Not Pay Per Lead Service

Fauker_9

Looking into a program offered by what I believe is a locally owned contractor lead service. There are no annual fees, and you don't pay per lead, you pay if you get the job, and when you get paid from the job. Their fee is 8% of the total cost of the job, seems pretty fair to me. What do you guys think? Ever dealt with a company like this?

MattCoops

you could get a ****-hot salesman to set appointments and pay a flat fee (like 10 to 20 bucks per set appointment). And if you land the job pay a commission of total labor charges. (like 2-5%)

8% is a little high

but sounds tempting if you only pay for signed contracts

they probably have a tele-marketing team
you could do same by opening a phone book and thinking: "for every say 30 people I call, I may get an estimate set"

you could probably find better ways to advertise, and pro-actively seek leads. Some can be free, just have to get out there and think creatively.

__________________
Matt with Cupan Custom Tile & Paint of Lowell, Massachusetts
Design and installation of ceramic tile and natural stone for floor, wall, and countertops
(978) 601-8774 | cupantile@gmail.com | view tile pictures and more

Richard

1) I think it sounds awesome

2) no-I've never dealt with a company like that



ps-what's the company called? I would love to check into it. Pay them $240 for a $3000 job sounds fine to me. 'Specially in the winter.

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Rich

DecksEtc

I'd say that 8% is too high.

But then it depends on the type and size of jobs you get through them. $240 on a $3,000 paint job could be acceptable. However, for a $15,000 deck you'd be forking out $1,200 - there's no way I'd go for that. Perhaps, if they had a capped amount it would be more acceptable.

North Country

Be careful how you consider this, I set my-self up initially when I first got started paying 10% of job price for basically a referall. Still had to sell the job myself. Consider this customer wants a 1200. door installed, say you charge 240. for install, total job price of 1440., you would have to pay 144 for the referal, leaving you with 96.00, also 8% or 10% of say a 100,000. remodel is 8,000 or 10,000 simply for the referal..., you could pay another worker for that. I pay 8% of gross profit, (not labor or material) and it works out well. Figure on a 100,000. job, 10% profit x 8% = 800.00 for a referral. Hope this is helpful.

Fauker_9

ok I recieved some more paperwork on this. It starts at 12% for a job up to $500 and goes down to 3.5% for $50,000 and up. As the price goes up the % goes down, which is understandable. It sounds like a decent cost, I pay more than that sometimes now with my customer referral program. I think that I'm going to give it a shot, I'll let you guys know how it turns out. Another cool thing is that they are locally owned and run the business less than 20 min. from my house.

go dart

8% is a nice sales comission. a lead is worth 1-2%

wolffhomerepair

I recently signed up with a company like this. Only charge if I land the job. Same thing as the job $ increases the % decreases. I just started with them(one week to be exact) but have already gotten a job that I would not have known about otherwise. I think too that I may not need to spend as much on advertiseing if this works out.

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" Of course I don't look busy, I did it right the first time "

MattCoops

do these companies have websites?

and just a dumb question,
did they have a telemarketer call you on saturday to prompt you about the service?

__________________
Matt with Cupan Custom Tile & Paint of Lowell, Massachusetts
Design and installation of ceramic tile and natural stone for floor, wall, and countertops
(978) 601-8774 | cupantile@gmail.com | view tile pictures and more

wolffhomerepair

I actually answered an add in the paper. Thought they were looking for a sub for a remodel job.

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" Of course I don't look busy, I did it right the first time "

Fauker_9

I stumbled across my guys website, I was doing a search for new home builders in southern maine, I went down the list and added my website to any sites that listed builders, and I also found this guy and put in a quick inquiry. www.homeprojectpartners.com

wolfix

8% for a sold lead that you never had to do anything with but sell??????
Wow..... I would jump on it.

I have came up in the industry with every type of lead known to man, but this new way of getting leads without working for them is great.

The 8% is not bad if you consider the time you save from trying to generate leads..... Time that can be spent achieving something else.
Then that initial cost comes down if you figure the chain of possible referrals...... and referrals from referrals....
Plus..as marc would say, this is truly running your business by the numbers.

Soon......
We will have leads services....
We will have salesmen who are subs,
We already have labor as subs...
We have outside book keepers,
We have answering services.....

What will be left for us to do?????

Max10

I agree with this 100%....

Quote

8% does seem high. Although the referral company does all the advertising for you and filters through the unqualified prospects. If you were to do your own advertising, it would cost you something like $2,000 in Money Mailer (For example).. and you still would have no control over which homeowners call you and what the budget of the jobs are. In my opinion, you should check out other options for the best possible deal before making your decision.

There are referral sites that charge you a monthly fees plus individual lead referral fee.

There are other lead referral models which will charge you a flat fee just for the referrals and will no take comissions.

There are some who do both -- charge for the referral AND take a commission if you get the job.

And then you have the ones who only charge you commission if you do get the job.

My fiance and I have a lead referral website where we charge a $15.00 flat fee for any lead you are interested in with NO membership fees.

C.C.R.

I agree 8% on the total job is a little high. But its still looking into. Do any of these serv. MA. It just took me more than a week to cancel with "Reliable Remodeler". Guy knew I wanted to cancel so he wouldn't take my calls.

SOX RULE!!!!

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Complete Custom Remodeling
"When Quality is Top Priority"
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marc

If you could send me the info I would appreciate it. We do work in Sothern Maine, NH and Northern Mass. We are a specialty contractor (Vinyl Siding, Windows and sunrooms) so I don't think we are competitors.

Thanks in advance

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Marc

InsulPro

How do you guys feel about paying a % to your supply yard for getting you
a job?

deckman22

Wouldn't they make a %age off the job anyway? Sounds like someone is getting greedy.

RobertCDF

I would consider paying a % to anyone that gets me a signed contract. Dont we basically do that already? We offer gift cards or whatever to past customers for referals.

__________________
Robert Shaw
Colorado Springs Custom Decks
Colorado Custom Decks
Custom Composite Decks

Grumpy

Ditto.

I work with a similiar company and pay them 3% on sold jobs IF the job is over $3,000. I've sold a hand full of repairs and jobs under $3,000 and not had to pay them a penny. Infact much of what they send me is their small stuff ebcause their other contractors don't want to touch it. No lead fees no appointment fees no annual fees. Nothing to lose to try it.

In regards to Matt's point about paying a salesman to set their own appointments, that can work! I pay my salesmen an obvious commission but I also toss them $100 if the sale is over $2,000 and self generated from a referral or repat customer or a door knocker or what ever. If I give them the lead no additional bonus.