Inside Scoop Service Magic

 
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Old 04-07-2006, 02:43 AM   #1
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Inside Scoop Service Magic


Sometimes it's kinda nice to see the other side of things including Service Magic.

I used to work as an inside rep, there. Here's the skinny.

If you are a contractor in the network one of two scenarios will happen. You will be wildly successful or not. I had guys who were both.
What made the successful ones successful is number one the profile.

If you have a great profile with pictures and lots of information and you follow up with the customers with SM's tools and you understand marketing is a numbers game you will make money with their leads. The second thing that make you successful is your professionalism.

If you are new in the network you work with an Account Manager for the first 90 days. That persons job is to make sure you are successful
and making money with the system. The AM will conduct lead audits and talk with the homeowner and ask them why you did or did not win the job. It's great because you get that feedback directly from the horses mouth. Also no matter what any rep tells you about their product you must have a realistic expectations. And yes your response to getting in touch with a lead is a huge factor. DON"T SIT ON THE LEAD.

Also as with any marketing program don't expect huge returns if you are not giving it an honest chance. If you set your budget at $100 a month and you are a remodler or a roofer or painter dont expect to close a deal for a while because you are not working the numbers. (based on the average lead cost.)

Yes there are homeowners that fill out a request that want the cheapest price. But also be sure you are giving a fair bid. All SM does is make the connection it's up to you to make sure your business is successful and profitable, not SM.

This message is not a ploy to get you to sign up because I don't work for them any longer and I could care less. I didn't like working for them, but if I was going to start a contracting business and knowing what I know, from the inside I would probably use their service but I wouldn't depend solely on SM to make me money.

One final thought is since you are not tied into a contract with SM you can bail at anytime. They want you to be successful or you won't be back. They want their service to work for you.

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Old 04-07-2006, 08:35 AM   #2
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Re: Inside Scoop Service Magic


This is what I can't understand. Why with SM's tools? Why does it matter if I use their tools or my own email client? Whya re SM's tools "magic"?

I ask because this is what I was already told by the SM reps, but the way I see it... If I want to stand out I shouldn't look like my compitition, and if my compitition is using SM's tools their e-mails will look like identicle canned emails. This is why I simply send my clients and e-mail using my outlook client, which basically says the same thing as SM's emails however in my own words.

Ahhh yes let's talk working the numbers... Service Magic told me that only 75% of the people who request leads actually persue the project. So that gives me a 75% chance of getting the sale right? WRONG! Because service magic sells my leads to 3 of my competitor's as well that leaves me with a 25% chance out of 75% to close a sale. BOOO HISSSS. BAHUMBUG! That's like an 18.75% chance only. That's talking numbers. I consider myself to be an above average salesman, but I do even les than 18% with SM leads. Less than 18%? Damn why am I wasting my time?

SM makes the connection? WRONG! SM does not guarantee a customer will call you back or hire you. Ok I can live with the part about not guaranteeing I will be hired, however if I can not meet with a customer IT IS NOT A VALID LEAD! ...and I should not have to pay for it.

The above paragraph is where I have the biggest problem because I always have to fight for my lead credits.



I have been using service magic for about 4 years now and they have gone down the drain. I built my old bosses business on service magic, and other such companies, but service magic has moved from primary to secondary or even third favorite lead generation system.

I know you don't work for them anymore, but these are questions I ask of them all the time and only get canned responses which piss me off tremendously.
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Old 04-07-2006, 09:20 AM   #3
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Re: Inside Scoop Service Magic


grumpys right! i have to agree. it's a catch 22 senerio. i one hand you get the lead yeepee! but then on the other its next to impossible to get in the house let alone get ahold of the customer. play the numbers i have been and they are not coming out in sm fav. and again we always have to fight to get money returned what the heck! these post take up so much space on this site and always the same coclusions. maybe sm should try and go back a feww steps and get back to what they were doing before. and oh yeah! you say your not a contractor your not working for sm but you just simply found this site and decided to write a post on it get real dude! your a sm rep if ever i could smell em! hey next post tell me how i can get my money back for the junk leads they fill me up with everyday? and also while i'm off on a tangent, you say something two sided. i don't work for them and you think they suck. yet you would use them if you were in business get real man. instead of sending them your dough send it to me and i'll send you all my dead leads files ( that are filled with sm leads!) hey what buy the brooklyn bridge i can give you a deal LMAO!!!!!
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Old 04-07-2006, 03:29 PM   #4
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Re: Inside Scoop Service Magic


Maybe I haven't done this long enough, but to date, Service Magic has served me well. I've closed 2 of 5 leads, but have turned $4000 in sales. Yes that's only a 20% closure rate but it has been a nice supplement to my other advertising efforts.

I do have a question for you others who use the service...

I got one of these customers so far to give me a rating, and now I qualify for the "Exact Match" service (leads are 50% more each, direct hookup via 800#).

Does anybody use Exact Match? Likes or Dislikes? Results?

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Old 04-07-2006, 03:45 PM   #5
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Re: Inside Scoop Service Magic


Here is how the numbers game is played in my company using service magic

They send me 100 leads
I only reach 45 of them
Close ratio is lower than average......20%
So I sell 9 jobs.

Our average job is $13,800
Multiplied by 9 jobs equals $124,200 in new business
Cost to Service Magic $3500 because I had to pay for 100 leads not just 45

$3500 spent to get $124,200 in business is money very well spent in my world. I wish they would send me more leads.

I just sold $9200 worth of windows to a past Service Magic customer......We did their doors 2 years ago
Cost for this lead and sal........ZERO
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Old 04-07-2006, 08:25 PM   #6
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Re: Inside Scoop Service Magic


I used SM for just over nine months. The first three months were great, I had my limit set at $300.00 monthly, the leads were excellant, I was closeing 75% of the leads.

The next three months the quality of the leads fell off, but I was still closeing 50%.

The next three months were a nightmare, the quality of the leads were awful, I couldnt even contact 95% of the leads, and the 5% I could contact swore they had never even heard of SM.

I can truly say I will never use SM again. Also the average responce time for me to contact the lead during those 9 months was 5 mins, all the leads were forwarded to my cell. Live and learn.
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Old 04-08-2006, 05:46 AM   #7
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Re: Inside Scoop Service Magic


SM has the inside scoop. When you sign up with them, they take your credit card, send you leads, and charge you to death. It doesn't matter your spend limit. I have mine set at $200/mo and frequently get $400/mo in leads. It's like their month is half as long as mine, or they don't care what my spend limit is, and they just spam me with bogus leads so they can swipe more money each week.
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Old 04-08-2006, 10:14 AM   #8
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Re: Inside Scoop Service Magic


Wow!

I average one lead from them every 2-3 weeks. Had an itty bitty February job followed by a really big March job. I am waiting for an April lead from them now, as it has been just over 3 weeks since I have heard from them.

My categories are really specific though. Stone and Ceramic, Install only. I finally slowed down enough to look at area zip codes and expand my coverage area.

- Bob
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Old 04-08-2006, 02:48 PM   #9
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Re: Inside Scoop Service Magic


Hey, isn't this like the fifteenth "inside scoop" we've gotten from lead companies? LoL!
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Old 04-11-2006, 01:40 AM   #10
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Re: Inside Scoop Service Magic


Quote:
Originally Posted by dinkisdad
The AM will conduct lead audits and talk with the homeowner and ask them why you did or did not win the job. It's great because you get that feedback directly from the horses mouth. .
I've used SM personally as a homeowner at least 4 times. The only follow up I ever received was a form email to confirm the project went off well. Guess how many I replied to? If you guessed zero you are right. Email and the delete button go hand in hand. Out of the 4 times I used SM to try to find a resource I used their vendor 1 time only. The follow up was the same form email whether any SM vendor got the job or not. I wouldn't put too much credibility on any lead auditing they are going to be doing or any benefits you will be receiving from it.
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Old 04-11-2006, 06:13 PM   #11
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Re: Inside Scoop Service Magic


I never got that feedback....ever. pff!
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Old 04-13-2006, 04:17 PM   #12
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Re: Inside Scoop Service Magic


I'll still never understand paying for leads, not getting a response or even a chance to talk to the property owners, and still having to pay for the lead.

Guys, there are services out there that will guarantee their leads - even though they may not have as many as the big marketing juggernaut. You can still get verbally qualified leads from the smaller guys who still care about customer service...
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Old 04-13-2006, 05:19 PM   #13
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Re: Inside Scoop Service Magic


Yes there are those services, tim. Such as the one in your signature perhaps? However as you said yourself "not as many as..." Though the quality is higher there just aren't enough to sustain my company. I'd love it if some of the smaller companies could amp up their output of quality leads. I'd gladly increase my spending with them.
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Old 04-13-2006, 05:20 PM   #14
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Re: Inside Scoop Service Magic


Quote:
Originally Posted by Tim C
I'll still never understand paying for leads, not getting a response or even a chance to talk to the property owners, and still having to pay for the lead.

Guys, there are services out there that will guarantee their leads - even though they may not have as many as the big marketing juggernaut. You can still get verbally qualified leads from the smaller guys who still care about customer service...
Is that why your website's tag line is "Let Contractors Compete For Your Business!"

Way to create an adversarial relationship right off the bat!!!!



You pretend to be part of the solution, but you're more part of the problem.
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Old 04-13-2006, 06:00 PM   #15
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Re: Inside Scoop Service Magic


Quote:
Originally Posted by Mike Finley
Is that why your website's tag line is "Let Contractors Compete For Your Business!"

Way to create an adversarial relationship right off the bat!!!!



You pretend to be part of the solution, but you're more part of the problem.

Well, it's the reason monopolies are not allowed. Competition is always good for both sides. It's just that some people don't always see it that way.

I just think it's important that all lead providers give you qualified and guaranteed leads. It's what you're paying for.
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Old 04-13-2006, 06:12 PM   #16
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Re: Inside Scoop Service Magic


Tim it has nothing to do with monopolies or fair trade, Christ, come on now, I'm going to give you more credit than that!

Where do you get monopolies out of adversarial relationship?
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Old 04-13-2006, 06:25 PM   #17
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Re: Inside Scoop Service Magic


Mike,

We use the slogan "letting contractors compete for your business", which means giving the consumer a choice (i.e. not a monopolized market), to let them know that more than one company will be contacting them.

Our slogan means that people who post their home improvement project on our site will have a choice. Not just one contractor will contact them (In fact, soon they'll be able to choose exactly how many they want to contact them.) We give the contractors a chance to bid on the project so that the homeowner can choose. Competition between contractors prevents the over-charging and extreme markups that, unfortunately, too many people fear in the construction industry.

It's a reassurance on our part. My apologies if it sounds adversarial.
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Old 04-13-2006, 07:11 PM   #18
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Re: Inside Scoop Service Magic


It's extremely adversarial and since your replying to a thread about SM and how crappy the leads are because lead providers like them and yourself create this mentality with your tag lines and advertisements. You create a pitting of the customer against the contractor much like the Ditec ads "where banks compete for your business" creating a commodity mentality or adversarial relationship.

The exact opposite would be a tag line such as YourWebSite.com "Where we provide you with 3 excellent prescreened contractors"

Your message and that message are totally different.

Part of the complaints from contractors (that you should be aware of if you spend any time looking at this site in regard to lead services) is the low commitment from customers from lead services. Contractors continually complain about not even being able to get ahold of a customer from a lead service. Why should they be able to? With lead services like yours that create these commodity mentalities the customers see no reason to think any other way. Why would a homeowner think any other way when you reduce it to the lowest common denominator of money and competing for your business? The good contractors here market and thrive based on quality and customer service, get the job done right the first time, not begging for your business.

It has been said time and time again here, that the first lead service that figures out that the contractors buying their leads are a lead services real customer and not the homeowners filling out the leads will be the one that takes over the market place. This has been SM biggest fault, they forgot and pander to the homeowners and have diluted themselves.

If you can't see how "Where contractors compete for your business" is adversarial then you probably won't be the one to figure out who your real customers are either.
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Old 04-13-2006, 07:37 PM   #19
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Re: Inside Scoop Service Magic


Quote:
Originally Posted by Mike Finley
It's extremely adversarial and since your replying to a thread about SM and how crappy the leads are because lead providers like them and yourself create this mentality with your tag lines and advertisements. You create a pitting of the customer against the contractor much like the Ditec ads "where banks compete for your business" creating a commodity mentality or adversarial relationship.

The exact opposite would be a tag line such as YourWebSite.com "Where we provide you with 3 excellent prescreened contractors"

Your message and that message are totally different.

Part of the complaints from contractors (that you should be aware of if you spend any time looking at this site in regard to lead services) is the low commitment from customers from lead services. Contractors continually complain about not even being able to get ahold of a customer from a lead service. Why should they be able to? With lead services like yours that create these commodity mentalities the customers see no reason to think any other way. Why would a homeowner think any other way when you reduce it to the lowest common denominator of money and competing for your business? The good contractors here market and thrive based on quality and customer service, get the job done right the first time, not begging for your business.

It has been said time and time again here, that the first lead service that figures out that the contractors buying their leads are a lead services real customer and not the homeowners filling out the leads will be the one that takes over the market place. This has been SM biggest fault, they forgot and pander to the homeowners and have diluted themselves.

If you can't see how "Where contractors compete for your business" is adversarial then you probably won't be the one to figure out who your real customers are either.

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Old 04-13-2006, 08:15 PM   #20
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Re: Inside Scoop Service Magic


Quote:
Originally Posted by bassmaster
I'll second that...
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