It’s time for another “script harvest.” The last one was 2012. In a script harvest, you send me any cold calling script you are using. I want good ones and bad ones. I will reply personally to any script you send. I will give you a grade based on lots of experience.
Plus, I have two checklists: “Good Script Characteristics” and “Bad Script Characteristics.” Each script will be graded with these two checklists. When you send me your script, I will check off the items you did right, and also indicate characteristics that need improvement.
In a future issue of Research magazine, I will show you current examples of good scripts and bad scripts. Please email your script to: [email protected].
Please believe me when I tell you: Cold calling works today! When it doesn’t work, you are doing something wrong.
I have created a “Cold Calling Resource Page” on our website. There you can get some scripts from previous harvests, and, very importantly, you can use our calculator to see if your stats put you in the cold calling success zone or the failure zone. It’s all right here: www.billgood.com/coldcalling.
The Biggest Mistake
Your biggest mistake is: Get a bad idea and stick to it.
Let’s assume your opening script goes like this (an actual “worst script” from my previous harvest).
Hey [Mr/Ms Prospect Name], I’m with [CompanyName] and my name is [AdvisorName]. I manage people’s finances, and I wonder if you have a minute to talk with me?
IF Yes: One of the ways I help people is listening to them to discover their goal for their future, and how planning their finances can help them achieve that goal. How would you describe your investment experience?
Let’s assume you are with a wirehouse. You have to bring in $5 million AUM your first year. Failing that, you are in the penalty box or worse.
Using this script, you might generate a cherry every two hours. Let’s further assume it takes you five hot prospects to close a sale. Worst case, you might need up to 10 cherries to get an appointment. We will further assume your average new client brings in $250,000 over the first year. It will take this poor FA 40 hours/week of cold calling just to generate the necessary leads. This does not count the time needed for first, second and often a third appointment. It does not count time spent with current clients.
When the math proves you cannot make the goal, you are failing.
If this is your script and if you are generating anywhere near 0.5 cherries/hour, you are failing. Better change something.
Knowing It’s Broken
Question: How long does it take to determine you have a bad idea?
Answer: In some cases, a few hours.
Question: What is the most important indicator that you have a bad campaign?
Answer: Fewer than three cherries in an hour of cold calling.
Suppose we change just one stat in that failing campaign. Instead of 0.5 cherries per hour, let’s suppose you are generating three. If everything else remains equal, the math is now working in your favor. Instead of 40 hours a week of cold calling, you can get the job done in seven. You can get there from here.
To fix a failing campaign, you must keep the following stats for each list called. You must always note which script you are using.
Dials per hour. Hours called. Cherries per hour. (Cherry: interested, qualified, and willing to receive investment literature.) Hot prospects set. (First appointments set with qualified prospect.) Active prospects. (They have kept the first appointment and are working through issues with the intent to make a decision to employ you or not.) New clients. New assets.
There are six variables that determine the outcome of campaign. I’m going to divide these into two groups.
These should never change. If they do differ from best practice standards outlined below, they must be fixed first.
1. Your philosophy and beliefs about cold calling. Of course, you subscribe to “The Good Way.” You are looking for people who are interested and qualified now. You NEVER handle objections on a first call. You immediately move on when someone is not interested.