Cold Calling Sucks - But It Works

[jhuang]

@MedicareplanSolutions I have thought about you lately...don't be jealous, but I haven't made a commitment yet :-)

 

[VolAgent]

@MedicareplanSolutions I have thought about you lately...don't be jealous, but I haven't made a commitment yet :-)

Once you go MPS you'll never go back!

That said, he is a stand up guy. Good person to do business with.

 

[Josh]

Thanks Vol!

jhuang, I'm ready when you are!

 

[CHUMPS FROM OXFORD]

And several butcher's aprons.

 

[Mark]

Some agents are just afraid to try anything....

 

[jlchan33]

Thank you for encouraging! I went for several days of cold calling, got no results and stopped it. Now I am thinking it was too early.

I think you probably didn't stop early enough. In my experience, the few leads I got after making hundreds of cold calls weren't worth a dime.

Why?

Think about it. What type of person has time or the inclination to listen to a sales pitch from a stranger? A very bored person with no money and no job, in my experience.

I think you're better off getting leads for people who have expressed even a remote interest in your product.
- - - - - - - - - - - - - - - - - -

Frank, I know is probably a beginner question, but how are you cold calling for Med Supps when most people are on the DNC list?

Easy, you violate the law assuming (often correctly) that no one will bother to report you to CMS, the FTC, etc. or you run your list through a DNC filter that can easily be found online. Then you discover that 99% of your prospects are on the DNC list and you're back to deciding whether to do the following:

1) give up;
2) make illegal calls.

Sound like fun?

 

[Frank Stastny]

I think you probably didn't stop early enough. In my experience, the few leads I got after making hundreds of cold calls weren't worth a dime.

Why?

Think about it. What type of person has time or the inclination to listen to a sales pitch from a stranger? A very bored person with no money and no job, in my experience.

I think you're better off getting leads for people who have expressed even a remote interest in your product.

It sounds like your cold calling techniques may need a little tweaking if that has been your experience. Or, I just happen, over the last many years, only been talking to people who are "very bored" but do have money. I target only seniors so they aren't still working.

I have tried "cold calling" for other products and the senior market lends itself better to cold calling than any other product I have sold. It is a very unique market. Seniors are constantly looking to save money on their Med Supp insurance.

Easy, you violate the law assuming (often correctly) that no one will bother to report you to CMS, the FTC, etc. or you run your list through a DNC filter that can easily be found online. Then you discover that 99% of your prospects are on the DNC list and you're back to deciding whether to do the following:

1) give up;
2) make illegal calls.

Sound like fun?

Below are are answers to DNC Enforcement.This is only intended to "set the record straight" regarding the enforcement process, not for any other purpose.

CMS does not get involved with DNC. See below.

"Q&A: The National Do Not Call Registry


38. What happens to my complaint?

Do not call complaints will be entered into the FTC’s Consumer Sentinel system, a secure online database available to more than 1,000 civil and criminal law enforcement agencies. While the FTC does not resolve individual consumer problems, your complaint will help us investigate the company and could lead to law enforcement action.

Who Can Enforce the Rule?

The FTC, the states, and private citizens may bring civil actions in federal district courts to enforce the Rule. State attorneys general or any other officer authorized by the state to bring actions on behalf of its residents may bring actions by the states. Private citizens may bring an action to enforce the Rule if they have suffered $50,000 or more in actual damages.

If state officials or private citizens bring a legal action under the Rule, they must provide written notice of their action to the FTC before filing a complaint, if feasible, or immediately upon filing the action. The notice must include a copy of the complaint and any other pleadings to be filed with the court."

 

[KJ in Miami]

Thanks for sharing - I am bookmarking this info to reference later!

Let me make this clear, cold calling/canvassing sucks to do. You get rejected 90% of the time and even when you meet with someone, their guard is up. Even after they buy from you, there still isn't a lot of trust initially.

That being said, it works and trust is gained over time if you make yourself a resource to them and stay in touch. Two examples from the last few days inspired this post.

Example #1: I met this client three years ago off a cold call to review his health insurance plan. Over three years, I took over his company's retirement plan, his personal investments, sold a DI policy, and just recently a decent life insurance plan. To say thank you for all the work I've done for him, he invited me to his house for dinner with his family over the weekend. To say the least, I have good rapport with him. I would never have met him if it hadn't been off a cold call.

Example #2: I met this client two years ago off a cold call. Helped him restructure his company's health plan and saved him about $20,000 a year with better benefits for the employees! He later told me he hates getting cold calls, but I seemed different. He called me up today for two reasons: first, to refer me to his mother for a med supp, and second, he wants to sell his business to the kids and wants my help pointing him in the right direction. He has referred me to other business owners in the community and to his kids as well.

I have a number of examples of good clients I've gained by picking up the phone and making stone cold calls. I will be the first to say introductions are better than cold contacts, no argument there as it speeds up the trust process. That being said, most people don't have a completely full schedule for the week off of introductions only, especially as a newbie.

There are a lot of negative posts on how ineffective cold calling is, but I can tell you from experience they are garbage! Whether a cold call or a referral, the key is to make enough introductions to the right people. Cold calling is simply one way to make an introduction. After that, it's up to you no matter what method you used to meet your new client.

Here's the funny thing about cold contacts: when you are making them, you feel like you are getting no where and it's a waste of time. However, I can say that with persistent effort, it's always profitable if you give it time to work.

I'll now get off the soap box, just wanted to share for anyone else making the calls and getting discouraged.

 

[proadvisors]

Cold calling works no matter what line of insurance or product for that matter your selling Frank. I agree with you that its the most cost effective way. I know Frank knows what I am about to say but for the benefit of the masses....

The key is to sound NON-DESPERATE and NEEDS DRIVEN, FRIENDLY and don't force a product just have a conversation. Open their mind to new possibilities. Do that by taking down their defenses. AND FOR THE SAKE OF YOUR CAREER DON'T SOUND LIKE YOUR READING.

I do this in ways such as...

You seem like an open minded person who likes to get all the facts
and stay up to date on things. Am I correct in assuming that?

"yes"- Great - go into close for appointment or get a email send some info
etc... then follow up

You can even take their gaurd down by saying things like...

This probably won't interest you and if not its no big deal but...
I've been working with several people in your neighborhood
and figured you might have some of the same challenges
their facing so...
If you could show you a way to (insert benefits) wouldn't you
like to know about it?

That way when they hang up their saying to themselves "I am glad he called"

 

[va2vegas]

Cold calling truly is efficient. Long before I got onto insurance...I worked at 2 MCI call centers. In fact...my first day on the phone for MCI was the day that Worldcom hit the news. I became a top caller in that center.