Does the thought of cold calling make your blood run, well, cold? The good news is it does not have to, with the right planning. The practice of cold calling in the real estate industry is alive and kicking.
In today’s crowded marketplace, hanging out your shingle is just not enough. If you want to win new business, you must actively go after it.
However, if cold calling is the only strategy used, business growth will probably go nowhere fast. Successful cold calling in real estate is an important element in an outbound marketing strategy. It is not the only part, though. Does cold calling work in real estate? The short answer is “yes,” but there are right and wrong ways to do it.
Understand the industry
First, take a good look at the current state of real estate. This industry definitely changes with the times and the administration. For example, federal tax breaks for affluent people mean they have much more money to spend on vacation homes.
Cold calling might be more successful with this crowd. For others who do not have much money in their pockets, it may not work.
So go with the times when devising an outbound marketing strategy that involves cold calling. Check out these real estate cold calling strategies that remove the fear from this dreaded but useful marketing tool.
Research the market
To successfully sell, you must understand those who may be interested in your products. If you target the most likely populations that may want your product or service, you can make sales. For example, Discoverorg.com recently conducted a survey. It showed that of 1,000 IT industry executives, 60 percent responded to cold calls or unsolicited emails. They took appointments or attended special affairs after being contacted.
Cold calling matters. First, though, find out as much as possible about those you want to contact. This way, you will be able to talk intelligently with them about their industry and specific needs.
Just like a film, successful cold calling needs a script. It should be courteous, believable, show knowledge of the potential customers’ interests, and explain how your service can help them. Devise a polite greeting and be prepared to answer specific questions.
Through careful scripting and polite communications, you can set yourself up as a thought leader in the real estate industry. A good reputation and professional respect set you up for long-term success.
View gatekeepers as friends
Those who answer the phone for potential customers are the gatekeepers. They are your first contact, and they are important people. If you want to eventually be allowed into the inner chamber, you must treat the gatekeepers well first.
- Be polite and respectful
- Get gatekeepers on your side by saying something like “Maybe you can help me”
- Learn gatekeepers’ names
- Engage them in a friendly, pleasant conversation.
Courtesy and consideration will go a long way to opening the inner door for you. They are also a good way to do business, period.
Choose your times well
As with most things in business, there are better and worse times to make real estate cold calls. To catch executives and decision makers directly, phone early in the mornings or late in the afternoons.
To improve your chances, studies have determined the best days for cold calling. Thursday is the best weekday to do it, and Wednesday comes in second. Tuesday, however, is the worst day for cold calling.
Try, try again
Old proverbs contain great truth. “If at first, you don’t succeed…”, indeed. Most salespeople give up after two unsuccessful cold calls. However, studies show that 80 percent of new sales come after the fifth communication.
Rejection is, unfortunately, part of the cold calling experience. Prepare for that. However, continue to make contact with potential customers anyway. Several early “No’s” may eventually lead to that all-important “Yes”.
Take advantage of social media
Do not overlook the value of social media platforms such as Facebook, Instagram, and even Twitter. They can help you spread the word about your business. You also can get an excellent feel for populations interested in your company from comments, likes, and even complaints. A response on social media, which is a type of cold call that opens a dialogue, could net you sales. A number of quality marketing apps are available to help small businesses take full advantage of today’s opportunities.
Focus on the right object
When devising cold calling strategies, many real estate businesses — especially new ones — often think cold calling is about making the sale. It is not.
What cold calling is, simply, is a knock on the door. It is about seeking a chance to make a sale. A successful cold call gets you in the door so you can then make your pitch.
With a bit of planning and research, cold calling in real estate is a valuable way to win new customers. Looking at it like that, cold calling does not seem so scary after all.
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MileIQ’s blog does not constitute professional tax advice. You should contact your own tax professional to discuss your situation.