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randian

Is cold calling still effective?

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Email hasn't done much for me, and I know cold calling is how our host got started.

 

How aggressive should you be when talking to sellers? Ask for what you want up front? Claude Diamond doesn't put much stock in spending time on "rapport and bonding", for example.

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Claude's method is very direct and to the point, but I wouldn't use the term aggressive. The reason you're calling them and they're talking to you isn't to chit-chat and "get to know them" by "building rapport" like some teachers suggest. You're calling because they have a house for sale/rent and you need to get the answers to certain questions in order to decide whether or not you're talking with someone who's likely to do business with you or not. How many times have you been on the phone with a seller for 15-20-30 minutes or more only to find out that there's no way a deal is going to come from the conversation? Figure out what info you need and think about how you can get this info as quickly as possible without coming across as a slick salesman or just an arrogant prick.

 

My cold calls start out:

 

"Hi I had seen your ad on Craigslist for the house in _______?"

 

"I was wondering if it was still available?"

 

"Great, would it be OK if I ask you a few questions about the house?"

 

"Well first of all, does the house need any repairs or updating?"

 

"Okay, and it's in a good neighborhood?"

 

"How long have you owned the house?

 

"It sounds like a nice house, how come you're selling it?"

 

"How much are you looking to get for it?"

 

"Has it been on the market very long?"

 

"If you got your price without having to pay any commissions or closing costs, do you think you'd consider renting it out for a year or two before selling it, or probably not?"

 

 

The key when using a "script" is to be flexible, be able to go with the conversation and act natural but get back to your next question once you've gotten the info you need from the previous question.

 

Using G.U.T.S. I really do qualify or disqualify most people within the first 3-4 minutes at the most, often times even sooner. Unfortunately with cold calling FSBO's and FRBO's, I've been finding that most leads get disqualified.

 

One thing I've been doing is letting the leads age for a bit before calling them. I think MC mentions this in the manual and I've seen it other places too where you let the classifieds section of the newspaper sit for a few weeks before calling the ads. Craigslist is the same, you just have to copy the info to a spreadsheet or something because the ads disappear after 7 days.

I do this because when I was calling ads that were 1 day-1 week old, most people were just starting to advertise their house for sale and were expecting to sell the house outright soon. After a few weeks though, they've gotten tired of posting ads on craigslist and answering calls, waiting for people to show up who never do or who just walk around the house and maybe say they'll make an offer but never get back to them. This is when they're going to be more likely to consider the idea that their house might not sell for as much as they hoped or as soon as they'd like, and a lease option is a possible solution to the problem.

 

With cold calls you must be consistent and make LOTS of calls if you expect to be effective. It can be hard to pick up the phone and make the first few calls, but I find after talking to 2 or 3 people I get into the groove of it and it's a lot easier to keep making calls.

 

Something that helps me when I get nervous about making the first call of the day is from Frank Bettger's book "How I raised myself from failure to success in selling" and I have it written on an index card taped by my computer. I don't know if it's by Bettger or someone else:

 

You can't collect your commission until you make the sale;

You can't make the sale 'til you write the order;

You can't write the order 'til you have an interview;

And you can't have an interview until you make the call

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randian, true, cold calling is how I started. But that was almost 20 years ago, when the internet and personal computers were only seen on The Jetsons. That said, I haven't made any cold calls in many a year. If I were to do so again, my approach would be to loosen up the homeowner to at least some extent. I don't think I could immediately jump into an all-business approach right out of the box. I mean, if I'm on the receiving end of a cold call these days, before I give out any info I am going to need some level of comfort and trust with the caller. My assumption is that most homeowners will feel the same way.

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Claude's method is very direct and to the point, but I wouldn't use the term aggressive.

An aggressive questioner would, in my view, ask the "if you got your price..." question first.

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Email hasn't done much for me, and I know cold calling is how our host got started.

 

How aggressive should you be when talking to sellers? Ask for what you want up front? Claude Diamond doesn't put much stock in spending time on "rapport and bonding", for example.

 

 

No, but Wendy Patton does put alot of stock in building rapport with the seller. So, I guess you have to try it both ways, and see which fits your personallity best.

 

Lynn (FL)

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An aggressive questioner would, in my view, ask the "if you got your price..." question first.

 

Coming right out of the gate with a question like that is TOO direct IMO, and secondly asking some more general questions (general but important) allow you to qualify the prospect rather than wasting your time talking to anyone who says "Yes" right from the get-go. Maybe the house is full of chipping lead paint and the toilet in the upstairs bathroom was removed 2 years ago and never replaced. Or maybe they're just kinda fishing to see what sort of offers are out there and they really aren't that serious about selling yet? When I talk to sellers who are in those sorts of situations, I certainly wouldn't want to spend my time talking about lease purchasing.... and in the first scenario, the conversation would be better off going in the direction of a cash offer/pure option

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Good 'Ol Adam-

 

I think today the hard sell is out. People have been beaten up pretty bad these days. I think building trust with sellers pays off and even more with future referral deals. You don't have to become best buddies, but you need to get the seller talking and you direct the conversation to get the information you need. Treat it like a friendly conversation and try to put yourself in the seller's situation to best solve their problem. A lot also depends on the sellers' personality as well.

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. . . but I don't do cold calls either. I can only imagine staying motivated to keep making calls after some nos. So, I guess many sellers I speak with are softened up some from other marketing by the time I get with them on the phone.

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I do a ton of cold calling ('real' cold calling, in person, door-to-door) and the ONLY way is to get right to the point. People are busy, and some are suspicious too, so coming right out and stating who you are and what you want puts them at ease (or gives them an easy out: "I'm not interested".)

 

Since houses are a big ticket item it's a good idea not to try to close the sale on the first call though. Make that initial call about information gathering: are they interested? how much do they need? are they reasonable and easy to work with? Then tell them you need to go over the info they've provided and will call again tomorrow if you want to proceed.

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I do a ton of cold calling ('real' cold calling, in person, door-to-door) and the ONLY way is to get right to the point. People are busy, and some are suspicious too, so coming right out and stating who you are and what you want puts them at ease (or gives them an easy out: "I'm not interested".)

 

Since houses are a big ticket item it's a good idea not to try to close the sale on the first call though. Make that initial call about information gathering: are they interested? how much do they need? are they reasonable and easy to work with? Then tell them you need to go over the info they've provided and will call again tomorrow if you want to proceed.

 

Great strategy Doug. Put yourself in 'Discovery' mode on the first call. If they are not interested great, put them in your DATABASE (Constant Contact, iContact, ACT, Mail Chimp, 'Post It Note'...) and move on to the next deal. Just don't forget to follow up with them in 1 week or so. If they are not motivated, get off the phone as fast as possible to try and find someone who is motivated. Wasting time with the unmotivated seller is like a trip to the dentist in Mexico.

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