Here's the real math on cold calling

Dear Reader, Hey all, I had an interesting conversation with an agent last week. We were talking about an idea that has gained popularity in the la

Like   Tweet   +1   Dear Reader, Hey all, I had an interesting conversation with an agent last week. We were talking about an idea that has gained popularity in the last year: 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 show us 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. That could represent $20k+ in commissions per month in a typical market. But I challenge you 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. Do the math. 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 is probably closer to 50%.) That's approximately 2 hours and 30 minutes spent on the phone five days a week. Miss a day? Subtract a client. Take a vacation? Subtract more. What your 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. 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. 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 No thanks, I just want to check availability As always, thanks for reading. Matt Jones Broker/President/CEO Guerilla Realty ©2017 FavoriteAgent.com | 212 Northstone Place, Fayetteville, NC, 28303 Web Version   Preferences   Forward   Unsubscribe     Powered by Mad Mimi®A GoDaddy® company

Cold calling fsbos and expireds

Dear Reader, Hey all, I had an interesting conversation with an agent last week. We were talking about an idea that has gained popularity in the la

Like   Tweet   +1   Dear Reader, Hey all, I had an interesting conversation with an agent last week. We were talking about an idea that has gained popularity in the last year: 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 show us 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. That could represent $20k+ in commissions per month in a typical market. But I challenge you 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. Do the math. 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 is probably closer to 50%.) That's approximately 2 hours and 30 minutes spent on the phone five days a week. Miss a day? Subtract a client. Take a vacation? Subtract more. What your 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. 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. 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 No thanks, I just want to check availability As always, thanks for reading. Matt Jones Broker/President/CEO Guerilla Realty ©2017 FavoriteAgent.com | 212 Northstone Place, Fayetteville, NC, 28303 Web Version   Preferences   Forward   Unsubscribe     Powered by Mad Mimi®A GoDaddy® company