- Cold email is the best way to reach all of your TAM quickly. Most startups don’t even talk to 10% of their potential customers in a year. 30k sends a month gets you there fast.
- Cold email is one of the most statistically predictable ways to grow pipeline. You can literally boil it down to a reliable formula, which I will share below.
- Cold email may have the most asymmetric upside of any way to grow your company. In the worst case, you listen to my advice below, burn 15 hours, and spend $300 on domains. You don’t need to hire more people or spend money on ads or do any of that stuff. In the best case, with just a few days of work, you could add millions of ARR to your company.
20,000 x 0.03 x 0.2 = 120 meetings.In this math I am assuming:
- You email 20,000 leads over the month (sending ~1.5 emails to each2).
- You get a 3% reply rate.
- You book meetings from 20% of those replies.
- We learned to hire SDRs linearly to increase email volume as our companies grew.
- We learned to do prospect research one-by-one and write every email manually.
- We discarded cold outbound at scale as something that was not really an option.
- You would build a huge list of everyone who might want your product. You could use a tool like Clay or Apollo to build this list automatically.
- You would buy a bunch of adjacent domains, because you won’t be sending from your company’s main one. For Za-zu, my company, that might be helloza-zu.com, za-zusales.com, hiza-zu.com, goza-zu.com—you get the idea. For 1,000 emails a day, you’d want ~18 domains.
- You would get set up with a tool that handles the email warming, deliverability, and sending. So you can manage everything from one clean inbox without getting sent to spam. Za-zu is the tool I built to help me do this. There are others, but Za-zu is the best and the simplest.
- You would write good, personalized email templates, leveraging a bunch of data about each lead that you could pull automatically with a tool like Clay or Apollo. You’d send 1,000 a day.
- You would book meetings and hopefully make a lot of money.
1 I am confident you will grow your revenue if you 1) have a good product, 2) email the right people, 3) write good emails, and 4) have a good conversion funnel (i.e. your sales calls or self-serve signup actually work). It’s also true that you can very possibly book new revenue without having some or even all of these pieces. 2 You’re not literally sending 1.5 emails per lead, but you might average 1.5 emails sent per lead. That’s because I am assuming you are sending follow-ups. If you are sending more follow-ups and more often, then you may contact fewer than 20k leads a month. You could also send 1 email to 30,000 new leads in a month. 3 1,000 emails a day is catchy and may actually be the right volume for some products with a large TAM (like Za-zu). But some companies—imagine you’re pitching pharmaceutical execs—will probably want to find their own version of what 1,000 emails a day means. Maybe it’s 100. Maybe it’s 50. Up to you.