Cold Calling Sucks - But It Works

Discussion in 'Insurance Cold Calling Forum' started by Full Throttle, Sep 13, 2010.

  1. Full Throttle
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    Full Throttle Well-Known Member

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    Let me make this clear, cold calling/canvassing sucks to do. You get rejected 90% of the time and even when you meet with someone, their guard is up. Even after they buy from you, there still isn't a lot of trust initially.

    That being said, it works and trust is gained over time if you make yourself a resource to them and stay in touch. Two examples from the last few days inspired this post.

    Example #1: I met this client three years ago off a cold call to review his health insurance plan. Over three years, I took over his company's retirement plan, his personal investments, sold a DI policy, and just recently a decent life insurance plan. To say thank you for all the work I've done for him, he invited me to his house for dinner with his family over the weekend. To say the least, I have good rapport with him. I would never have met him if it hadn't been off a cold call.

    Example #2: I met this client two years ago off a cold call. Helped him restructure his company's health plan and saved him about $20,000 a year with better benefits for the employees! He later told me he hates getting cold calls, but I seemed different. He called me up today for two reasons: first, to refer me to his mother for a med supp, and second, he wants to sell his business to the kids and wants my help pointing him in the right direction. He has referred me to other business owners in the community and to his kids as well.

    I have a number of examples of good clients I've gained by picking up the phone and making stone cold calls. I will be the first to say introductions are better than cold contacts, no argument there as it speeds up the trust process. That being said, most people don't have a completely full schedule for the week off of introductions only, especially as a newbie.

    There are a lot of negative posts on how ineffective cold calling is, but I can tell you from experience they are garbage! Whether a cold call or a referral, the key is to make enough introductions to the right people. Cold calling is simply one way to make an introduction. After that, it's up to you no matter what method you used to meet your new client.

    Here's the funny thing about cold contacts: when you are making them, you feel like you are getting no where and it's a waste of time. However, I can say that with persistent effort, it's always profitable if you give it time to work.

    I'll now get off the soap box, just wanted to share for anyone else making the calls and getting discouraged.;)
     
  2. daveb
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    daveb Active Member

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    Those are great success stories.Thanks for sharing!!
     
  3. medx
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    medx Well-Known Member

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    Great advice.
    Medigap Medicare insurance for people turning 65 and older
    Medicare supplemental insurance Golden Rule and United of Omaha Coventry and First health drug coverage for Seniors American Seniors Insurance United Health Onne Blue Cross Blue Shield Gerber life Insurance company Medicare Supplement News Medicare supplement insurance
     
    Last edited: Dec 21, 2010
  4. aheff
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    aheff Well-Known Member

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    About fifteen years ago, I cold called for small group health. I still have over 20 groups still on the books based on those calls, receiving a commission every single month from them. Think I'll go back to cold calling.
     
  5. ABC
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    ABC Well-Known Member

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    Good Post!
     
  6. 669comche
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    669comche Well-Known Member

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    A great post for agents getting in to the business.

    This post proves a number of things:

    1) There are no short cuts in this business.
    2) It takes time to build relationships
    3) Cold calling is still an effective method of marketing.

    And most importantly - Persistence is the key to success.
     
  7. TheKoenigGroup
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    TheKoenigGroup Well-Known Member

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    This is good motivation for many agents that fear cold calling, with time, you will get results, may have to work harder than if you have the money for a commercial and a call in;), but hey it still works!!

    You just have to deal with rejection not 20 forms of other agents a.k.a competition...which I feel is easier!
     
  8. nhagent
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    nhagent Member

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    I have to say I completely agree. I'm not a new agent, but just started at a new agency so I have to rebuild my book. I hate the idea of cold calling almost as much as I hate picking up the phone, but it definitely does work. I cold call businesses only so it's probably easier than straight to consumers, but still the least fun part of my day.

    Just today I got several people to agree to let me quote their insurance just from straight cold calls. I try hard not to have a robotic / scripted sound when I call and it seems to work alright. The worst rejection I ever get is "no thanks, we're all set" and I thank them and go on to the next one. I will definitely stick with it since it gets results.
     
  9. Frank Stastny
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    Frank Stastny Well-Known Member

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    I have used cold calling exclusively, instead of purchasing "leads", for at least the last eight to ten years.

    For me and the way I do it, it is the easiest, most efficient, simplest and cost effective way for me to get new Med Supp clients.

    Although I have used it effectively for other kinds of insurance, I think the Med Supp market lends itself better to this kind of prospecting.

    I echo everything Full T said. Cold calling sucks out loud, however, the agents who seem to hate it the most are those who have not learned to effectively use the phone. It is a learned, well practiced art. It doesn't come naturally, there is a learning curve.

    If there was a better way I would be doing it.
     
    Last edited: Sep 15, 2010
  10. Frank Stastny
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    Frank Stastny Well-Known Member

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    I use the most proven, time tested technology available. I stick my finger in the hole and turn the wheel. :D

    I know all the reasons why that is the most inefficient, archaic way of using the phone. The use of a dialer may be an effective tool when used by a professional agent who knows what they are doing. However, when used by a new agent who hasn't learned the art of using the phone effectively, it can be more of a hindrance than a help. (I know I'm going to get beat up on that one.)

    What I have discovered, in working with as many agents as I have in the past year, a lot of agents who use a dialer have a tendency to lose focus on the purpose of the call. They tend to concentrate more on the quantity of calls they are making as opposed to the quality of the calls. In other words, their immediate goals center around number of calls per hour, not engaging prospects in a conversation. Simply put they are in too much of a hurry and can end the call too quickly on people who they may have been able to sell.

    Many feel that they "must" make a certain number of calls otherwise they have not "attained their goal". (They even keep stats on those numbers believing it will make them better agents.) I believe that it can make them less relaxed when they do get a prospect on the phone and causes them to be in more of a hurry and less inclined to take the time to engage that prospect in a conversation.

    I don't believe that anything is sold during the "phone call" portion of the call, that includes "selling" the appointment. One must first engage the prospect in a conversation before they can be "sold".

    This is just my opinion, I'm sure that most will disagree with me.
     
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