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Cold Calling4 min read

Founder-Led Cold Calling: How to Do It Well Before You Hire an SDR

Most founders end up as their company's first cold caller, and they usually stay in the role longer than they expect. SaaStr's rule of thumb is that founder-led sales holds up until somewhere around $1M to $2M in ARR, and until then most founders are still closing the large majority of new business themselves. Owner.com's CEO, to pick one example, personally closed roughly the first thirty customers before hiring anyone to sell.

Founders also start with advantages no SDR has. A founder calling a VP is talking to a peer, which counts for something when RAIN Group's research shows 57% of C-level and VP buyers prefer the phone.

Founder emails draw replies well above the rate of SDR emails, around 8% to 15% against 2% to 5% in one analysis. The phone data is thinner, but there's no obvious reason the title would stop helping once the prospect picks up. A founder can also answer a hard product question on the spot, or agree to something unusual without asking anyone's permission.

The trouble tends to start a few seconds into the call, when the founder begins pitching.

Why founders pitch

The pull is easy to understand. Nobody knows the product better or cares about it more, and most founders have explained it so many times, to investors and candidates as much as to customers, that the pitch comes out without effort.

That ease is part of the problem, and it ties back to what salespeople sometimes call seller's deficit disorder, the scattered focus that builds up over a day spent switching between tabs and dials. Founders tend to have an extreme version of it. A founder might come out of a product review and be dialing ten minutes later, with the review still running in the back of their mind. Research on task-switching has shown for decades that moving between jobs costs time and accuracy, and on a cold call that cost shows up as a founder reaching for whatever takes the least attention. The pitch takes almost none. Finding out whether the prospect actually has a problem takes a lot, because it means listening closely to a half-answer and deciding what to ask next.

What pitching early costs

A prospect who hasn't said they have a problem has little reason to care about a solution, however good it is. Neil Rackham's research on more than 35,000 sales calls found that the sellers who did best asked questions that got buyers to describe what a problem was costing them. A founder who opens with a product walkthrough skips that step entirely.

It also changes who does the talking. On sales calls that go somewhere, reps talk around 57% of the time and the prospect talks the other 43%. On calls that go nowhere, the rep's share often climbs past 62%. A founder who spends the first couple of minutes on the company and the product has used up most of their share before the prospect has said much of anything.

One advisor describes a founder whose cold emails earned a 28% reply rate, which is excellent, and who still converted fewer than 12% of first calls into a second conversation. Every one of those calls opened with a company introduction and a product overview. The outreach was working, and the calls weren't giving prospects a chance to say why they'd replied.

Sparking interest instead

The founders who convert well tend to treat the first call as a chance to learn whether there's a real problem worth solving. That starts with a reason for calling that's specific to the prospect, like a recent change at their company or something they've said publicly. From there it's plain questions about how things work today and what's changed recently, followed by enough quiet for the prospect to actually answer. Product details tend to land better once the prospect has asked for them.

Research before the call is what makes those questions possible. A review of fifteen documented outreach campaigns run by solo founders found that founders who researched each person individually got a meaningful share to respond, while those working from bought or scraped lists got almost nothing back. Knowing something specific about the prospect gives a founder a natural first question, and without it the pitch is about all that's left.

Building the playbook as you go

There's a second reason to get this right early. According to one analysis, the most common reason a first sales hire fails is that the founder never wrote down a repeatable process. The questions that got prospects talking and the objections that kept coming up are exactly what a new rep will need, and until a founder documents them, they live only in the founder's head.

Where COSaiL fits

Most founders know their competitors and their numbers cold. What takes more practice is the selling itself, like asking the next good question when every instinct says to start explaining the product.

COSaiL listens during the call and surfaces options for where to take the conversation from there. That might be a discovery question that gets the prospect talking about the problem, or a way to answer an objection that keeps the conversation open instead of turning it into a product defense. The founder picks what fits and says it in their own words. It works a bit like having an experienced seller listening in, nudging toward a question right when the pitch is about to start.

After the call, COSaiL shows the talk ratio, which makes it easy to spot the calls that tipped into pitching. It also transcribes the conversation and writes up the action items. Over a few weeks, those transcripts become a record of which questions worked and how prospects responded, which is the start of the playbook a first hire will need.

Founder-Led Cold Calling: How to Do It Well Before You Hire an SDR | COSaiL