MRL #047- The 4-Letter Word That Guarantees Cold Calling Success

I made a BIG promise in my teaser for this week’s newsletter.

In case you missed it I said…

“The #1 secret to cold calling?

It’s not # of calls

It’s not your script

It’s not overcoming objections

It’s actually one 4-letter word.

And if you incorporate it into your cold calling I guarantee success.”

Let me assure you this is not hyperbole.

I’m dead serious.

I’m about to give you the holy grail of cold calling…

And if you use it, literally makes failure an impossibility.

But, before I tell you the magical 4-letter word and how to use it…

Let me set the table first…

[…clears throat…]

I've been in sales for over 15 years.

And about half of that time’s been spent managing other salespeople.

I’ve seen tons of salespeople come and go.

Many successful. Many unsuccessful.

Over that time, I’ve noticed one big theme among the unsuccessful.

Most Salespeople Fail Because They Have No Idea How Much Prospecting They Actually Need To Be Doing!

I see this everywhere in our industry now…

Especially with new Producers building their books from scratch.

No one tells them how much cold calling it’s actually going to take.

So they “guess”.

They make a few calls here, network a little there, and hope for the best.

Problem is, that ain’t gonna cut it.

3 years fly by, they’re short of their number, and out of the industry they go.

And even if they do get lucky and land a few deals, they can’t reliably repeat their results.

And that’s exactly where our 4-letter word comes in to save the day.

You see…

If every Producer knew what I’m about to show you and actually used it…

Our industry’s 90% failure rate would vanish overnight.

So, what is…

The 4-Letter Word That Guarantees You’ll Consistently And Reliably Hit Your Sales Goals?

Drum roll please.

Wait for it…

Wait for it…

Wait for it…

MATH.

“Math”?

Yes, “math”.

By using “math” you can literally reverse engineer into the exact number of cold calls you need to make (down to the day) to be successful.

Allow me to demonstrate.

(For the sake of time, let’s use my current goals and conversion rates)

First, I start by…

Tracking Conversions Throughout The Year

I keep a tally every day of my number of:

• Cold Calls

• Decision Maker Conversations

• Research Meetings

• BOR Presentations

• Won Deals

At the end of every day and at the end of every week I total up my numbers.

My current conversions look something like this:

• I convert 1 in 10 Cold Calls into a DMC (Decision Maker Conversation).

• I convert 1 in 10 DMC’s into a RM (Research Meeting).

• I convert 1 in 2 RM’s into a BOR Presentation.

• I convert 1 in 5 BOR Presentations into a Won Deal.

You're cold calling or closing percentages may be higher or lower than mine.

Honestly, it doesn't matter.

All that matters is that you track your stats diligently throughout the year.

Pro Tip: Make sure you use a large enough sample size or you won’t have accurate data. I recommend at least 6 months of tracking.

Next, again using “math” I…

Calculate Number Of Deals Needed

My yearly sales goal is $100k in revenue.

I take my sales goal ($100k) and divide it by my average account size ($20k).

Ex: 100,000/20,000= 5

Now, I know I need to close at least 5 deals to hit my yearly sales goal.

Next, I take my conversion rates from above and again using “math” calculate number of calls needed to close a deal:

Ex: 1/10 × 1/10 × 1/2 x 1/5= 1/1000

Said another way…

I need to make “1,000” cold calls to land “1” deal.

(That’s a lot, I know)

Now I multiply cold calls needed for 1 deal (1,000) times number of deals needed to hit my sales goal(5):

Ex: 1,000×5= 5,000

So, now I know I need to make “5,000” cold calls to hit my sales goal for the year.

Great!

But, we’re not done yet.

Lastly, I need to…

Calculate Daily Activity Goal

So, I divide total cold calls needed (5,000) by number of business days in the year (250).

Ex: 5,000/250= 20

(I like to add a few extra calls every day for a buffer, so we’ll call that “25”)

Now I know exactly how many cold calls I need to make to hit my sales goal on a daily basis… 25!

No guessing.

No hoping.

Just math.

I don’t know about you, but I’d much rather rely on “math” than “guessing” to hit my sales goal.

Reverse Engineering Is a Sales Gamechanger

If you haven’t been hitting your sales goals…

Or just looking for a more efficient way to prospect…

Use “math” to reverse engineer your daily activity like we did above.

It’s been an absolute game changer for me and everyone I’ve shown it to.

Honestly, anybody not doing it is silly.

Now, before I wrap this letter up…

I Have A Confession To Make

There’s something I haven’t told you.

I’m terrible at math, and honestly I have no idea if I wrote the equations right.

This newsletter should of went out hours ago but my dumbass has been pecking around the internet trying to find out how to write the equations correctly.

In real life, I just use a spreadsheet with the functions and formulas already plugged in.

I simply plug in my prospecting numbers and voila it does the rest.

So, for God’s sake, if I wrote it wrong, please spare me the email back.

I’m just a dumb ogre out here trying to help, Okay?

Cut me some slack.

Now…

If You’re A Dummy Like Me…

And you don’t feel like trying to do all that “math” yourself…

We can help with that.

My magic lil’ spreadsheet is just one of the many “tools” we give you in The Producer Playbook.

Here’s a taste:

Just plug in your conversions over in the upper right hand corner and it calculates everything out for you.

Simple as that.

Ok, enough rambling out of me. Let’s wrap this thing up.

Shrek’s getting tired and these sheep ain’t gonna count themselves.

If you wanna check out our playbook the link’s below in the “p.s.”

If not, no worries and thanks for reading this far.

See you next Sunday.

In the meantime...

Kick ass take names,

Max “Reverse Engineer” Revenue

P.S.

If you found this letter helpful… there are 3 other ways we can help you:

1. The Producer Playbook- The Step-By-Step Guide To Building A $1,000,000 Book of Business (From Scratch)

2. The Max Revenue Show- Our weekly podcast (available just about everywhere).

3. The Max Revenue Channel on YouTube- Weekly videos from Micah “The Zen Master of Commercial Insurance” Salas, including his new series “Diary of a New Producer.