Cold Calling's Dark Side
Copyright © 2006 Frank Rumbauskas
FJR Advisors LLC
Have you ever wondered why sales managers are so insistent that
you cold call?
Have you ever wondered why many companies will not even consider
a marketing budget, and instead mandate cold calling, make it a
job requirement, and tell you you'll be fired if you don't do
Doesn't it seem a bit strange that you'd be paid so much in
salary just to run around collecting fifty business cards a day,
or making fifty telephone calls when your talents are so much
better than that?
There is a reason for all this insanity. It's the dark side of
cold calling, and the real reasons why many companies still force
salespeople to engage in this old, antiquated method of doing
First of all, cold calling doesn't cost the company money. It
costs you money. They get to avoid spending money on marketing,
and instead they let you do the hard work of cold calling. This
is in spite of the fact that cold calling has the lowest returns
of any and all sales activities, and therefore leaves you with
the lowest possible paycheck.
Second, cold calling doesn't cost the company time. If they
wanted to put together a marketing plan they'd either have to
hire more employees to do it, take current employees away from
other duties, or hire an outside firm to implement it. Instead,
they tell you to do it. This saves manpower and eliminates the
need to either hire new employees or hire an outside consultant.
The end result is that is costs you time and forces you to waste
your valuable time on the lowest-percentage sales activity
instead of on something more productive.
The insanity of all this is that trying to save time and money by
forcing you to cold call ends up costing the company huge amounts
of time and money! It obviously isn't profitable to have
salespeople cold calling when it consistently has the lowest
returns of all sales activities. However, they do it anyway,
with the belief that it's a smart way to cut corners. The fact
of the matter is that having salespeople cold call is penny-wise
and pound-foolish. It lets companies cut corners in the short
term, but with very dire long-term consequences. Cold calling,
when relied upon as the main source of new business, frequently
leads to lost profits, downsizing and even bankruptcy.
Companies that are succeeding today don't bother with cold
calling. They implement a marketing plan that generates
qualified leads, and they provide those leads to the salespeople,
who simply go out and close them. This is the only sensible way
to do business in the twenty-first century.
Frank Rumbauskas is the author of the New York Times Best-Seller,
"Never Cold Call Again: Achieve Sales Greatness Without Cold
Calling." He is a sales trainer, consultant, and inspirational
speaker who has taught over 15,000 salespeople how to generate
endless leads without cold calling. You can learn more at: