Have statistics on cold calling/telemarketing success rates?

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I started moonlighting 2 hours a night telemarketing for a mortgage broker. This is nonautomated (I dial and wait for them to pick up) cold-calling from a book of leads, all people who took out mortgages 1-3 years ago and MAY be ready to refinance. I get basic info such as dates, lenders, fixed/variable, approx rate.

I got very little training but I have been in sales before and am usually good on the phone. I am supposed to find people ready to refinance and hand them to a loan officer.

The boss has been very disparaging that I’ve only found 2 leads after six 2-hour shifts. I don’t think he realizes most calls don’t answer—either don’t pick up or go to machines. If someone answers, the person I need usually isn’t avail or doesn’t speak English.

Of those I talk to, most aren’t interested—they don’t need to refi, already refi’d, or have someone they want to work with, or just won’t talk to some random company.

How many calls should I realistically make in order to get 1 lead
Um, I am not asking if you think telemarketing is a good job or not. If you can find me a p/t job for just two hours a night, no weekends, paying $ 9.50/hr or more and just down the road from my main job, I will gladly take it.

I’ve been in sales before and I don’t mind rejection but I do mind my boss implying I’m not doing a good job. So for now I am asking about statistics for cold-calling. Thanks.
That article d2bcathie cites is weird. The author says (and Cathie repeats) that one sale in 100-150 calls works out to 5%-10% success. In fact, it works out to 0.66%-1% success.

It also doesn’t apply to me because it pertains to B2B (calling businesses) whereas I am doing B2C (calling consumers).

But at least she tried to answer the question, and I do appreciate that!

6 Comments
  1. Reply
    twiggy
    February 4, 2011 at 2:20 pm

    change your job…i hate those calls..if ppl wanted to refinance..they would call you..if any cold callers call me..i hang up on them straight away…there invading my privacy..and i did not give them my phone number…it shouldnt be allowed

  2. Reply
    Jaden
    February 4, 2011 at 2:33 pm

    I dont mean this to be rude to you, but telemarketing is the second lowest form of marketing its 1 tier up from mailers.

    I think your boss is looking for a cheap way to make a lot of money while paying you a little. Not to mention i am sure he breaking at least 5 laws, the laws associated with telemarketing are exstinsive, and usually only worth it to MAjor companies.

    You DESERVE better !!

  3. Reply
    d2bcathie
    February 4, 2011 at 3:02 pm

    Statistics on cold calling show that you need to make about 100 to 150 calls in order to get one sale—somewhere around a 5%-10% success ratio.

    How are the other employees doing?? What are their stats compared to yours?? Some bosses will just make you feel like you’re not doing your job, even when you are. They want you to do better and try harder, that’s all. I am no expert on cold calling, but I have done it in the past. Good luck with the job.

  4. Reply
    emmettgolf
    February 4, 2011 at 3:22 pm

    Your boss sounds like he doesn’t understand telemarketing or sales. You don’t run a successful sales force with criticism. You are working in an industry with a lot of competitors. The statistics will vary from industry to industry, The longer a competitive industry has been around, the more calls you will have to make per lead. In this situation, 100 calls per lead wouldn’t be unreasonable.

    The fact that you are making the calls is a very positive thing. You need help more than anything. Perhaps your boss or other reps can provide you with some catch phrases that seem to work better.

    Your boss is not doing his/her job. Unfortunately, you have no control over that. If no one is available to or wants help you, try changing your approach when you do get some one on the phone until you hit on something that works. Perhaps, getting the prospect laughing about language barriers would help. “ha, ha, giggle, giggle. I’m supposed to call you and talk to you about refinancing your home and I don’t understand you and you don’t understand me.” “”So, what can we do?” “ha, ha, ha.” Laughing can be infectious and make people feel better about your call.

  5. Reply
    sunshineseattle
    February 4, 2011 at 3:44 pm

    I don’t know what the response rate should be per se, but:

    1) Tell your boss to go pay $ 7 per click at Yahoo and see how many clicks turn into a prospect. If you are doing it right, one out of 20 wouldn’t be bad for mortgages – That’s $ 140 for a prospect. You are creating prospects for $ 60.

    2) What’s your offer? The hot offer in mortgages change over time. Right now it’s “fix your rate so you don’t get eaten alive by your ARM” (being eaten by your own arm is an interesting image!) An unexciting offer is death no matter how many calls

    3) Who are you phoning? Holders of ARMs are available from your local Title company. Or brainstorm with the mortgage reps about what new products they have; who it would help and then figure out how to get ahold of them.

    4) After you have a track record, screw this guy and find someone who wants good leads and will pay for them – there are many out there.

    5) You really should watch out for the “do not call registry”.

  6. Reply
    Solunas
    February 4, 2011 at 3:58 pm

    Your boss is an ass. That’s a very tough job you’ve got there. My advice, look for B2B opportunities (Business to Business).
    If oyu need evening hours and you live on the east coast you can still probably cal on west coast businesses.

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