Transactional vs Transformational Networking

Part 2 in the “What is the Difference” Series

Introduction:

Networking is my jam.

Even before the pandemic, I used to love going to as many networking events as I can could get into. During the pandemic, the world opened up so much more with the use of technology and social media, now I get an opportunity to network with people that I probably would never have had a chance to network with in normal circumstances. 

However, as anyone familiar with networking events knows, there are always those really “interesting” people. There are those whom you may wish to avoid at all costs, whereas there are others that are simply electrifying and it’s as though they are honey that all the bees get attracted to.

What is the difference between the two?

What causes some people to repel others, while different individuals attract people?

This article will explore the two types of networking styles that are found in these types of events. 

Transactional vs Transformational   

There are two types of networking styles which are also found in how people do business. There is transactional and transformational, both of which are relationship based. Meaning that it’s all about how we form a relationship with the person that we are networking with. Do we see them as a potential client, referral source, or fellow colleague. What will ultimately draw the major difference between the two is what is our end goal when we go to a networking event and/or when we are reaching out to a fellow business professional. 

Let’s break down the two styles first before unpacking the end goal. 

Transactional 

Transactional is defined as a transaction between two individuals. You have something I want, I have something you want, and we exchange the item, service, product, value, and/or compensation, hence a transaction, something most commonly found in a bank. You go to a teller or the ATM, deposit your cash, get a receipt in return. Alternatively, You go to a teller or ATM, deposit a check, and withdraw cash. Both, are transactions with very minimal interaction between humans and machines. Ultimately, there will be no difference between the two transactions whether it was a human behind the glass (teller) or if it were the machine (ATM).   

Transformational 

Transformational is when a physical human connection is made and something changes from when before one person interact with the other and during the process of the interaction. It may include a transactional component to some extent, however, the transformation or the interaction, is what takes precedence. Going back to the bank example; whereby by choosing to interact with the teller vs interacting with the machine, I get an opportunity to treat (and be treated) someone else as a human. I get to smile at someone, I get to wish them a good day, I get to see how their day is going, I potentially even have an opportunity to cheer them up - go figure that they had a difficult day with their boss, supervisor, or other inhumane interactions with other rude clients. Go figure if you were the shining light to that person’s day. Go figure, perhaps you were the thing that they needed most for that day, for that week, for that month, and if you come every day, maybe you are what keeps them going and helping them avoid burnout. 

Transformational relationship impacts are far greater than we can ever imagine and sometimes we may never know how far they go. However, one thing is for certain, they are significantly more meaningful than a simple “here’s my check, give me my money” transaction. 

Conclusion 

Now that we have defined the difference between transactional and transformational types of relationships, we may ask ourselves which is better. 

I’ll leave that for you to decide.

I think that we are all wired differently and we are all on various parts of our own journeys. I can also only talk for myself. I personally prefer meaningful interactions. My end goal is to make a difference in the world and at the same time still make a living doing so. That to me is novel. 

Transforming people’s lives on any level makes business so much more fulfilling to me, and I know that I am not alone. There are many others that share a similar sentiment. How they came to learn about this may be different for many different people. It could have been that they faced burnout themselves, it could have been that they have been mistreated in their previous jobs and they were fed up, left and started their own businesses or are now working in a better working environment. It could also be that someone walked into a bank and treated them as human when all they’ve ever felt like was a machine by others. Or perhaps, they read an article such as this or heard this concept in a public speech and had the courage to give this theory a shot, only to discover the incredible feeling that it left in them, never wanting to turn back and go back to the old way of doing business. Either way, and however people come to this realization, for those that cherish and value meaning, purpose, fulfillment, and deep gratification in life, often point back to transformational relationships as being the catalyst for that feeling and state of being. 

What is your experience when you network? What is your end goal? Do you relate to either one of these approaches? Let’s continue the discussion and I’m even ready for a healthy and mature debate if that is something you wish to have on this topic. 

This is what we do at YKC, we partner with business individuals to become more Exceptionally Irresistible - whereby, you become the honey in the room that everyone wants to interact with. You become so attractive that everyone wants to be around you and do business with you. What is so attractive about you? What is it that they see? What is it that they want? How do you become so attractive to others?

Come join us in one of our FREE BEI Workshops to find out more, and learn how you too can become more Exceptionally Irresistible. 

Contributors to this article include:

Yermi Kurkus - Yermi has spent most of his career helping people at their lowest find meaning and purpose through proven methods that are built from psychology, philosophy, and mystical teachings. Yermi's approach is pragmatic and down to earth, thus coining the term Practical Mindfulness. 

Today, Yermi partners up with business owners, professionals, and individuals that want to become more "irresistible" in their personal and professional lives, as well as helping founders build "irresistible" systems in their businesses.

To learn more about Yermi Kurkus feel free to follow him on LinkedIn, Facebook, Instagram, YouTube. You can also reach Yermi by emailing him at [email protected]

Boruch DuBrow - Boruch is an Exceptional Development Coach with over 13 years of experience as an educator. Boruch has helped hundreds of people feeling lost in life to discover their path and reach their potential. 

Today, Boruch educates and empowers individuals and organizations to discover their path, define their purpose, and create an “Exceptional” future for themselves, their families, and their organizations.

To learn more about Boruch DuBrow feel free to follow him on LinkedIn, or Instagram, You can also reach Boruch by emailing him at [email protected] 

Photo credit: IAFC