A member called us this week asking how many cold-calls would she need to make a week to be successful. Not such an easy question as a lot of factors come into play – what is successful? How good of a cold-caller is she? What’s her market doing? Lots of variables come into play here. However we did find some information to help her get a start.
The Direct Marketing Association publishes an annual study Response Rate Report that shows that a phone call has about a 13% conversion rate into a sale (if I’m reading it right a true ‘cold call’ stands at just over 8 percent). Of course a lot of this has do to with your pitch, script, targeting, etc. And an article in REALTOR® Magazine says that “experts say you get one lead for every 25 calls you make,” which is closer to a 4 percent conversion rate.
The book Up and Running in 30 Days by Carla Cross takes a broader approach using ‘contacts’ rather than telephone calls. She says that on the sales side 400 contacts per month will return 8 qualifying appointments that will result in 8 showings that will average over time as 1 sale. On the listing side 400 contacts a month will result in 4 seller-qualifying appointments that will lead to 1 listing.
Regardless of how you connect, be sure you abide by the various rules and regulations when prospecting.
For more ideas and advice, check out our Field Guide to Farming and Prospecting as well as our Prospecting Tool Kit.