How to Sell Stocks On a Cold Call Over the Phone

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Selling a stock over the phone is not much different than selling anything else over the phone, but there is a twist to it. You are not asking someone to buy a magazine subscription for $25. a year; you are trying to get someone to trust you and invest in a stock that you are suggesting. The investment would be typically over $1,000 -- and possibly much more!

Plan your phone call. Think about who you will talk to and make sure you will pronounce their name correctly ahead of time. Know as much about this person as possible -- their income bracket, the area in which they live, previous investments, age category and other personal interests if possible. A script is only good if you refer to it for the bullet points you don't want to miss. The quickest way to get hung up on is to read a script word for word.

Get a "YES" momentum going! If their name is "John Doe", for instance, after they answer, start out by saying, is this John? Wait for a YES answer. John Doe? YES. "Great, my name is ( ) and I have to start out by saying that I only have a few minutes to talk to you right now. I am with (company name), and I have something exciting to share with you." You must have excitement and urgency in your tone of voice. Don't ask if this is a good time to talk or not; you are creating a sense of urgency here and you must just take the floor. Don't worry -- you will be told if it is a bad time. The reason you asked if is this John and then John Doe is because you want to get a "YES" momentum going. So far he has said yes to you twice in the first 30 seconds. Also, saying you only have a few minutes available reflects that you are important and your time is valuable. At the same time you are letting them know that you won't take much of their time. You should have their attention right now.

Go right into explaining the "exciting" info about the company and its stock for sale. Speak rather quickly and very clearly raising, the volume of your voice when you want something really to be heard. Your conversation may go something like this... "John (use his first name, rather than Mr Doe; you want to speak to them as a friend would and gain their trust). John, something very interesting came across my desk today about a company that manufactures and sells "widgits", and they have just announced that they won the contract bid for a very large order from a government agency. With this contract they now have the opportunity to expand since this contract will provide the growth capital. This is all according to their press release this morning. (If there was a press release -- never make anything up). It appears that this company is going to take off and I'm calling you and a few select others to let you in on this exciting news and opportunity. John, if you are like most people, I know you want to make money, Right? pause ... be silent now ... it is John's turn to speak ... John can't really say no here, that he doesn't want to make money, it would be a foolish answer. You have somewhat cornered him into coming up with an answer, which you want to be YES.

Be prepared to rebut any of John's concerns, fears or negative thoughts. For instance, John may say, well, money is very tight right now. Your answer may be, all the more reason to get in while you can on this opportunity.
Or John may say, "how do I know that this company will do as well as you say?" You may say, "Well John, there are neve" any guarantees and always possible risks in any investment into stocks, but I can tell you, based on my past experiences, looking at companies similar to this one, on their way up, your possible gains can be attractive since the cost of the stock is so reasonable right now." You still haven't told him the price of the stock, you have held this info back.

Maybe take a moment now to get John excited and paint a quick picture of how pleased he would be if he made a profit with this stock. Finally let him know the cost of the stock. The best part John, one share only costs $1 currently, but it may change before we even hang up the phone. Keep the sense of urgency going. "Imagine that, just a buck a share. Is that a good price or what?" You are waiting for John to say YES again... Then get right to the heart of the matter. ASSUME AND TAKE THE ORDER. John, how many shares can I put you down for? Then give some purchase examples, and always start higher. "$20,000 will get you 20,000 shares, which is a nice piece of the pie, how does that sound?" (pause and Let John speak) ... If he says that is way too much, you can lower the offering in increments, go down to $15,000 and so on. You are feeling him out right now and always start higher. Listen for him to say YES somewhere, and then write the order.

If, on the other hand, John doesn't buy from you on this first phone call, regardless of how hard you try, don't be discouraged and never appear desperate. Remember you are in control and what you have to sell is valuable. Go ahead and give him a day to think about it, or check with his wife or accountant and then follow up the next day. You are building a long-term relationship.

Exit your phone call thanking him for his time or the order! Always follow up and do what you say you will.


  • Know the company and stock you are selling, the history, current positions and anticipations. Use their first name as often as possible, so long as it natural. Adopt the attitude that they need you more than you need them, but never in an arrogant way.


  • Once you are told, YES I will buy, congratulate them for the wise decision, stop talking and write the order or you may miss it! Never lie or make something up make to sound better. Always be truthful!

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