Why do people continue with high-cost, high-risk lead generation when there is a better way?

Let me ask you a simple yet profound question: If I banned you, effective from today, from making another cold call, would your business survive?

A cold call is any unsolicited sales call or visit you make. In other words, where you intrude upon or interruct the prospect to make your “pitch”.

Like this one I just received…

Hello this is Gina, I’m calling from XYZ telecom. Can I speak to the owner of the business please?

(Me, knowing what was coming next) She isn’t here right now.

OK, I’ll speak with the manager then, is that you?

Yes.

As the manager then, you’d be able to make decisions about your telephone calls then. I’m calling to tell you how… (I interrupted)

Gina, I’m sorry, I’m not prepared to do business with telemarketers. I don’t know who your Company is or where you are, and I have no interest in changing carriers, thank you.

But sir, you must listen to me…

No, I mustn’t. Thank you, goodbye.

I hung up.

How many times every day does Gina get this?

What’s more to the point, how many times every day are you or your staff getting this?

Let’s assume you have a target market of 250,000 people. You employ five telemarketers to each make 200 calls per day; that’s 5,000 calls per week. In 12 months, you’ve called every prospect in your marketplace.

Let’s assume each telemarketer makes just one appointment per day. That’s 25 appointments made per week, not quite enough to keep your two salespeople busy, but too much for one.

They each make a sale for every three calls which is about four sales each per week.

Eight sales per week equates to 400 sales per year. Out of 250,000 marketing messages, 249,600 have said “No”. You’ve had a 0.15% conversion rate. Low, isn’t it? And at what cost?

Five telemarketers at $20 per hour is $100 per hour. With each working 30 hours, that’s $3000 per week in wages, or $150,000 per year. Now add call costs, rent and all the other employment overheads. This takes the total to around $200,000. That means that each of the 400 sales cost you $500 in telemarketing costs alone. Now add cost of goods sold, commissions for the salespeople and your other overheads and costs…

Not looking very pretty is it?

Let’s say your average sale is $4,000 and your cost of goods is 50% or $2000. Add 10% commission and cost of telemarketing (totals $900); add all your other costs and you’re on a hiding to nothing.

Is there another way?

Yes.

Several in fact; and they work very well. What’s more, they can reduce your cost per lead down to a few dollars or in some cases, a few cents.

If you’re in Australia and would like to know how to get leads quickly, for lower cost and with higher conversions rates than with telemarketing (or just about any other form of marketing), call us now on 1300 884 757.

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