Cold Calling for Leads Help

[Chrisna Ouk]

Okay, so I'm quite frustrated about Wholesaling, learning everything was extremely easy for me, I familiarized myself with Real Estate and the steps necessary to close a deal, I feel totally prepared, because I did, I decided to start Cold Calling people. I paid for leads on Listsource and built a list that's highly probable to obtain a motivated seller.

I narrowed it down to High Equity, Absentee Owners, Old Houses, Old Sale Date, SFR, Unknown, etc. I ended up calling 75 people within these past 2 days and only 12 of them picked up, but non were interested in selling their property and the other 63 people didn't even bother to pick up the phone...

Is this how it is trying to get leads in Wholesale Real Estate? Majority of the people I call don't even bother to pick up. I don't even have a chance to even talk to them and that's the frustrating part. So my question is, was it like this for you guys who started out in Real Estate? How many phone calls did it take you to get your first deal? Is calling this many people normal? Any suggestions of how I should get my leads that's highly effective?

Because this is quite tedious, Am I doing something wrong? Please let me know, thanks!

[Jerryll Noorden]

Originally posted by @Moises R Cosme:

Chrisna, 

1. 8 conversations per 100 calls

2. 500 calls to get a decent lead

3. 4 leads to make a deal

Don't be discouraged.  Build a system.  Have a script & assess your conversations on a daily basis; learn from the conversations.  Be consistent (a) get a consistent flow of leads and (b) prospect every day.  

Would also recommend eliminating some of the filters you listed above... Call everyone that may need or want to sell; start with the biggest list possible first, get lots of reps and then start to filter. 

First, you are seriously awesome to go out of your way to help out  a fellow investor. Good on you man.

Now... I absolutely could be wrong because I have never done cold calling.. but I DO have a healthy brain....

I keep hearing this...

X calls will give you Y conversions.

Consider this:

What if a 12 year of kid pics up.

What if you call at 12 AM, 

what if the recipient works night shift and sleeps during the day,

What if they are on their period,

What if the dog ravished the dirty laundry and they are in a poopmood...

As you can see what accounts for these instances? Does all this randomness get accounted blindly in the # of calls/conversion?

Data like that is not data it is randomness.

You can ONLY come up with those kind of numbers if you simply call 1M people and see how many people converted. In other words you can at best make singular instances out of that data. 

"If you call 3 million people at 5PM on a Saturday in June, being female with an american accent in Sacramento CA, you will get 500 deals". So in that instance you have an X/Y ratio for those circumstances (if you call 3M people at 5 pm in Sacramento on a Saturday in June, being female with an american accent in Sacramento CA in Sacramento CA ). 

My point:

You can't arrive at these conclusions by just calling and making ratios, and then scaling UP these ratios. 

In other words, first:

The more volume you have the more accurate your numbers.

If you have 2 eggs, and one hatches the other doesn't. Are you going to say that "in general 50% of these eggs will hatch"? Of course not.

Let me make it more clear:

You have ONE egg... and that egg hatches... are you going to conclude that 100% of these eggs WILL hatch?

No! You can't scale it up like that.

OK so now... take a million eggs  and 800,000 hatched. Sure 80% of 1 million eggs hatch. You can make that conclusion.

BUT if you just bought 10 eggs and 8 hatched, you can not say Ohh 80% Hatch. You didn't test it with enough volume.

And this is easy to prove right?

This dude has been calling 75 people. 12 picked up and nothing! I am willing to bet, if 15 other people make calls all of them will have different numbers.

Peace out. Monkey has spoken!