Replies

1. 
   Lunicy | Apr 30, 2002 02:40pm | #1

   Yes, they are a joke. I'm signed up w/ service magic. At $30-40/ lead It sounds good, but everyone, and i mean everyone is kicking tires. After buying $2000 worth of leads, I finally got one job that was serious about proceeding. Really not worth it.

   Can't I go 1 day without spilling my coffee?

2. 
   Cole | Apr 30, 2002 03:43pm | #2

   I signed up with service majic when I first started my business about a year ago.  So far I have landed 95% of the jobs I accepted, but I probably got lucky.  Like the previous poster menttioned, alot of the people are kicking tires, and not totally serious about doing the work.  If you aren't very busy, it might help fill your schedule, but I would be pretty selective about the leads you accept.  They send me about 4 leads a day on average, and I haven't accepted one for about 3 months.  If my main advertising I am paying for is working than I sure am not going to pay for a lead

   Cole

   Cole Dean

   Dean Contracting

1. 
   DonaldH | Apr 30, 2002 05:34pm | #3

   Wow, I didn't know they charged the trades for just the referrals.    Being on the homeowner side, I liked the convenience and the (assumed) turkey filter.   But the way things are structured I would despair of ever getting a reasonably top contractor out of it, (who would probably mostly just use WoM during normal or very good times).

   So, from the trade point of view, how should such a service be structured to get better quality?  A percentage of the accepted and complete work?  If this was known up front, it could be added into the estimates.   (But I guess that could get squeezed out by the ease of getting more estimates)....    

   Would pushing the referral fee to the homeowner help.?  Might be worthwhile to do a more quality version of one of these services for the higher-end jobs.    I might be willing to pay up to $100 to get referrals for jobs over $5000 for instance.   (But in that case, it is likely the referral service would fail.) 

   It certainly cost me a fair bit when I hire consultants through agencies (although they usually take a percentage).   The main difference I guess, being my attitude about money when it is mine vs my company's :-)

   Don

1. 
   SonnyLykos | Apr 30, 2002 07:45pm | #4

   Don, you have to read between the lines. What does it tell you about a contractor whose total sales comes from referrals and repeats and is constantly booked with work? That question is what I ask clients when they inquire about me prices.

   Regardless of geographical area, contractors who never or almost never advertise are in that position for a reason so you will never find their names lists on one of theses "services." They are in demand and have no need, nor desire, to "solicit" clients.

   However, it does take time for new contractors to reach that state of their business. I'd say about two years or more.

   I just talked to my son who I sold me business to about 3.5 years ago. He does not bid jobs but because of some different circumstances he did on the one he told me about. He client got three bids: $53K, $85K and Tom's of $93K.

   He told Tom the one for $53K was a joke. The one for $85K had ambiguous specs and neither one of the cheaper contractors listened to what his wife wanted. They just bid the project as "they" wanted to do it. Tom got the job because of his rep and he listen extensively to the owner's wife and worked with her on the design and specs "she" wanted.

   Successful contracting is not about "trade" skills. I think that's important enough to repeat. Contracting is not about "trade" skills. It's all about "people" skills.

   So, those "services" are for contractors who are new business owners and/or those without well developed "people" skills.