Cold Calling Effectiveness

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Is cold calling still effective today? I know that this forum is for Internet Marketing and the channel that is used mostly here to sell is the Internet. I also know that some people here may have a cold calling background. If you have a cold calling background please respond. If you have read any stats on if cold calling is effective or not,please note the source or experience and respond. Thank you for your help.
#offline marketing #calling #cold #effectiveness
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  • Profile picture of the author Steve B
    I have lots of experience with cold calling . . .

    I receive cold calls everyday and I absolutely hate them!

    Steve
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    • Profile picture of the author tryinhere
      Originally Posted by Steve B View Post

      I have lots of experience with cold calling . . .
      I receive cold calls everyday and I absolutely hate them!
      Steve
      I had some compelete twat ring me the other day, from abc seo company, he asked if i was in charge of the marketing / adwords? "yes" OK I need to ask you some questions to see if you qualify to go through to our accounts manager.

      ? What a f ing joke I says, you ring me up and then you hard ball me into jumping through your ring of fire to be allowed to speak to your darth vader, lol you taking the piss with me now son, and he stuffed even more by telling me that giiggle had given them my contact to call so we could improve the campaign, and lets say the chat did not last much past that point.
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      Why are people posting stupid articles everywhere? reminds me of the backlink farms of yesterday, Don't start me on the spammers. What drugs are people on?

  • Profile picture of the author Claude Whitacre
    Originally Posted by gcj1408 View Post

    Is cold calling still effective today? I know that this forum is for Internet Marketing and the channel that is used mostly here to sell is the Internet. I also know that some people here may have a cold calling background. If you have a cold calling background please respond. If you have read any stats on if cold calling is effective or not,please note the source or experience and respond. Thank you for your help.
    And this is why I'm going to kill myself.
    • Profile picture of the author socialentry
      [DELETED]
    • Profile picture of the author gjabiz
      Originally Posted by Claude Whitacre View Post

      And this is why I'm going to kill myself.
      Homicide, then we all benefit. Better, yet, sell him a rope, it will make his efforts quicker. HA!

      gjabiz
    • Profile picture of the author tryinhere
      Originally Posted by Claude Whitacre View Post

      And this is why I'm going to kill myself.
      So if the OP was to call you after you kill yourself, would it be still classed as a cold call, with you being dead n all.
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      Why are people posting stupid articles everywhere? reminds me of the backlink farms of yesterday, Don't start me on the spammers. What drugs are people on?

  • Profile picture of the author Claude Whitacre
    Originally Posted by gcj1408 View Post

    Is cold calling still effective today? .
    Sorry, but we get this exact post about once a week here.

    There is an entire industry of cold callers on the phone . Huge companies rely on it. Fortunes are made in cold calling.

    Even if you don't want to cold call, even if you hate getting a cold call, fortunes are made this way.

    Is it the only way? No. Is it the best way? It depends on what you sell, and your target audience.

    But cold calling is effective, if it generates a huge profit. And it can certainly do that.

    What amazes me (nothing personal) is that people ask this question. If you are getting cold calls on the phone, it's because it's profitable. If you get direct mail, over and over again, it's because it's profitable. The internet? Also profitable.

    Posting on this thread? Not so much.
    • Profile picture of the author animal44
      Originally Posted by Claude Whitacre View Post

      Fortunes are made in cold calling.
      If this was the case,there'd be a lot of very wealthy people on here... Where are they...?

      Show me a billion dollar company that made it's billions by cold calling...
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  • Profile picture of the author SalesGod
    Is it still effective? I can't think of anything more effective. It doesn't matter if your using the internet your going to have to get on the phone and close the lead anyways. That's not a cold call however you'll still need the skills to close the transaction. The internet is just a tool in the sales process.
  • Profile picture of the author bizgrower
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    "If you think you're the smartest person in the room, then you're probably in the wrong room."

    • Profile picture of the author Claude Whitacre
      Originally Posted by bizgrower View Post

      The Chamber Of Commerce.

      I'm sure there are plenty of trade organizations that build their membership primarily through cold calling their industry. It's how my core industry trade association builds its membership.

      If you own a business, think of all the cold calls you get. I get maybe 15 a day plus another 10-15 robo calls. Sure, a few are selling Viagra, but many are selling credit card processing, or wanting you to change utility providers. But my guess is, they are making money.

      Newspapers cold call to sell subscriptions. And I can't tell you how many calls I've had from Omaha Steaks. I'm assuming these people are making a profit.

      But remember folks; Claude's Law #35. Cold calling is not the only way to get new customers. But it's better than sitting on your ass, doing nothing.

      If you really want to get from point A to point B, you can build a car, or you can start running. If you need to get there by tonight, and you have the stamina? Run.

      But if you want to go much further than you can go by running, building a car will ultimately take you further than running.

      Or......you can built a car after running time. and when your car is finally ready, you'll already be farther to point B....because you took the time to start by running.

      Everyone get that? Running is cold calling, building a car is creating a marketing funnel and networking.
  • Profile picture of the author eccj
    This is a dumb conversation that keeps happening but Claude is right.

    Yes some of the biggest businesses in the world use and were built on cold calling. Almost all the big brokerage houses made it big by cold calling and almost all of them still use it.

    Now lets look at favorites of the attraction marketing, Sales 2.0 types. The shinning examples are Sales Force and Hub Spot.

    Neither make money.
    • Profile picture of the author Claude Whitacre
      Originally Posted by eccj View Post

      This is a dumb conversation that keeps happening but Claude is right.

      Yes some of the biggest businesses in the world use and were built on cold calling. Almost all the big brokerage houses made it big by cold calling and almost all of them still use it.

      Now lets look at favorites of the attraction marketing, Sales 2.0 types. The shinning examples are Sales Force and Hub Spot.

      Neither make money.
      Guys; To be fair, there are lots and lots of companies that are making huge money (whatever that is) that have no cold calling at all. It's not an either/or thing.

      Companies may cold call their customer list (or a JV customer list), but not truly cold call to the masses. Some call every business in an area, and do quite well. Some are more selective.

      Dan Kennedy preaches funnel marketing, and variations of it. And for the most part, it's a great way to build a business. But 2/3rds of his event attendance is filled by calling his members. There are all kinds of levels of cold calling, and methods of direct marketing, and they can overlap a lot.

      The main reason I like the idea of someone starting out cold calling, is that it builds strength. Some people can't take it. Maybe most people. I'm not talking about working in a call center..I mean building your own business, calling to add your own clients.

      The greatest insurance salespeople built their business starting that way. The great stock brokers, the great real estate salespeople.......

      There is power in knowing you can pick up the phone, starting with nothing, and have a sale by the end of that day. Do I do it now? No. But it isn't because I can't.

      Most people aren't sales people. Prospecting is selling. It's distasteful and crippling to most. That's why they don't want to do it. I get that.

      My Dad threw me in the lake, to teach me to swim. Really. I swam. Had he held my hand, and let me put my toe in the water, and then eventually let me get used to the water....I still would have eventually learned to swim. But the way my Father taught me? I could swim that day.

      Personally, I agree with Animal that some sort of JV is by far the best way to get new customers. But for the people that don't have a mentor to show them those ropes, and for the guys that need a sale to pay their rent. Cold calling works.

      To say it's not the best way, is fair.
      To say it's not the most profitable way, is fair,
      To say that it's agonizing to do...is also fair.
      To say that you would rather kill yourself than do it...is still OK..
      But to say that it doesn't get business, is nonsense.
  • Profile picture of the author eccj
    JV is a great way to do business. But you have to prospect for JV's so having the experience from cold calling is going to pay off when you have enough money and experience to move to JV's.

    JV's, in my experience, are a form of selective cold calling. If I want to get an accountant to put on a seminar about financial planning to get clients, I have to call that guy, get in front of him, and pitch my idea.

    I might send an email, make a phone call, or walk right in and introduce myself. I'd probably do all three.

    The ability to talk to people you don't know and get somewhere is invaluable.
  • Profile picture of the author bizgrower
    I too am tired of this discussion. Some like it, some don't. Some are good at it, some are not.
    Some products or services do not lend themselves to cold calling. Some cold callers enjoy it,
    some don't but are still effective.

    Just about any business should have multiple ways to get business.
    We all know about the IMers who relied too much on Google and lost their shirts.

    American Furniture Warehouse (AFW) stopped newspaper advertising when our two major
    papers merged and raised prices a ton. A short time later they negotiated a new deal
    because they both needed the benefits. Yes, that's a JV, but it's also an example of
    AFW - even though it's a very established regional Brick and Click chain - realizing it can't
    rely on just it's other avenues of getting business.

    JVs, in my experience, require more experience and credibility on the part of the one
    initiating the JV. They, rightly so, run into the resistance of "I'm not going to risk my
    reputation by endorsing you (just yet anyway,maybe)."
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  • Profile picture of the author jimmcdonald909
    I genuinely have to ask...Why do you feel you have to cold call to drum up business?
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    • Profile picture of the author animal44
      Funny ol thread...

      If ever there was a thread that proved this is the cold call forum, this would be it... So much emotion, hate, so little rational discussion...

      As a last word, one of those examples that "prove" cold calling works has their financials posted. They made $4,000,000 revenue in 2014, that's less than 3 million pounds. They apparently need over 13,000 employees to generate this revenue.
      My assitant and I generated more than 3 times that in profits - not revenue, profits - in 2014... just the two of us... Thereby proving beyond any reasonable doubt that my methods are far more efficient, far more effective and far more profitable than cold calling...

      Cheerio Guys and Gals...
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      Then it dawned on me...
      What I do for a living

  • Profile picture of the author Tim Zager
    Yes, it is effective for people who understand how and want to do it. It is NOT for everyone. That should be obvious on every thread about cold calling.
  • Profile picture of the author gcj1408
    Thank you for your replies.

    Gary Champion
  • Profile picture of the author longrobnc
    Cold calling has actually been a hit or miss proposition for me. When I knew no other way to prospect it was the only thing that I did. I had some success and built a decent business from those calls. The issue that I've had is that I am the only person in my company that's ever been good at it. What Claude said was 100% correct for me. When I had no capital and had bills to pay it did help me grow to the point that I did have money to invest in testing ads. I probably had +$1MM in sales before I started investing in advertising.

    Once I started doing print ads and building a web presence the calls fell by the way side.

    I'd love to do JVs because I have thousands of customers in my list, but I've never thought of a way to structure deals to make sure that I get something out of the deal.

    I was considering finding trade partners in the home improvement niche. When I invoice a customer and drop them in my post sale email campaign it would include introductions to my trade partners with articles with valuable information that they provide. The trouble is that I have never thought of a way to hold others accountable to give me that same respect.

    I did 7k jobs this year in my local market, so I think that could be a great value to the right people. Just not sure what I get for my troubles.

    I also considered partnering with a few of my commercial customers. Maybe a Carwash chain and an Oil Change Franchise. I considered asking if they would consider letting me place a lead gen box or finding a way to get exposure with their client base if I bought X number of vouchers for their services.

    I would then use those vouchers in some way in my business as give aways.

    Just can't work the kinks out of any of this.
  • Profile picture of the author jicenogle1
    Cold calling works depending on the product and what you're trying to do. Its really pretty basic though its a contact sport and you will not enjoy it. Its a grind day in and day out. As said earlier it is not for everyone.
    • Profile picture of the author Claude Whitacre
      One thing sometimes gets lost in the "Is cold calling effective" debate. There are lots of things you can do to make sales that are far more effective than cold calling. Joint ventures (where you market to someone else's list) referrals from ecstatic buyers, creating a marketing funnel where leads come to you ready to buy (or have already bought).

      All these things are more profitable and more fun (to me at least) that getting on the phone and calling strangers.

      But what are you doing when you are waiting for the sales funnel to produce leads? What are you doing when you have called all your referrals?

      May I make a suggestion? Cold calling finds people who happen to be ready to buy..when you called. I've made thousands and thousand of cold calls. And made thousands of high end sales from a cold call.

      I've bought several times...because someone called me at the exact moment that I was thinking of buying what they sold.

      I remember making a cold call (I think it was a car dealer. It was years ago), and he said something like "Why are you cold calling me?"

      And I asked him if he had salespeople on his floor. Of course he did. I asked him what he had his salespeople do, after all the referrals were called and all the followups were made.

      He hesitated and asked again, why I cold called. And I said "Because I'm ambitious".

      I remember him swearing and said something about "Damn it...I wish you worked for me. Come on in". Honestly, it's been too long ago, I don't remember if he bought. I barely remember being there.

      And if you just won't call new people, call your old customers. In my retail store, the single most profitable use of an hour...is calling my old customers saying that I was thinking of them and that I had something they may be interested in. These people will answer the phone when I call, like me, and will at least be nice when they say No. But an hour on the phone always generates sales. Always.

      And (for reasons beyond me) some people think calling their customer list (or their company's customer list) is cold calling. Not to me.

      To me, calling customers that have already bought from you or your company...is like mining for gold..in a vein of gold. It just doesn't get any better.
  • Profile picture of the author Yvon Boulianne
    It work and CAN be very fun and enjoyable BUT for that you have to be on top of your game, very high communication ability and an extravert personality...

    I had a lot of troubles cracking that code but i now close 2-5K deal on the phone laughing with clients

    good luck
  • Profile picture of the author Michael Nguyen
    I just got of this lead I've been working straight from a cold call. We've spoken a few times. The first offer was to do PPC for a small management fee but somehow the offer changed. Its gone from a $200 offer to offering him telemarketing services for a total value of $2500. Qualified on all fronts, I just need to put in writing and close.

    Whether I get the job, is not the point. The point is I got a new lead from cold calling into my funnel which gives me a chance to close. Since coming back on 4th Jan, I have found probably 4-5 good opportunity leads which I will get in front off.

    Tomorrow I have a meeting with a lead that wanted 1 website originally, then its changed to 2, but its going to be 4 websites now.

    Is it effective? Only if you have good sales and prospecting skills otherwise it will be rubbish for you.
    • Profile picture of the author animal44
      Originally Posted by Michael Nguyen View Post

      I just got of this lead I've been working straight from a cold call. We've spoken a few times.
      Then it's not a cold call.

      https://en.wikipedia.org/wiki/Cold_calling
      Cold calling is defined as the solicitation of business from potential customers who have had no prior contact with the salesperson conducting the call.
      Originally Posted by Michael Nguyen View Post

      Is it effective? Only if you have good sales and prospecting skills otherwise it will be rubbish for you.
      So why would it be the best method for a rank beginner...?
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  • Profile picture of the author Jake Sacks
    Typical cold calling where you go into it selling barely works. You must find an alternative way to get through.


    What I mean is -

    Calling a business and offering them "SEO" is something that is a thing of the past. You will be making a lot of calls before you have any success whatsoever. You need to find a way of offering these services without actually directly selling immediately.
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  • Profile picture of the author cjsparacino123
    This thread gave me the courage to go out there and start making some calls!
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  • Profile picture of the author J50
    Most energy procurement companies in the UK are built on cold calling.
  • Profile picture of the author SalesGod
    When I first started my company It was only me making cold calls by myself. I was making them on Behalf of a company to set up appointments for there sales reps. I would consistently set 2 appointments a day at the time and with the industry that I'm in, the company closes 2 out of 5 appointments and makes 20-30k revenue from that. Now of course there's always appointments that cancel however I was consistently bringing in the company at least 2 sales a week and I only worked from 5pm - 730. Still think cold calling can't make money? I now have a room of cold callers on a auto dialer producing way better results then I was, when I was sitting at home Dialing manually with my landline and can't hire fast enough to keep up with the demand of companies that want to work with us.
  • Profile picture of the author NEMESH
    Banned
    Yes it is still in work. Various little organizations use this technique for sales and marketing.
    • Profile picture of the author animal44
      Originally Posted by ewenmack View Post

      In my company that sells paper for the point of sale machines, that question you mentioned is used because we don't know who is the right person.

      The only difference to what you said, is we call on cold to ask that question.
      Another difference is that I tend to incorporate questions like this in my day to day interactions. As a result I rarely have to take specific actions to market my services. It's all integrated into my day, whether I'm on business or not. This, in turn, leads to "accidental clients".

      Originally Posted by savidge4 View Post

      I have a young man that I am currently employing through contract work. Recent graduated college, works at the Outback as a server. His Dad is a framer, and his mother works at Walmart. your basic typical family. The young man has a degree in Graphic arts. His parents want nothing more than the boy to get a "real Job" and work out the rest of his years in misery Just as they have done. The whole concept of doing what you love, vs doing what you have to do to survive has never been a reality for these people.. and I can safely say the same dichotomy over and over with 99% of the world.

      MY own parents don't get what I do.. forget the success I have.. I should get a real job. The same with the in-laws... I enjoy what I do, get paid well.. but I am not suffering, as they do - HOW DARE I DO THIS.
      We could quote experiences all day. My parents would have been rubbish at referrals.

      By contrast, my neighbours are mostly retired executive types. They're always using their network to help their sons and daughters and grandchildren all the time. I personally think this is the norm. Parents will generally go out of their way to help their offspring.

      I had a mate from school. We spent a lot of time together creating mischief as teenagers do. He became a computer hardware engineer, I became a software engineer. If I had've wanted a new job or a new client I am 100% certain he would've helped and vice versa. That's what mates do... In fact, even though we haven't spoken in over 20 years, I'm confident if I went back there he'd be willing to help me find clients.

      Locally, I don't know many people in my town. I've spent most of the years I've lived here travelling elsewhere. However a neighbour who moved here a few years after us, knows everyone. We're not great friends, we don't really socialise unless it's by accident that we happen to attend the same event. Despite this, he knows what I do and I've had unsolicited referrals from him. If I needed to meet with someone in the town, I am pretty confident he'd be happy to introduce me.
      Originally Posted by savidge4 View Post

      I cant think of once in my life I have gotten a referral from my family, not once.
      Have you ever asked...?
      Originally Posted by savidge4 View Post

      IF you really look at the last suggestion... in a city you don't know anyone and you start asking people you walk into and interact with... what exactly is the difference in doing THIS vs getting on the phone and doing the same? make a pitch... get rejected, ask if they know anyone that they could refer. I honestly do not see the difference.
      The difference should be obvious...

      Walk up to a stranger and ask directions. Most people will be helpful.
      Walk up to the same stranger and try and sell them something. You'll get a totally different reaction.

      First part is asking someone for help, from which you get a referral.
      The second part is you approach a stranger, not as a total stranger, but as the result of a referral. Referrals of any kind, hugely increase your chances of success.

      I spent the major portion of my life travelling the world. I'd regularly find myself in a strange town, in a strange country, wanting to earn some travelling money. I'd find work as described. There is not one case where I was ever unsuccessful. And it did not involve hundreds of telephone calls. Usually involved speaking to maybe half a dozen people at most...

      Originally Posted by Claude Whitacre View Post

      But I said you could cold call and make a sale by the end of the week.
      And you said it wasn't true. And your proof is that you heard about one person who tried it...and failed.
      You missed the bit where I said
      I reckon that's what most newbies would experience.
      And it's not just one person.
      You've previously stated you failed when you started out.

      And Nathan (IAmNameLess) states in his WSO, that a beginner can expect to make 1000 calls to get one client. And he gives a script to use... Is Nathan wrong too?

      How many beginners would give up before 500 calls? or 1000?

      The example I gave earlier, the guy was ready to throw himself under a train after 50 calls...

      By contrast the way I describe would typically require maybe two dozen emails to get a client or three. These are emails to people who know you and are willing to help - if not, you need to change your circle of friends.
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