Lead Service For Contractors By Contractors

 
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Old 11-30-2007, 04:16 PM   #1
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Lead Service For Contractors By Contractors


I'm getting fed up with the lead services we use.
We get a far better, quality lead through our websites than we do paid "online lead generation" companies.

My wife wants some winter work.
And I would like more leads and to help out other contractors who want to make their winter marketing freeze go away.

I already have the site registered.
Just need to tune up a lead program for different trade specialties for contractors state to state.

I wouldn't mind getting a little input though...

What do you seek in an online lead company?

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Old 11-30-2007, 04:51 PM   #2
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Re: Lead Service For Contractors By Contractors


As for me I need plumbing repair leads with real customers who want the quality services in Md state.
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Old 11-30-2007, 05:24 PM   #3
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Re: Lead Service For Contractors By Contractors


The fatal flaw is that these services charge for leads. The public is then encouraged to use the service and the leads are not screened for quality because doing so reduces the lead company's revenues. This business model is the standard of the industry and to be honest with you, I'm surprised it has not yet been outlawed.

When I was with Service Magic, 75% of the leads were utter nonsense, people who would not call you back for the most part. The most scandalous part of the SM scam is that they will not refund your money for bogus leads, only allow you to apply the money to buy more bogus leads.


Rodney says "A sucker is born every minute!"

Why does no one know who the founder of Service Magic is? Rodney Rice is often cited as "CEO and co-founder" but the other founder or founders have chosen to remain anonymous. Rodney Rice operated a bagel company before some mysterious gentleman asked him to help found Service Magic.

Why all the secrecy? Obviously Rodney is the front man and the other founders feel the need not to be publicly associated with Service Magic.

Anyway, what do I want in a lead company? I don't want to pay until I have the job. How do you like them apples? I would pay 10% of the gross sale price without blinking an eye. Real money for a real job. Find a way to pull this off and you will be very successful.
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Old 11-30-2007, 05:40 PM   #4
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Re: Lead Service For Contractors By Contractors


We already planned on calling all incoming leads to screen them before we shoot them off to the contractor.
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Old 11-30-2007, 08:37 PM   #5
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Re: Lead Service For Contractors By Contractors


Quote:
Originally Posted by L. B. Condulet View Post

Why does no one know who the founder of Service Magic is? Rodney Rice is often cited as "CEO and co-founder" but the other founder or founders have chosen to remain anonymous. Rodney Rice operated a bagel company before some mysterious gentleman asked him to help found Service Magic.

Why all the secrecy? Obviously Rodney is the front man and the other founders feel the need not to be publicly associated with Service Magic.
Barry Diller was the chairman and seo of Silverking Communications in 1995

In 1996, they merged with Savoy Pictures, Inc. and were renamed HSN, Inc., the Home Shopping Network.

Here are the other current officers and responsible parties of what now has become IAC Inc. Just go to this link:
http://www.iac.com/management.html

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Old 11-30-2007, 09:59 PM   #6
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Re: Lead Service For Contractors By Contractors


Quote:
Originally Posted by MattCoops View Post
I'm getting fed up with the lead services we use.
We get a far better, quality lead through our websites than we do paid "online lead generation" companies.

My wife wants some winter work.
And I would like more leads and to help out other contractors who want to make their winter marketing freeze go away.

I already have the site registered.
Just need to tune up a lead program for different trade specialties for contractors state to state.

I wouldn't mind getting a little input though...

What do you seek in an online lead company?
Good idea Matt, I say that because I have been working on the same idea for the past couple of weeks. I am started to test a forum based lead site just for window leads. Since my regular site ranks well for national keywords I am going to put the same effort into the forum site. The problem now is not so much finding contractors, but finding good ones that provide both a great service and a great product.

Let me know what you figure out for pricing and how many providers for each client. I'm looking at a low fair price and this for a return policy :"If you ever call or e-mail me for a lead credit you will never get another lead". I sort of like a fixed percentage if the job is sold over a per lead price.

To answer your question in one word : INTEGRITY
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Old 12-01-2007, 04:00 AM   #7
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Re: Lead Service For Contractors By Contractors


We are going to screen all calls.
The wife has an unlimited minutes plan on her cell with no extra charges for long distance.
So there will never be an issue of not being able to get ahold of a customer. Or at least it will be a fought issue. So not likely to want a credit for "no contact".

I would credit someone if the person decided not to do the job for some reason prior to a contractor calling them. Or wrong info.
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Old 12-01-2007, 05:09 AM   #8
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Re: Lead Service For Contractors By Contractors


As a contractor, a lead service should know when to leave you alone. I signed up for one called "respond", and all I get are spam mail from them. A contractor based (contractor founded) lead service is what I think the internet needs now, not a startup trying to make a few bucks.
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Old 12-01-2007, 06:42 AM   #9
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Re: Lead Service For Contractors By Contractors


That's a real good idea Matt,

Personally, I would like to see a lead service such as the one you described that would charge the customer a certain amount, like say $10 or $15 to submit a request for service. That would eliminate a lot of the bogus and nonsense leads such as ServiceMagic and Reliable Remodeler produce. This goes right along with the same idea that Mike Finney and others have for charging for estimates just to eliminate the tire kickers.

When they pay their $10 or $15 to get prescreened, they get matched up with a qualified contractor(s). If they accept a proposal from one of your contractors the $10 or $15 would be credited on the clients invoice by the contractor, and then the $10 or $15 would be charged to the contractor that won the bid in addition to any referral fee that you set up.

You could promote that $10 or $15 fee in a way that makes the potential client realize that they are getting quality prescreened and pre-certified contractors and not just any run-of-the-mill guy with a hammer and toolbelt. And also should they elect to go with one of your contractors, they will get that $10 or $15 back. It's a win-win situation for both the home or business owner in the contractor.

In reference to shed's post, an online control panel would be nice so that a contractor can regulate the amount of leads he wants to receive, the types and locations of leads, etc.

Good luck, I certainly hope you make it work! Lord knows everyone here could use a decent referral service.
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Old 12-01-2007, 11:02 AM   #10
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Re: Lead Service For Contractors By Contractors


I think it's a great idea... until profits enter into it.

It's one thing to come up with a pie in the sky, utopian idea, it's quite another to come up with a profitable business.

Is all your traffic going to be free, generated from online searches? PPC? How many real leads a day are you projecting to generate this way? It sounds like a plan where your wife might end up working for about $.10 an hour.

Love to hear some real meat and potatos of how you have thought this out, how you are going to crack what is basically already a flawed business model.

I can say I'm going to start a new contracting business where I won't take any money until 1 year after the job is complete to ensure we did a good job, and we will only take on jobs that involve products that start with the letter "R", and we will pay our employees 3X the going rate to ensure our employees are the best in the industry, that should mean everything we do it perfect and our employees will be so happy they will love us.

Sounds great! Now how does it make money?

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Old 12-01-2007, 11:45 AM   #11
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Re: Lead Service For Contractors By Contractors


Traffic will come through SEO and SERPs
and also PPC campaigns.
They will come another way, but I'm not going to exploit that right now. The wife thought the idea up and it's a good one.
So I got a secret recipe, now I just have to mix the batch (and add a few meatballs - no offense)

Do ya'll appose a signup fee of $99?
This covers the expense of obtaining the leads and setting up an individual mini website.

I'm still working on prices for leads in different categories.
But the leads you get from users seeing your profile and ratings are half off.
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Old 12-01-2007, 12:20 PM   #12
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Re: Lead Service For Contractors By Contractors


Angie's list came up in another thread. $15 signup fee and $7.50/month membership by homeowners. I don't like Angie's list but there is a business model here.
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Old 12-01-2007, 01:27 PM   #13
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Re: Lead Service For Contractors By Contractors


I'm looking at a low fair price and this for a return policy :"If you ever call or e-mail me for a lead credit you will never get another lead". I sort of like a fixed percentage if the job is sold over a per lead price.

Why would I want to use your service with that return policy?

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Old 12-01-2007, 03:37 PM   #14
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Re: Lead Service For Contractors By Contractors


Quote:
Originally Posted by deckman22 View Post
I'm looking at a low fair price and this for a return policy :"If you ever call or e-mail me for a lead credit you will never get another lead". I sort of like a fixed percentage if the job is sold over a per lead price.

Why would I want to use your service with that return policy?

Al
You take the good with the bad at a lower cost per lead. I don't want to sidetrack Matt's thread anymore, Pm me if you want.
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Old 12-01-2007, 06:42 PM   #15
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Re: Lead Service For Contractors By Contractors


Quote:
Originally Posted by dougchips View Post
You take the good with the bad at a lower cost per lead.
I would like exactly the opposite in a lead service. In fact, low cost/low quality is the problem I have with lead services I've tried. The value just isn't there. If I wanted to call people at random and beg for work I could pick up a phone book and start dialing.
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Old 12-01-2007, 09:38 PM   #16
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Re: Lead Service For Contractors By Contractors


We will be pre-qualifying leads and making sure contact info is correct before sending lead to contractor.
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Old 12-01-2007, 10:57 PM   #17
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Re: Lead Service For Contractors By Contractors


With proper optimization, you can get a load of leads. I have only spent a few hours seoing my site, and all of my traffic comes from SE's. I don't get much, 10 or so uniques per day, but like I said, that's only a few hours, and not too many people are looking for sheds or decks this time of year either. Initially, it might take 10 hours of keyword research and writing, and submitting links, but after that, 10 minutes a day should be sufficient to maintain good SERPs.
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Old 12-02-2007, 08:07 AM   #18
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Re: Lead Service For Contractors By Contractors


Quote:
Originally Posted by Susan Betz View Post
Angie's list came up in another thread. $15 signup fee and $7.50/month membership by homeowners. I don't like Angie's list but there is a business model here.
I actually like the model. The problem that I had is that they expanded to our area, and all of a sudden had all these qualified contractors. Many of these contractors were sub-contractors of mine and I could not figure out for the life of me how they made it onto the list. I am not looking to be negative on some of my subs, but I found it strange that Angie's List had a way to reference them and connect to them when I know exactly how some of these guys are. I did inquire and got a rather strange response, and it seemed that there were was one residence in the area that used almost every type of contractor (and was equally satisfied with EVERY type of contractor). Probably their way of "expanding" into an area. But I do not know since I couldn't get an answer. I think their idea is good but also do not see homeowners paying for this for much longer - especially if the contractor becomes more Internet effecient. It may just be a short term fad.
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Old 12-02-2007, 05:16 PM   #19
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Re: Lead Service For Contractors By Contractors


That's the thing with Angie's List. They don't know if the user is a homeowner or a contractor with nothing but good things to say about themself.

We have a program setup to obtain leads.
Then those leads can submit reviews for the contractors.
The reviews are listed in the contractors profile and online users can submit a project directly to that contractor. These leads are half price when submitted directly to the contractor.
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Old 12-03-2007, 04:49 AM   #20
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Re: Lead Service For Contractors By Contractors


Matt, lets say that I'm interested in your idea.....And I might be willing to invest(time or money) in your idea....Do you have a plan written down? Can you PM me or email me a copy of the details?
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