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I think most people do NOT place enough attention on your point 4 identifying where to network. If a networking event isn't well attended by the people most likely to buy your stuff it's nearly impossible to get an ROI for your efforts.
Contrary to what many people think even "free" networking events aren't free. Once you include the value of your time to attend and travel to the event, the cost to travel to the event, additional costs such as meals etc. These "free" networking events become nothing more than costly fishing expeditions.
Thanks for the comment - great point about the value of your time. Anyone that has ever been to a 2 hour networking event that wasn't a good fit (or just a dud) definitely knows that's 2 hours they're not getting back!
Shawn