A LinkedIn for LGBT Entrepreneurs

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And while some customers are likely to flock to companies founded by members of their particular group, others opt for a broader experience. "Some will segment their lives and join a group like the Hispanic Chamber of Commerce, but others purposefully go against the grain. They may not want to be categorized as ethnic or identify themselves as part of a special interest group," Harpointner notes.

More Than Rainbows

In the end, Brooks was won over to dot429 because of its emphasis on face-to-face networking and its specific outreach not just to LGBT professionals but also to their allies. "This is supposed to be a more egalitarian place, and I liked the branding, which was not all rainbow flags and pink triangles," she says.

Small business owners can make good use of affinity groups, whether they are online or off, but they should consider them a slice of their marketing mix, not the entirety, says John McCarthy, a director at WebMetro, a direct marketing agency in San Dimas, Calif.

"The benefits of affinity marketing are that people are more accepting of what you bring to the table. You have an immediate 'in,' and once you're there you can find the sweet spot of prospects that apply to your business," he says. "When you belong to a certain group, there's an implied endorsement that leads to a higher potential conversion rate."

From Discrimination, Loyalty

Many—if not most—members of niche networking groups share a history of suffering discrimination that can be a powerful business motivator. Elliot Tomaeno, communications manager for Wyndstorm.com, has found an enormous sense of loyalty and increased responsiveness on dot429.

"There are definite disadvantages to being gay in business, [because there are] people who see the gay community in a negative light," he says. Years ago, when he worked for an automotive magazine, he had to interact with car dealers, many of them ex-military men living in the deep South. "Being gay in that situation was something I needed to keep quiet, because I knew it would bring an extra layer of difficulty into the relationships," he says.

For gay business owners—or entrepreneurs in any sort of niche—having that built-in camaraderie can be a boon. And many business owners want to reach out and support others like them who are starting businesses or struggling to keep them afloat.

"I'm 43, and I've been doing what I've been doing for 15 years," Rich says. "I would like to give back to people, specifically people who are gay and lesbian and didn't have many role models along the way. I certainly didn't."

Karen E. Klein is a Los Angeles-based writer who covers entrepreneurship and small-business issues.

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