Do Contractors Really Need Leads?

joet33

I have been wondering about all of the lead generation sites going up and if they are really helping contractors get leads. I am in the home improvement biz and it seems like everyone is pretty busy, however, I do have slow times.

Mike Finley

I don't know how many high end remodels get done by finding them on those sites, but for small jobs I know some plumbers and electricians who love those sites.

joet33

Thanks Mike.

Thunder Johnson

How do those sites work? Do they charge for your business to be listed, do they charge per lead. etc?

hatchet

I know servicemagic.com has a one time enrollment fee of $99.. you tell them how many leads you want per month and they send you that many. Then they have a fee per lead which can range from $5-$50 (I think) depending on type of project.

__________________
Rich
WIT Construction Co.
Superior MT Contractor

Grumpy

Hatchet, I pay service magic per lead. I can review it and choose to accept or decline it. This is my preferred method of lead generation. It allows me to weed out the crap. They always try to get me to switch to the method you spoke of however I refuse. There are ALOT of crap leads coming through service magic and the other services, but there are alot of leads!

Another thing you MUST remember is these leads are HIGHLY competitive. If you don't accept the lead within 6 hours, don't waste your time. If you don't call them immediately after accepting the lead, don't waste your money accepting.

joet33

Hey guys check out hometownhometeam.com site, they will send you leads and you get your own online profile and you can deal directly with the consumer. The difference from them and Service Magic is hometownhometeam.com lets the consumer contact us directly and you get unlimited leads for a flat rate per year. I got on for $349 plus the $48 pre-screening fee. I also know they are going into home improvement stores so consumers can find contractors direct from a kiosk in the store. I met them at a home show in Phoenix this past weekend.

Grumpy

$349 may be alot if you don't get at least 10 leads per year then service magic is a better deal. There are services like ABCleads that generate less than ten leads for me per year, and of the leads generated I accept even less.

The leads that come from lead generation services through a home show is total garbage. I've been to the home shows. These lead generation companies that do go to home shows trick the customer into asking for a lead by any way possible. They tell the customer they are requesting free information. They get the customer to sign up for raffels. They hassel EVERYONE that walks by... Then they sell the lead to us. Garbage. I know form experience. I used to be a member of one of these services but I had to leave. I spent $1,200 in leads and sold one job. Most of the customers simply didn't even want the estimate.

I don't want to come off as a know it all, but I have been using many of these lead services for many many years. I've tried every lead service I can find and I actively look weekly for new services.

ContractorMike

We're finding alot of high-end jobs through our current lead programs. We were surprised to find that many consumers with good budgets are actually out there using this type of contractor matching stuff. Unfortunately, we're not finding that many of the lead services out there provide this type of return. But, they are out there ...

We find that programs that are like 'just pay us $400 per month and we'll send you unlimited leads!' are garbage. The whole idea of internet leads is pay for performance. Paying a flat fee and then just getting 'unlimited leads' provides no incentive for the lead provider to drive volume and quality unless they're getting cut in on a transactional basis.

Subscription fees are lame. Pay per lead is where we find the most success.

Grumpy

That's not always true... though I do agree with the general statement. I am with a few services that charge me subscriptions.

I signed up with them because I either have no contract with them or had a generally short contract where I could stop if it wasn;t working. I am with one service renovation experts, who charge me $150 a month. That would be 4-5 leads at service magic. There hasn't been a month where I haven't gotten 4 leads. September I actually got about 8 and I signed up in the middle of the month.

I'll try damned near any lead service, or at least interview them to see what they are all about. I can honestly say I have at least spoken with every single lead service that targets my area.