There are many lessons to be learnt so good luck!

Cold Calling can be highly effective and it can be terrible at the same time. If you dont have a strong VP, that you can communicate in two-three simple parts, you will either loose the prospect before you have even gotten past the first minute. I have been through the same path John and have grown into it over six months. Not by choice I must say, however the benefits for our business have out stripped my personal feelings on cold calling.

The way you should think of it is this: “How else would I book appointments?” I believe that Cold Calling can be a fundamental part of how you generate highly qualified leads.

There are always other methods, but for generating new business Cold Calling is still a better performer. Provided it is done right!

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Great article! It is comforting to know that someone out there shares my sentiments about cold calling:)

I have a PhD in Chemistry, sales experience and now studying my masters in marketing. I’m currently working for our own creative communications agency in a business development capacity; therefore I cold call on a daily basis.

I agree, cold calling isn’t easy and at times can be rather demotivating (the ability to accept rejection is a must as at the end of the day, you’re just a voice on the other end of the line). On the other hand, it can also be exhilarating and the way you approach it often depends on how you feel at the time of the cold call (whether you’re in a positive frame of mind). Therefore, one thing I learnt is to only cold call when you’re feeling good as this will reflect in your delivery and how you handle rejection.

Another thing I learnt is that perseverance is the key to success. Therefore, it can sometimes take over 4 calls to get somewhere.

Thanks for your suggestions – I found them very helpful All the best to you too!

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Hi John, thanks for your article.

It does really hit home when working for yourself that you are the chief sales person. I believe that situation should never change, no matter how big your business grows. The nice part is, that after 5 years the tide will turn and the business will start to come at you from referrals and the shear momentum you have built. Be careful not to spend loads of money on advertising once you get to the next level. There are stacks of eager media sales people out there willing to take your hard earned with the promise of huge returns. Many businesses stop doing the things that built them and look for a silver bullet.

One avenue I have found more powerful than cold calling is Strategic Alliances. Build relationships with people or firms that already have a relationship with the people you want to sell to. It can be informal with no remuneration or a formal commission structure. You can even swap leads with competitors.

The next thing is online marketing. Yes even an online marketing business gets more from strategic alliances than from online enquiries; but those net enquiries provide the cream. An extra 20% to our revenue that we don’t have to chase after.

As the saying goes in sales, ‘It’s not what you know, it’s not who you know, it’s who knows you’.

Best of luck – Rob Lawson

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[...] Cold-calling is tough, humbling, depressing and exhilarating, all in the space of a day. [...]

Interesting – not sure anyone really enjoys cold calling.

If you would like to test your message or review how you sound to the person on the other end of the phone (eg. speed, tone, breaks, clarity) call your own phone, let it go to message bank and deliver your message (to yourself!). By listening to the message you should pick up some things to change and gain confidence.

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That image of the phone booth reminds me of Glengarry Glen Ross.

I have been cold calling for about 5 years now in various roles. I find it is easier if you believe in what you are selling and also believe it is genuinely needed by the person you are calling. After the first year or so I think you build up a pretty strong resistance to rejection that will also help you in other areas of your profession/life.

If you are going to be travelling a long way to see a customer you always seem to get more of their attention. I travel a long way to visit mine sites at the moment and so they will always take an hour out to speak with me. There is almost a guilt involved I agree with you there.

Some of my tips from my experiences…

If you know a bit of NLP theory create an anchor using the dial tone in your phone so even if you are nervous prior to a call once you hear the dial tone you go into a relaxed state of mind (the zone). I think too much of that NLP garb can get a bit evangelical almost at times but using the dial tone as an anchor is one practical way I have applied NLP that works for me.

A big mistake I made early in my sales career was to act over enthusiastic on the phone. This is something I was taught when doing telesales with broadband plans to residential customers. I think it is a poor approach. I think it sounds phony, excuse the pun, and you are better off going with a calm and confident approach. Having said that you still have to adjust to the person you are speaking to.

Don’t take BS from people. If you get it then give it back. Harden that resolve. You are a human being as well and they should treat you with the respect that you give them. Don’t think that because you are cold calling them that you owe them some high level of courtesy. You do at the beginning but if they don’t return that courtesy then call them on it. If someone is being shirty with me and I use a bit of tough talk it often gets more respect than if I try and accommodate them.

If you are having a bad day or can’t seem to get in the mood call someone who is already a customer that you get along with. That seems to work for me. Also do all your cold calling in allotted time periods. I think that makes it easier to get into the ‘zone’.

Cold calling is always easiest to do when you have just made a sale or signed up a new client. A lot of people sit back and relax after the sale is made. Use the buzz to make another cold call.

At the end of the day it is tough, but it is tough for a reason. Think of it as competitive advantage. If you have the brass to cold call the people nobody else has the brass to, then you will have the competitive advantage. People often say to me “oh you have to cold call in your job, I couldn’t do that”. That is why I get paid the money I do. My first advice to young entrepreneurs that I meet is learn to cold call… it is an invaluable skill.

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Hi John
I’ve also just started in the insurance business, coming from a marketing background, and am just getting started on cold calling myself.
No tips for you at this stage, but thanks for yours! Will be sure to share any brainwaves should they occur.

Cheers
Meike

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Hi John,

You may think this technique is crazy but read with an open mind, consider that it reduced our conversion rates to 32.8% connected DM calls to appointments, and consider how you would respond to someone calling you on a similar topic?

Step 1 (of 2) – Make it Pithy
2 things, the most important of which is talk with the same tone and cadence with which you speak to your best mate or girlfriend/wife if female. People can hear the “sales tone” which most cc’s think is their “professional tone” in the first 2-3 words and you’ve lost already.

Step 2 – Make it Niche (the set up on this may sound a little complex but try a stripped down version if you like, eg. “Mate, I’ve collaborated on launching a specialised policy built for Orthodontists with more extras at a solid discount. I’d like your opinion on if we can grab a coffee or shoot you my contacts….”

If you want to increase conversion to 30+%
2nd, no doubt you have a niche offering but attach as much personalisation to it as possible, if my target market was selling PI to medical professionals I would drill down into a specific stream of the profession – eg. I would check out industry journals (legal, medical, & specialist) and newspapers to find an issue that only their specialty would know about, then attack a date to it, so it might be…”John, it’s Dan from ABC Insurance, I’m told you’re one of the top specialists in (wherever) for (whatever) and I need your help if you have a second? (Expect a Grunt or Sure Go For It)….We’ve got a research/opinion article (get one) on how orthodontists are increasing margin/staff/clients post the 15 October legislation change for wire braces. If I shoot it over via email can I get your opinion on whether it’s rubbish or if there’s honestly something in it? (sure)(OK, what’s the best email address)

Bang, you’ve connected on something relevant to their day to day work and business, you can guarantee no other rep has pitch them that way before. And when you call back in 2 days you simply say, “G’day john, it’s Dan at CI, you said you’d share you thoughts on that article I shot over on Monday, what’d u think? Mate I’ve been up to my elbows in the details on this thing and I’d love to grab a coffee for 15mins when I’m in town on Thurs and see if what we’re doing could work for you. If not, I’d be in your debt for the advice on where you see the important issues going.”

Even if you hate these ideas let us know what ends up working for you best. Cheers, Dan Brian dan@prlink.com.au

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I love insurance! Funny, huh. Well here’s the thing, the insurance agent is the ONLY one who will offer you commiseration ‘when the wheels fall off…” and a CHEQUE!

Calls are only as cold as you determine them to be. Work out your target group. This is your patch to cultivate. You aren’t going to win everyone to you on the first call, you don’t need to, but your mission in the first instance is to make a connection with that person. Learn what you can, and use that knowlege for the next time you speak with them. And you will be speaking with them again. Every contact with them, gives you a better understanding of their needs, and their buying cycle.

Expect them to want to take your call. Expect to not keep them if they are busy. Ask them if it is a good time and offer to call them back if not. Keep your powder dry till they are receptive. If you have good social skills then relax and just cultivate your patch. Get hold of a book by Frank Bettger, old as the hills and perfect for this. And join a good BNI chapter to learn how to master the whole networking process.

Then of course, there is your social media to set up!

Best of luck with your exciting new career.

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[...] Cold-calling is tough, humbling, depressing and exhilarating, all in the space of a day. [...]