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Cold Calling Doesn't Work?

In the video Frank said "cold calling simply doesn't work in today's economy". This might be true for Frank but it isn't true for everyone. ;wi

Moderators Note: This thread is a split from the original thread by AZBroker titled, "Frank Rumbauskas says "Sales is NOT A Numbers Game!" - by BossMan
Another thing to consider: Even if cold calling works for you, it's taking up your time that could be spent closing sales. Using alternatives to cold calling frees that time to spend face-to-face with qualified prospects in appointments. - by NeverColdCall
Another thing to consider: Even if cold calling works for you, it's taking up your time that could be spent closing sales. Using alternatives to cold calling frees that time to spend face-to-face with qualified prospects in appointments.
This topic, alternatives to cold calling, could be boiled down to "Return on investment". - by Houston
In the video Frank said "cold calling simply doesn't work in today's economy". This might be true for Frank but it isn't true for everyone. ;wi
Why would cold calling not work in today's economy? - by Thomas
Read Chapter 2 of Frank's Book "Never Cold Call Again".
He gives plenty of reasons why.

...and guess what! You can "Achive Sales Greatness Without Cold Calling" - by hirschmann
Another thing to consider: Even if cold calling works for you, it's taking up your time that could be spent closing sales.
Have you seen any data that supports the claim:

"Cold calling simply doesn't work in today's economy"? - by Liberty
IE: Data Protection Commission cracks down on cold calling
Source: http://www.pogowasright.org/

Today is European Data Protection Day. Its aim is to make people more aware of their rights under the Data Protection Act.... Data Protection Commissioner Billy Hawkes is also advising people that they have the right to get junk mail and cold calls stopped. He is urging people who are plagued by cold calls to inform their telephone company they do not want to receive marketing calls. Once this is done, cold calling becomes an offence after a month has passed. Source - Ireland Online - by hirschmann
Hirschmann the information you posted is on unwanted marketing telephone calls (telemarketing). We have something similar in the US with the Do Not Call Registry.

Are you defining "cold calls" as unwanted marketing telephone calls (telemarketing) or do you include door knocking as "cold calls" too? - by Liberty
Cold Calling is a waste of time when you look at the results of your efforts. Do you replace Cold Calling a 100% at first? No, but you would be in a better position to use newer methods that will give you better results and better closings due to the position and leverage you have maintained by the method that you used to gain your appointment with the prospect.

I know Frank's ideas are foreign to some in the sales profession. If you take small baby steps and pick one of the methods or even your own ideas you will be pleasantly surprised. I did it by expanding methods I had used in years past, i.e attendance at monthly user meeting. (You do not sell to those people at user meeting. You attend and you become a person who they feel is knowledgeable.) I was able to see how successful this was vs. cold calling. So when Frank's book came out it smack me right in the head. I had been doing certain things that were successful but I had not finally embraced the idea that "Cold Calling" is a waste of time when I can use other methods and get a higher percentage of success.

By the way, I am a very successful Director of Sales and Marketing. You use what ever method you want. Me, I am using 21st Century Technology! - by hirschmann
Cold Calling is a waste of time when you look at the results of your efforts.
Assuming that the results of other's efforts will be similar to yours. Isn't that correct?

Do you replace Cold Calling a 100% at first? No, but you would be in a better position to use newer methods that will give you better results and better closings due to the position and leverage you have maintained by the method that you used to gain your appointment with the prospect.
It's generally agreed upon that Referrals, as an example, have a higher conversion ratio than cold calls, ad calls, etc. but that doesn't mean these other methods don't work.

I know Frank's ideas are foreign to some in the sales profession.
The only idea I've heard so far is that "Cold calling simply doesn't work in today's economy" which is a bit foreign and no harder to prove false than making a call. - by AZBroker
Assuming that the results of other's efforts will be similar to yours. Isn't that correct?

It's generally agreed upon that Referrals, as an example, have a higher conversion ratio than cold calls, ad calls, etc. but that doesn't mean these other methods don't work.

The only idea I've heard so far is that "Cold calling simply doesn't work in today's economy" which is a bit foreign and no harder to prove false than making a call.
AZBroker:

I can not argue with your conclusions. I just want to quote a few items from "Who Moved My Cheese" by Spencer Johnson, M.D. "
"Movement In A New Direction Helps You Find New Cheese." "When You See That You Can Find And Enjoy New Cheese, You Change Course." and finally " When You Stop Being Afraid, You Feel Good!" - by hirschmann
AZBroker:

I can not argue with your conclusions. I just want to quote a few items from "Who Moved My Cheese" by Spencer Johnson, M.D. "
"Movement In A New Direction Helps You Find New Cheese." "When You See That You Can Find And Enjoy New Cheese, You Change Course." and finally " When You Stop Being Afraid, You Feel Good!"
Who said anything about being afraid? Cold calls can work well if you know how to make them work well. But they are just one method. - by Joe Closer
The only idea I've heard so far is that "Cold calling simply doesn't work in today's economy" which is a bit foreign and no harder to prove false than making a call.
The idea that cold calling doesn't work is known my most salespeople, primarily through their own experience and frustration.

Having said that, a major university study was done recently. It concluded that over 80% of executives absolutely do not take cold calls, under any circumstances (myself included). So if you're looking for concrete proof, or solid numbers, that's pretty concrete. I don't have it in front of me but I've posted it on my blog in the past and it can be found there. - by NeverColdCall
The idea that cold calling doesn't work is known my most salespeople, primarily through their own experience and frustration.
Are most salespeople highly skilled in cold calling? If they are not highly skilled in cold calling then what weight does their experience or frustration add to the claim that cold calling doesn't work.


IMO, the statement "unskilled cold calling doesn't work in today's economy" is closer to the truth than the generalization that "Cold calling simply doesn't work in today's economy". Wouldn't you agree?

Having said that, a major university study was done recently. It concluded that over 80% of executives absolutely do not take cold calls, under any circumstances (myself included).
80% of which executives, Fortune 50, Small business, who? Where are these executives, the United States, Canada, Japan, United Kingdom, somewhere else? What about non-executive decision makers who buy insurance, automobiles, real estate, etc? Are these individuals and factors not part of the equation?


Is it really possible to exclude these individuals and factors and still view the generalization that "Cold calling simply doesn't work in today's economy" as a valid statement?

However ... even if you're satisfied with cold calling, would you make more money if you didn't have to spend your time making cold calls, and instead you simply had the leads coming in? Of course you would! ;bg
Mikey is right that sales is a numbers game meaning the more time you spend on calls with qualified prospects the more deals you are going to get. Wouldn't you agree?
- by AZBroker
Cold calling has its drawbacks but there are pros and cons to almost every method of lead generation. I couldn't agree with the idea that cold calling doesn't work because there are too many sales professionals cold calling successfully every day. - by Jolly Roger
Here is a quote from Don Hobbs' post on RealBlogging called, "The Myth of Cold Calling".

Unfortunately, I find that people who cold call as a primary prospecting tool wake up five or 10 years later still not owning their business. They have to keep making that next call, except now they're worn out and die a slow, painful death in real estate.

As I've said before, it's not that cold calling doesn't work. It can. And the broker was partially right when he said it's better to take action than watch the moss grow around you.

The point is this "doing the right things that leverage your time and allow you to nurture a business is the key. It's not about what you do, it's about what systems you put into place that can do for you.
- by Houston
...say anything you want to anyone you want and eventually you will get a sale...
THAT is working harder not smarter. :yi - by Marcus
Read Chapter 2 of Frank's Book "Never Cold Call Again". He gives plenty of reasons why.
I have read that chapter before and I thought it gave common reasons for choosing other lead sources over cold calling not that it gave reason why cold calling wouldn't or doesn't work.

Self-marketing enables you to eliminate cold calling, have leads come to you, and give you 100% of your time to spend in front of qualified prospects.
I read somewhere that only 10-20% of all sales inquiries are sales ready opportunities. - by Mustang
Show me a salesman or saleswoman who says that "cold calling doesn't work" and I'll show you someone who doesn't do it well. - by SalesCoach
Here is a quote from Don Hobbs' post on RealBlogging called, "The Myth of Cold Calling".
Great find Houston. :thu

Unfortunately, I find that people who cold call as a primary prospecting tool wake up five or 10 years later still not owning their business. They have to keep making that next call, except now they're worn out and die a slow, painful death in real estate.

As I've said before, it's not that cold calling doesn't work. It can. And the broker was partially right when he said it's better to take action than watch the moss grow around you.

The point is this "doing the right things that leverage your time and allow you to nurture a business is the key. It's not about what you do, it's about what systems you put into place that can do for you.
- by Mikey
Great find Houston.
Thanks Mikey. ;sm

Show me a salesman or saleswoman who says that "cold calling doesn't work" and I'll show you someone who doesn't do it well.
Jackpot! ;wi - by Houston
I disagree with the idea that cold calling does not work. I dont like doing it myself but that is a whole other issue.

People make a living by cold calling. I recently partnered with an expert in cold calling. Not only does it work but he has an entire product line based on cold calling. There is sort of a science to it.

The actual problem is not the cold calling itself but getting the right person on the phone.

Most people cold call the bottom individual rather than the c-level executive. When in fact you should follow the Top-Down approach. You get further that way.

I have seen it first hand. - by cgmaker
Another thing to consider: Even if cold calling works for you, it's taking up your time that could be spent closing sales. Using alternatives to cold calling frees that time to spend face-to-face with qualified prospects in appointments.
People have to see some advantage to cold calling or they wouldn't do it. Do you see any advantage to cold calling Frank? - by realtor
Cold calls absolutely DO work. To what extent and which undustry you use them in would decide what does and what doesn't work. To some of us (Lets say.....me) door knocking wil net the same exact results, so I prefer air conditioning. I sell vacuums. Getting in the door has always been the hard part. Sales are easy. Now if anyone can come up with a way (Financially reasonable) to let a vacuum salesman in your home..........You will have my undying gratitude. Till then, smile and dial. - by vacmag
Fear of cold calling should not detract us from the fact that the person to person phone call does work in business to business sales.

I have never sold business to consumer, but I would imagine that the same rules apply: be professional. be honest. be passionate about your product or service. be a great listener and above all pick up the phone and actally do it.

As someone once said, sales is either the best paid hard work you'll ever do or the lowest paid easy work. Up to you.sn; - by Julian
Cold Calling Doesn't Work?
Man...I'm sure glad that I didn't know that the last 20 years.msnwnk;

Every market/product/service is different. Cold Calling is still a very effective tool in many fields. - by tinman
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