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
  • I have lots of experience with cold calling . . .

    I receive cold calls everyday and I absolutely hate them!

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

      gjabiz
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    • 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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    • Opportunity...!

      Here's my offers on guns, ropes, cyanide pills, etc....

      And the back end offer on coffins, funerals, life assurance...

      And if you bequeath at least 1 million quid to the "Save the Animal" charity, we'll give you a free fully engraved tombstone*.

      * Limited to 20 words.
  • 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.
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    • 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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  • 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.
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    • 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.
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  • 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.
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    • 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.
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  • 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.
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  • 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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  • I genuinely have to ask...Why do you feel you have to cold call to drum up business?
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    • 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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  • 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.
  • Thank you for your replies.

    Gary Champion
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  • 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.
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    • I'm sorry for not remembering...what services do you sell?
  • 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.
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    • 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.
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  • 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
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  • 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.
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  • 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.
  • This thread gave me the courage to go out there and start making some calls!
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  • Most energy procurement companies in the UK are built on cold calling.
  • 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.
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  • Banned
    Yes it is still in work. Various little organizations use this technique for sales and marketing.
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    • 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".

      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.
      Have you ever asked...?
      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...

      You missed the bit where I said
      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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  • I find cold calling fun, its my training to see how good I can get and make things happen, just through my voice.

    Fastest route between two points is a straight line which is my phone. Takes skill to be effective which can all be learnt. PM if you want to know more, nothing to sell, just giving back.
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    • "This is my phone. There are many like it, but this one is mine"

      this is my reply, there aren't many like it, it's mine, But luckily other voices on this sub-forum are better than my own.



      I focus on a few good conversations a day.

      cold calls 2 warm prospects with a solid business conversation between 2 business people

      500 calls and nothing? the problem is us and whats in our heads. IMO

      I'm a Businessman(women) communicating to a contemporary.
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  • Let's take a closer look at the sales practice of cold calling, or prospecting. Over the last couple of years, several books have claimed that cold calling is a waste of a salesperson's time and effort. Before any conclusions are drawn, it's important to assign an empirical value to determine whether or not cold calling is effective.
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    • I'm in love with my phone!

      how could I not.

      pre - internet:

      calling complete strangers,anywhere, and in 1-3 weeks have them send me money, while I'm sitting on my butt, in a nice warm office/home, with good coffee and great food...

      with Internet :

      sitting on my butt doing all of above, AND
      doing email, video, webinars, etc..And
      the addition of watching sports online, interfacing with the whole world in real time, reading about any topic of interest, engaging in blogs, forums, and thinktanks.

      cold calling effects me alot!

      did I mention I don't sell Crap, so I get the added Value of helping other business people.

      Change your marketing venue if you can or Change your mind on what the phone Is, Does, and it's good Effects.

      Source of Inspiration : Victor Frankl - If you Can't change your surroundings, then you must change how you see it.

      1 of the greatest "salespeople" to have ever lived - under Nazi occupation

      I bought.
  • Cold calls receive cold response and this is something you don't want.
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  • I LOVE cold calling. It DOES work and I WILL continue to be doing it for quite some time. I cold call businesses to get leads for carpet cleaning. It's not easy but it's not hard, either. I like talking to people in general, so that makes it the easy part.

    I cold call restaurants a lot and I have learned that it is very easy to reach the Manager or General Manager. Waiters and waitresses are NOT your typical gatekeepers, so that
    is good.

    I would like to hear from other TMers about what small or medium-sized businesses might be best to call that you find it relatively easy to reach the Manager, GM or the owner. The decision-maker is the owner, of course - but circumventing workers and receptionists is a KEY.

    I am really glad to have found this thread. It seems to contain a little bit of everything
    and I can tell right off that if you want to talk about TMing, this is the place. By saying everything, of course, I am talking about both those FOR and AGAINST seeing TM as a great idea.

    Me, like I said, I LOVE TMing. It works for me. It does NOT work for everyone. It does take a person who has the right 'phone voice' and is assertive but not too much so, can handle rejection, the word NO, and has the ability to just hang up and go on to the next call when things seem to be a little down. You cannot get down in TMing, so you have
    to stay UP and just go on. You just have to keep 'dialing for dollars', as they say.

    Anyway, I am going to see what I can learn and share in here and thank you to everyone here for sharing your experiences.
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  • Yes, cold emailing, calling, or anything cold (for that matter), gives you a chance to find a couple prospects that may end up needing you.

    Is it the most effective way of generating credible leads? Probably not.

    With information becoming more accessible to compare and contrast different realtors, you'll probably find less success cold calling than you would ten years ago (people are educated and more apt to sticking with what they know instead of being told).

    However, that first cold call should accomplish setting up an appointment to further explore the prospect's needs and how your service can be a fit.

    Are you able to charm them and give them enough reason to meet with you in the future from that initial phone call? If so, sounds effective to me.
  • Hey Ron,

    you do realise that every time you sell something a contract is formed... Better have your attorney follow you around all day. Just in case... After all, "Judges don't take kindly to those who draft their own contracts, without a legal advisor"...

    For all the others who are a little more sensible, in 40 years of doing deals, I've never not been paid and I've never had to enforce one of my deals in a court.

    And Judges have to comply with the law and in accordance with guidance regularly issued based on appeal court and supreme court judgments. They don't have latitude to decide based on their own biases and prejudices.
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    • I can tell you haven't been around much.

      For a while, I refused to believe that you were as ignorant as you appeared to be, in so many posts.

      However, you have proved me wrong.

      From the "great" Jay Abraham himself: 21 Power Principles to Maximize Your Business Success

      Principle Number Nine;

      Rule Number Seven: "Don't start the deal until a "contract of agreement" is fully discussed and signed.
      Don't start to reveal too much. Don't make your assets available. Don't make your operation open to the
      other party until you have an irrevocable, binding, and fully stated agreement. Take my word for it, you
      will regret it if you don't."

      You are fond of quoting Jay, but I've never seen this particular quote from you.

      I wonder why?

      Ron

      P.S. In the U.S. right now, we have a big problem with federal judges "interpreting" the law, rather than
      following it. And, these are "Landmark" court decisions. If you don't think it happens in the lower courts,
      spend some time in the local law library.

      I have been in court on more than one occasion, and had the judge specifically ask, "who drafted this agreement?"

      If it doesn't matter, why would he ask?
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  • Depends on what type of cold calling you're doing, if you ring garbage data you found for free, then I am sure its effectiveness is hit and miss. If however, you're ringing month old qualified legacy data, then your results are going to be a lot different. Cold calling effectiveness is a lot like the response rate from bulk SMS/Email campaigns, most of your success is down to quality data. Anybody can go and find garbage data to ring, email, post to or text.
  • Cold Calling is still very effective, but you have to choose a strategy that suits you. Cold calling will give you a quick answer of yes or no. Usually, the goal of the cold call is just to generate interest and get their email or to schedule an actual time to sit down and talk. It's mindset over everything, you shouldn't try and push for a sale on the first call but you should at least try to get some information and set up a strategy call to learn their pain points so that you can develop an offer that suits them. Hope that helps.
  • Where can I start! whatever you want to call it Cold,Luke Warm, Smart, Tepid it WORKS ! God Yes ! With 25 years exp,i know ! these so -called gurus will tell you it wont to sell you the Program,( take the path of least resistance) yes thats right Sales 2.0 mob use Social Media sit in front of your computer in your pyjamas, and a myriad of gagging prospects will appear and want to become clients BS ! Yes you need a arsenal of prospecting tools, ( including Social Media ) however the phone because it generates fear and rejection with many average sales people , is and WILL be the MOST potent weapon for prospecting for new business.
  • If I get a cold call first what I say is "no, thanks" And that's all. It's very annoying!
  • cold calling can be effictive if you think outside the box with your approach otherwise it can quickly just demoralize you which happens with many and they simply give-up, you should look into outsourcing your cold calling and pay bonuses to workers who deliver results(results interms of client follow-ups, signing up, etc).
  • Yes, it is, if the people making the calls are experienced and good at what they do. Without that cold-calls are a waste of time.

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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.