Should You Pay More For Better Data?

Posted By on Dec 22, 2015 | 0 comments


Recently, I came across this question by Chad Hooper in the Google Plus Mojo Mastermind Group forum:

chad-hooper-question

Now I’ve given serious thought to this over time and as I’ve used both Cole data and Mojo Lead Store data so I started typing out a response which turned into this blog post.  So here’s my thoughts on this…
 

My Experience

 
When cold calling with Cole Realty’s landline data (not cell phone data) I get about a 20% pickup rate during a weekday morning calling session.  That compared to the 18% I got with the Mojo Lead Store Data.  So a bump…but not night-n-day difference.

That’s not to say I’ve NEVER used Cole’s cell phone data.  I have.  I’ve used it to hunt down expired and FSBOs who didn’t put their phone number on their Zillow listing.  It worked pretty well and had the data north of 65% of the time.  I can’t remember if you can do a map search and import cell phone numbers in bulk for whole neighborhood or not.  I never did it though and can’t speak on how effective it could be.
 

What’s The REAL Problem That We’re Trying To Solve Here?

 
The only reason people want “better data” is so that they can increase their contacts per hour.  The theory is that with better data you’ll have less bad numbers and when you’re dialing good numbers (vs disconnected numbers) that will translate into a higher contact rate…because the dialer won’t have to sort through as many bad numbers.  So greater efficiency.  If up the ante even more and call cell phone numbers, then you’re increase the chance of getting through to people because they always have their cell phones on them at all times while they are NOT close to their landline phone at all times.  So again, greater efficiency.

The problem with this line of thought is that it makes a terrible assumption.  That assumption is that the biggest obstacle keeping you from talking with more people is bad phone numbers followed closely by people’s proximity to their phones.  This false assumption allows people to create a corresponding false belief: namely that as long as you’re dialing the “best” numbers…then you’ll contact more people.

This just isn’t true.

The BIGGEST obstacle to you talking with more people – hands down – is…
 

Individual Phone Screening Behavior

 

People not picking up the phone when they don’t recognize the phone number.  Ignoring you.  Sending you to voicemail.

As I am typing this out right now I am calling through a raw list in Canton Michigan that I got from Cole.  You know what keeps happening?  I get answering machine after answering machine after answering machine.  That tells me that the phone numbers (the data) is GREAT.  Because I’m connecting through.  Also, because it’s 10:30am just a couple days before Christmas, that means that I’m calling, not at the best hours of the day, but during descent hours AND a bunch of people should be off work and home to answer the phone when they normally be available to take my call simply because they took some vacation days for Christmas.  So I should be seeing a higher contact rate.  But I doubt if I”ll see it get over 20%.  This image here shows where I stand right now as I type this:

bad-contact-rate

That’s right.  Less than 8%.  Terrible.  All of those 33 “No Contacts” you see there are answering machines that I clicked away from when I heard them.

So think about it.  A LOT of those “No Contact” answering machines were from people that were home, didn’t recognize the number, and just let it go to voicemail.  You’re going to experience that same type of behavior when calling cell phones.  It’s not going to be any different.

You’ll get Screening.  And lots of it.

The greatest enemy to contact rate when cold calling is screening and nothing else.  The long term ANSWER to this problem is…

Prime Lists

People you’ve called before 3 to 5 months ago who answered the phone and told you they were NOT thinking of selling at that time.  Those people’s phone numbers work and they’ve proved through their behavior that they pick up the phone when someone who’s number they don’t recognize calls.  If you had a lists of 50,000 to 75,000 of THOSE people…then you could call through that database two or three times per year and get all the leads you can follow up with that you can handle so as to put yourself in a position to close 50 to 100 deals per year.

Of course that brings us back to the ORIGINAL problem.

Raw Lists

Data lists of people who you have NOT called yet.  You have to call through those lists at least once so you can actually GET in touch with people that answer the phone and put them into the Prime Lists for future calling.

So back to the original question.  Do you pay more for the Cole data in hope that it will give you a boost in contact rate while you’re wading through the raw lists the first time around…or do you do something else?
 

Here’s My Suggestion

 
If you’re at all concerned about how much it’s going to COST you to get going with this cold calling thing but you ARE considering slicing out the $1,000+ from your limited budget in order to get access to Cole’s best data set, then change course and go with a lower quality data source like data from Mojo Lead Store and then pony up the extra coin that you WERE earmarking for Cole’s data program and reapply it to getting up and running with TWO Mojo dialers.

That’s two two phone lines, two headsets, and two Mojo Dialer accounts.  Remember, it’s all about contact rate and on that front you’ll do much MUCH better by investing in two Mojo Dialers running at the same time than you would by paying for better data.  Why?  Because the only thing that overcomes the screening problem in a timely manner is to increase the number of dials made per hour and the best solution for that is dual Mojo dialers.
I’m going to be doing this myself starting next month.

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