Cold Calling Secrets

by Grant Cardone, internationally knows expert on Sales

grant cardone cold calling secrets

Grant Cardone is an American entrepreneur, New York Times best selling author, speaker, motivator and online sales training expert - saleshood at its best.

Cardone is a respected, highly regarded master salesperson whose passion is to teach people how to sell themselves, their products and services regardless of economic climate. His books, audio packages and seminars provide people of all professional backgrounds with the practical tools necessary to build their own economies towards the path to true freedom.

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Host 1: Our next speaker is Grant Cardone. Grant is an entrepreneur, international sales expert, the creator of two web-based sales training platforms, Cardone On Demand and Cardone University. He's also authored four books since 2008, including the New York Times bestseller If You're Not First, You're Last and was a 2013 Axiom Award winner with Sell or Be Sold. He also serves as an expert contributor to Fox News, CNBC, MSNBC, the Huffington Post, Entrepreneur, and the Business Insider.

It's my pleasure to welcome Mr. Grant Cardone.

Grant: The telephone. How to make a million dollars a year for your company with the mere simple device of a telephone.

Look, first of all, if you want to do this, you have to commit your company to understand the value of the telephone as the most powerful tool in the history of business. I'm talking about up to current times, including the Internet. If you take the Internet and social media, combine the two, and say, "Mr. Grant Cardone, which of the three do you want -- social media, the Internet or a telephone?" I'd be like, "Keep your Internet, keep your social media, I'm going to use the telephone."

In fact, the proof is in the pudding. A telephone is much more productive. In fact, look, everybody's got one. There's more telephones on this planet today than there are human beings, which would suggest to you that people want to use the telephone.

Did you know that the average person on planet Earth will make eight phone calls today? That's 250 phone calls a month. That's 3,000 phone calls a year. The point of that is this: if you're people are only making eight calls a day, they will be average forever. Your company will be average, your products will only get into the hands of average people.

Look, to make millions, millions more for your company, you don't need another ad budget. You don't need another CRM. Those are good things to have. You don't need more marketing and more branding. You need more people on the telephone making phone calls.

The first thing I want to do today is I want to sell you on the phone and this is what you must do with with your people. Before you give them a script or give them a call calculation or do anything about basic education and training on the phone, the first thing I'm going to do is sell you on the telephone.

One hundred and thirty-five years ago, a guy named Alexander Graham Bell created this product called the telephone. First telephone call went to a guy named Watson. In that call, Alexander Graham Bell said, "Watson, get over here." See, the purpose of that phone call was this -- to save time. It was not just to communicate, because the real communication happened once Watson walked across the estate and came into the room with Mr. Bell. Then they had the communication.

The first communication was basically to save time. I want you to sell your people on why they should use a phone. Did you know that a telephone call is one-eighth the cost of an in-person visit? This was done by statistics that proved out that the average in-person phone call, physical, requires a plane ride for many of you, sometimes a car.

You had to at least walk across the street and then sooner or later you exhaust those people in your neighborhood so at some point it's going to be what? You're driving out of state, flying out of state, renting a hotel room. The average cost of that is $328. The average cost of one phone call is less than $33. That doesn't include the call. The includes the infrastructure, the telecommunications, hiring people, losing people, anything and everything to do with the average phone call from a company.

If I drive up the volume of phone calls out in my company like we do here, my average person makes over 150 phone calls a day times 40 people. I almost couldn't say it, I was shocked so much. Times 40 people, that's 6,000 phone calls a day out of one office, one location right here in Miami. That drives down the cost of those phone calls.

Now, if your people don't know this, will they use the phone? No. They're not sold on it. Many of your people are told, "You can't sell something on the phone. We can't sell the product on the phone. Just get them in. We can't actually build a product value presentation. Don't give a price on the phone." These are all misnomers about the phone that have been taught for probably 100 years.

Remember, the telephone is only 135 years old. Sales has been around how long? Oh my gosh, it's been around since burrows and carpets and anytime somebody wanted to trade one product to another person. The telephone has only been around 135 years that merchants and entrepreneurs and people who wanted to do better. King Solomon didn't have a telephone, folks. He did not have a phone.

This little device, can somebody throw me a phone? This little device, today, can do everything. The phone that we have today in our hands can text, email. I can seek information, I can tweet, I can use Facebook. This is the tool for your business to grow and expand.

The first thing we've got to do, again, three points I'm going to share with you today -- how to make millions on the phone. First thing we've got to do is sell your people on this device. They're using it all day long, everyday for everything that won't produce revenue for you. They use it for Facebook. They use it to tweet. They use it to text their kids. They use it for their wife. They use it but they're not using it to produce.

This simple device, your people must learn to use to be productive with it, just like they do everything else. How do I control the communication? If I'm going to run an ad, I'm going to have in-bound calls, "Hey, tell me about your ad. How does it work? What's the gimmick? What's the trick? Why are you higher priced? I don't want to come all the way over there first. When does this expire?"

You're going to have all these questions, so the second part of this is your people. Once you sell them on the phone, "Hey, guys, we're going to drive a bunch of traffic," that traffic has an 888 number in it. That's going to require a bunch of in-bound calls. In-bound calls are designed to sell appointments for us to go to them or close them on the phone.

You need scripts for every possible phone call that would happen. If you're in real estate, you need a script. If you're a roofer, you need a script. If you're in the massage business and you want to grow out your business, you need a script. If you're in cosmetology, you need a script for in-bound calls and what about all the calls that get dropped? They get dropped.

Did you know that in this country alone there are 3 billion phone calls every month just in America, in the great USA -- I'm sorry, 3 billion phone calls every day? That means in the period of one year, there will be just short of 1 trillion phone calls, in-bound calls, outbound calls, "What are you doing today? How's it going?"

Do you know your people don't even know how to start a call? In fact, they start the call incorrectly. That's right, they call them, "Hey, Mr. Johnson, this is Grant Cardone over at Grant Cardone Sales Training Company." Look, you should never use your first and last name and the company all in one sentence. And you would never ask anybody the next question, which your people constantly do, "How are you today, Mr. Johnson?" You hear this from people selling mutual funds and from Wall Street. You get the cold call.

I'll give you a wrong call right now. The one thing your people do when they make this outbound call or the in-bound call is to try to get on common ground with a potential customer, a prospect, somebody that responded to your Internet, your brand advertisement or your direct advertisement and your people start talking about how they're doing today. Your customer didn't call to get a check on how they felt today or how the weather was in Miami or whatever the situation is. You've got to contract this call because time kills calls. Your people need to learn how to constrict this call, keep it tight and compressed.

I'm going to give you some always of a cold call. This is a different list than the always of a warm call and different again then from a very hot call. For instance, do your people even know the difference between a cold call, a warm call and a hot call? Did you know that many warm and hot calls can go cold immediately? In fact, any time you doubt whether a call is warm or hot, that you need to treat it like a cold call.

Here's the always of a cold call. For instance, number one, there's 10 points here. One, be honest, transparent and straightforward. You have to be more honest, more transparent and more straightforward in a phone call than in any other sales environment just because you're constricted to time, they're going to hang up on you.

Two, you must be interesting and interested. I have to walk this fine line, okay, between being interesting, grabbing somebody's attention, and interested, like, "Have you ever considered doing this before? Why haven't you done this before? Did you know you might qualify for this?" That's why I become interested in the client.

Three, believe that you can make a sale on every call. You have to train your people, educate your people, motivate your people, inspire your people daily to believe that you can actually sell this product on the first call. It's not true. The average sales followup call takes 8-12 call to close a transaction. If they're responding to an Internet lead, you need to call the average Internet lead 8 times to get them on the phone the first time and another 8 to 12 times to actually close the transaction.

If your people haven't done the math, which I'll be talking about as the third point, if they haven't done the math, they call two times and quit. Did you know that 75% of all salespeople never call back twice? Never, never make it to the second call. Why? They don't have the scripts. They don't understand the math and they don't understand how many calls it takes because you, as the business owner, the manager, have not taken the time to say, "Look, this is the facts. The phone is the most productive device we have.

More productive than a CRM. A CRM doesn't work without a telephone. You collect all this data. I have the data. I have Infusionsoft. I've got the best CRM in the world to collect all my data. I'm using LinkedIn, social media. I'm using Facebook to grab data. We're spending money on ads and nobody calls anybody back. It is the failure of American businesses and businesses around the world that nobody in the company knows how to take a call or make a call.

Number four, identify and solve problems. Identify and solve problems. What problem are you trying to solve today? Magic questions. If I could wave a magic wand and solve one problem permanently, what would it be? You must find that out.

Number five, be logical and structured in the call. I have to have a structure in the call. Otherwise your people go all over the place and run out of time. Be respectful, be enthusiastic, be memorable. How do you sell yourself on a phone call? What's your tonality? What's your voice like? If you're an introvert, how do you get your people out of that introversion and become interesting enough to grab, entertain, be memorable, be entertaining enough and how do you use third party data, credible information to set yourself apart from everyone else?

I'll give you one little trick real quick. Did you know that if I have a headset on and I'm taking a phone call, I want my mobile phone in this hand because I want to text to that customer, that prospect, the person asking for questions. I want to to text them during the call. It improves your chance at an appointment by 500% and your chances of closing a deal by 328% by merely saying, "Can I text you some data while you're asking the best price or our proposal or the warranty or you'd like to see what this product is made of or what the FDA said about this or that? I can text that to you right now." Texting during an actual phone call will increase your appointment ratio, your appointment show ratio and ultimately ring a cash register and then scripts.

Scripts. Your people need scripts. They need a format to run off of in order to control a communication. Your people are having conversations. Conversations are not selling. Controlled communication. Change the conversation, hook the customer in, create enough interest, be entertaining and memorable, use third party data and then close. How do I close? When do I quit selling and start closing? It's about controlling a communication, not having a conversation.

The last thing I want to share with you is this. Look, you can make millions on the phone. You know that. There's millions of dollars of opportunities. It's the phone that's going to get you there, not more ad dollars. It's not going to be another product, another idea, another concept. You don't need another big conference meeting. You need somebody picking up the phone call and that means your people need to do the call calculation.

I'm going to include that calculation in this presentation so you can see the actual math that your people must do to know how many calls, what's the cost of every call, what's it going to cost me not to make that phone call. If I want to make $100,000 a year at your company or $250,000 or $500,000, every salesperson I have working at this organization has done the calculation of what would it take in energy, effort, how many people they'd have to call, followup, talk to, cold, warm and hot, in order to make $344,000 a year. We just picked out a crazy number. It puts them in the top 1%.

It's inspirational to people. We do the math and say, "Okay, here's the scripts. Here's the pitch. Here's the manager to help you do it." We give them sales meetings and sales trainings everyday and then say, "Hey, let's hit it."

Millions on the phone, folks. It is the most powerful device. Thank god Alexander Graham Bell called Tom Watson and said, "Come over here," because the phone saves time, saves money, and will make you millions. What am I telling you? Look, three simple things. First, you've got to sell your people on the phone as a device that can create more revenue, more product sales for you, for the company and for them.

Number two, you have to have scripts, folks. There's different scripts for referrals than an incoming call than an outbound call than the second call, the third call, the fourth call, the fifth call. You need scripts laid out for each one of those phone calls.

The third thing is do the math. What's in it for me if I make all these phone calls? Is it 10 phones calls a day or is it 90 phone calls a day or is it 290 phone calls a day? And what would that get me? Do the math, three.

Sell them on the phone. Two, scripts, they need them. Everybody needs them. I need them. Everybody needs a playbook. Three, do the math.