Networking benefits actually depend on the context of how you network. For example, assume you are a new Startup and are actively seeking funding/investment, you run into an investor, greet him with a smile and a hello, and give him your card, and the next day, he lazily gives a brief glance at all the cards he's collected and somehow finds yours a little different. He Googles your start up and he finds it interesting and he decides on investing in your startup, and then bang, your networking has paid off. However, this is only a very optimistic situation, and needn't necessarily workout for the majority.<p>Apart from the indirect marketing, networking can also help you create familiarity - For example, it's much better to say "Hey Investor X, remember me? We met at Event Y and we had a drink together?" than saying "Hey Investor X, I don't know who the fuck you are, but I just want your money.." (in a very subtle way, ofcourse)<p>Forget investors, you actually get to know a lot of Designers, programmers, artists, etc. etc. if you attend these networking events, which in my opinion is one of the best perks you can get.<p>However, I wouldn't talk in favor of SXSW though, because of it's expensive tickets. I would suggest you go to eventbrite[1], find some interesting meetups happening in your place (which usually have an entry fee anywhere between FREE to <$50) and mingle with a lot of people, as actually it will definitely pay off in the end - Either you will find some potential beta-testers, or someone to join your startup or someone to fund it. Worst case scenario, even if you don't find a co-founder/designer/teammate/investor, you now know 10 atleast different new people which is better when compared to rather sitting at home and doing nothing/coding alone.<p>This is my opinion about Networking in general and not just at SXSW.<p>[1]<a href="http://eventbrite.com" rel="nofollow">http://eventbrite.com</a>