How to cold email for sales – The Lead Generation Machine
If you’re thinking to cold email for sales, you need a system to make it work, a proper method.
If you’re familiar with Henry Ford, you know he invented the model T which is considered to be the first affordable car in the entire world.
How he did that was he developed a system and methodology called the assembly line.
The reason why the assembly line was genius was that everybody who worked on building his car knew what to do exactly.
If there were any mistakes or bottlenecks in their system, they could quickly figure out where they were and make a change right away.
Because there was a system that was very efficient and it was really easy to make changes when needed, the entire world took inspiration from that. As a consequence, it completely changed the way companies do business today.
Similarly to how Henry Ford was so successful with the model T by developing a system, for the Lead Generation Machine – hence the word ‘machine’ – we are also going to build a system.
The reason why people fail with emails is that they send an email here in there, at random times, whenever they want.
They can’t tell if they’re sending enough cold email for sales or if they’re sending at the right time, and really without a methodology.
As a result, they just don’t progress and don’t get the meetings they want to get.
With a system, you’ll be able to figure out why people are responding, why they’re not and what you can do to increase the rates of which you get meetings so that you can get more sales.
There are two different types of lead generation prospecting that you can do on the lead generation machine when you cold email for sales.
Cold Email for Sales with the Whale hunting technique
Whether it has nothing to deal with the horror of killing whales, it’s a good metaphor.
The reason why I call it ‘whale hunting’ is because you’re going for specific companies that you really feel like would be an excellent fit for your product or service.
Typically how someone would go about this is if they had a history of customers that they already know that their product or service fits.
And they’re finding more similar companies, or they have a keen judgment on who their product is for.
Here’s the link to a book on Amazon (it’s a bit outdated): Whale Hunting: How to Land Big Sales and Transform Your Company.
When you know exactly who your product is for, you can focus on specific companies and increase your rate of actually getting a meeting with them, and eventually generate more sales.
You should focus on only 20 companies maximum at the time if you are whale hunting and this is because when you’re writing these emails for these “whales”, you’re writing each one specifically tailored for that individual company.
When you go for the whales, which are lower in amount but have a higher value, it’s a lot better if these companies make more significant purchases.
In fact, if only three or four of them actually buy something from you, that’s going to be a win.
You don’t want to go for companies that are too small as they do not help you get your financial goals. On the contrary, you want to get the ones that can totally blow out your numbers.
Let’s say you sell an HR software specifically for hospitals in Australia, who had 200 or more employees and have an outdated HR software that is about 10 years old.
In Australia, there are actually more than 20 hospitals to fit this specific customer profile, and those are the companies that you want to go after.
Say you know exactly what the pains are that these hospitals have when it comes to HR software and you know that your software can solve that pain. Just like a doctor.
As you know precisely who you’re going after is going to make cold-emailing a lot easier when you are hunting for whales.
To summarise whale hunting:
- go for 20 at a time
- hyperfocus on writing tailored emails
- do your research to make sure that your product or service is a good fit for their company.
Cold Email for Sales with the Fishing technique
The second type of prospecting when cold email for sales is called fishing.
It’s called fishing because you want to think of it like you’re casting a net into the ocean.
You have a general idea that there are fishes in the water.
However, you don’t know what’s going to pop out when you pull that net out of the water.
This strategy is typically used for startups or people who are offering a new product or service, and they try to find a market fit.
To give you an example, let’s say you are selling a scheduling software that helps small-medium business to schedule appointments and classes.
One day you might think your scheduling software may be perfect for all of the small-medium yoga studios in Australia.
So you start small and send maybe like a couple of hundred cold emails to all the yoga studios in Queensland. You don’t know if it will work or not, but the beauty is that you’re sending a high-velocity high volume of cold emails, tailored to that specific industry.
Some people may respond some people may not. Depending on what you get you’ll know if that’s a good market for you.
If they’re not receptive to it, you just go to another industry. So when you’re fishing, you want to think of it like you’re not exactly sure who your customer should be. That’s why you’re not writing extremely tailored cold emails to each company.
You are writing it for an entire industry or entire customer profile. You’re sending it to all of them, and you see if it works or if it doesn’t.
Depending on your results you’re going to tweak a little bit and make it better and send out another batch of cold emails.
When you’re fishing, you might be sending hundreds of emails a day depending on how fast you are.
Again it’s all about high velocity and figuring out who the best is for your product/service.
If you’re going for a high-volume approach, then your cold email quality is inevitably a little bit lower. However, you will get more people so you might be able to generate more sales.
The wheel strategy versus the fishing strategy
They are both really good but it really just depends on where you’re at in your business.
Whenever you know who your ideal customer is, you want to go with the wheel strategy.
If you’re still trying to figure that out as a startup or you’re just starting up your business, then a fishing strategy might be a little better.
You might have to send more cold email, but eventually, you’ll figure things out, and then you can transition into a whale strategy as you move forward.
Prospecting with cold email for sales
The primary goal that you want to keep in mind as you’re thinking about your cold email strategy is that you want to get a meeting with a company to see if it makes sense to work together or not.
I’m not saying that you’re not begging for anybody’s business. You’re not trying to sell anything quite yet.
All you’re trying to do is identify a company, and you’re just trying to see if it makes sense to work with each other.
if it’s beneficial for both sides, then it might make sense to work with each other.
But in the event you email somebody and they tell you “NO”, that’s totally OK because you know it doesn’t make sense to work with each other.
So if you hyperfocus on this goal and you’re not pushy, you’re not a salesperson, but you’re just trying to see if it’s a good fit, then people a lot more likely to be receptive to your cold emails.
When you’re cold-emailing people, you’re sending a coded message to people that have no idea who you are, and a lot of times they may not even know who your company is and, again, you’re just trying to see if it makes sense to work with each other.
And that’s the only goal.
For cold emails for sales, once you’re able to get that meeting whether it’s in person or over the phone, then you can have a real conversation on whether or not you should work with each other.
In some cases, it might make sense to work on some cases it may not, and that’s totally OK.
So that is the main goal you want to keep in mind.
Now, when it comes to the cold email funnel, there’s a process that it takes to actually get that first meeting.
The first part is sending the cold email to all the people you’ve identified you might think would be a good fit for your product or service.
The next step is the prospect, which is the person you’re sending the email to will open the email. Keeping in mind that not everyone’s going to open it. It might be 30% if you’re good, or it might be 5% or less.
It depends on your industry and how high-quality your cold email is.
If the prospect opens the email, the next step is they respond to that email.
They might say: “hey, it’s not a good time right now, maybe in the future” or they might respond and say “hey, let’s do a meeting this week”.
That percentage may be around 7 to 9%, and that’s that statistical average for B2B sales in all types of industries.
Finally, if the prospect is receptive to your cold email, and they want to schedule a meeting with you, you could discuss over the phone or whether it’s in person to see if it makes sense to work with each other.
The above is the 4-step process that you want to keep in mind if you’re planning a cold email for sales campaign.
When you divide them into four different sections, you can see which parts are doing well and which parts you need to improve.
To get an example of how this works, let’s say you send 100 emails, of whom 50% of the people open that cold email.
Out of those 50, maybe 7 to 9% are actually going to reply, so it’s around 4 people.
And out of those 4 people, half of them want to schedule a meeting with you.
This is just an example of what it takes to be successful with cold emails.
However, sometimes you might get better results and get more than two meetings after sending 100 emails.
Or you might not get any meeting.
So it really is a trial and error process. But, as long as you understand the system and you’re willing to put in the work, it is going to work for you.