Contractor Talk - Professional Construction and Remodeling Forum banner
1 - 19 of 19 Posts

·
David Festa
Joined
·
2,561 Posts
Discussion Starter · #1 · (Edited)
I have been using SM just over 13 months
In order to have a correct summary I turned off my service until January 3rd
I learned my lesson from last year
I received 106 leads averaging $50.00 per lead totaling $5,294.50 in leads
I fought tooth and nail to have 28 of those 106 leads refunded totaling $1,378.00 in refunded bad leads
Keep in mind the last 25 where just in the last 8 months, I didn’t know any better when I first signed up
Had I been more aggressive that number would have been doubled
$3,866.50 SM charged to my credit card
 

·
Bathroom Remodeler
Joined
·
622 Posts
I've been pretty frustrated with Service Magic too. Not nearly on the scale as "fertilized" but enough that it hurts. It seems around the holidays you get a lot of tire kickers!:mad:
 

·
Registered
Joined
·
1,249 Posts
I have been using SM just over 13 months
In order to have a correct summary I turned off my service until January 3rd
I learned my lesson from last year
I received 106 leads averaging $50.00 per lead totaling $5,294.50 in leads
I fought tooth and nail to have 28 of those 106 leads refunded totaling $1,378.00 in refunded bad leads
Keep in mind the last 25 where just in the last 8 months, I didn’t know any better when I first signed up
Had I been more aggressive that number would have been doubled
$3,866.50 SM charged to my credit card
Was it worth it to you? Did you land enough work from them to justify the expense?
 

·
David Festa
Joined
·
2,561 Posts
Discussion Starter · #6 ·
Total jobs won from the remaining 78 good leads: 11 contracts, leaving 59 lost
My average cost per leads: $351.50 per lead [$3,866.50 divided by 11]
I still have to figure out how much income I made and how much time and gas I wasted chasing bogus leads
 

·
David Festa
Joined
·
2,561 Posts
Discussion Starter · #7 ·
Lucky for me im rich, I have 10k in bank and owe out 75k
I did better with my local paper add, it runs only for 8 months and cost me $1900.00
I got 7 contracts from my paper adds
I got 8 referrals and landed all 8
I received about 30 calls from my web site, landed about 10, in addition I did 6 estimates this week from my web site, that 10 may increase
 

·
David Festa
Joined
·
2,561 Posts
Discussion Starter · #8 · (Edited)
Best advice I can give: properly placed paper add with a good web site to back it up
Im going to drop SM after February, after the spring fever rush
And just rely on my own advice
 

·
windows & siding
Joined
·
846 Posts
Total jobs won from the remaining 78 good leads: 11 contracts, leaving 59 lost
My average cost per leads: $351.50 per lead [$3,866.50 divided by 11]
I still have to figure out how much income I made and how much time and gas I wasted chasing bogus leads
Thats not $351 per lead, that is per closed job. That may not be too bad depending on the size of your contracts. Much better results than I've had for sure.
 

·
David Festa
Joined
·
2,561 Posts
Discussion Starter · #11 · (Edited)
"Thats not $351 per lead, that is per closed job. That may not be too bad depending on the size of your contracts. Much better results than I've had for sure."
Your Correct

It took me some time to figure out the SM system
I have a 3 strike rule in the zip codes; I E-mail SM requesting to remove me in those zip codes that are in lower class neighbor hoods. It’s important to know you demographics
Turn off your direct matches, not only is SM stealing your business name, they are making you pay for it thru direct matches,
I got a total of 20 “Exact Matches” at $75.00 each: total $1500.00
So if you break it down in a nut shell I was paying SM to steal my business and then reseal it back to me
I never landed any of those leads, all where dead end leads; either didn’t answer the phone, didn’t ask for the service or was just tire kicking
All exact matches should be prescreened and limited to two contractors
I would suggest to Service Magic to change their policy on exact matches
Otherwise Service magic will just push the exact matches to create more revenue
Without some kind of quality control I expect more contractors backing out of exact matches
I have set my spending target to the lowest limit, otherwise you will just get barn barded with bs leads.
It’s important to research all of your leads
1: Do they own the property? If not refundable
2: Did they use a fake name? Name must match the deed, If not refundable
3: Did they provide an address; I have noticed more leads not showing address, with no address there’s no way to prove if they own the property, refundable
4: If any info customer provides is not 100% accurate, apply for a refund
 

·
Registered
Joined
·
124 Posts
Sm

Credit for your credit card? You must please state to the users of SM that they credit you by giving you another lead thats bogus for free and resell it 10 time to other contractors.

What was once a good company has turned to S...t, but they are still out there duping new businesses making 100 million for their efforts.

:eek:
 

·
David Festa
Joined
·
2,561 Posts
Discussion Starter · #13 · (Edited)
quality control time line

SM does not refund credit; instead SM keeps replacing leads to you get a good one
SM replaces leads that are good but may be a month old, which in my mind are not good
I ask the homeowners a lot of questions in regards to their SM service request
It seems if a request is not fulfilled, SM will re issue request to contractors
I did an est. last week where the customer only received 3 phone calls from contractors.
The customer called SM and requested one more lead, instead SM sent him 4 more leads.
In which I was on the second request from a previous credit that was two weeks old
SM did not replace my credit with a new request, instead replaced with an old known good one
My next battle with SM is too maintain some kind of quality control time line on leads that i receive
 

·
We Paint Stuff
Joined
·
11 Posts
Thats not $351 per lead, that is per closed job. That may not be too bad depending on the size of your contracts. Much better results than I've had for sure.
$351 per closed job does not seem too terrible to me, depending on your average job size and how much time you spent with your SM leads.

SM is not our favorite lead source but we keep it on because we make money with it.
 

·
Registered
Joined
·
10,471 Posts
I realize that y'all are pretty new here. If you'll scroll down to the archives and do a search you'll find that SM has been a regular topic here for years.
 

·
David Festa
Joined
·
2,561 Posts
Discussion Starter · #16 ·
Tee, SM has made changes thru the years as an evolving company; some of the older post do not address these changes.
 

·
Registered
Joined
·
5 Posts
service magic just like calfinder

its good to hear that at least all the leads companys follow the same crooked buisness practices!
 

·
Denver's Asphalt Pavers
Joined
·
26 Posts
I have been using SM just over 13 months
In order to have a correct summary I turned off my service until January 3rd
I learned my lesson from last year
I received 106 leads averaging $50.00 per lead totaling $5,294.50 in leads
I fought tooth and nail to have 28 of those 106 leads refunded totaling $1,378.00 in refunded bad leads
Keep in mind the last 25 where just in the last 8 months, I didn’t know any better when I first signed up
Had I been more aggressive that number would have been doubled
$3,866.50 SM charged to my credit card
$50/lead isn't great but its not that bad either... I spent last month with a PPC management company (who I won't name) $1K and received 6 leads (4 of which were bogus) average $166/lead. You can guess what I did...
 

·
David Festa
Joined
·
2,561 Posts
Discussion Starter · #19 ·
To all you new and old members looking to strike it rich with online lead providers.

It seems Mods will not allow any new threads about SM and probably some other lead providers, so I hope this helps

Well fall is coming and work is getting slow if none excitant for most contractors.

As we progress into winter I/we expect to see at more postings about SM and other rip off lead generating companies.

I have 22 credits with SM since January of last year, I have no need for SM, and you don’t either if you have a business plan.

Don’t waste your time, energy and what little money saved on these vultures.

Instead cut out the middle man by investing in a web site, fill out every free and local listing on the web.
 
1 - 19 of 19 Posts
Top