I own a small company with a team overseas that builds custom software for businesses. I've made enough to pay for the expenses of a family of four, in an expensive city, but not much more. The reason I haven't made more is that my sales skills have been lacking. That's changed, though, and I've gotten a lot better at it. At this point, if a prospect has a project and the budget, I can easily talk them into using me. I do that by listening and giving the client what they want (a development company that cares, understands their business, will help them build what they truly need instead of what they think they need, and will support them long-term).
Recently, I've cold called IT service companies, talking with them about a 'potential partnership' where I provide software programming services to their clients. Out of 200 calls over the last 6 months, I've netted about $25k. That's not a bad return on 200 calls, but I need to ramp things up dramatically. (I had several other large projects that are now concluding that were supporting me). Out of those 200 calls, I had probably 20-40 conversations and about 5 companies that have said that they want to direct clients my way. Out of the five, 2 have already given me clients, and will continue to do so. The others, I'm nurturing.
By the way, even though I have clients that rave about me, I haven't gotten too much referral business. I talked to a recent client a month ago, for example. He said, 'by the way, I mentioned your name to a friend of mine.' Now that I think about it, I probably should have asked for that friend's name and phone number. Overall, though, my best source of leads has been service firms that know the business needs of large numbers of clients. I do get former clients that have me do a fair amount of additional work for them.
So: a few questions:
1) Calling IT companies that support the computers and networks of other businesses is an easy sell. When I do find someone that's open to working with me, we have a great conversation. We'll often end up talking for an hour or more. Is this the best use of my time, or should I try calling companies that might need my services directly?
2) The list I'm using, from Dunn & Bradstreet, no less, is frustrating to use. I'd guess that only 15% of the companies on it are my target market (IT companies that support small to midsized businesses, and are themselves decent size (10+ employees, min). The rest are companies that fix iphones, repair laptops, or generally have a very small mindset and probably don't gross more than $50k per year. These types of companies would never have a conversation with a client about their custom software needs. I find that I spend a lot of time sifting through this mess. In 2 hours yesterday, I sent 3 emails and called 5 companies. Is this normal?
3) How do I know if I'm using my cold calling time effectively? I've read books that say that I should be making 10-20 dials per hour, and not spending much time researching prior to making the call.
Thanks!
Recently, I've cold called IT service companies, talking with them about a 'potential partnership' where I provide software programming services to their clients. Out of 200 calls over the last 6 months, I've netted about $25k. That's not a bad return on 200 calls, but I need to ramp things up dramatically. (I had several other large projects that are now concluding that were supporting me). Out of those 200 calls, I had probably 20-40 conversations and about 5 companies that have said that they want to direct clients my way. Out of the five, 2 have already given me clients, and will continue to do so. The others, I'm nurturing.
By the way, even though I have clients that rave about me, I haven't gotten too much referral business. I talked to a recent client a month ago, for example. He said, 'by the way, I mentioned your name to a friend of mine.' Now that I think about it, I probably should have asked for that friend's name and phone number. Overall, though, my best source of leads has been service firms that know the business needs of large numbers of clients. I do get former clients that have me do a fair amount of additional work for them.
So: a few questions:
1) Calling IT companies that support the computers and networks of other businesses is an easy sell. When I do find someone that's open to working with me, we have a great conversation. We'll often end up talking for an hour or more. Is this the best use of my time, or should I try calling companies that might need my services directly?
2) The list I'm using, from Dunn & Bradstreet, no less, is frustrating to use. I'd guess that only 15% of the companies on it are my target market (IT companies that support small to midsized businesses, and are themselves decent size (10+ employees, min). The rest are companies that fix iphones, repair laptops, or generally have a very small mindset and probably don't gross more than $50k per year. These types of companies would never have a conversation with a client about their custom software needs. I find that I spend a lot of time sifting through this mess. In 2 hours yesterday, I sent 3 emails and called 5 companies. Is this normal?
3) How do I know if I'm using my cold calling time effectively? I've read books that say that I should be making 10-20 dials per hour, and not spending much time researching prior to making the call.
Thanks!
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Membership Required: Upgrade to Expose Nearly 1,000,000 Posts
Ready to Unleash the Millionaire Entrepreneur in You?
Become a member of the Fastlane Forum, the private community founded by best-selling author and multi-millionaire entrepreneur MJ DeMarco. Since 2007, MJ DeMarco has poured his heart and soul into the Fastlane Forum, helping entrepreneurs reclaim their time, win their financial freedom, and live their best life.
With more than 39,000 posts packed with insights, strategies, and advice, you’re not just a member—you’re stepping into MJ’s inner-circle, a place where you’ll never be left alone.
Become a member and gain immediate access to...
- Active Community: Ever join a community only to find it DEAD? Not at Fastlane! As you can see from our home page, life-changing content is posted dozens of times daily.
- Exclusive Insights: Direct access to MJ DeMarco’s daily contributions and wisdom.
- Powerful Networking Opportunities: Connect with a diverse group of successful entrepreneurs who can offer mentorship, collaboration, and opportunities.
- Proven Strategies: Learn from the best in the business, with actionable advice and strategies that can accelerate your success.
"You are the average of the five people you surround yourself with the most..."
Who are you surrounding yourself with? Surround yourself with millionaire success. Join Fastlane today!
Join Today
