Home > Cold Calling > Cold calling is a waste of time

Cold calling is a waste of time

If cold calling is a waste of time then what are the alternatives? - by Thomas
that is a pretty vague question, can you be more specific...what industry are you refering to?? - by benjamin-benjamin
I followed a link in the forum to a website where a bestselling author says that cold calling doesn't work and is a waste of time.

I don't think that author was talking about any specific industry.

I thought if cold calling is a waste of time then what are the alternatives? - by Thomas
It works with a very, very low success rate, your time and effort could be spent elsewhere. there are lots of alternatives
referrals
warm leads, etc... - by benjamin-benjamin
It works with a very, very low success rate, your time and effort could be spent elsewhere. there are lots of alternatives
referrals
warm leads, etc...
I have read that direct mail has a 1-2% return rate.

I thought I just read that only 1 out of 10 sales inquiries are qualified and serious buyers.

Referrals are good but can be hard to come by.

Unless there are better alternatives if a guy wants to go out and kick up new business cold calling looks like the best choice. - by Thomas
Return rates and conversion rates don't tell the full story Thomas but 'return on investment' does. - by saltydog
If the return isn't there for you then cold calling is a waste of time but that goes for everything else too.

Is a 1-2% return rate for direct mail a waste of time? Many companies make good money pulling 1-2%. - by Houston
The other issue with cold calling is that it simply takes up too much time. By limiting yourself to cold calling, which is inherently limited by the fact that there are only so many hours in the day, you are severely limiting your income, while replacing cold calling with a self-marketing system that generates leads while you are in front of prospects removes your income ceiling.

To put it another way, cold calling is linear while self-marketing is exponential. In other words, if you get 1 lead for every 50 cold calls, then: 50 cold calls = 1 lead, or 100 cold calls = 2 leads, or 200 cold calls = 4 leads, and so on. It's a linear process. With self-marketing, on the other hand, you can increase your results exponentially by adding various self-marketing strategies to your overall sales system.

Frank Rumbauskas - by NeverColdCall
If the return isn't there for you then cold calling is a waste of time but that goes for everything else too.
Ad campaign ROI is a standard metric.

The other issue with cold calling is that it simply takes up too much time. By limiting yourself to cold calling, which is inherently limited by the fact that there are only so many hours in the day, you are severely limiting your income, while replacing cold calling with a self-marketing system that generates leads while you are in front of prospects removes your income ceiling.
Limiting yourself to any one avenue is a marketing mistake. - by SalesCoach
Limiting yourself to any one avenue is a marketing mistake.
That's exactly my point: Cold calling is only one avenue, and therefore is a marketing mistake. Self-marketing encompasses dozens of potential strategies, which is exactly why it increases sales exponentially, unlike cold calling (or any other single strategy) which is strictly linear and therefore inefficient. - by NeverColdCall
That's exactly my point: Cold calling is only one avenue, and therefore is a marketing mistake.
My point is that "limiting yourself" to only one avenue is a marketing mistake. There is a difference.

Self-marketing encompasses dozens of potential strategies, which is exactly why it increases sales exponentially,...
Utilizing multiple lead generation strategies is par for the course.

...unlike cold calling (or any other single strategy) which is strictly linear and therefore inefficient.
Are you of the belief that because a strategy is strictly linear that it is inefficient? - by SalesCoach
Frank you wrote that cold calling simply takes too much time. This isn't always the case for everyone. Check out High Probability Prospecting by Jacques Werth.
"HPS Stat: You can zero in on a High Probability Prospect in an average of 35 seconds!"
You brought up "limiting yourself to cold calling". I agree with SC's remarks on that topic.

You also brought up "replacing cold calling with a self-marketing system". I don't know what you're including in "self-marketing" but I've seen cold calling work in places where other methods fail. In a scenario like that, telling a salesperson to replace cold calling with a less effective method seems... wrong.

The last part of your post refers to what I call "leverage", which is a timeless concept that I support. ;co - by BossMan
For the most part cold calling is not the most productive use of a salesperson's time. There are many ways to acquire leads and you should be using as many ways as time permits.

Like a fisherman going out to catch fish, is it a better use of his time to throw one line in the water or cast a net? The answer is obvious.

So cast your net with many different possibilities to catch a prospect.

That being said, it's also important to know who your ideal prospect is, so you're not wasting your time with people who don't want or need your product or service. - by Jim Klein
A couple of weeks ago on the way home from my last appointment I saw a property with a 'for sale by owner' sign in the yard. I stopped and met with the seller. Two hours later I went home with an exclusive listing. I didn't consider that cold call a waste of time. ;wi - by AZBroker
A couple of weeks ago on the way home from my last appointment I saw a property with a 'for sale by owner' sign in the yard. I stopped and met with the seller. Two hours later I went home with an exclusive listing. I didn't consider that cold call a waste of time. ;wi
That's a good example of cold callling and time management. :thu - by Marcus
Cold calling isn't a waste of time but there might be a better use for your time doing something else so hire someone to do the cold calling campaign for you. :thup - by Mikey
I have a friend who makes over a million a year cold calling, no other kind of marketing. Your first response may be to say bull.... but think about this. All his calls are either to "For Sale By Owners" and "Expired Listings" I don't know what his average commision is but where I live the average home sells for 600k 2.5% of that is 15k so if he lived in my area he would need to sell 5.5 homes per month. Yes that is above average, but there are other agents who do also sell twice that amount of homes also. Btw I asked him to let me listen to one of his calls and I can tell honestly say he takes cold calling to a level I never knew existed. He is hilariously funny and the work no is not in his vocabulary. - by Jorel
Btw I asked him to let me listen to one of his calls and I can tell honestly say he takes cold calling to a level I never knew existed. He is hilariously funny and the work no is not in his vocabulary.
I have called fizzbos and expireds before and they were brutal. What system was your friend using? - by realtor
I have called fizzbos and expireds before and they were brutal. What system was your friend using?

You are absolutely right they are brutal. They where brutal to him too, put your home for sale by owner on craigslist and see how many idiots call you. Just Kidding I don't want to be held responsible for the calls you get.

BTW

My friend is using the Mike Ferry system. But I prefer Tom Ferry, his son myself. But it is not the system that makes the difference it is the way he handles the call and what is going on in his mind before, during and after the call. As in everything it is your mindset.


BTW: Do you roleplay? - by Jorel
My friend is using the Mike Ferry system. But I prefer Tom Ferry, his son myself. But it is not the system that makes the difference it is the way he handles the call and what is going on in his mind before, during and after the call. As in everything it is your mindset.


BTW: Do you roleplay?
Mindset makes that big of a difference?

No I haven't done any roleplaying. Will that make a big diffence too? - by realtor
I think that overall cold calling is a waste of time but some people have to do it. They may have to do it because their boss only believes in cold calling or this is the only form of lead generation they know.

I think overall several forms of marketing like referrals, public speaking, building an online presence for you customers and prospects to get to know you are way more effective than cold calling.

Chris - by MrTs Friend
The trick is to choose the right tool for the job. shds; - by Liberty
Mindset makes that big of a difference?

No I haven't done any roleplaying. Will that make a big diffence too?
Yes it makes a huge difference, I know people who bring in over a million dollars a year and have been in the business over ten years who role play daily. The trick is find someone who is the same or better than you so you can get better at it. I started off with people who where not as good as me and it took me a long time to see results, but when I switched roleplay partners to someone who was better than me and gave me a lot of pointers I saw leaps and bounds in my progress. - by Jorel
The trick is to choose the right tool for the job. shds;
So true. Lead generations strategies should be customized for the target market. Cold calling might be the ticket for one industry and fail miserably in another. Choose your tools wisely. :cool: - by BossMan
So true. Lead generations strategies should be customized for the target market. Cold calling might be the ticket for one industry and fail miserably in another. Choose your tools wisely. :cool:
I would add - what worked for one person won't necessarily work for everyone. Many people don't understand this concept as demonstrated by the volume of "Does X (cold calling, direct mail, radio, etc.) work" type of questions being asked across the Internet. - by Liberty
I agree that it depends on the market and size of territory but I think overall if you want to build long term than your time would be better served by building relationships and getting referrals or recommendations. It tends in my point of view make the whole sales process go smoother.

But I would not say cold calling does not work at all. - by MrTs Friend
I agree that it depends on the market and size of territory but I think overall if you want to build long term than your time would be better served by building relationships and getting referrals or recommendations. It tends in my point of view make the whole sales process go smoother.

But I would not say cold calling does not work at all.
I can support those ideas. sn; - by Liberty
So what are the alternatives? - by Julian
The categories listed in the lead generation forum are good alternatives: pulic relations/PR, advertising, direct marketing, sales promotion, Internet marketing, referrals. - by SpeedRacer
The categories listed in the lead generation forum are good alternatives: pulic relations/PR, advertising, direct marketing, sales promotion, Internet marketing, referrals.
OK I understand. But these are all "slow burn" activities and ones that can cost more money.

The great thing about using the telephone to prospect is that, if done well, it can give you a much faster route to market and when SUPPORTED by the techniques you list, can be really successful.

But I think these are supporting not alternatives to cold calling. - by Julian
But I think these are supporting not alternatives to cold calling.
In your opinion what would be an alternative to cold calling? - by SpeedRacer
IMHO I actually dont think that there is a viable alternative to cold calling in the sales arena.

Yes, sure you can "warm up" the leads by sending letters, emails etc., but at the end of the day nothing is going to be sold without some form of contact between two humans.

Now, I can already hear the cries of "what about online stores like amazon etc" no one cold calls there. Which is true. But what about the new book publisher or whatever who needs to get their titles stocked by Amazon? I bet there is a person to person call in there somewhere!

Cold Calling works. It cuts through the dross and helps companies develop their business. Yes there are other communication methods that can and should be used, but all of these, are as I said before, supportive and complementary to the cold calling effort.;sm - by Julian
Cold Calling works. It cuts through the dross and helps companies develop their business. Yes there are other communication methods that can and should be used, but all of these, are as I said before, supportive and complementary to the cold calling effort.;sm
One of the guys here today said if you dropped him off in a new town where he knew nobody the first thing he would do is start cold calling. - by Thomas
One of the guys here today said if you dropped him off in a new town where he knew nobody the first thing he would do is start cold calling.
That would be first step. Gaining referrals from your new contacts would be the second. shds; - by BossMan
That would be first step. Gaining referrals from your new contacts would be the second. shds;
Very true. One of the most understated skills is getting refferals. Most salespeople never bother. - by Julian
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