How long can you last cold calling?

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maybeeeeeeee's picture
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Joined: 2005-02-24

Just curious.  We have an obnoxious kid out of college.  Got to give it to him, because he made his first year numbers ($5m assets).  He spends his whole day on the phone making about 200 cold calls.  They rest of the day he sucks up to the managers.  His next year goal is $10 million.  Do you think he can last?  Got to admit he is good.  I can't believe anyone would give their money to him, but they do.  Have you seen anyone like this before???

stanwbrown's picture
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Joined: 2004-12-01

maybeeeeeeee wrote:Just curious.  We have an obnoxious kid out of college.  Got to give it to him, because he made his first year numbers ($5m assets).  He spends his whole day on the phone making about 200 cold calls.  They rest of the day he sucks up to the managers.  His next year goal is $10 million.  Do you think he can last?  Got to admit he is good.  I can't believe anyone would give their money to him, but they do.  Have you seen anyone like this before???
 
Besides me? yes

2yrsin's picture
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Joined: 2005-05-14

maybeeeeeeee
What is this guy calling on, product or generic?
Does he use a script?
What list is he using and where does he get it?
I am spending whole day on phone also but am seeing limited results.  Most of my business has come from my network which is now exhausted. 
 
 
 

blarmston's picture
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Joined: 2005-02-26

sounds llike the guy is relentless and perisistent with his marketing- which is one key variable we MUST have. By sheer law of numbers the guy will get in front of people, some ACAT'ing accounts, some not.. I have seen it several times- where a new guy comes in with the intelligence and persoanlity of a slug, works his A-sS off, and finds a wqay to make it happen...

2yrsin's picture
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Joined: 2005-05-14

The problem I am having is not being able to make the contacts by phone.  Between the DNC, answering machines, caller ID, I find my self making 200 dials just to get maybe 15-20 contacts.  I have been calling residential numbers.  I would be interested to find out if anyone is calling in today's environment successfully.  My training department keeps trotting out brokers who started calling pre DNC and after all is said and done you find out that the accounts they are opeing are from contacts they made 3 and 4 years ago.  Most of them are now able to utilize the referral route but how do you build the client base to be able to work referrals?  Frustrated!

SonnyTheBull's picture
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Joined: 2004-12-29

2yrsin,
I am in the same situation as you are. I make about 200 dials and get maybe 20 Contacts. I have realised that's just not enough. I need at least 50 to 80 Contacts a day to land appointments. Buy a Scrubbed list of Business phone numbers or call the Yellow pages and you won't have to deal with the DNC.
Starting early in the morning around 7 A.M. has proved extremely beneficial to many cold callers.
Good Luck!
Sonny

Kargon's picture
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Joined: 2005-02-15

HOw are you cold calling at 7am in the morning when it is illegal?

SonnyTheBull's picture
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Joined: 2004-12-29

My firm's Phone Software does have a DNC curfew until 8 A.M. for New York. Anyways point is to start early.

maybeeeeeeee's picture
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Joined: 2005-02-24

Sorry I am late in getting back to you.  The young guy in our office who has been successful bought his list off the Internet somewhere.  He starts the call with a script and then goes the way of the caller.  Very smooth on the phone.  With out a doubt, he is one in a thousand.  Good luck.
Have you tried business cards???

Kargon's picture
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Joined: 2005-02-15

maybeeee - What's his opening line on his script? (looking for what he says after he says his name and where he is calling from)

blarmston's picture
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Joined: 2005-02-26

I'm sorry- did I catch you in the middle of relations with your spouse ?????

BrokerRecruit's picture
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Joined: 2005-04-19

maybeeee, I run into the same issue as a recruiter.  Obviously, the DNC list does not appoly, but I will typically have 100 dials or so, with only about 10-20 contacts. 

BrokerRecruit's picture
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Joined: 2005-04-19

that was meant to say apply

sienna's picture
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Joined: 2005-06-14

I've found that being on the phones is a great way to start.  But I couldn't imagine doing it throughout the majority of my career. I have also experienced maybe 5 people talked to per 100 dialed. Most of my business comes from networking events, seminars, businesses, and referrals.
Some people don't mind the phone and are good at it...most would rather get business another way.

maybeeeeeeee's picture
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Joined: 2005-02-24

After he introduces himself he usually says, "I am working with several families in ______________city and helping them make the most of their investment portfolios.  Are you currently in the market?"  I figure this is just about what everyone says.  Then we keep a warbook with comebacks for every no we hear.  He keeps at it.  He has a nice voice.  Just in person, you would be shocked when you saw him that anyone would give their money to him.  Good luck.

Kargon's picture
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Joined: 2005-02-15

That's an interesting opening to a call, I may try it.

Commission Love's picture
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Joined: 2005-06-21

Go invest a few hundred in a IVR system, auto dialer and start with a niche market.  Get 1-2% replies then follow up others that didn't answer with letters and postcards plus keep that dialer dialing.  Hell beats sitting at a phone all day. 

Kargon's picture
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Joined: 2005-02-15

more than a few hundred, I use to work for a call center that did telemarketing as a project manager.  Trust me, they are expensive.  Plus, an autodialer has many issues that you don't want to deal with as a broker.

menotellname's picture
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Joined: 2004-12-01

Kargon wrote:more than a few hundred, I use to work for a call center that did telemarketing as a project manager.  Trust me, they are expensive.  Plus, an autodialer has many issues that you don't want to deal with as a broker.
Not really.  There are web based systems.
Do a Google search for other systems or check out http://www.voiceshot.com

Commission Love's picture
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Joined: 2005-06-21

more than a few hundred, I use to work for a call center that did telemarketing as a project manager.  Trust me, they are expensive.  Plus, an autodialer has many issues that you don't want to deal with as a broker.
No, you can put one together for under 500.00 or so or buy a pre package one for 999.00.  Of course these or basically 1-4 lines and if you have a computer handy to dedicate to the caller. 
Issues, hell we all have issues!  Once again its simply a way of pushing ones name out by offering something simple, such as a free consultation?  Or a specific service such as Life Settlements, I don't see the problem?  In fact the one pre package $999.00 the guy who is selling them said his main market was Financial Advisors?  Go figure?
IVR's are quickly becoming the next thing better then slice bread!

Piper's picture
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Joined: 2004-12-27

Here is some total ignorance on my part (let the bashing commence)........Where can I find out more about these IVR systems, specific to advisors??

Dewey Cheatham's picture
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Joined: 2004-12-01

Do a Google search...duh.
Try searching for "interactive voice response" (IVR), "auto-dialer", "web based auto-dialer", or "hosted CRM".

Beagle's picture
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Joined: 2005-03-21

Is this sort of thing actually legal?  I receive these types of
calls from mortgage companies all the time - has anyone here actually
used them and what sort of response rate did you see?

menotellname's picture
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Joined: 2004-12-01

Beagle wrote:Is this sort of thing actually legal?  I receive these types of calls from mortgage companies all the time - has anyone here actually used them and what sort of response rate did you see?
From a previous thread in a different RR forum:  http://forums.registeredrep.com/forum_posts.asp?TID=410& PN=1
*****************************************************
The NASD does have a problem with canned messages for promoting a specific product.  However, I am not sure of the legal interpretation for messages offering general information about services.
Then there are the big boys.  The FTC and the FCC.  The FTC does not have a problem as long as the dialer does not do sequential dialing and has DNC compliance.  You can get around that problem because all auto-dialers now have the ability to incorporate a "sort algorithm" and integrated DNC management features. 
The FCC DOES have a problem and you must have "prior express consent" (see below).  This is where the legal intrepretation gets fuzzy...  I have received numerous calls in the past several weeks at home and work that have used an "opt-in" feature where you press a number to hear the rest of the message.  This seems to imply "prior express consent" (at least for the companies that are calling me).  A friend of mine that is in the mortgage industry was interested in such a marketing program too and had a lawyer look into this for him.  The lawyer couldn't make heads or tails of it and told him that she felt that the "opt-in" feature did not constitute "prior express consent".  I believe that is does constitute "prior express consent" but I am not willing to gamble my career on it.  However, I would like to have Bill Singer's interpretation (*hint*).
 
From FCC customer service:
FCC Rules pre-empt or prevail over FTC Law.
Please reference the attached information on Artificial or Prerecorded Messages.      * Autodialers produce, store and dial telephone numbers using a random or      sequential number generator.  Autodialers are usually used to placeartificial     (computerized) or prerecorded voice calls.      * Except for emergency calls or calls made with the prior express consent ofthe      person being called, autodialers & any artificial or prerecorded voicemessages      may not be used to contact numbers assigned to:         * any emergency telephone line;         * the telephone line of any guest or patient room at a hospital,        health care facility, home for the elderly, or similar establishment;         * a paging service, cellular telephone service, or other radio commoncarrier        service, if the person being called would be charged for the call; or         * any other service for which the person being called would be charged for        the call.      * Calls using artificial or prerecorded voice messages - including those thatdo     not use autodialers - may not be made to residential telephone numbersexcept      in the following cases:         * emergency calls needed to ensure the consumer's health and safety;      * calls for which you have given prior consent;     * non-commercial calls;      * calls which don't include any unsolicited advertisements;      * calls by, or on behalf of, tax-exempt non-profit organizations; or      * calls from entities with which you have an established businessrelationship.      * The following types of calls are exempt and are permitted:      * non-commercial calls (for example from charitable entities      * polling organizations     * political or government agencies)      * calls which do not include any unsolicited advertisements      * calls by or on behalf of tax-exempt nonprofit organizations      * calls from entities with whom you have an "established businessrelationship."      * Calls using autodialers or artificial or prerecorded voice    messages may be placed to businesses, although the FCC's rules    prohibit the use of autodialers in a way that ties up two or more    lines of a multi-line business at the same time.      * If an autodialer is used to deliver an artificial or    prerecorded voice message, that message must state, at the    beginning, the identity of the business, individual, or other    entity initiating the call.  During or after the message, the    caller must give the telephone number (other than that of the    autodialer or prerecorded message player that placed the call) or    address of the business, other entity, or individual that made    the call.  It may not be a 900 number or any other number for    which charges exceed local or long distance transmission charges.      * Autodialers that deliver a recorded message must release the    called party's telephone line within 5 seconds of the time that    the calling system receives notification that the called party's    line has hung up.     Thank you for contacting the FCC's Consumer Center. Rep Number             : TSR22

Commission Love's picture
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Joined: 2005-06-21

http://www.voiceguide.com/vgDialer.htm
249.00 buys you the needed version.  Go to ebay and buy a good used telephony card or hell go to walmart and buy a cheap 20 external modem, sound won't be great but never the less they will work. 
Then go out and register with the DNC list and get your SAN number and give it to the list people that'll sell you 10 thousand plus names in almost and demographic makeup you like (for anround 300 dollars) give them your SAN number to scrub the list with and your in complete compliance with the Goverment.  Get your IT buddy to do the work and programming and your good to go!  May take him all of 20 minutes to do! Oh yea, your best bet is to get a used computer to dedicate it to the system another 100 dollars or so plus the SAN number is free.
Okay next step, this is crucial!  You'll need a really great voice, I find elderly man or a good female voice to work the best!  So on the site I posted has links to voice talent or google it and you'll find plenty, pick a voice that goes along with the product, when I did Annuities I pick a elderly masculine voice, for life insurance (mortgage Ins.) a female voice is better, I beleive so take that for what it is worth.  You also have time limits, so when you run it set the program up to transfer to you or whomever you choose to be a live operator to whatever line you want including your cell phone.  Then I have another key where they can leave a message and yet another one for them to opt out and will not be called again!
Response Rate, I find quarter to a half percent in two dialings, so that would work out on average to be 50 depending on product and correct parameters of the demographics one picks.  Yet though I only use one line and just had it set up and ran two list as of this date.  Cheap and it never needs feeding!  Nor does it complain about needing a coffee break such as myself!
Hell of a lot cheaper then Postcards or letters!  Once again this is just one little solution in a bigger problem but what I've seen its simply the next best thing to slice bread.  I even admit when I get a computer selling message call I hang up ASAP but some actually don't and a few will even reply.  My real intent for this system was basically for Life Settlements, I find the elderly more patient to such tactics but if they are interested they do respond which out of 40 I actually have 20 apointments and hopefully 1 of them can get qualified and sold which my ROI would be out of this world!  Then there is the second list, the third list the fourth and so on!  I just need one sale out of ten thousand calls to make me a happy camper!

Beagle's picture
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Joined: 2005-03-21

I remember about 6-8 years ago they ran an article in our local paper
that it was illegal to run an autodialer to a personal residence. 
I remember it only because I looked into it, I received a phone call
from a mortgage company and the Simpson's had a show about an
autodialer and Homer was using it - saw it all within about 2
days.  Amazing how THAT made me remember it.

I can just imagine how many people would ring through to inform me
about my breaking the law.  I now realize how some of those
outbound appointment setters on the internet work - after further
review they are just using this equipment.

Commission Love's picture
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Joined: 2005-06-21

Beagle wrote:I remember about 6-8 years ago they ran an article in our local paper that it was illegal to run an autodialer to a personal residence.  I remember it only because I looked into it, I received a phone call from a mortgage company and the Simpson's had a show about an autodialer and Homer was using it - saw it all within about 2 days.  Amazing how THAT made me remember it.I can just imagine how many people would ring through to inform me about my breaking the law.  I now realize how some of those outbound appointment setters on the internet work - after further review they are just using this equipment.
Okay  I was going to give a fast-a-matter of fact answer but boy was I wrong!  I'm in violation of Tennessee law!  So I stop my scripts and applied for the Tennessee list of DNC victims, of course they want 500 yearly fee!  Pay 500 dollars to the State and you have card-blanche!  I ask about Auto/Predictive Dialers and the person said as long as I pay my fee they see no difference?  Yet another robbery of the State for their coffuires, I should of guess that one!
So then I call my buddy down the block, okay in Memphis and ask him how he felt.  He stated screw the State and simply change my scripts and simply take a survey about whatever product your pushing.  Don't sell just find out if they have interest and desire, such as Life Settlements. 
Such as this
Dear Johnny Boy, we are calling taking a survey of people over 70 you know the old people older then dirt and that have Insurance of over 200 thousand to you qualify?  You know the old people with all the money!
Answer is Y or N or hangup.
Dear Johnny Boy, since you have made the cut and still here we would like to ask several questions about your needs and interest in why you have this policy in force.
Q1 Is their any premiuns due on monthly or yearly scheldule? Y or N
Q2 Is this Insurance you have still needed for original intent of when you purchase the Insurance Policy? Y or N
Q3 Is the premiun becoming a burden or simply unwanted?
Q4 If you didn't have this policy would you be in need of and be interested in pursuing a cheaper alternative?
You get the idea?  Do a damn Survey regarding to your product and or services and find out if this person has any need of it.  If they do obviously the second step is painfully clear.  This wording is just off the top of my scattered brain and does in no way reflect an actual script!

nehapriya1's picture
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Joined: 2014-05-14

find more details how long does a cold last http://howlongdoesacoldlast.blogspot.com

nehapriya1's picture
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Kargon wrote:
more than a few hundred, I use to work for a call center that did telemarketing as a project manager.  Trust me, they are expensive.  Plus, an autodialer has many issues that you don't want to deal with as a broker.

h

nehapriya1's picture
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Kargon wrote:
more than a few hundred, I use to work for a call center that did telemarketing as a project manager.  Trust me, they are expensive.  Plus, an autodialer has many issues that you don't want to deal with as a broker.

how long does a cold last

buyandhold's picture
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Joined: 2008-09-23

Her's a counter opinion, fwiw.
Cold calling is not a good way for most of us to build our business. The obstacles include:
1. The DNC lists ... people are either on the list or think they're on the list.
2. People are overwhelmed with callers. I'm on the DNC list but still get two or three charity/political/business calls a day. We don't pick up.
3. Cell phones. People are getting rid of their land lines.
4. Cold calling is very very difficult. It's just very hard to make 250 dials a day.
5. Most of us don't have the aptitude to do this. It exacts a toll on you.
6. Personally, I would never do business with someone who called me, so why would I expect you do to so.
7. I know many succesful advisors; very few of them cold called. Some of them pay lip service to the idea but as you get to know them, you find out they didn't really do much of it.
8. Times change. People want relationship based advice; not interesting in buying a bond or a stock.

apac707's picture
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Joined: 2014-07-02

Thanks this will be so helpful when I start production. I was recently accepted into the pmd program at merrill.

gekko the great's picture
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Joined: 2013-11-08

buyandhold is spot on. cold calling is not a way to build successful fee based relationships over time. Businesses have well trained gate-keepers to keep you away from their upper level employees. In my days at a wirehouse the DNC list was a joke. They never purged names from people who were clients 5-10 yrs ago. You can buy lists, but they are crappy list that other junior brokers are buying too. GL with that.

To be successful you have to network your butt off, be patient, learn constantly and get fairly lucky.

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