you are there should they need anything.

Here’s Some Interesting Vernon Jordan Related Trivia

Back on May 29, 1980, Jordan was the victim of a murder attempt where he was shot and seriously wounded outside the Marriott Inn in Fort Wayne, Indiana.

Luckily, he survived and recovered.  The interesting trivia occurred when then-President Jimmy Carter visited him as he was recovering which was the very first story ever covered by a brand-new TV network which is now known by its famous sound-bite…This is CNN.

Until next time, create social arbitrage by being a connector, This is Prime Your Pump, and as always…PYMFP!
–Rick

P.S. Wanna know more? Check out the entire book.

Use it or Lose It – Creating Social Arbitrage

As we discussed earlier there are 2 parts to creating social arbitrage.

The first involves building a network by:

(1) Connecting 3 ways – i.e. email, call, face-to-face meeting.
(2)  Keep it going by calling or emailing at least once a month.
(3) If you something deeper – he recommends a couple of out of office meetings.

The second involves helping them by:

(1)  Identifying their problem/issue.
(2)  Figure out who you know that could help.
(3)  Get both people’s permission.
(4)  Connect them.

When to Use It

You can use social arbitrage to become indispensable while helping others.

What Do You Think?

Have you used social arbitrage? Please share your thoughts or stories in the comment below!

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References

1 The Tipping Point by Malcolm Gladwell

2 Never Eat Alone by Keith Ferrazzi