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.