Warm Market VS Cold Market Which Is Best To Grow Your Business

Warm Market VS Cold Market, which is the best option to build your business? Most people that get started in business are taught to talk to their friends and family and talk to everything that moves. Have you ever wondered what marketing strategy you should focus on while building your business? In this post, you’ll learn when it’s best to use cold market vs warm market to build your business the most efficient as possible.

Warm Market VS Cold Market – Where to start first

If you have a network marketing business you’ve probably heard to make your list and talk to all of your friends and family. If you have a traditional business, you’ve also probably heard something similar like tap into your network. Maybe even the famous, “It’s not what you know, it’s who you know.”

When it comes to cold market vs warm market, there are certainly benefits to both. However, when you are just getting started, your warm market is probably best. Most companies and sales trainers preach this, but often they don’t explain the philosophy behind why they say to start with your warm market.

The first reason is that you have a relationship with these people. When you are trying to sell a cold market your products or business ideas, you will meet much more resistance.

People tend to do business with those they know, like, and trust. Click To Tweet

By starting with your warm market, you have a pre-existing relationship and they are more likely to buy from you. This is great when you are getting started because you likely don’t have the optimal sales skills or experience to handle dealing with rejection and objections.

Another benefit is that you could screw up your sales presentation completely and your warm market often will still buy from you or get started in your business. If you do happen to be brand new to sales and marketing I’d recommend checking out the video below on how to become great in sales.

Advantages of Warm Market Vs Cold Market

Another advantage with warm market vs cold market is that it’s free! Most people who are just getting started in their business likely don’t have a huge amount of extra cash laying around.

Often I’ll have new business owners ask about running Facebook advertising for their businesses to generate leads only a few weeks into their businesses. Certainly, you can do that, but in most cases, they haven’t yet developed the skills to convert those leads into sales.

If you haven’t gotten through your initial learning curve, you actually end up wasting money on advertising rather than it being an asset. With warm market vs cold market, you can develop your skills and learn how to properly market and sell, while reaching out to people for free.

You can almost look at your warm market like practice. You can start with that list of people you know and trust, “get the kinks out” and become a professional when you start reaching out to cold market prospects.

Also, when it comes to inviting warm market prospects, you need to understand your true objective. It’s not to convince people to buy what you have or to force them to join your business. The true objective of inviting in network marketing or sales is to see if someone is open to what you have as a solution to their problems. If it is, then you simply take them through the next steps in your sales process. For example, scheduling an appointment to run through your sales presentation.

Cold Market Vs Warm Market which has less rejection?

Another misconception related to cold market vs warm market, is the idea that you’ll face less rejection with cold market, or that it’s easier because you don’t know them. To some extent this is true, but at the same time, it comes back to the principle of seeing if people are open, not trying to convince them that determines how much rejection you’ll feel.

Most people when they are new are simply trying to avoid rejection and for some reason, they think that they will get less rejection by talking to cold market vs warm market. I hate to burst your bubble but that is simply not the case. Almost always you are going to have to go through a lot more nos and rejection with cold market compared to warm market.

Also, if your warm market doesn’t like you or your presentation it is even more likely that cold market won’t like it either unless you are targeting the right people. When you meet a random person, they certainly don’t know, like, or trust you. Without that benefit, you need to be an expert in what you are doing and targeting the right prospects before you can expect them to buy from you or to join your business.

Of course, cold market prospecting strategies can be learned and to create long term success. However, when you learn the basics of network marketing and sales, you can apply them to either cold market or warm market and have less rejection.

Dealing with rejection for cold market prospecting and warm market prospecting

To be successful in sales and network marketing, you need to have the mindset of “how can I help this person,” not “how can I sell this person.” One of the best ways to avoid the fear of rejection is to find a problem your prospect has, and ask if they are open to a solution.

For example, you might say something like, “Hey Bob, I couldn’t help but overhear when we were chatting the other day, that it sounds like you are frustrated at work and didn’t get that raise you deserved. It may or may not be for you, but I’m just curious, if I could show you a way to bring in some extra income that could eventually leave that job that doesn’t pay you what you’re worth, would you be open to checking it out?”

At this point, if they say yes, you can present your solution if they say no, you could say something like, “no problem, I just figured I’d throw it out there based on our conversation.” When you follow this process it can help you eliminate the feeling of rejection because if they aren’t open to a solution, you don’t even have to spend time presenting yours. This can save you time and frustration.

Also, when it comes to cold market vs warm market, you technically will face much more rejection with cold market. Since people do business with those they know and trust, that’s already established with warm market. This doesn’t mean cold market won’t buy from you, but it’s an uphill battle. You will get a lot more nos with cold market vs warm market.

Advantages of cold market vs warm market

Now it might seem that from what we talked about above that there isn’t much of an advantage to working with cold market, but that’s really only in the beginning. When you are just starting out cold market vs warm market, warm market wins. However, as your business develops cold market can work just as well and has many advantages.

We mentioned the “know, like, and trust factor,” and typically, cold market doesn’t know, like, or trust you. This can have an advantage though. For example, with your warm market, you might not have much influence or credibility.

When embarking into a new business or field of expertise, those who knew your past might not take you seriously. You could have build up your skills and become an expert, but your warm market may still never take you seriously and do business with you.

That might not be the case with cold market. If you know your stuff and can provide value cold market prospects often still do business with you even though you don’t have a relationship with them. Obviously having an established relationship with prospects helps, but it isn’t always necessary when you are providing genuine solutions and value with your business.

Another benefit to cold market vs warm market is that the amount of cold market prospects is nearly limitless. Certainly, you can network with warm market leads to get out of your initial network, but cold market gives you the ability to prospect anyone and everyone.

This doesn’t mean you try and pitch anything that moves, but just understand there are a lot more people out there that you don’t know, compared to those you do know.

Which marketing strategy provides the best targeting

Another benefit to cold market vs warm market is that you can target your ideal customers with your marketing and advertising. With warm market prospecting, you aren’t really targeting your ideal customers.

With warm market prospecting the person may or may not even be an ideal customer. This means attempting to convince them to buy from you is a waste of time unless you see if they are open first.  With cold market prospecting, you can go to where people who are likely to be your ideal customers actually hang out.

It’s kind of like fishing in a pond where the fish like your bait, vs a pond that you are just guessing if fish are hungry or not. A few things to determine before jumping into cold market prospecting is what are your ideal customer’s needs, goals, problems, interests, and desires. When you know these things, you can find the right pond to fish in quickly, and your messaging will be more effective.

A great place to find your ideal cold market prospect is in Facebook groups. These days there are virtually hundreds if not even thousands of targeted Facebook groups you could join that are full of your ideal customers. Once you join a group, you can promote your content and provide value that serves that niche. When you do this, you start to attract your ideal customers, instead of having to try and hunt them down.

Check out the video below on how to grow your business with Facebook groups.

Building a lead generation system to convert cold market prospects into warm market prospects

We talked about the “know, like, and trust factor,” and that definitely matters, but you can also set up systems to develop this with cold market. This is where setting up a lead generation system comes into play. When you use attraction marketing, your ideal customers come to you, and it makes working with cold market almost as effective as warm market.

Also, when you put the right marketing systems in place, you can actually turn cold market into warm market. The foundation of this marketing strategy is to develop a lead magnet. A lead magnet is something of value that your ideal customers want and would be willing to exchange their name, email, and phone number for.

For example, if you marketed nutrition and weight-loss products, you could create a lead magnet on something like a 30-day meal plan to lose 10 pounds. Selling weight loss to someone who downloads a guide on how to lose weight will be easier than marketing to a random person.

A lead magnet like this can pre-qualify your cold market leads. Working with prequalified leads is similar to working with warm market prospects.

Setting up the right marketing tools is the next step to generating leads and sales on autopilot. You also need a followup process to develop a relationship with your leads, and to help convert the cold traffic to your site into warm leads who are ready to buy.

The tools to do this are a sales funnel system, and an email autoresponder. These in conjunction with a high-quality email series that educated while selling can help you convert cold market into warm market and sell your products on autopilot. Check out the video below for more details on creating a passive income business using this business model.

Conclusion

In conclusion, when it comes to warm market vs cold market, they both have advantages and disadvantages. Just because you may or may not have been successful with your warm market, doesn’t mean your business won’t be successful.

Also, realize that cold market prospect isn’t going to be easier if you haven’t developed the necessary sales skills and business expertise. In fact, you’ll probably face more rejection with cold market if you haven’t developed your skills yet.

The good news is that cold market prospecting and warm market prospecting both work when you work them. Sales and success in business is a numbers game, and when you apply the right sales skills with consistent action, you can be successful with cold market or warm market.

Build your skills early on with warm market and use your pre-existing relationships to your advantage. Still see if people are open to what you have first before trying to present your business, but sharpen your skills with warm market before jumping into cold market.

Which do you prefer to use when building your business, warm market, or cold market?

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Mike MacDonald

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