In the past few weeks, many founders and sales people asked me how many leads should I contact on a weekly or monthly basis? Couple years ago — I would've answered AS MANY AS YOU FREAKING CAN. But since we launched Spaceship, my view on this has significantly changed.
I also read a bunch of books and articles written by experienced Sales reps, and I came up with the following formula. (it's definitely not bulletproof, so I would be happy to discuss it with you. don't hesitate to comment / or send me an email).
1 SALES REPRESENTATIVE = Leads (x) Response rate = should always be >10 daily!
For example, let's say I am running a marketing agency with 3 SDRs and I know that our response rate on cold-outreach emails is around 8%. So if I want my SDRs to have at least 10 new prospects in the pipeline every day, each one of them has to contact 125 new leads daily. (quick maths — that is 7,500 leads for 3 SDRs monthly).
There are three main factors that influence response rate:
1. Email copy — keep it short | relevant | use placeholders
2. Trust — the recipient must believe you are the “real deal”
3. Industry — some industries are frankly speaking very difficult
If you have never done cold-email outreach and you need a benchmark response rate for your business, just email us at email@example.com ;)
A couple notes about the 'LEADS FORMULA'
- If you have inbound leads (from Campaigns or Landing Pages, etc.) use a separate formula (with the appropriate response rate). The response rate is usually higher for inbound. And then combine it with formula for cold-outreach.
- Each SDR should handle at least 10 hot leads every day / 50 each week. This is really the absolute minimum. Of course it also depends on the type of business, on-boarding process, etc. However, when your SDRs don't feel they can close at least 1 good deal every day, they will get bored and lose excitement.
- Don't count “recycled” leads into the formula. You should definitely follow up on leads, until you get at least a clear “NO” from them. But every SDR needs to get fresh leads every day. Otherwise, (again) they will lose motivation.