Cold Calls or Referrals: Which are Best?

It's the great debate of lead generation. Cold call a list of potential clients until you reach a decision-maker? Or inagle an introduction t by imposing on friends and colleagues? The debate is all the more fierce now that there are automatic calling services (like ConnectAndSell) that remove the busywork from cold-calling, and social networking sites (like LinkedIn) that make it easy keep in touch.

So which is it? What's the better way to develop a lead into a prospect?

READERS: You guys are the experts, so feel free to share your experience.