| Hey all, I had an interesting conversation with an agent last week. We were talking about an idea that is recently making resurgence: cold calling. I don't have permission to share this agent's real name. I'll just refer to him as AD. As in "All Day". As in that's how long you'll be on the phone if you try cold calling. Anyway, AD told me his mentor wants him to make 50 cold calls a day to expired, fsbos, and other cold prospects. Mentors like AD's tell us we will get rich from cold calling. And they back it up with quick math. If you make 50 cold calls per day, statistically you'll reach about 5 people. That's 25 people per week. Statistically you'll convert 1 of those cold leads into a client. That's 1 new client per week. Not bad, right? That could represent $20k+ in commissions per month in a typical market. But is that really the whole picture? Let's to dig a little further into the math. First, 20-30% of those clients will be time wasters that never close. Take away 1-2 clients per month. Second, there's no time off. As you know cold calling is incredibly time intensive. Let's crunch the numbers. ____ 50 phone calls per day 45 no answers x 30 seconds each. That's 23 minutes. Now add 5 answers x 20 mins each. That's 1 hour and 40 minutes. But remember, your time is only 80% efficient. (I'm being very generous here. Most agents are probably closer to 50%.) That's approximately 2 hours and 30 minutes spent on the phone x 5 days a week. Miss a day? Subtract a client. Take a vacation? Subtract another. What you're left with is about 1 closing per month while working overtime at an activity that frankly isn't that enjoyable. At the same time, as agents we are made to feel guilty for not wanting to spend our lives cold calling prospects. The old school mentors treat us as if we are "lazy" if we search for a better way. But the fact of the matter is that cold calling is just not as lucrative as it was when those mentors were still active in the business. Before they retired to become coaches. With the advent of caller ID people are much less likely to answer a number they don't recognize. We live in a different world today. If I wanted to work a soul-sucking job to earn an average paycheck I would get a boring desk job. Wouldn't you? Anyway, AD signed up for my Ultimate Website system a few hours after our conversation. I don't think it was because he suddenly got smarter or suddenly liked my system more. I think it was because I gave him permission to not feel lazy for hating cold calls. There is a better way. Maybe you're in a similar position. Mentors are telling you cold calling is the answer. But you just can't bring yourself to do it. It's not you. It's just a lousy way to get leads. You need to put your lead generation on autopilot. I spend 5 minutes a day or less generating leads. And I only talk to people who reach out to ME. Not only do I have a higher conversion rate, I only spend about 30 minutes a day prospecting, and I enjoy every second of it because those phone calls aren't cold. If that appeals to you, don't rush out and buy my system right away. Just check and see if it's available in your market. That's the first step. It may be sold out. But if it's not, ask yourself do you want to spend the rest of your life cold calling to close 1 transaction per month? Or do you want to find a better way? Get My Ultimate Website System (Wait. Did you check to see if it's available in your area?) All the best, -Matt Jones P.S. - Have you joined my private Facebook group yet? It's free, and I'll sharing secret tactics I don't feel comfortable sharing on the blog. Join and meet and new like-minded agents. Guerilla Realty |
Tuesday, December 5, 2017
Are cold calls the secret to wealth in real estate?
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