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Really doesn't matter, it's a losing tactic.
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While I'm a huge fan of your general skepticism, it does matter. There are a number of folks that do very well cold calling, specifically on Medicare supplements among others. It's certainly not as productive as it used to be and it absolutely doesn't work in all areas, but it is a viable marketing method for Medicare supplements. That's especially true for agents with more time than money.
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OK, who? "Do very well"? Please define. How does that translate to numbers and results?
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Agent 1: Sets about an appointment an hour and closes about half of them.
Agent 2: Calls two days a week and averages two deals a week.
Agents 3-6: Call and get leads, but mostly have MA plans in their area so the ROI stinks.
Agents 7-10: Get beat up on the phone and decide cold calling isn't for them.
Agent 11: Has a telemarketer call for him and gets a great ROI
Agent 12: Has another telemarketer call for him and gets a great ROI.
Agent 13: Has a telemarketer call for him, but agents 11 and 12 are in the same area getting to the prospects ahead of them so they kinda choke each other out, so agent 13 ditches telemarketers.
Agents 14-20 are like agents 3-10.
I'm sure there are a great many more in the "it didn't work" column, but that puts more specifics to answer your question. If any of my clients feel like coming out and telling everyone what they're doing and why it's working for them then that's up to them, but I'm understandably not in the business of telling the internet specifics about how my clients use the lists and in what areas.
I had a client start on my dialer last week calling for FE and they booked 3 appointments in their first hour. That's by far a better response than I'd expect most folks to get, but it does work. That said, it's also like every other lead source, it doesn't work for everyone.
Does that help?
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Then I would suggest that if you're not ready/able to provide any confirmation of your assertions, they shouldn't be made. People shouldn't make marketing and business decisions (if they're smart anyway), based on anecdotal evidence. Talk is way, way too cheap.
For MedSupp, my opinion is based on my tests and experiences, encompassing dials in the tens of thousands, by multiple people, in multiple states, on different days, at all times of day. By the time you filter out DNCs (72%), and then factor in the 34% where you will get a LIVE answer, you're down to even talking with 9.52% of the available universe. Those are mighty long odds, because...
From that sliver, now you've got to deal with the underwriting issues inherent with older folks...
Based on a LOT of data and experience, I'll stick with my statement: cold calling for MedSupps is a losing tactic.
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Feel free to tell that to the guy that does 2 med supps a week like clockwork year round cold calling when that's only half of his week.
It is sustainable. As I said, it's not sustainable for everyone or possibly even the majority, but it is a viable marketing method that is still successful in 2012 and will still work in 2013. I'm not advocating anyone dropping anything they're currently doing that's working, but if an agent has more time than money it can be an excellent way to start talking to folks and make some sales.
Personally I think it's foolish to rely entirely on any single method of marketing.
For most folks there are more numbers in their workable area than they could ever call after the numbers are scrubbed, so while interesting, it isn't a deal breaker. The live answer rate isn't a big deal either, if you're running on a dialer you'll be able to spend most of your time talking to people, probably more time than you would have been able to pre-dnc dialing by hand. You and I both know the only number that really matters on is the ROI. If an agent can spend 4 hours dialing (doubt they can do 8) and get 2-4 decent leads a day that's 10-20 leads/week. If they can't get 2 deals a week out of that (let's say $200 X 5 years), then they definitely need a new marketing method. If on the other hand they try it and hit those numbers, I'd think they'd be foolish to not have that be a part of their routine.
In the spirit of discussion and good fun, let me ask you this: Do you think someone should try a marketing method out on their own and see if it works for them in their market or do you think some other person on the internet saying it doesn't work might just be trying to hog all the gold for themselves because they know it does work and want less competition.
I genuinely believe that you believe cold calling for Medicare supplements (or presumably any consumer product) doesn't work, but I'm equally convinced the best way for an agent to figure out what works for them is to try things themselves. I've hired a lot of telemarketers that have made a lot of calls. I've also sold a lot of agents a lot of lists. The ones I think will do well sometimes fall flat on their face and the ones that seem like they would struggle end up excelling. Like I said, it might not be for everybody and it might not even be for most people, but it absolutely does work for some people.
A few places: craigs list, local colleges, churches and community centers, etc. A well-written ad so you don't waste your time, a phone interview to evaluate their speech and other job requirements and perhaps group interview (if you're comfortable) to make efficient use of your time to role play scripts, show any hardware/software you're using, etc. Prepare a training manual that discusses scripts, handling objections, and "your business 101" so they understand what you do. Give them ammunition for the phone and continuously train and nurture them as well as provide tier-based incentives for leads, appointments, applications written/approved. There are several threads available on this... hope this helps some with broad strokes.
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Hey M&M, is your assumption based on the insurance industry specifically, or of cold calling across all industries?
