Should I outsource cold calling?

25 replies
I would like to try offline marketing to get more clients for my business. I am considering to outsource cold calling task to some one whom I can pay on a per call/per hour or per lead basis.

  • Where can i find a freelance professional who could do cold calling for me?
  • Is it OK to hire a person from Philippines to call US (considering the time zones) or should I look for someone from the US itself?
  • Just to get an idea, what success rate can i expect through cold calling?
Regards
Social Saint
#calling #cold #outsource
  • Profile picture of the author Will Perkins
    One simple phrase for you to think about: You get what you pay for


    If you're going to outsource there, don't be alarmed if a lot of business owners are turned off immediately because of an accent or anything identifying them from another country.

    As for freelancers, here's a great spot you can request people or find people.

    For Posting: Wanted - Members Looking To Hire You
    For Looking: Warriors For Hire

    Otherwise, per-job sites are usually good places, and don't knock out craigslist.

    As for the success rate, I've heard of a few people getting every other client, but they've been in sales for over 15 years. While some brand new guys won't get a single second look except every 50 calls or so...

    Just depends on the pitch, the price, the client, and the most of all the caller.

    Hope it helps...
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    • Profile picture of the author edakehurst
      You could always try craigslist.

      Here are some tips for hiring telephone salespeople from craigslist:

      1) Always have them send you a resume. No exceptions. Make it very clear in your added that if they do not include resume they will not be contacted. Stick to your guns on this and if someone sounds interesting, rather than communicate with them, you can always e-mail them back and say, "I am sorry but I do not consider applicants without a resume. If you would like to be considered you need to send the resume first.”

      2) Verify the references that are on the resume. If there are no references, ask for them.

      3) Have an exact script for them to follow, and before anyone can begin work they must learn the script and practice it when you were someone within your organization to make sure they have it down properly.

      4) When calling them back, your call needs to be an actual job interview, not just to chat. Ask who they've worked for, what they've accomplished, what their sales experience is, asked them how they handle objections, and what they're looking for in a job.

      5) Never hire someone on the spot. It looks desperate. I always tell them, “I already have 50 resumes on my desk in the expecting more. I can only hire two salespeople at the moment. Why should you be one of them?” Let them answer this completely, and no matter how good they sound tell them you'll get back to them in a few days after you've made a decision.

      6) If you do hire them provide them with the spreadsheet so that each day they can keep the log of who they called, the name of the contact person, the telephone number, and the results. Have them also keep track of any and all follow-up. They need to e-mail you that at the end of every workday.

      7) Make sure all workers are under contract, and do all necessary tax paperwork. If this is in the states, I would recommend getting the W9 so that you can send them a 1099 at the end of the year. I would also have them sign a noncompete and nondisclosure document. All leads and clients or you were proprietary property. Let them know this up front when you hire them.

      8) When you have a new person you hire from craigslist, after a day or two, I would call back some people at random from their list. Let them know that you are simply doing a courtesy follow-up call to make sure that the sales rep that contacted them earlier was courteous, professional and answered all of their questions. This is not only a way to make sure you've hired the right salesperson, but could also save some lost deals from time to time.

      Hope this has been of help. Good luck!

      EDIT: Always pay commission per sale, no hourly pay. A good salesman will prefer this anyway.
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  • Profile picture of the author j40u
    Not sure on the costs but success rates are probably between 2-4% but remember you should be giving them tested scripts that you know have a higher conversion rate. They should also be informed 'properly' of the services you provide to sound more professional when dealing with questions because having bad telemarketers may bring down your business instead.
    A lot of people use skype, might not be the cheapest but it does has useful features for group calls and more.. It's better to check out all the advantages/disadvantages of the options and see which you need most.
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  • Profile picture of the author Dillinger411
    Cold calling is a waste of time. Find one good client like a dentist or a lawyer, get them some ROI and then work off referrals. My dentist client says he "can't wait" to write me a check every month for $500 because I tripled his business. Build a foundation, then work off referrals. If you are not well connected then start attending network meetings, social gathering like tweetups and tech events, or team up with someone that has a large rolodex. Cold leads will lead to the cold shoulder.
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    • Profile picture of the author Will Perkins
      Originally Posted by eddie.dillinger View Post

      Cold calling is a waste of time. Find one good client like a dentist or a lawyer, get them some ROI and then work off referrals. My dentist client says he "can't wait" to write me a check every month for $500 because I tripled his business. Build a foundation, then work off referrals. If you are not well connected then start attending network meetings, social gathering like tweetups and tech events, or team up with someone that has a large rolodex. Cold leads will lead to the cold shoulder.
      Cold calling works. Might be tedious, but it works. If you're new, it's a great way to start getting clients. Eventually working off nothing but referrals is great, but not very effective for just starting.
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    • Profile picture of the author krzysiek
      Originally Posted by eddie.dillinger View Post

      Cold calling is a waste of time. Find one good client like a dentist or a lawyer, get them some ROI and then work off referrals. My dentist client says he "can't wait" to write me a check every month for $500 because I tripled his business. Build a foundation, then work off referrals. If you are not well connected then start attending network meetings, social gathering like tweetups and tech events, or team up with someone that has a large rolodex. Cold leads will lead to the cold shoulder.
      Do you know what you are saying?

      I'm not trying to pretend I am some savvy marketer, but seriously - can you please not spread disinformation like that when it seems you either have not tried cold calling, or haven't tried it long enough to see the success that comes with it.

      I hired a cold-caller from the Philippines and wrote a short script for selling websites in about 2 minutes, literally. He has set me 3 appointments in one week, one I have already attended and have sold the website.

      So there is still potential to sell another 2 websites. Not to mention the amount of people who gave their email address to send further info about our services (not just websites but SEO, etc).

      If you still think cold calling does not work then let me tell you, you're wrong. Please don't go telling people this type of stuff. It works if you just give it a go.

      In saying that, your method works well too, no doubt - but that's not what we're discussing here, so we won't get in to that.
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      • Profile picture of the author Doran Peck
        Originally Posted by krzysiek View Post

        Do you know what you are saying?

        I'm not trying to pretend I am some savvy marketer, but seriously - can you please not spread disinformation like that when it seems you either have not tried cold calling, or haven't tried it long enough to see the success that comes with it.

        I hired a cold-caller from the Philippines and wrote a short script for selling websites in about 2 minutes, literally. He has set me 3 appointments in one week, one I have already attended and have sold the website.

        So there is still potential to sell another 2 websites. Not to mention the amount of people who gave their email address to send further info about our services (not just websites but SEO, etc).

        If you still think cold calling does not work then let me tell you, you're wrong. Please don't go telling people this type of stuff. It works if you just give it a go.

        In saying that, your method works well too, no doubt - but that's not what we're discussing here, so we won't get in to that.

        I agree.

        Really...I understand this is primarily an internet marketing forum...but there is alot of ignorance about other marketing mediums here.

        Most folks here it seems are concerned with marketing info product on a national level...and yeah...the internet and google are the major key for that.

        But when you start being the "marketing guy" for local businesses...especially ones who can't market their products/services on a national level....the internet isn't so powerful. It has some pretty significant limitations. Yeah..Facebook can do great things for word of mouth, Google places is fine but it only gets seen by the small fraction of local people who are actually smart enough to go looking for a service.

        The majority of potential clients are still out there not looking...they need to be educated...so you can either wait 3 to 5 years to get a sale out of them ( when they finally figure out they need to go looking for a service)...or you can go get in their face right now and start educating them.

        It is here that things like cold calling, flyers, direct mail packets, postcard marketing, walk-ins, community business networking, etc. can decisively and unequivically mop the floor with the the internet methods in many respects.

        There are too many marketers here with "internet tunnel vision"...those of you who learn to be multi-function marketers will handily kick your competition to the curb.
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        • Profile picture of the author Chris Lagarde
          Originally Posted by Doran Peck View Post

          But when you start being the "marketing guy" for local businesses...especially ones who can't market their products/services on a national level....the internet isn't so powerful. It has some pretty significant limitations. Yeah..Facebook can do great things for word of mouth, Google places is fine but it only gets seen by the small fraction of local people who are actually smart enough to go looking for a service.

          The majority of potential clients are still out there not looking...they need to be educated...so you can either wait 3 to 5 years to get a sale out of them ( when they finally figure out they need to go looking for a service)...or you can go get in their face right now and start educating them.

          It is here that things like cold calling, flyers, direct mail packets, postcard marketing, walk-ins, community business networking, etc. can decisively and unequivically mop the floor with the the internet methods in many respects.
          Good point. This has been my experience. Education is good, but you do have to sell also. An "all education" presentation doesn't work, and a blatant sales pitch fest is a turn-off also. When doing presentations, you do want the audience know that you can save them time, money, and frustration. Don't assume they will make the connection on their own.
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    • Profile picture of the author mr2monster
      Originally Posted by eddie.dillinger View Post

      Cold calling is a waste of time. Find one good client like a dentist or a lawyer, get them some ROI and then work off referrals. My dentist client says he "can't wait" to write me a check every month for $500 because I tripled his business. Build a foundation, then work off referrals. If you are not well connected then start attending network meetings, social gathering like tweetups and tech events, or team up with someone that has a large rolodex. Cold leads will lead to the cold shoulder.

      Just out of curiosity, how do you propose someone "finds one good client" without some form of cold contact?

      Not saying it can't be done, just wondering how you'd do it.
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    • Profile picture of the author Torreylee
      Originally Posted by eddie.dillinger View Post

      Cold calling is a waste of time. Find one good client like a dentist or a lawyer, get them some ROI and then work off referrals. My dentist client says he "can't wait" to write me a check every month for $500 because I tripled his business. Build a foundation, then work off referrals. If you are not well connected then start attending network meetings, social gathering like tweetups and tech events, or team up with someone that has a large rolodex. Cold leads will lead to the cold shoulder.
      Exactly. Try to think about the last time YOU were sold on a product from a cold call. Probably never. Spend your money in other, more productive areas.
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  • Profile picture of the author Doran Peck
    Look up John Durham
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  • Profile picture of the author Will Perkins
    To give a good example of how cold calling is not dead, a local friend of mine called up a company who ran a local dating/event website. Basically for singles to get to know each other and possibly make a connection (you get the point).

    He wanted a website similar to match.com with more functionality. My friend found a script that did just that, built the site and got everything working.

    Four months later (that's how long the project took) he was presented with a $45,000.00 check. The original contract was for $25,000.00 (HUGE project), but the guy gave him a $20,000.00 bonus. You can tell me cold calling isn't dead, but I can almost guarantee you that some people can make more money on one single cold call than you can make in an entire year.

    I'm not trying to be rude in any way whatsoever, I'm just being real. It's better to not spread false information, because stuff like that either disappoints new guys or sends them in a completely wrong direction.

    You're right to say to work off referrals, but don't throw out something that has worked for thirty plus years in who knows how many hundreds of industries.
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  • Profile picture of the author Voasi
    I have to tell you, it's tough working with cold callers out of the country. You have to PUT IN THE MAN HOURS to train this person your offer. It's not an easy task.

    Expect to spend $500-$1000 before the ball really starts rolling. And even then, cold callers in other countries isn't anything new. I once helped with a crew of 30 in Egypt. It required daily phone calls with the project manager and weekly 2-hour sessions with all 30 of them.

    An alternative that typically is much better is get someone local or get an executive suite and hire a telemarketer locally at an hourly rate. Along with an hourly rate, give them a nice little bonus structure for getting deals to you. This is the best method I've found for telemarketers.

    Then, you can watch them each day and continue to tweak, get feedback, tweak, get feedback until you've got a script that works well and is closing deals for you.
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  • Profile picture of the author Nick30
    I have a cold caller that works good, tell him i sent ya! jack devault with first impression marketing. let me know if you'd like his contact info. 20 bucks an hour is a good rate for a good caller.
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    • Profile picture of the author rolltide
      Nick,
      I would be interested. How many appointments can this guy knock
      down in a 10 hr block?
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      • Profile picture of the author grin
        For twenty an hour and ten hours a week I would like to see at least twenty, and the ability to close over the phone. I agree that is a good rate for a local caller with some skill, and a online contractor with skill that would make angels cry at the sound of their voice. Seriously as long as they are producing and coming up over the ROI then it's worth it. It's noble to do it yourself, but absolutely grand when someone else can get it done.
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  • I would hire someone in the usa, make sure they speak good english. Try different people, because sometimes just one isn't going to work, or isnt reliable enough. There are a lot of local people that will do it, look in craigslists and there are people willing do do it there for cheap.
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  • Profile picture of the author James Foster
    I looked into this once, on Odesk.

    Found some great people but never moved forward with that particular project.

    What I did was ask people to send me VOICE resumes... You'd be surprised, I got mp3's from people in the Philippines that sounded like they could have been my next door neighbor.

    No accent, nothing - and were willing to work for $3-$6/hour.
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    • Profile picture of the author QuickSurf
      Originally Posted by James Foster View Post

      I looked into this once, on Odesk.

      Found some great people but never moved forward with that particular project.

      What I did was ask people to send me VOICE resumes... You'd be surprised, I got mp3's from people in the Philippines that sounded like they could have been my next door neighbor.

      No accent, nothing - and were willing to work for $3-$6/hour.
      Thats the trick, especially with Americans as majority of the time we're bombarded by foreign call centers... callers have to have an clear english accent. I've been in sales for years and I can't stand it when someone over seas calls me that I can barely understand... I've had people from India (insert simpsons abu voice) and say "hi my name is a bob" lol. I'm like dude your name isn't Bob haha. Reason thats funny to me is I knew some people that setup call centers overseas and one of the things they would do is have their "worker" use American names lol.
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  • Profile picture of the author davechan
    Having worked at enterprise software, a mobile start up and now my own marketing company that does outsource to the Philippines, I can tell you the following:

    1) The Philippines is a great source for cold calling talent IF you fully screen the people.
    2) Make sure that you thoroughly check their English (American English) if that is the primary language which you are concerned with
    3) The instructions and script, whether to the Philippines or elsewhere, need to be well thought out with "if, then, else." This will ensure a proper flow of scripting and leave little to error
    4) Follow up with cold callers. Check to make sure they are hitting the number of calls that you request
    5) If they are remote cold callers, i.e. not in your office, check their calls to see the quality. Worse thing is to get a call back from an unhappy potential customer.
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  • Profile picture of the author iAmNameLess
    What you get out of cold calling is what you put in. The numbers don't lie, you will have sales, even if you are the worst salesperson EVER. I worked with a guy, he was horrible on the phone, horrible presentation, stuttered a lot, no personality, and he was successful.

    He had more sales, and more commission than nearly everyone there, and the reason is, he knew it was a numbers game. He made 4 times as many calls than the next closest person, he was always on the phone, when the person said no thanks, or gave him some grief, he brushed it off, dialed the next number and started over.

    I don't do much cold calling anymore, but thinking about starting back up. I could realistically make 10,000 a week from cold calling. You can too, if you just do it.
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    • Profile picture of the author paulie888
      Originally Posted by iAmNameLess View Post

      What you get out of cold calling is what you put in. The numbers don't lie, you will have sales, even if you are the worst salesperson EVER. I worked with a guy, he was horrible on the phone, horrible presentation, stuttered a lot, no personality, and he was successful.

      He had more sales, and more commission than nearly everyone there, and the reason is, he knew it was a numbers game. He made 4 times as many calls than the next closest person, he was always on the phone, when the person said no thanks, or gave him some grief, he brushed it off, dialed the next number and started over.

      I don't do much cold calling anymore, but thinking about starting back up. I could realistically make 10,000 a week from cold calling. You can too, if you just do it.
      I couldn't agree more. Cold calling is not really so much about skill or personality, but more about persistence and determination to knock out those numbers even when you're getting rejected left and right.

      A friend of mine told me about a similar scenario where he knew of a Korean lady in California who spoke very broken English, and was selling computers to customers over the phone. She always came in on time, and started calling like a robot and knocking out those calls non-stop all day long, despite the language difficulties and constant rejections. In spite of all these considerable setbacks, because of her work ethic and determination she was able to make six figures a year and make at least 3 times more than what her next best colleague made.

      If you have the right script to do your cold calling with, then all you really need is the persistence and determination to knock out 100 calls per day or more. Whether you or an outsourced worker do it, the end result should not be very different.

      Paul
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  • Profile picture of the author RogerAderholdt
    Hey Social saint,

    Well after hiring 1,000's of COLD CALL telemarketers over the years here's my 2 cents worth.

    Does Cold Calling Work - YOU BET.

    Success Rate will depend on many factors - # 1 being the person calling, what you are trying to accomplish (Setting Appointment, Getting an Appointment to see them, or actually selling something), your LIST... who you are calling.

    Easy way to get Telemarketers to work for you - place ad in your local paper on a Sunday. Do interviews on Monday and Training on Tuesday.

    How to Pay? No matter what I'm doing I like to always PAY on Performance. Pay per appointment, pay per show, pay per sale. HOWEVER, based on my experience, it's hard to find Telemarketers to work on Commission Only. But the ones that AGREE to are the REAL PROFESSIONALS and they already know they can make money which means YOU should make money.

    You should have a SCRIPT for them to follow. YOU should test out the script to learn what the AVERAGES are. If someone makes 30 calls per hour they should make 1 appointment, working 8 hours per day = 8 appointments and 50% of those appointments will actually SHOW.

    By YOU knowing what the NUMBERS are... is the only way you will be able to tell if you have an Employee or Marketer that is performing at YOUR Standard.

    Good luck.
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  • Profile picture of the author Enis
    It would be crazy hiring people from outside the US because the phone bill will be through the roof. Try some students or someone that needs cash that you know close to you.
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  • Profile picture of the author Mac the Knife
    Just my two cents...but I make a damn good living off of offline clients...I have never ONCE cold called, and I would never do it personally. Networking is much more affordable and MUCH more effective. I would put my numbers up against ANY cold calling effort...any. IF you know how to network, the the sales funnel is VERY predictable...closer to 1 in 5 even (hell, 1 in 10 if you are not so good is still DAMN good when put up against cold calling)

    Again, this is my experience, but my bank account and free time tell me I am doing something right.

    Good luck to the OP...the overall goal is for folks here to be productive and I am not about to shoot down ANYTHING that works for someone else, my firm belief though is that cold calling is just not as profitable in the online world as effective networking and referrals.

    Mac the Knife
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