Key Moments
This cured my fear of cold calling for GOOD!
Key Moments
Cold calling success hinges on shifting from ego-driven outcomes to a process of sorting for opportunities, viewing prospects as 'red gumballs' until a 'blue one' appears.
Key Insights
The majority of people contacted during direct outbound prospecting are 'red gumballs,' with only about 10% representing real opportunities.
An average of 10 conversations are needed to uncover one real opportunity (a 'blue gumball'), with success being a long-term average similar to a roulette wheel's odds.
Reverse selling, or 'selling against your own interest,' reduces prospect resistance by appearing as an act of service rather than a typical sales pitch.
Focusing on controllable actions, such as a time commitment like two and a half hours of prospecting daily, leads to outcomes, rather than fixating on desired results like setting appointments.
Parkinson's Law applies to prospecting; limiting the time dedicated to calls, like aiming for 27 conversations within a fixed window, increases efficiency and focus.
The difficulty in consistent cold calling stems from attaching self-worth to outcomes and fearing judgment, which is an ego-driven avoidance.
Ego and self-worth hinder consistent cold calling
The primary reason people struggle with consistent cold calling is the tendency to attach their self-worth to the outcome of each call. This leads to internal questions about judgment, potential anger from prospects, and the fear of not knowing what to say. These are ego-driven fears of being exposed, causing individuals to avoid the activity altogether because they don't want to put themselves in a vulnerable position. The cycle of motivation followed by fall-off is common because the focus is on the elusive positive outcome rather than the process itself. This internal resistance prevents consistent engagement with an activity known to be effective.
Prospecting as a sorting process: The red and blue gumball analogy
A fundamental shift in expectation is to view prospecting as a process of sorting, much like a gumball machine filled with red and blue gumballs. Imagine a machine where most gumballs are red, but a few blue ones yield a significant prize. In prospecting, the vast majority of people contacted are 'red gumballs' – not currently in the market or a fit for the service. The 'blue gumballs' are the rare, genuine opportunities. After nearly 20 years and coaching thousands of real estate agents, the insight is that out of 100 actual conversations (not just dials or attempts), approximately 10% are real opportunities. This recalibration of understanding that most contacts won't be a fit is crucial. The goal isn't to forcefully turn red gumballs into blue ones but to efficiently sort through them to find the few that are genuinely looking for help.
Understanding the odds: Averages in prospecting
It's vital to reset expectations by understanding that finding 'blue gumballs' (real opportunities) is an average play, not a guaranteed outcome with every few calls. It's not about calling 10 people and getting one blue gumball; rather, it's about engaging in a high volume of activities over time. The analogy extends to a roulette table, where the likelihood of the ball landing on red or black is consistently around 37.5% over many spins. Similarly, through hundreds of conversations, an average of about 10% will yield a good opportunity or lead. The expectation should be that almost everyone is a red gumball, and the job is not to convince them otherwise, but to set them aside and continue the sorting process. This perspective removes the pressure to persuade and focuses on finding those who genuinely need assistance.
Reverse Selling: Dissolving resistance by selling against your interest
A counter-intuitive but effective approach is 'reverse selling,' or 'selling against your own interest.' Traditional sales pitches often trigger resistance because prospects perceive the salesperson as solely focused on their own gain. For example, a realtor mentioning a recent sale price and directly asking about moving plans can prompt a defensive 'take me off your list' response. Instead, reverse selling aims to lower perceived bias and resistance by framing the outreach as an act of service. An example is acknowledging the unsolicited nature of the call ('This is certainly a call I didn't want to make') and then posing a question that gently pushes the prospect away, such as inquiring if they'd even consider selling with a good offer due to high buyer demand. When a prospect pushes back and expresses interest after this gentle rejection, it signals they are a 'blue gumball.'
Focusing on actions, not immediate outcomes
The key to overcoming inconsistency is to detach success from immediate outcomes like setting appointments or generating leads. For years, many, including the speaker, focused intensely on these lagging indicators. However, outcomes are largely uncontrollable. What *is* controllable are the actions taken, such as the number of conversations held or the time dedicated to prospecting. Success should be redefined as accomplishing these controllable activities. For instance, if the business plan dictates 27 conversations per day, the win is achieving those 27 conversations. By focusing on and achieving these action-based targets, the desired outcomes tend to follow automatically. This shift from outcome obsession to action commitment is fundamental for long-term consistency.
Leveraging Parkinson's Law for focused prospecting
Parkinson's Law states that 'work expands to fill the time we give it.' To combat procrastination and inefficiency in cold calling, it's essential to limit the time dedicated to the activity. Instead of vaguely planning to make calls throughout the day, a specific time block, like two and a half hours, should be set. When the scope of focus is narrowed, humans become remarkably efficient. This principle is evident in how much can be accomplished the day before a vacation. By applying this to prospecting, setting a firm time commitment ensures a concentrated effort, leading to greater productivity and a higher likelihood of achieving the desired number of conversations and, consequently, the desired outcomes.
Mentioned in This Episode
●Companies
●Concepts
Cold Calling Success: Dos and Don'ts
Practical takeaways from this episode
Do This
Avoid This
Prospecting Conversation Outcomes
Data extracted from this episode
| Activity | Description | Approximate Success Rate |
|---|---|---|
| Actual Conversations | Talking to people over phone, door, direct message, text, or email. | 10% are real opportunities |
Common Questions
Difficulty often stems from attaching self-worth to the outcome, fear of judgment, and ego. We avoid the potential for exposure and rejection, leading to inconsistency.
Topics
Mentioned in this video
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