Seeing diminishing returns from cold calling? There are plenty of ways to generate leads on an ongoing basis that work better, coach Verl Workman writes.

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Cold calling. Nothing evokes more anxiety in sales and marketing — including real estate — than those two words. Why? Professionals are constantly seeking innovative ways to connect with potential clients, yet cold calling is the perennial go-to method.

Although cold calling has been a traditional practice for lead generation, its effectiveness has waned in the face of new technologies and changing consumer preferences. The Federal Communications Commission’s (FCC) new “one-to-one” consent rule for robocalls and robotexts was scheduled to take effect on Jan. 27, 2025, but that ruling has been postponed to 2026.

The rule is part of the Telephone Consumer Protection Act (TCPA), which was enacted in 1991 to protect consumers from unwanted telemarketing calls. The rule was to require marketers to get “one-to-one” consent from consumers to receive robocalls and robotexts. 

I only bring up that rule because it’s in the news, but that ruling, whether postponed or canceled altogether, shouldn’t concern you. Why? I’m glad you asked.

It really boggles my mind that agents are paying good money — often precious funds they cannot afford to spend — to acquire leads from people who know nothing about them and vice versa. Why do this when you already have direct access to the people who know, like and trust you?

I understand that through a quick Google search you can find numerous alternatives to cold calling that are designed to enhance engagement and foster meaningful relationships; however, you shouldn’t have to. Here’s what I recommend to do instead of cold calling.

Top 50 to win

First, let’s start with your Top 50. Imagine having a group of people who are your biggest fans, always ready to spread the word about you and your services. That’s what the Top 50 system is all about. It’s about identifying those key people in your life — friends, family, past clients — who know you, trust you and are likely to refer business your way.

The magic happens when you keep in touch with them regularly. Do this through your CRM. Your scheduled outreaches don’t have to be anything fancy. A quick call, a friendly email or even a handwritten note can do wonders. The idea is to stay on their radar so that when they hear someone needs a real estate agent, they immediately think of you.

And here’s a little secret: Always aim to provide value. Share interesting market insights or helpful tips. This not only keeps them informed but also positions you as the go-to expert in their eyes.

Also, don’t forget the personal touch. Remembering birthdays or anniversaries can make a big difference. It shows you care about them as people, not just potential business sources.

Lastly, don’t be afraid to ask for referrals. Just ask for permission to ask for a referral. Let them know you appreciate their support and would love their help connecting with others who might need your expertise.

By focusing on these relationships as opposed to focusing on just what you want, you’re not just building a network; you’re creating a community of advocates who can help you thrive in your career.

I encourage my clients to interact with their Top 50, spending just one hour per day. Compared to cold calling, the Top 50 is astronomically more effective.

3-2-1 go!

Another very effective method for efficiently replacing your cold calling efforts is using what I call the 3-2-1 system. 

Think of the 3-2-1 system as your daily action plan to keep your business moving forward. It’s simple but incredibly effective. Here’s how it works.

Every day, you focus on three key activities. First, reach out to three past clients or people in your database (there’s that Top 50 again). It’s all about checking in, seeing how they’re doing, and offering any help or insights you can provide. This keeps you connected and top-of-mind.

Next, aim to add two new people to your database. These could be potential clients, leads, or anyone who might be interested in buying or selling in the future.

It’s about expanding your network and creating new opportunities. Where do you find them? Truth be told, there are secondary alternatives you can implement after you work your Top 50. They each have their time and place, so take advantage of them when appropriate.

I would suggest networking events and conferences, webinars and online workshops, establishing partnerships and collaborations, and I always recommend community involvement. When participating in local events, always adopt the mindset of serving regardless of opportunity, and honestly, the opportunities will come. Each of these offers face-to-face interactions, which are, again, head and shoulders above cold calling.

Finally, learn one new thing each day. This could be about industry trends, new technology or even a skill that can enhance your business. Continuous learning keeps you sharp and ahead of the game.

By sticking to the 3-2-1 system, you’re consistently building relationships, growing your database and improving your skills. It’s a straightforward approach that, when done consistently, can lead to significant growth in your real estate career.

Stay out of the cold

While cold calling may still have its place, exploring these alternatives can provide a more effective and enjoyable way to connect with potential clients. By building relationships and providing value, you can create a sustainable lead generation strategy that aligns with the preferences of both homebuyers and sellers alike.

Verl Workman is founder and CEO of Workman Success Systems. Connect with him on LinkedIn or Instagram.

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