In a world where businesses are constantly bombarded with different marketing strategies, it’s easy to overlook the tried-and-true methods.

Cold outreach is one of those strategies, often dismissed in favor of more flashy techniques. 

But, before you write it off, let’s take a closer look at the numbers behind cold outreach.

Spoiler alert: the ROI is going to blow your mind.

The Basic Math of Cold Outreach

Imagine you’re starting with 20 cold email accounts. Not too overwhelming, right?

Each of these accounts sends out 20 emails a day.

That’s a total of 9,200 emails sent every month. But here’s where things start to get interesting. 

Let’s say you’re hitting the industry average with a 10% reply rate. That means 920 people are responding to your emails. 

Not bad for something as simple as sending a few emails each day. But it gets better.

Out of those 920 replies, 15% are positive. 

That’s 138 people who are actually interested in what you’re offering. These aren’t just lukewarm leads—they’re potential customers who want to know more. 

You schedule calls with half of them, which results in 69 booked calls.

Even better, 70% of these people actually show up, giving you about 48 sales calls every month.

Converting Conversations into Cash

Now, let’s dive into the real value of those sales calls.

You have 48 opportunities each month to close a deal.

With a close rate of 15%, you’re looking at roughly seven sales per month.

Let’s say your average sale value is $500, and your customers stick around for six months on average. That means each customer is worth $3,000 to your business.

Do the math: ~7.2 sales multiplied by a $3,000 customer lifetime value gives you $21,735 in lifetime revenue. And remember, this all started with just 20 cold email accounts. 

If you think that’s impressive, we’re just getting started.

The Costs of Cold Outreach

Of course, nothing in business comes free, and cold outreach is no exception. But here’s the kicker: it’s incredibly cost-effective.

Let’s break down the costs. You’re spending $241 per month on sending infrastructure and another $198 on leads.

That brings your total monthly cost to $439.

But let’s not forget the real cost driver: booking those calls. With 48 booked calls each month, your cost per booked call comes in at just over $9.

That’s less than what you’d spend on a sandwich these days! And when each of those calls is worth $450 to your business, it’s easy to see how the math works in your favor.

The Astonishing ROI

Now, let’s get to the number that matters most: your return on investment (ROI).

With $21,735 in revenue and just $439 in costs, your net return comes out to $21,296 each month.

That’s an ROI of 4851%. Yes, you read that right. It’s not a typo.

To put that into perspective, consider the average ROI from other marketing channels. Paid ads typically deliver an ROI of 200-300%, while SEO might bring in 500-600% if you’re lucky.

Cold outreach, on the other hand, absolutely dwarfs those numbers. It’s like comparing a mountain to a molehill.

Why Cold Outreach Works

So, why is cold outreach so effective? For starters, it’s direct and personal. You’re not relying on algorithms or search engine rankings.

You’re reaching out to potential customers one-on-one, cutting through the noise and making a direct connection. And when you do it right, the results speak for themselves.

Another reason for its success is the low upfront cost.

Unlike paid ads or SEO, which require significant investments in both time and money, cold outreach can be scaled up or down depending on your needs. 

You can start small, as we did with 20 email accounts, and gradually increase your efforts as you see results.

Practical Tips for Maximizing Your Cold Outreach ROI

If you’re ready to give cold outreach a try, here are some tips to help you get the most bang for your buck:

1. Start Small and Scale Up: Don’t overwhelm yourself by trying to manage too many accounts at once. Start with a manageable number and increase as you get comfortable.
2. Focus on Quality, Not Quantity: Sending a high volume of emails is important, but the quality of those emails matters just as much. Craft compelling messages that speak directly to your audience’s needs.
3. Track and Optimize: Keep a close eye on your metrics—reply rates, booking rates, and show-up rates. Identify what’s working and what’s not, and make adjustments accordingly.
4. Be Persistent: Not every email will result in a sale, and that’s okay. Follow up with leads who show interest but don’t commit right away. Persistence pays off.
5. Leverage Data: Use data to your advantage. Analyze patterns in responses and tweak your approach based on what’s resonating with your audience.

Conclusion: The ROI of Cold Outreach

Cold outreach might seem old-fashioned, but the numbers don’t lie. With a staggering 4851% ROI, it’s a strategy that deserves your attention.

While other marketing channels have their place, cold outreach offers a level of cost-effectiveness and direct engagement that’s hard to beat.

So, if you’re a business owner looking to maximize your return, it might be time to give cold outreach another look.

After all, when you can turn $439 into over $21,000 every month, it’s clear that cold outreach isn’t just a viable option—it’s a game-changer.