The Truest Thing About Cold Calling

11 years ago

Cold calling is all about consistency & patients.

It's like fishing...

you put out the wrong bait you won't catch anything (Meaning you need a clear target).

GUILLERMO MATA -

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Underground

11 years ago

Doesn't the law of averages apply to all approaches though? Where does the advantage for cold calling come in over other methods of getting the decision makers attention and getting to pitch them?

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CurtisSWN 11 years ago

Picking up a phone is free, and it's a direct connection. Emails have a fraction of the urgency or relevancy. Direct mail takes time and money; with a phone call you could have cash in your hand by the end of the day.
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Jason Kanigan

11 years ago

Originally Posted by Underground

Doesn't the law of averages apply to all approaches though? Where does the advantage for cold calling come in over other methods of getting the decision makers attention and getting to pitch them?

There's more to it than just making dials. You have to understand a couple numbers about cold calling, which I call laws of averages. But it's not just "make more dials". I explain here:

http://www.warriorforum.com/offline-...beginners.html

So expecting to use cold calling as a one-day, burn through a list of 100 suspects with one dial each, "Hail Mary" play is a mistake. Calling needs to be done consistently for it to work. Doesn't have to take up your whole day. But consistent behavior will get you results.

The advantage of calling is that when you DO get a decision maker on the line who is open to speaking with you, you can have that conversation right now. Your qualification process can be done right now. No waiting. No mystery ("Did they get my letter? I wonder what they thought of it?").

Starting up any method is you beginning to turn the flywheel. It's hard at first. People give up very quickly. If they stuck with it, their results would be a lot different--even with the same behavior--a little down the road. Read about it here:

http://www.warriorforum.com/offline-...-business.html

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Underground

11 years ago

Originally Posted by Jason Kanigan

There's more to it than just making dials. You have to understand a couple numbers about cold calling, which I call laws of averages. But it's not just "make more dials". I explain here:

http://www.warriorforum.com/offline-...beginners.html

So expecting to use cold calling as a one-day, burn through a list of 100 suspects with one dial each, "Hail Mary" play is a mistake. Calling needs to be done consistently for it to work. Doesn't have to take up your whole day. But consistent behavior will get you results.

The advantage of calling is that when you DO get a decision maker on the line who is open to speaking with you, you can have that conversation right now. Your qualification process can be done right now. No waiting. No mystery ("Did they get my letter? I wonder what they thought of it?").

Starting up any method is you beginning to turn the flywheel. It's hard at first. People give up very quickly. If they stuck with it, their results would be a lot different--even with the same behavior--a little down the road. Read about it here:

http://www.warriorforum.com/offline-...-business.html

I know there's more to it than making dials. Which despite saying there is more to it than that, you still say to be consistent, which is to say keep making more dials. Although I know you say that meaning to practice and get better and more professional on the phone and results will improve.

I completely disagree with your approach of phoning a cold list and trying to qualify them on the phone, or times when you've advocated that in the past, if you know longer do. I think you could qualify them before that and then engage a business on the phone who you know could do with your product.

Also, using linked in you can get the person's role, their phone number in a lot of cases, and an agreement to call them.

Cold calling a list is not better than calling a prospect who has previous communication with you, even just a letter or email they have read and responded to, and expects your call, who you have already qualified yourself and found a need they have through researching them before hand, and referencing that need while aligning your pitch to it.

I say this based on what you often talk about the reality of calling. How out of so many dials, most won't answer or be away for whatever reason, and most won't want what you have.

So 60--90% is dead time, trying to find those who can answer and from those who do, those who are qualified.

You could spend less time researching on the net, making initial contact in a non-sales way so as not to get shut down immediately, and then having the calls expected and the recipient far more receptive, than trying to find and have one or two meaningful conversations with qualified prospects from the 95% who aren't by cold calling.

It doesn't even take as long and the 10,20, 30 even 50 calls you can set up in a day or so with decision makers, is going to give you far more time actually having the sales conversations you want with the right people.

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Jason Kanigan

11 years ago

Originally Posted by Underground

I know there's more to it than making dials. Which despite saying there is more to it than that, you still say to be consistent, which is to say keep making more dials. Although I know you say that meaning to practice and get better and more professional on the phone and results will improve.

I completely disagree with your approach of phoning a cold list and trying to qualify them on the phone, or times when you've advocated that in the past, if you know longer do. I think you could qualify them before that and then engage a business on the phone who you know could do with your product.

Also, using linked in you can get the person's role, their phone number in a lot of cases, and an agreement to call them.

How do you ensure your letter or postcard or whatever gets read? You can't. But you CAN know you had a conversation with a decision maker. You're having trouble getting ahold of them? Common problem. But that's a skill thing, not a permanent problem.

Cold calling a list is not better than calling a prospect who has previous communication with you, even just a letter or email they have read and responded to, and expects your call, who you have already qualified yourself and found a need they have through researching them before hand, and referencing that need while aligning your pitch to it.

I say this based on what you often talk about the reality of calling. How out of so many dials, most won't answer or be away for whatever reason, and most won't want what you have.

So 60--90% is dead time, trying to find those who can answer and from those who do, those who are qualified.

You could spend less time researching on the net, making initial contact in a non-sales way so as not to get shut down immediately, and then having the calls expected and the recipient far more receptive, than trying to find and have one or two meaningful conversations with qualified prospects from the 95% who aren't by cold calling.

It doesn't even take as long and the 10,20, 30 even 50 calls you can set up in a day or so with decision makers, is going to give you far more time actually having the sales conversations you want with the right people.

If you're smart, you can figure out a way to make these laws work to your advantage.

The way most people make calls is ineffective. Burn through 100 numbers and that's it. That's not going to help you.

How can you ensure people even see your letter or postcard or whatever? You can't. But you CAN know you had a live conversation with a decision maker. You're having trouble reaching decision makers? Common problem. But that's a skill and process thing, not an insurmountable problem.

At any rate, why have just one method for prospecting.

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Underground

11 years ago

Originally Posted by Jason Kanigan

If you're smart, you can figure out a way to make these laws work to your advantage. Everyone who's gotten my training knows that.

How do you you make them work to your advantage more than what I said? I've gone through your stuff, tried it in real life. How is it better than doing the homework first and calling people who know to expect your call and are qualified enough.

Are you really trying to argue the case for grabbing a list of 100 suspects at random each day and phoning each one looking to get to the few people who are qualified and willing to listen to what you said, being better than an approach where:

1) Every contact knows you are going to phone them and are expecting your call.

2) Are the right person in the organization you want to speak to.

3) You can do pre-call intelligence to get into their world from the outset of the call and really make each call personalized.

If so, and I haven't just mis-understood, please explain how?

Originally Posted by Jason Kanigan

The way most people make calls is ineffective. Burn through 100 numbers and that's it. That's not going to help you.

How can you ensure people even see your letter or postcard or whatever? You can't. But you CAN know you had a live conversation with a decision maker. You're having trouble reaching decision makers? Common problem. But that's a skill and process thing, not an insurmountable problem.

You can ensure people see your correspondence via LinkedIn, or even email and know you are dealing with the right person with an interest on what you have to say and which gives an easy in to drop your services of how you can help them into the conversation.

Phoning 40 targeted, warm people who are already qualified and open to dialogue, versus calling 100 people to speak to 3-5 people who are?

It's clear what the better use of the sales and prospecting time is here.

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Matthew North

11 years ago

Originally Posted by Underground

I know there's more to it than making dials. Which despite saying there is more to it than that, you still say to be consistent, which is to say keep making more dials. Although I know you say that meaning to practice and get better and more professional on the phone and results will improve.

I completely disagree with your approach of phoning a cold list and trying to qualify them on the phone, or times when you've advocated that in the past, if you know longer do. I think you could qualify them before that and then engage a business on the phone who you know could do with your product.

Also, using linked in you can get the person's role, their phone number in a lot of cases, and an agreement to call them.

Cold calling a list is not better than calling a prospect who has previous communication with you, even just a letter or email they have read and responded to, and expects your call, who you have already qualified yourself and found a need they have through researching them before hand, and referencing that need while aligning your pitch to it.

I say this based on what you often talk about the reality of calling. How out of so many dials, most won't answer or be away for whatever reason, and most won't want what you have.

So 60--90% is dead time, trying to find those who can answer and from those who do, those who are qualified.

You could spend less time researching on the net, making initial contact in a non-sales way so as not to get shut down immediately, and then having the calls expected and the recipient far more receptive, than trying to find and have one or two meaningful conversations with qualified prospects from the 95% who aren't by cold calling.

It doesn't even take as long and the 10,20, 30 even 50 calls you can set up in a day or so with decision makers, is going to give you far more time actually having the sales conversations you want with the right people.

I'm sure most would agree with you in principle that having a warm lead is much better than a cold one.

The reality is though that lead gen campaigns are expensive to run and have a very long deployment time. They are separate skills and take a lot of testing to produce the best results.

I can't remember the numbers specifically, but I read in this forum that a typical DM campaign can expect less than 1% response rate.

A cold caller that knows how to research leads on the internet and conduct discovery calls BEFORE speaking with a decision maker hits between 10 and 20% of calls to appointments. If get c-level executives on the phone I can quality at least 3 leads in an hour, and it has cost me nothing to make these calls.

95% is a number thrown around to scare people off the phones. It's simply not true. If you can create the need and get them interested I would say that about 30% of people you talk to can be sold on an appointment.

It's not about the form of media it's about how you use it and leverage it to your advantage. I don't know you, but from your posts I would say that it's your attitude towards cold calling that is holding you back and you're your own worst enemy. Jason has some amazing stuff on cold calling and all of it works. I would suspect you are doing some fundamental things wrong on your calls to be so frustrated. Take responsibility for it.

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Underground

11 years ago

Originally Posted by Matthew North

I'm sure most would agree with you in principle that having a warm lead is much better than a cold one.

The reality is though that lead gen campaigns are expensive to run and have a very long deployment time. They are separate skills and take a lot of testing to produce the best results.

I can't remember the numbers specifically, but I read in this forum that a typical DM campaign can expect less than 1% response rate.

A cold caller that knows how to research leads on the internet and conduct discovery calls BEFORE speaking with a decision maker hits between 10 and 20% of calls to appointments. If get c-level executives on the phone I can quality at least 3 leads in an hour, and it has cost me nothing to make these calls.

95% is a number thrown around to scare people off the phones. It's simply not true. If you can create the need and get them interested I would say that about 30% of people you talk to can be sold on an appointment.

It's not about the form of media it's about how you use it and leverage it to your advantage. I don't know you, but from your posts I would say that it's your attitude towards cold calling that is holding you back and you're your own worst enemy. Jason has some amazing stuff on cold calling and all of it works. I would suspect you are doing some fundamental things wrong on your calls to be so frustrated. Take responsibility for it.

Not one of you has read and understood my posts properly and just roll at the standard line about cold calling. Yes it works.

Is it the best way? No. The lead gen and research I'm talking about isn't the same one that takes months. It takes a few hours. The same time it takes to make 95 redundant dials.

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Matthew North

11 years ago

Originally Posted by Underground

Not one of you has read and understood my posts properly and just roll at the standard line about cold calling. Yes it works.

Is it the best way? No. The lead gen and research I'm talking about isn't the same one that takes months. It takes a few hours. The same time it takes to make 95 redundant dials.

People are quoting your posts and responding to you word for word. I don't see how we are missing the point you are making.

How is the lead gen system you are using now working for you? Why don't you share it with the rest of us to determine for ourselves if it's better than cold calling.

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Underground

11 years ago

Originally Posted by Matthew North

People are quoting your posts and responding to you word for word. I don't see how we are missing the point you are making.

How is the lead gen system you are using now working for you? Why don't you share it with the rest of us to determine for ourselves if it's better than cold calling.

Matthew, you are not quoting me word for word. Your reading something else there and then answering that, not what I wrote.

For example, I already gave the three reasons why the Linked In approach is better than the dial a random list and have to wade through answerphone, non-pick-ups, gatekeepers and unqualified people to get to 'your market' approach.

Namely that you could get through to 20-40 c-level people in an days calling session if you have prospected and generated leads properly first on Linked in, which is just a matter of sending a few messages and connection requests. There is a thread on here, a recent one by John Logan, should be on the first page or two of results on the Offline Marketing Discussion results, how he made $100,000 a year through his linked in strategy alone. He has others too he uses in tandem. He's for real.

My approach is slightly different but gets high response rates to pm's and emails and opens dialogue, just the same.

But check out his thread.

You've given a very poor argument for your case about getting through to 3 c-levels in an hour. No argument at all compared to the stats i gave, which you didn't read.

Going on to question my attitude and trying to discredit me somewhat that way, as if what I was saying was based on that and not sound logic and maths, like it is, does not bolster your argument.

If you could set yourself up to have 20-40 solid calls a day like the one you get with the c-levels you talk about, or with dm's, wouldn't you rather do that then waste hours trying to find the right people by phone?

I do get what you are saying about good phone skills versus bad. I will never be a cold-caller or have what it takes to sell on the phone (but that is neither here nor there to what I am saying, and not the basis for why I advocate what I do). I put massive pressure on myself to learn to call, weeks learning scripts and approaches, Jason's primarily, and went at it, but I delegate that now to professionals who are naturals at it and completely at ease having sales conversations with business owners.

I have very little finances available right now so I had to find the best use of the people I hire. Having them calling people who:

1) Already expect and welcome a call.
2) Are the right people in the organization to speak to, i.e, owner, director or c.e.o
3) Are already qualified
4) Have personalized info specific to their business to drop into the conversation.

Is a far better use of resources, than giving them a yellow pages and letting them go at it and make the same number of calls. Having a conversation that can then go on to be sales one without even seeming like one is already assured, at least it is for my approach because I deliberately made it as natural a progression as possible, so the call is not a bait and switch pitchfest, but I get to pitch them none the less in a conversational way that seems natural.

There is no argument to be had about that. It's just true.

Once I am able to hire people full time for at least a week doing this, I will happily document results versus those who advocate grabbing a list of businesses and calling them to try to uncover the opportunity.

Out of 100 dials, how many people do you actually speak to? And how many of those are qualified, on average and are interested in hearing about what you offer?

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Underground

11 years ago

Yeah, the phone is a must in communication if you can't meet face to face, because email just doesn't have the draw. I think though, the much vaunted ''just pick of the goddamn phone and dial a 100 numbers a day you sissy'', isn't ideal and there are smarter ways to go about it. Groundwork can be done to find out about your target prospects, their business, to get them open to receiving communication and correspondence from you in a no-sales way first, or even in an explicit sales call where you have data on them.

I'll hire professional phone people only to follow up with warm leads where we have info and can tailor a pitch specifically to their circumstances, rather than just scrape 100 names and have someone phone them because they don't have a video or mobile site.

I will need to see how that approach goes next week. I certainly gave my best shot at biting the bullet and calling a load of businesses in a scatter gun approach and couldn't not get that to work.

I'm curious about the real consistency in cold calling. I know people get sales with it, but it's often referenced as a guaranteed way to get $500 by tomorrow, as if that happens every time you dial a set number of calls on average.

I'd love to get some honest stats over the course of a month with call ratios to sales.

Thanks
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MarkJez

11 years ago

Unless you are working in a boiler room, with a tough boss (or business partner/spouse) breathing down your neck, traditional cold calling can be a poor use of time, and can actually be one of the most frustrating activities you do.

IMHO, a better way to do it is to take a 3 or 4 step approach.....

Step 1: Contact a company by phone and tell them that you have an important letter /package /Fed Ex parcel to send to the business owner. Ask them for the owners name - so you can ensure it goes to the right person.
9 out of 10 gate-keepers tell you who the biz owner is. If you get through to the biz owner direct, then even better!

Step 2: Send them your EXTREMELY compelling and irresistable letter (promoting whatever service you have as your "door opener") Hire a pro copyrighter if needs be. Secret Tip: Try to use "lumpy mail" This is where you include a physical product in with your mailing. (You can also send them an email to roughly coincide with them receiving the lumpy mail)

Step 3: You wait a couple of days, and then call the biz owner, and ask them whether or not they received your letter or package. Providing the sales copy is irresistable it should work it's magic and at the very least get you an appointment.

Step 4: If the biz owner is unsure about sitting down with you - offer him or her other "carrots" to whet their appetite. Don't give up until they say no several times, although be careful they don't see you as a stalker!!

Traditional cold calling can work extremely well, especially in a "boiler room" type of environment, however, you can get quickly disillusioned if you are getting rejection after rejection.

Using the above method, although a little convoluted and time consuming, can result in more quality and warmer appointments.

Test it out and see how you get on. Measure the results. Do what you feel most comfortable with.

When I used this method (a few years ago) in a slightly different selling environment to selling offline services - my response rate went up to 40% on average.

In other words. for every 100 biz owners I contacted, 40 became clients.

Thanks
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Mwind076

11 years ago

Originally Posted by MarkJez

Unless you are working in a boiler room, with a tough boss (or business partner/spouse) breathing down your neck, traditional cold calling can be a poor use of time, and can actually be one of the most frustrating activities you do.

IMHO, a better way to do it is to take a 3 or 4 step approach.....

Step 1: Contact a company by phone and tell them that you have an important letter /package /Fed Ex parcel to send to the business owner. Ask them for the owners name - so you can ensure it goes to the right person.
9 out of 10 gate-keepers tell you who the biz owner is. If you get through to the biz owner direct, then even better!

tep 2: Send them your EXTREMELY compelling and irresistable letter (promoting whatever service you have as your "door opener") Hire a pro copyrighter if needs be. Secret Tip: Try to use "lumpy mail" This is where you include a physical product in with your mailing. (You can also send them an email to roughly coincide with them receiving the lumpy mail)

Step 3: You wait a couple of days, and then call the biz owner, and ask them whether or not they received your letter or package. Providing the sales copy is irresistable it should work it's magic and at the very least get you an appointment.

You do realize you said traditional cold calling is a poor waste of time and then you described it as what you do...dial, send info, call back for an appt. That's very basic cold calling.

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sandboxing

11 years ago

Originally Posted by Mwind076

You do realize you said traditional cold calling is a poor waste of time and then you described it as what you do...dial, send info, call back for an appt. That's very basic cold calling.

But he isn't cold calling. He's warm calling. All he got from the gk is the name of the DM. He then sent that person some info. They see his offer and perhaps more importantly, his name.

Then, when he did call the decision maker, he was simply getting back to them about the package he sent. He mentions his name for a second time, and then proceeds with his sales pitch.

It's different than cold calling, because he's getting back to them in regards to the package he sent. It gives the call more purpose

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Mwind076

11 years ago

Originally Posted by sandboxing

But he isn't cold calling. He's warm calling. All he got from the gk is the name of the DM. He then sent that person some info. They see his offer and perhaps more importantly, his name.

Then, when he did call the decision maker, he was simply getting back to them about the package he sent. He mentions his name for a second time, and then proceeds with his sales pitch.

It's different than cold calling, because he's getting back to them in regards to the package he sent. It gives the call more purpose

That's not warm calling. Warm calling is when interest has been established. The first call to get the name from the GK is a cold call. It is STILL a cold call when he calls back and reaches the DM he emailed or sent info to, why? Because he never spoke to the DM the first time to gauge interest or ask if they wanted the email, and he has no idea if they read it or are interested, so it's still COLD. It turns warm only when interest is established, as in, on that first call, if he gets the DM and the DM says to send and email or makes an appt...then its warm/booked.

I thought everyone knew the difference in warm and cold, but apparently not.

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Osman_M

11 years ago

Originally Posted by MarkJez

When I used this method (a few years ago) in a slightly different selling environment to selling offline services - my response rate went up to 40% on average.

In other words. for every 100 biz owners I contacted, 40 became clients.

I'm sorry in one sentence you are saying you get a 40% RESPONSE RATE and then you are saying out of 100 contacts you gain 40 clients, meaning a 40% CONVERSION RATE.

Are you sure about that?

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iLinkedin

11 years ago

I always think cold calling is very good way to grow your business. Suddenly i use Linkedin as my levearage tool and i never need to cold call anymore, always Warm cold

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Underground

11 years ago

Originally Posted by iLinkedin

I always think cold calling is very good way to grow your business. Suddenly i use Linkedin as my levearage tool and i never need to cold call anymore, always Warm cold

Currently implementing LinkedIn as first point of contact. Much better to be able to research company, find the right person, initiate contact and get the right details and number.

What is you closing rate with this strategy? How much more success did you see than with this approach compared to straight cold-calling.

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tinknocker

11 years ago

It's obvious cold calling isn't for you. I can say that I'm very familiar with Jason's method because I've cold called in a similar fashion over the years and it just works. If it hasn't worked for you then you are doing something wrong, It's not for everyone.

If your method works for you then that's great, good for you.

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namecomp

11 years ago

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Matthew North

11 years ago

Originally Posted by namecomp

To be honest, cold calling has a very negative impact on your company. Cold calling is just spam. No ad is fits for everyone. I receive cold calls everyday and i note every company that cold calls, cause I know company that cold calls are not good company. I once also hand out flyers on streets, and its useless. Sales conversion rate was 1/500 fliers handed out. So I do not recommend using cold calls to any potential customers for any products or services that you are going market

Oh no!

The value is in the execution of the activity, not the act itself.

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hayfj2

11 years ago

" He/she needs it, you've got it. Give it to them. "

I'd say....

1. Confirm that he/she needs it and ask why they want it
2. Quantify their need and the impact of not choosing your solution
3. Confirm their buying process and who the decision maker is
4. Confirm they have the budget and where the budget will come from
5. Don't GIVE it to them, but let them have the agreed VALUE at the agreed Price

Rinse & repeat

Fraser

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The Truest Thing About Cold Calling

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