Is cold calling effective?
Is cold calling still effective??
It takes a lot of effort to get a seller to pick you over other investors and realtors interested in the same property. It does not help that real estate is a highly competitive business given the number of realtors and investors out there. To stand out, you have to go the extra mile and do more than just send thousands of emails and direct mail pieces to all prospective sellers.
Direct mail advertising
Direct mail advertising is one of the most effective forms of advertising. The average response rate is 2% so this can become costly given that you have to possibly reach thousands of prospective sellers at a time. Depending on an investor's or realtor's efforts, this percentage can go up. Cold calling your list has been proven to be effective in increasing the response rate in direct mail advertising.
About Cold Calling
Although only about 5-10 % of all sellers answer the phone.Cold calling is an essential part of the selling process. Picking your phone and calling all potential real estate sellers will give you an edge and make you stand out from the competition. Given that the people on your direct mailing list have possibly received similar mailings from other interested parties, calling can make all the difference.
Cold calling takes very little training, a go to script, a whole lot pf preparation and a lot of patience. It definitely takes more effort to call than to send an email. Your phone skills also need to be top notch if your cold calling efforts are going to bare any fruits.
It has been proven that taking the first step and calling prospective sellers after sending an email works better than waiting for people on your mailing list to call.Studies show that you can expect a 20% open rate on your emails. So giving your prospects a call to get a working phone number is very important.Especially since SMS has a 90% open rate. Care must be taken, however, to ensure that calling does not become annoying and end up hurting your marketing efforts.
The importance of Multiple Points of Contact!
Wouldn't a seller be more willing to sell to someone who went the extra mile?For example if the seller has received not only a direct mail piece, email and text message but also a phone call about selling their home chances are when they're ready your efforts on these many forms of communication just may set you apart from the competition.
If you find a prime property listed for sale, it is highly likely that many have seen the same property and are interested in the same. Calling the seller will set you apart from the other interested parties that simply sent an email and are waiting for the seller to call. From the call, you will also be able to gauge the seller's motivation, figure out best times to call or text and know just how much effort you need to put in order to complete the deal.
Cold calling is intimidating and tiring to say the least. The truth, however, is that now a days the work can be completely OUTSOURCED! I think we can admit cold calling works great especially when combined with direct mail advertising and email and SMS blast. It takes more than a random email or text to get sellers convinced that you are the realtor or investor to work with.
Bigger Pockets user please share your experiences with cold calling in the reply section.