Unlocking the Secrets of Cold Calling with Peter Roth
51m 47s
The transcription features a conversation highlighting the efficacy of cold calling to secure leads. Peter Roth, a business expert from Denver, is introduced, outlining his business ventures across different sectors. Roth's discussion includes insights into the call center industry, emphasizing the importance of outbound telemarketing for generating sales. The conversation delves into the differences between inbound and outbound calls, noting the specialized training required for outbound activities. Roth also touches on the challenges of managing large databases and the importance of maintaining focus on specific call center activities.
Transcription
11305 Words, 60809 Characters
people don't really pick up cold calls, and I'm like, no, they don't.
We need fractions of percentages to make this work.
Welcome to the Home Service Expert, where each week, Tommy chats with world-class entrepreneurs
and experts in various fields, like marketing, sales, hiring, and leadership, to find out what's
really behind their success in business. Now, your host, the Home Service Millionaire, Tommy Mello.
Before we get started, I wanted to share two important things with you.
First, I want you to implement what you learned today. To do that, you'll have to take a lot of
notes, but I also want you to fully concentrate on the interview. So, I asked the team to take
notes for you. Just text "notes" to 888-526-1299. That's 888-526-1299, and you'll receive a link
to download the notes from today's episode. Also, if you haven't got your copy of my newest book,
Elevate, please go check it out. I'll share with you how I attracted and developed a winning team
that helped me build a $200 million company in 22 states. Just go to elevateandwin.com/podcast
to get your copy. Now, let's go back into the interview. All right, guys. Welcome back to the
Home Service Expert. Today, I got Peter Roth in the house. He's an expert of sales and business.
He's based in Denver. CEO and Senior Marketing Director at Scalify. Scalify. It's so hard for
me to... It's just Scalify. Scalify. He's a serial entrepreneur and businessman originally from...
Well, Ukraine originally. Ukraine, which is... Is there a hoarder?
Well, it used to be part of Russia. But now it's...
What is that? Oh, Ushgorod. You don't want to try to pronounce that.
Yeah. You don't want to try to pronounce that. Yeah.
He's built and scaled businesses across multiple industries from the solar
industry, solar-wise, to retail my discount cigar. To his flagship company, Scalify,
Call Centers, where he helps organizations build high-performing customer service operations.
Educated in Syracuse University, the University of Oxford, and the Budapest
University of Economic Sciences, Peter combines academic rigor with practical business acumen
with roots in both Eastern Europe and the United States. He brings a unique cross-cultural lens
to leadership growth and customer service. Dude, whoever wrote that, can we give them
some sort of an award? Because that is an exceptionally well-written intro there like that.
Well, I'm excited, man. You've learned how to do a lot of stuff that most companies don't really
know about. So let's just start about your story, where you're at today, and what you're excited
about. I don't want to make this a pitchy thing because that's not why I'm here.
But I was talking to you off camera two seconds ago. I'm excited to show different trades,
especially in the home services space, that there's other avenues for marketing, right?
Because people get so pigeonholed into their preferred marketing channels. I was just telling
you a few seconds ago, you talk to HVAC guys, and they're used to the concept of Angie's List,
right? That's just normal stuff for them. But then you talk to roofers, and they're like,
"What the hell is Angie's List?" Yeah, or Thumbtack or Yelp.
Yeah, yeah. So different industries, even though they're so closely related,
it's like they look at each other like they're foreigners. And so that's why I'm here to kind
of talk about how this call center stuff has been working out so well for so many different
industries and why we're blowing up so much. Well, let's talk about it. Tell me why you got
into the call center industry and where you're at with it. Because it's the only thing that
worked for us. So I got my teeth kicked in in the solar space, right? So I used to own an HVAC
company, sold that, and then transitioned into solar, whether that was a good decision remains
to be seen. But while I was there, I got my teeth kicked in in a good way, in a very positive way.
Like sometimes you have to do that, right? You got to go through some suffering in order to,
I'm so jealous of you. You have to sometimes, you have to go through those tough times.
And so solar taught me a lot of really hard lessons. Like I had to learn how to feed a team
of people, a team of salespeople. And we tried everything. We did all the usual suspects, the
Facebook ads, the paid searches and all that kind of stuff. And not saying anything was broken. I'm
not saying those things didn't work, but they just weren't awesome. And the thing that we just kind
of stumbled upon by accident, it's not like I was some genius. But by accident was the call center
space. We just kind of slowly inched our way into it and kind of realized, oh, wait a minute,
this is the thing that's actually working. And so I just kept it doubling down and doubling
down again. And lo and behold now, it's like, well, guys, this thing works. And now I'm bringing
it to other companies and it's working out for them. So here we are. Well, let's take a deep
dive into that. What exactly prompted this new walking into it by accident? Yeah, I'll tell you
exactly. I'll make it quick. So we were getting leads as most, I think a lot of companies will
relate to this. You got different marketing channels all bring in leads coming in, right?
And then here's, I think, where 90% of all businesses fail is they don't call the leads back.
Call the leads. The leads come in. And then that's where they go to die.
Right. I think if anyone's watching this, we're like, oh, shit, that's probably just described
to me. Right. You get these lead sources and you're paying all this really good money to this
lead gen agency over here and this lead gen company over there and this marketing channel over there.
And they're all doing something productive for you. They're bringing in leads. But you're the one
you realize if you take a hard look in the mirror, like you're the one who's actually not calling
the back. You don't have your team calling them back. You don't have a good system in place to
actually follow up with these leads. And then that's where they go to die. And so what we did was,
like anybody else, we hired someone, right? We found a VA, a really inexpensive VA to start calling
these leads and low and behold, business started improving. What a shocker, right? And so then
we're like, okay, wait a minute, the key to success here is having the speed to lead is having someone
on the goddamn phones. So we hired another person, this person, this amazing lady, she pulled me
aside and she's like, Hey, by the way, I have some cold calling experience. I'm not busy throughout
the day. I've got a lot of dead time. Do you want me to use that time productively and just do some
cold calls for you? And I was like, does that shit work? And she's like, yeah, I'm like,
even with all the new technology on iPhone that it like this new thing just came out on
an iPhone that really, yeah, that's affects a very small percentage of people. And let me address
that real quickly. Because I know some people ask that question. And it's a valid one. Those aren't
our target audience. People who are super caught up on iPhones and super caught up with the latest
OS and keeping everything up to date represents a much younger demographic audience. You're still
looking for land lights? Land lights? No, no, no, I'm not saying that. I'm just saying the younger
generations are not the ideal client. Yeah, no, they're not the yeah, in general, they're not the
ideal client, especially for cold calling. Cold calling the ideal client is someone in their 40s,
ideally even 50s, right, to their 70s, because that that's part of their buying culture. That's
part of their shopping behaviors. Like they're used to having the Kirby salesman come to their door.
And they're used to buying vacuum. Like if you ask an older person, hey, how do you buy a vacuum?
They're like, I wait for the guy to come to my door. Yeah, right. And you're like, God damn,
I guess this is you're right. This is like, well, how do you buy like an encyclopedia? Like,
well, you know, someone comes to my door to sell me one, like, right, this thing, really? Yeah.
And like, you know, they buy shit off events, infomercials at night. Oh, yeah, you and I don't,
but they do. So that there's the target audience. So like, yeah, the QVC's. Yeah, exactly. So people
just have to realize like that was never your target audience to begin with. There's other ways
to market to them. I'm not saying that you shouldn't be marketing to them. I'm just saying you need
to be marketing to them in a different fashion, PPC and all that kind of stuff, right? Paid surge,
organic. I see all that kind of jazz that works. So what, what is the, so you got the lead ags.
But by the way, home improvement is way different than home service. See, home improvement is when
I'm going to improve my house. It's not a demand call. It's not my stuff's broken. Hot water,
heaters leaking. My garbage disposal went out. The roof is actually leaking. Roofs could be
some type of improvement, but like windows are straight up improvement. Roger's could fit into
both kind of, but I like on the red parasite more. But what I found about these guys, and I know a lot
of them, I mean, they're doing $2 billion a year and they've worked with a few lead ad companies
and they partnered with them where they've actually like made them a partner and they go out and just
generate the leads and then they fulfill them all. But if anything's broken, like the speed to lead,
speed to form leads, if anything's broken, it doesn't work. But these guys, they go out and hunt.
That's why I've been studying home improvement so much is they don't have anybody calling saying,
"I have to replace my windows." So they got to go build the demand for themselves.
And so my question, I guess, is where's the best place to start?
Start with what? Start going out and getting the work rather than waiting them to call you.
So you said cold call. Yeah. Well, I mean, isn't that exactly why we're talking right now? Like,
doesn't cold call, doesn't that just make sense, right? Because now we're waiting, now we're going
out to get them as opposed to waiting for them to come to us. And that is, and the beauty of it
is, is we can target, we can be thoughtful and mindful about who we're targeting and what industry
we're targeting for, which is exactly what we do. If you come to me as a roofer or as an HVAC company,
we're not just going to blast every single home in America. We're going to be very thoughtful
and methodical as to who it is that we're calling so that it aligns with the type of ideal target
client that you're going for. That's part of the magic. So give me an example of a roofing call
or a HVAC call. So you call me up and I'm 55 years old. HVAC is my favorite, by the way.
Roofing and HVAC, those two are my favorites, but HVAC maybe takes the cake by just a slim margin,
because here's the huge advantage that HVAC gets over roofing, over really everyone else,
because everyone else, we're booking a sales call and it's obviously a sales call. Hey,
Mr. Homeowner, someone's going to try to sell you some shit. And they know that and there's no
delusion about it, right? They know it. HVAC is different. HVAC, we're usually doing a tune-up
call, right? Like, hey, it's getting hot. It's about to be hit 100 degrees here in Phoenix.
You sure you don't want someone to come and look at you? We're already in your neighborhood.
We've got three technicians out there tomorrow. They're doing some of your neighbors' homes while
we're out there. We're doing free C2Ms for half the price. Can I get your penciled in for tomorrow,
the day after? It's half price, 39 bucks. And they're like, sure, right? So it's a super,
super simple pitch, but the beauty of it is it's a service call. It's not a sales call.
So now you get the benefit of two benefits. The homeowner doesn't think they're being pitched
anything. And number two, the company is now actually recouping some of their costs, but
they're actually getting paid to show up there. Say, how much is this person? Where's this person
calling from, by the way? From you? Are they calling from Ukraine or somewhere in the Middle
East? No, no, no, not Middle East. No, they're using Latin America, but with a strong focus on
Mexico. The vast majority of our agents live in Mexico because they speak phenomenal English,
little to almost no accent whatsoever. There's a strong community there of people that work in
the call center space. So we've got no shortage of people who already have experience in HVAC and
roofing and those basic trades. And how many, how do they get paid? How do you get paid?
How do we get paid or how do they get paid? Well, I guess,
well, you'd go to you to run it all. So how do you charge clients? So we build out the call
centers for them, right? We're not like a BPO. We're not a call center for hire or for rent type
of a thing. That's not great. Those type of companies get a little bit of a bad rap. And for
pretty good reason, it's a little bit of a flawed model. What we do is we actually build out the
call center for your company. So you actually own the call center, free and clear, no strings
attached, no crazy hooks, no nothing. Like you actually own the call center. And if you want
us to manage it for you, we gladly will. We're extremely affordable. We'll actually manage the
entire operation for you. But you don't even have to do that, right? If you, if you got people on
your team that already know how to do it, well, then hallelujah, you can do it yourself. But
if you'd like us to do it for you, we're happy to do it. And we're really affordable. So
we build out the entire operation. It's all remote, right? You don't have to go rent some
office space in Mexico. It's all remote. And everyone check, you know, clocks in at 11am,
they clock out at 7pm. Those are, those are the magic hours. And then my team manages the entire
operation for you. We little, and then you just sit back and watch the appointments start rolling
in that sound that sales ain't cheap, but it's true. And how much technician training we train a
lot on this? I mean, we've got a $29 tune up. Yeah. I mean, you go in there and you educate the
clients. I mean, the fact is that usually on a garage, where there's a lot of failure points,
HVAC unit, hot water heater, if it's 12 years old, it's, it's, it's a problem waiting to happen.
My wife, we needed to get our garage door fixed last week and she, I was out of town,
I was doing another podcast and she called a company. I was like, did you call Tommy's
company? She's like, who's Tommy's? Yeah. Damn it. Oh, it's funny, funny story.
No, it breaks, they break all the time. I've obviously, I use this podcast to get educated.
I mean, and hopefully other people listen and they like it. I mean, obviously I started in 2017
and just got everybody on here and I got a lot of great ideas and I found the people that actually
knew how to do this stuff. I wouldn't say every podcast for me is like super educational. Some
of it's just storytelling and learning about people. Sure. But you know, what do you find,
what's the sales process for the best company's best in class?
Look, I don't pretend that I have full open access to their processes, right? So I don't think I can
answer that question with total confidence, right? What I can tell you is who the clients are that
succeed the best with call centers, because I know them because they're the ones always calling
me to add more agents like, Hey, Peter, let's add two more. What's a lot of agents to you?
What's one company? What's a larger company? A large agents 15, 20 agents. That's a pretty
respectable size call center for a respectable size company. What kind of tuneups does each agent
book a day? So if we're talking HVAC, the average numbers are the for in the space of HVAC,
which is different than roofing, which is different than solar. But in the space of HVAC,
each agent should be booking roughly three tune up calls per day. So it's a pretty big number.
And what does that cost for you to manage that one agent?
I'll just tell you right now, it all boils down to like, what is your what is your cost per
appointment per booked appointment in the space of HVAC? I think it comes to like right about
60 bucks. So for 60 bucks, you're getting in the door with a booked appointment ready to go ready
to pay. So you're paying $180 that day for that one agent? Yeah, you would that would have equivalent
have cost you about $180 in total in total fees between between the cost of the between the labor
between the management fees between the diet, the software cost itself, which is real minimal.
And then you need phone numbers to call right data phone numbers to call. So they got to consume
some phone numbers. So those are the four main that's it. Those are the four expenses of running a
call center. And so so $180 a day, you're basically that's for one agent though, keep in mind. I mean,
we don't do anything for less than with less than three agents. So you're almost at 600 bucks a day.
Yeah, so you're spending a few and you're in the door. Yeah, you're in a lot. You're in nine doors
for that day. Which is hopefully about three technicians keeping three guys busy. Yeah,
maybe even more. Okay, maybe even more. What do you think the mindset shift is between inbound and
outbound? Because I think I've over the years, I became lazy. I mean, we get 25,000 book calls a
month. Yeah, I get it. No, you're in a different but why not have 50,000? No, I understand. There's
let me address your question because I think you asked two very different questions. Question
number one, the difference between inbound. First of all, a lot of people don't know the
difference between inbound and outbound. So I think that's an important thing to address real
quickly. Inbound is not our thing. I mean, we'll do it, but that's not our thing. Our thing is
outbound telemarketing. Our thing is you hire us to build you a call center so that we can get
your sales guys in the home to sell your stuff, whatever that is, right? That's what we do outbound.
Inbound is CSR work inbound is customer service relationship management type stuff. It's people
come calling in to handle whatever, you know, customer service type stuff, or maybe book an
appointment, hopefully, but it's inbound. That's not our thing. We can do it. That's the easier
thing. Inbound is the easy thing because you don't really need specialized people for that anyone
with a smile and a pleasant voice can handle that they don't really need all that specialized
training. The outbound guys, these are the tough cookies. These are the ones that are
actually making sales, booking appointments, doing the hard work to get you in the home.
They're the setters. Setters are the, what's the term for it? They're the unspoken,
the underappreciated winners. You know, these are the guys doing all the heavy lifting.
You know, it's crazy. I've been talking about our database. And our database is two million clients.
I mean, it would probably take 25 agents, two years to call those people back.
Yeah. You're in a different scenario at the time. You may not be the ideal client for this,
right? Like you've got so much, such a large database. But then building out, see, you interrupt
the inbound when you start trying to do both. So it's like you take your eye off the ball. This is,
for the listeners out there, this is a big mistake when you start having one call center
manager manage too many things. They start to, they start to drift off on the inbound,
focus on outbound, and then they're focused on inbound again. Yeah. So actually, and I just
take back what I just said, because I said, you may not be the right, that's bullshit. That's so
not you, and you said it yourself. You're like, but what you said, I have 20,000, but why not
have 50,000? Yeah, no, like that's your, that's exactly the point. It's like, well, why not keep
growing? I get it. You're in an amazing place in life, obviously, but like, no, I'm in the
fetal stages. Why not, why not keep tiny, like, why not be in all 50 states, right? And there's a,
there's, there's only one way to do that. And you need more outbound. What about SMS?
What about it? I mean, I mean, it's a bit of a, I don't want to say it's not, I don't want to say
it's a dying channel. I want to say it's now become saturated and it's now become very
policed by the, by the, by the telecoms. They're all policing it. FCC, FCC. They're policing the
shit out of it now. So the, the carriers are all doing amazing stuff. No, most of it's not.
What about AI agencies days? That's the hottest thing. Yeah. Yeah. That's, that's a really,
really good question. And it's a really common question that I get. Let me, let me answer it
the best I can. And number one, this is important to say, number one, you cannot use AI for cold
outreach. That's 100% illegal FCC banned that a while ago. Cannot do it. And it's a good thing
that you cannot do it. And I'll explain why. Number one, it's too easy to do, right? It's
just a bot, right? It's just a piece of software. So it's not like you need real humans, right? So
you can literally at the push of a button, some teenagers in Pakistan can click a button and
literally blow up our entire phone lines in the entire United States with a shit ton of, you know,
spam calls, trying to sell us cheap Viagra offers, right? I mean, it would just, it would disable
the phone systems. Your cell phone would be, flames will be coming out of it. If you have so
much shit coming through. And more importantly, you would completely stop picking up your phone
because you would know that every single phone calls just spam nonsense. So because it's, there's
no, there's no resistance. There's no friction. It's just click a button and a million calls can
start being placed all at once. So they've banned that. And for good reason, because it would just
incapacitate our phone lines. So no, no AI is allowed to make a cold outreach call. However,
AI is allowed to make a call once you have proof of opt-in. Proof of opt-in meaning they already
booked an appointment or did something to engage with you in a meaningful way. That's
considered proof of opt-in. Now AI can reach out to them. So here's what I always tell business
owners, if they're, if they're considering AI, which they should, I'm very much pro AI. And we
work, we partner with different, a different company to piggyback with them for AI. And here's exactly
where we do it. So there's four, generally four sales channels or four sales paths for most home
services companies. This doesn't necessarily apply to all of them, but I'll explain them. So
path number one is the top of the funnel, which is the booking the appointment. The cold call,
booking the appointment. As I just said, for that, you cannot use AI. That has to be done by a human
for obvious reasons now. Number two, this is the one that's optional for some companies is a
discovery call. Certain industries will call them the homeowner first and say, "Hey, just want to
learn more about you and the problems that you're facing. Let's flush out those problems." So a
discovery call, like I said, that doesn't apply to all industries. Number three would be the closing
call or the pitch, right? Obviously, you probably wouldn't use AI for that. I mean, I guess you
could, depending on how, you know, how easy your pitch is. And then number four is the biggest
bucket of all. That's everything else. That's no shows, cancellations. I want to think about it.
I'm not interested. People who just didn't call you ghosting. But that's the biggest bucket of all.
That is the perfect bucket to utilize AI for. So I'm a huge fan of AI for that last bucket,
because it's the biggest one of all. Most people don't say yes, right? Most people say no to your
thing. So there's a lot more noes than there are yeses. And especially once you had no shows and
cancellations, and I want to think about it, that bucket is huge. And AI is the perfect tool and
the perfect method to reach out to them, because that's an easy thing, right? It's just calling
them and saying, "Hey, let's get you back on the calendar so that a real human can close the deal."
That is 100% brilliant idea to do with AI. So we do that all the time with our call center clients.
I love it. When you're different through data, do you ever look at, I just realized that a lot of
these finance companies have the ability to tell you who's pre-qualified? What kind of data do you
look for? I mean, you look at regression testing. You could go credit card score. You could go home
over this age. You could go income level. You could go who's pre-qualified. What is the data
that's best used? And I know it depends on industry and whatnot.
It depends on the industry. So, for example, let's say we're looking at roofing, for example,
right? Got a lot of roofing clients. Roofing is thankfully pretty simple, a lot more straightforward.
It doesn't have to get nearly as complicated as some of those kind of filters that you're talking
about. The main things that we're looking for typically, and again, it depends, are we talking
about retail roofing or insurance based storm replacements? But let's say we're talking about
retail. So retail, the standard roofing client, the standard roofing company is going to want homes
that are 10, 12, 13 years and above. They want homes with older roofs, people that are outside of
their warranty, people that maybe don't have homeowners insurance to cover it for them,
maybe have accumulated some damage. So typically, if we're looking around 13 years and older,
we want the homeowner aged typically be in the mid 40s to the mid 70s. For the same reason,
like I mentioned earlier in the beginning of this, we don't want people that are too young.
They're not the ideal, they don't pick up cold calls and they certainly don't book
appointments off of cold calls. It's just not in their buyer psychology,
but it is for older generations. So that's why we're trying to target
certain age groups. Then we're looking for particular home sizes because we want to filter
out the bottom 20% of income. For obvious reason, that can be problematic. We also want to filter
out the top 20% of income. A lot of people don't realize they're actually just as problematic,
if not even worse. Trying to get ahold of ultra wealthy is a very difficult thing to do. Number
one, they just don't answer their phone. They got a house manager. Even if they don't,
they either just don't pick up an unrecognized phone number. And even if they do,
it's just not in their buyer psychology to book a cold call off of it.
How many people do answer on average when you- Very little. It's a good question. Very little.
And I'm always, I always talk about people like, people don't really pick up cold calls. And I'm
like, no, they don't. And I'm like, so how does this work? I'm like, because I don't need amazing
results to make this work. So do you got a dialer? We need fractions of percentages for this thing
to be profitable for my clients. Fractions of percent. Are you allowed to use a dialer? Of
course. Yeah, of course. That's all we do. So the dialer is always connecting you? It's called a
predictive dialer. So if anyone wants to do this on your own, the thing you should look for right
away is what's called a predictive dialer. A predictive dialer is just a fancy term for a
multi-line dialer. It's a dialer that'll call more than one line at once. You definitely need that.
You want something that can call at least 10 or above. That would be a respectable,
a respectable predictive dialer. Look, to build your own call center, I'm not going to sit here
and pretend that you 100% need my help. You, a lot of people can do this on their own. As with
anything else, of course, it's, there's going to be a lot of pitfalls along the way. There's going
to be a lot of challenges and they're going to be expensive challenges. So of course, I'm happy
to walk you through the four steps to building at your own call center. If you want it done right,
well, you know, I mean, you know who to call, but yeah, I mean, I can tell people like, look,
here's the four components. You need agents, right? Please hire people that actually know
what they're doing. Don't just hire some VA. Don't just hire your neighbor, your neighbor's
teenage kid. Hire people that already have experience in the specific industry that you're in,
whether it's roofing, HVAC, or whatever garage door repair, whatever it is that you do.
So hire agents with existing experience. Number two, you need good software. I just told you,
find a predictive dialer. If you need one, I'll send you the link to my, to the dialer that we use
all the time. It's no problem. I'm not going to charge you anything for that. You need a good
script. A lot of people over, overestimate the importance of a script, thinking that it's got
to be some, kind of say some magical shit. You don't have to say magical shit. You just have to
have a reasonably good offer. A reasonably good offer is 0% financing or even just financing to
begin with. As long as you can finance the thing that you sell, that's actually good enough to
convert and get the numbers that you need to make money is just have financing. If you have special
financing like 0% or, you know, pay nothing now or 90 days, no, whatever. If you got special terms,
that's even better. That just makes it more attractive, but you don't need it. Okay. And then
the last thing is you need data. You need a good source of data. That I wouldn't know where to
send people because we're our own data source. I don't have like a brand name that I could send
you to, but getting, I mean, you can just come to me because we sell data to other call centers as
well. But data is phone numbers to call. You need good quality lists of phone numbers to call. And
it's got to be good quality because if you get a cheap list, there's going to be so much inaccurate
information on it that your agents are going to spend way too much time just listening to
wrong names and wrong numbers and disconnected numbers. And it's just going to burn up labor
hours. So those are the four main components that you need to build your own call center tomorrow.
Now, obviously, there's a lot of stuff that I left off in between. I can't, you know,
tell you to run a call center inside of five minutes. But so obviously, if you need more help,
well, you know, you know who to call, but there's, there's the basic components.
Is what you do simply outbound only or is it the lead X too?
Like I told you, yes, outbound is our focus. That's our specialty because that's the thing
that makes you money. Right. No, I mean, we'll inbound make some money too. I'm not going to
say inbound doesn't make you money, but outbound brings money that you otherwise wouldn't have had,
right? It's found money. It's money that you wouldn't have otherwise made.
What, what do you have? How do you handle turnover? I mean,
you get these badass agents that are trained. Do you do performance pay with them?
That's a good question. We used to, we stopped. We stopped doing performance pay because we used
to be an entirely, we used to be entirely pay for performance model because we thought,
in our dumb brains, we thought, oh, we're entrepreneurs. We love pay for performance.
You've always been probably raised on pay for, you probably your whole life has been pay for
performance. Yeah. I know my whole life has been pay for performance. I've never had a salary.
Last salary I had, I was 23 years old and I got fired from that job. So everything since then
has been 100% pay for performance. So I thought in my brain that everyone's wired like me and like
you came to find out, no, like we're entrepreneurs. We're wired very differently. You and I are wired
for risk and we have a high degree of comfort for risk because we know that when we take that risk,
there on the other side comes reward, right? And we're far more interested in the reward side
and willing to take that risk to get there. The fact of the matter is most people are wired like
that. Most people are wired for safety and security and predictability. Most people just
want their clock in, clock out, standard payroll hours and they want the predictability and the
safety of that, including call center agents. And I learned that the hard way. We spent years
paying them pay for performance and suffering with the ups and downs that came along with it
because it created so much uncertainty and anxiety and fear. Why not just give them what you give them
now plus, because I guarantee if you looked at all the agents, one, there's a few agents that have
tripled the booking rate of others. What we do now is a hybrid model. So I think exactly what
you're saying. We do a hybrid model now where we pay them their hourly, what they expect to make.
And agents in Mexico are generally looking to make about seven bucks an hour, seems to be,
depending on your industry, but it's right around seven bucks an hour. So we pay them their seven
bucks an hour. We don't even really negotiate them. Terrible idea. Just give them what they're asking
for as long as it's reasonable and then offer them a little bit of a bonus on top of that.
We generally will pay them and this is good if you're building your own call center, take this
advice, pay them their seven or eight bucks an hour. If it's in Mexico, by the way, it's cheaper
if you go to some different countries in Latin America, the price goes down. You can probably
get it down to about five an hour if you're in like Central America or even South America.
So pay them their hourly, don't negotiate, don't try low balling them. Bad idea. They're just always
gonna have one foot out the door looking for a better paying job. So don't mess around with that.
You find someone they like, you treat them well, keep them loyal. Number two, pay them a bonus per
sit. So if you get it, because there's no shows, right? No shows are a big part of outbound telemarketing.
There's always gonna be no shows because there was zero intent to begin with. With that comes no
shows. To reduce no shows, you need hyper well-trained agents. Hyper well-trained agents come at the cost
of the methodical training and paying them well. They need proper, they need to be incentivized
properly. So we pay them generally 20 bucks per sit. I can change on your industry, right? If your
industry's, you know, if you've got a slimmer margin by, you know, by all means, feel free to
adjust that number. But typically we have found that for most industries, 20 bucks per sit is
actually pretty reasonable. That gets you a really nice sweet spot. You know what restaurants learn
how to do? And it completely changed everything for them is if for any reason you need to cancel,
they actually ask them and just, can you agree and they ask them to agree that they'll,
so they, they, they vocally say, yes, I'll call you. And this is a Robert Chedini influence thing
where they figured out if you ask the client, will you call us if you need to cancel for any
reason? And you get the yes, that little phrase at the end. It's no big deal. Would you just do
us a favor? Because literally they have room for other reservations that way. I mean, is that
like part of your script? Yeah. Yeah. We do a slightly different variation on it. We,
we literally finished off with that, but we, we actually proceeded with a little bit of,
I'm Jewish, so we got to throw in a little Jewish guilt in there. So I channel my mother
when I do this part. So it says, right before we say goodbye, we always say, hey, by the way,
our fill in the blank experts, our HVAC experts, roofing experts, our experts are all taken time
away from their families to come down to your home tomorrow at two o'clock. So I just want to
make sure that you can be there for that time so that, you know, they don't waste an important
trip where they otherwise could have been with their families. Yeah. No, that's genius. Yeah.
And that's now the, oh, shit. That would stink if I left this guy hanging.
So what, what do you hate about solar? What do you love about it? Oh God,
you had to take me down that path, did you? Solar, I actually, I do love solar. I think solar,
solar in a nutshell is a fantastic concept. There's nothing wrong with solar itself.
Solar has just been butchered with no regulation, no licensing, no nothing, and people were just
going ape shit bananas with it. I mean, it's, you can't be surprised. Of course that would happen.
You know, these, these, we're getting 21 year old guys who are coming, you know,
coming off of just coming out of high school, actually, even teenagers coming to high school,
door knocking their way and closing seven, eight, $10,000 deals, sometimes more than that,
you know, straight out of high school. So yeah, I mean, that, that'll, that'll ruin your brain real
fast. You know, it'll turn you to mush. So they start making some pretty unethical decisions.
They start, it's a really, unfortunately, solar is a really easy thing. It's a really easy industry
to scam people. It's like merchant services. It's really easy because it's so, it's such an
elusive thing to, no one knows how it's priced. It's impossible. It's very difficult to explain
the pricing in solar. It's not like a garage door repair. I get it, 150 bucks, right? It's easy.
Solar is really complicated and really convoluted. So it's very easy to disguise a scam
inside of all that convoluted, inside of those convoluted numbers. And that's what was happening.
And so now there's, it's going through a major, major shakedown. There's nothing illegal about it.
There's nothing unethical about it. It's just not the right thing to do. And it was going to result
in an implosion eventually. And now here we are. And then the other thing about it is, like, most
of the finance companies want to charge 20% minimum off the top. Minimum. Got some of them.
Some of them got up to almost 40%. It was absolutely disgusting what they were doing.
And a lot of them don't like to work on anything door to door now. I mean, literally,
like, whether it's water quality, I mean, you know what I mean? It's just, it got a bad,
it's getting a bad rap. So HVAC, why would you, what didn't you like about HVAC that you're like,
I need to switch to solar? Oh, I loved HVAC. It's just, I was with a partner. He was a technician.
He was the, he was the wrench turner guy and I was like the white collar dude. And he had health
issues. He literally suffered like three different heart attacks in the course of a couple of months.
And so we ended up having to sell our company. And I would love to have stayed in it. We were
doing incredibly well. It was a brilliant industry. I always tell people, like, if there are debate,
they people come to me and ask, Hey, should I go to this or this? I'm like, yes, HVAC. If you,
if you can understand the technical side of it, 100% HVAC. But it's, there's a lot to know. It's
a, it's a complex industry. So tell me a little bit about the cigar business.
Man, I've just been doing it for, that's my first business ever. I was 24 years old when
I got into the cigar business. So I'm still, I'm still, uh, I still have a wholesale cigar
company. I don't have to manage it anymore day to day, thankfully. So I don't have to pay too
much attention to it. But yeah, I got into the cigar business. It's my first business I got
into when I was 24 years old. I'd just gotten married. I had no money to, no, you know what I
had is I had a $5,000 that I got as a bar mitzvah check. Yeah, swear to God, from almost 13 years
old at $5,000 bucks, still put aside somewhere. And I told my wife, I was like, Hey, let's take
that $5,000 and let's take, um, let's take, uh, the money that we get from this wedding. If we
give us any money, it was my first wife, let's take that money and let's put it towards this
business. And she's like, I think you're insane, but I'll trust you. Wow. And, uh, lo and behold,
man, that thing blew up and we opened it up in November of 2001. And, uh, dude, this business
just took off. It was, it was stupid. It was like a kiosk in a mall. It was a cigar kiosk in a mall.
And it took off. It did insane money, like insane money. I was like pinching myself like,
how the hell is this possible? I was 24 years old. I didn't know shit.
That's like a lifestyle business. What, what, what's the difference between like home service and
that type of like, what do you have to be good at to do that? Which the, the, the cigar business?
Just like, what do you have to be good at? You have to love the, you have to, it's a passion
thing. It's pure, like you said, it's a lifestyle. It's a passion thing. You have to be really
passionate for it. I couldn't do it again. Like if you asked me if I wanted to get back into it,
no, I would not get back into it. I owned a cigar bar for 15 years, like a really upscale,
super nice cigar bar for 15 years. Uh, the day it shut down, I was the happiest man on earth.
Like I was so burned out of that business. I was so glad to be out of it. So I would never
get back into it ever again. That's interesting. You know, everybody, every influencer, like mega
influencers seems like they're going into like their own liquor, like their own vodka, their
own, their own tequila. Yeah. Which is hilarious because like now you've seen that like this is
the, the, in this country, this is the lowest consumption alcohol. No one's drinking. No one's
drinking. I went out last night with my accountant. He lives here in Phoenix. We went out and had a
cigar. I hadn't had a cigar in like six months. I had three drinks. I woke up this morning feeling
like I'd partied for like until five a.m. And I was like, I had three drinks last night. What's
wrong with me? You know, it's crazy because a lot of the bars are struggling right now too. I don't
know. Why do you think that is? Is it because marijuana is legal? Osempic. Is it osempic?
Yeah. That's what I got. I mean, every, these, the diet, the diet drugs are curbing everyone's,
I can tell you because I'm on it. Yeah. I don't, I'm happy to admit it. Yeah. I'm on it. I lost
like 40 something pounds on it. So I have no problem admitting it. Yeah. It's done amazing
stuff, but it's completely crushed my craving for alcohol. That is interesting. No craving for
alcohol whatsoever. Yeah. There's peptides to do the same thing as osempic. Oh, I didn't know that.
Interesting. Wow. Like I talked to all my buddies that own bars and they're like,
yeah, it's, it's, it's hard to sell bottle service. It used to be super easy. And that
really just started in the last, I guess, since, well, osempic's been out for a long time, but
the last year or so. And then it's also just kind of like a, a thing with like Gen Z, Gen Y, I'm
guessing like those generations are just like, they're just not drinking, you know, like my steps
son, he's 17. And he just doesn't like alcohol. He's tried it, you know, a handful of times. We
let him, you know, but don't make a big deal out of it. And he's like, I just don't like it. It's
just gross. And I'm like, I remember when I thought it was gross too when I was a kid, but I still
drank it. Yeah. You know, and no, he's like, and none of his friends really drink very much like one
does, but the rest don't. Oh, that's interesting. Yeah. So I got a bunch of closing questions,
but what, what have I not asked you that I should ask you? Well, I think, I think in terms of like
results, like money and results, like, what is a call center going to do for my company in terms of
like my true cost per acquisition? I think that's like, right, that's the, you know, if there is a
mic drop moment or like that would be it, like, what is the actual cost for me to get a roofing
deal or an HVAC deal or something like that, right? I think that's really the ultimate proof of the
putting for people. And so what's so cool about call centers is because it's so affordable to get
them going and because the numbers are so stacked in your favor, like for roofing, we're seeing the
average roofing client across all my clients right now, my average, their average cost per
acquisition or CAC or customer acquisition, whatever acronym you guys prefer out there with
your crazy acronyms, their customer, their average CPA for a roofing deal is like 400 bucks or just
under. And that goes a lot of the training. That goes into how well you do at the kitchen table.
Yes. Well, it would have also getting the appointments to sit in the first place,
but for sure, absolutely. But getting the appointment, getting them to the kitchen table,
that's. It's half the battle. It's half the battle. It's not more. If not more, yeah.
Interesting. So I think that's, you know, that's where to me, like I said, that's the mic drop
moment. It's like, okay, Peter, sounds cool. Love what you're saying. But like, what is actually
going to cost me to get a blah, blah, blah deal? And like I said, for roofing, man,
we're seeing it coming to just under 400 bucks. Look, to put it in perspective, the average
roofer, the average roofer in the United States right now, their average CPA right now is anywhere
from on the low end, a thousand bucks to more like 1500, if they're being honest with themselves.
A Google lead, just a paid search lead lead, not a book appointment, right? Just a lead on average
for a roofer over 200 bucks. Doesn't surprise me. Just the lead. Yeah. That we still got to turn
it into an appointment. Then you got to turn that appointment into a sit, and then you got to turn
that sit into a sale. There's a lot of possibility to degrade and ruin that. So you think financing
is the key? Just making zero down zero for a year or whatever. That's like the key. I think that's,
if you don't even have financing, like where are like, what are you even doing with your life?
Yeah, that's like, well, that's part of the pitch on the phone is what you're scripting.
If it's not always, well, yeah, and roof, not HVAC. Not HVAC. You're trying to just get a tune
up. Yeah, we're just trying to get a tune up. Yeah. But in everything else, yeah, almost everything
else we pitch. Yes. It's like, hey, no money out of pocket. Hey, nothing down. Hey, you know,
like it's all about like just ease of use. Don't have to come out of pocket. This is easy.
What's, if you had to credit one decision or turning point to your career that changed everything,
what would it be? Just not giving up, honestly. That sounds really corny. That may sound a little
bit cheesy, but there were so many times when I wanted to throw in the towel because I had made
some shitty decision or something wasn't going my way. And there was a lot of them. One of them
was as recently as like two and a half years ago, made some, took a really bad gamble, a really bad
risk in business that totally blew up in my face. Almost cost me everything. Almost cost me my
marriage, my house, my financial career, literally almost everything. I was on the verge of like
about to lose everything. That was two and a half years ago. This year will be the best financial
year of my entire life. So that was the 180 degree turn. And it's because I didn't throw in the
towel and it's because I didn't quit. It sounds corny, but it's true. No, it is. With Scalify,
do you think that this is still five to 10 years out? Where do you see it? I mean, is this,
is this, because this is the golden era, the next five years, Baby Boomers retiring,
10,000 a day, 12% of the Mona business. I mean, do you see this business
around in five to 10 years? Or where do you see the future going?
Yeah. If I haven't sold it in six or seven years, which is a possibility just depending on where
it's at, I may not, I haven't decided. But if I don't sell the business in five to 10 years,
it will be at $100 million a year. It'll be a $100 million a year business within
six or seven years. And you don't think that technology, the world's going to change dramatically?
No, because like I said, the good news is we're always, in the same way that like technicians,
right? And the home services space are protected from AI because you can't have a technician fix
your garage door. You can't have a technician change. Yeah. I'm sorry. AI, yeah, you can't have AI do
those things. So like those jobs are always going to be safe. Same thing here because they will never,
FCC will never allow AI to take over because it'll ruin everything. You may as well just
shut down cold calling for life at that point. So it'll always, this industry will always be
protected, which is great news for small business or even any size business owner because they will,
now they know that cold calling will always be a potential avenue for them for lead generation.
I love it. Give me your number one book of all time other than, you know, Napoleon Hill,
Del Carnegie, The Bible, The Myth. I mean, those are some big ones, but
two different books. One would be Built to Sell. Oh, yeah, yeah.
Jonathan. Built to Sell is a really great book because even if you never go to sell your business,
which is fine, you don't, it's not saying that you have to, you need to learn to run your business
so that it's not 100% reliant on you, right? And there's a lot of other books that are
similar in that sort of, in that vein, but Built to Sell, I thought was just incredibly well written.
And then this may sound a little cheesy, but $100 million offers from Alex Formosi.
$100 million offers. I've listened to that. I didn't read it. I listened to it.
I listened to that book three times now. Because every time I listen to it,
I'll get one new nugget out of it. And that one new nugget can change my,
I've taken two or three nuggets out of that book that have completely changed my business overnight.
So that book, I keep re-listening to it. Like every few months, I'll go back and
I'll re-listen to it again about, oh, see, I missed something. And I'll go and I'll implement it.
You know, Alex says his number one guy that he follows is Robert Chedini.
And if you read the book, Influence, or Getting the Yes, you'll learn a lot.
Like I've worked really closely with Robert Chedini. He's 81 years old now. But his teachings
on influence are like the basics of Alex Formosi's teachings. So definitely get
the Robert Chedini, every one of his books. And how do people reach out to you if they want to
reach out? Oh, that's easy. You can just go to my website at scalifyco.com. So scalify is
spelled S-C-A-L-I-F-Y-C-O.com. Scalifyco.com. I love it. And finally, just close the south,
whatever's on your mind. Just give us a final thought. I am just thankful to be here. I'm
thankful. You know, this has been a crazy whirlwind over the past like two, three weeks. I've been
all over this country. I've been, you know, I was with Lance Bachman two weeks ago. I was with
Bradley two weeks before that. Right after this, I'm heading out to Tanner Tritister Studio,
literally an hour and a half. I'm running over there two days after that. And I'm with Chad
Peterson here in Phoenix on his podcast. So I'm just incredibly thankful that like the turn of
events and the way life unfolds in front of you. And I'm here for it. And I'm blessed and I'm
thankful. And I couldn't just be a happier person right now. So I'm just happy to be, I'm just,
I'm all smiles, man. I'm all smiles. It's great. And one thing I'll give you advice is like personal
brand is going to become so much more important in the next year. And it continues to be Bradley.
All he did was jump on the podcast. I was in his office. He's like, everyone here is an actor.
We just put out content. And over time that grows your influence. And the question is,
is do you have good influence to give? I mean, I look at this, I'm way smarter than any of these
guys. But at the end of the day, I'm like, wait a minute, what do I teach? And then I'm like,
we're going to do 300 million. And a lot of people talk about that, their revenue. When they
could throw a quarter of that, of that into profit and put that in the bank, those are the people
that really I look up to as the guys that are bragging about the profitability and the EBITDA.
And that's a big missing piece. When I go on podcasts, you always hear people bragging about
revenue. In fact, I used to do it. So I have a question for you. Should I start a podcast?
What would you say in your shoes on the other end of the table for someone where I'm at right now?
Because here's, I'll just tell you the challenges, which I'm sure you probably already know the answer.
You know, I don't expect it to take off anytime soon, right? That's really hard to get it to take
off. Is it worth it just to be sitting across the table with people that you admire, people you
want to do business with, people that you maybe otherwise wouldn't have had access to? Is it worth
it for that? Is it worth it just for the networking aspect of it? There you go. Well, I think all
the above, I think a podcast is, it's an older tool. I mean, I started mine almost 10 years ago.
I would say a podcast is where you get started. I say writing a book is next, next level. But you
don't just write a book. It's how you launch the book. If you look at, buy back your time.
Well, Hermosie killed it, but Dan Martell, as it came out of nowhere in the last 18 months,
because of his book launch. So the idea being when you write a book, can you get on 250 podcasts?
And, you know, I think if you do it, you got to create something like a group, even if it's a
free group, or even if you're charging 500 bucks a month, but the goal should be that you build a
media team. You get the guy taking the videos, writing the content, helping you come up with
great content. And the little fee you charge makes itself propelling. So it continues to grow,
because influence is one of the most important things that I think there's going to be. I think,
in fact, I think my personal brand is more important than A1 Grosdorff service.
I think it's way more important to attract the talent I want. I don't think people follow
a company. I think they follow a person. But let me ask you this question. If you were to
ever want to sell your company, and I don't know, but like what your plan is, but if you were to
ever want to sell your company, right, no investor, private equity, strategic or otherwise,
no investor really wants to get into bed with a company that it's all based on personal brand,
for obvious reason, right? Because when you're, but when you go away, so does everything else,
right? So how do you, how do you, how do you, how do you answer to that? Well, no matter what,
look, the A1 and Tommy Mallow build each other up. I've sold half the company. We're partners with
PE, but the difference is that they're going to want to tie me up. They're going to want to say,
how much are you going to roll? Or they, they ruin the multiple, right? And the biggest thing,
this is my biggest ROI. But the fact is, I learned I could grow away faster with PE with,
with a blank checkbook and they're great partners. But you build both up. The question is, would
you go work for a company based on every leader, or do you go get behind the founder?
And the fact is people want to know every PE company wants to keep the founder on.
They learned that lesson in the last two years that it's like founder base gets more money.
And, you know, you don't lose sight of the founder's vision. As long as you, you know,
the biggest problem is they give these founders a ton of money and then they go
want to travel and do their thing. So depending on the age of the person and how much more they
got in the, you know, how much more they got in the tank to go. But I think personal brand like
Dan Martell just came out with a hot sauce, but the influence is like why per company sell to you
too. So I think the major thing is when you build your influence behind a company,
you, you make sure that the investors understand, if you think about it, they kind of need you too.
So that like, who wouldn't want to roll a lot of equity into their business?
Why wouldn't you? What's a better ROI? If you get three acts of business in the next four years,
why wouldn't you want to roll a lot? You take some chips out the table, but why would anybody,
like it doesn't, like Paul Kelly here, Parker and sons, he's on his fifth turn.
Wow. And every turn has been more than the last. Yeah, of course.
So I just don't understand the concept. Like you grow your personal brand and attracts people.
I think you need to do both. So you're saying the personal brand actually helps with
having more exit opportunities within the same. Yeah, I think so. And I also think that a lot
of people, 48 people that, that are, that are in my training out of 52 followed me before they
followed the caret about A1. Oh, I believe that. No, that, that part I totally understand.
For me, it was just always, for me, it was just always trying to
weigh out, you know, like how can you sell a company when you're so closely attached to your name?
Gary V sells companies. Kevin O'Leary now is invested in, I was just with them. I think 44
companies, like all these people know is you can build multiple brands. But the question is,
A1 probably is going to get into flooring and storage and front doors and windows and other
things like that. So I could use the personal brand to help grow the business. Sure. And if
I'm an investor or an LP, I'm going, that's the people we need to get involved with because
they got an upper hand on everybody. Yep. So there's two sides that think of it. But I think,
look, I meet, that's, you're here today. I met you. We're going to follow up on this stuff.
I mean, I met Robert Chedidi, Dan Martel was in here, Jeremy Miners in here. Like,
you know, you get access to people, you see who's real, and you start to build a network. I don't
need a lot of friends. I just need the right friends. You know what I mean? People that I
could stand behind and this is a great vehicle to get there. Ever some reason, once you make,
Gary Vandercheck alone, just put out content about his wine a long, long time ago. Now he charges
anywhere from 500,000 to a million to show up. Yeah. So, and by the way, I don't think it's all
about the money. I was with Damon John. Okay. You know, Damon John out of Shark Tank. He's like,
I never get sick of being famous because people come to me that want to build the American Dream,
which is a business. So they want to change their family, generational wealth. So he's like,
I don't get mad if somebody comes up to me at a restaurant and says, I'm trying to change my
life. They don't ask me to sing my tune or was my favorite movie, Top Gunner Maverick or whatever.
You know, he's like, they like me because they know how to turn around businesses. So anyways,
Peter, I could talk to you all day, brother. This is great. I know you got a busy schedule. I
appreciate you being here. Thank you. All right. We're going to follow up. Thanks, brother. Thank
you. Hey, leave a review. If you haven't left us a review, do me a favor. Leave a review. Share
this with someone you care about. Thanks, guys. Hey there. Thanks for tuning into the podcast
today. Before I let you go, I want to let everybody know that Elevate is out and ready to buy. I can
share with you how I attracted a winning team of over 700 employees in over 20 states. The insights
in this book are powerful and can be applied to any business or organization. It's a real game
changer for anyone looking to build and develop a high-performing team like over here at A1
Grazular Service. So if you want to learn the secrets that help me transform my team from
stealing the toilet paper to a group of 700 plus employees rowing in the same direction,
head over to elevateandwin.com/podcast and grab a copy of the book. Thanks again for listening
and we'll catch up with you next time on the podcast.
Podcast Summary
Key Points:
Discussion on the effectiveness of cold calling in generating leads.
Introduction of Peter Roth, an expert in sales and business from Denver.
Description of building and scaling businesses in various industries, including the call center sector.
Summary:
The transcription features a conversation highlighting the efficacy of cold calling to secure leads. Peter Roth, a business expert from Denver, is introduced, outlining his business ventures across different sectors. Roth's discussion includes insights into the call center industry, emphasizing the importance of outbound telemarketing for generating sales.
The conversation delves into the differences between inbound and outbound calls, noting the specialized training required for outbound activities. Roth also touches on the challenges of managing large databases and the importance of maintaining focus on specific call center activities.
FAQs
The Home Service Expert podcast features interviews with world-class entrepreneurs and experts in fields like marketing, sales, hiring, and leadership to uncover the secrets behind their success in business.
You can text 'notes' to 888-526-1299 to receive a link to download the notes from today's episode.
Peter Roth got into the call center industry after facing challenges in other businesses and realizing the effectiveness of call centers in generating leads and sales.
The ideal target audience for cold calling is typically individuals in their 40s to 70s, as they are more accustomed to traditional buying behaviors and methods.
The call center service builds and manages call centers remotely for clients, allowing them to own the call center operations while providing affordable management options.
Inbound telemarketing focuses on customer service and handling incoming calls, while outbound telemarketing involves making sales calls, booking appointments, and performing sales-related tasks.
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