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I met this morning with a salesman from the “Home Service Store”, an outfit that markets services to homeowners. They are in Sam’s Clubs,Ace Hardware and a couple of other places.
Their deal is simple;they send you the customers,you pay them part of the job.Sounds easy,huh?
Easy if you want your checks made out to them, and you wait a week or two.Not to mention that they contact the customer to see if they are happy before you get paid. Normally, that shouldn’t be a problem, but I think we can all see where that could spell “PITA”.
Oh yeah, they expect a 40-60% closing ratio on tha bids you get to put in from their referrals, or you are done. Don’t forget that you are including their little slice in your bid. That crumb breaks down to 18% on jobs from $1k to $5k,15% from $5k to $10k and 10% over $10k!If you can get an extra 18% on a $5k job, you weren’t going to make any money on it in the first place!
But they do have one redeeming feature. If you refer a contractor to them, you get 1% of their billing for 3 years;so don’t be surprised when they call you because I gave them everybody’s number off the forum.:-)
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I met this morning with a salesman from the "Home Service Store", an outfit that markets services to homeowners. They are in Sam's Clubs,Ace Hardware and a couple of other places.
Their deal is simple;they send you the customers,you pay them part of the job.Sounds easy,huh?
Easy if you want your checks made out to them, and you wait a week or two.Not to mention that they contact the customer to see if they are happy before you get paid. Normally, that shouldn't be a problem, but I think we can all see where that could spell "PITA".
Oh yeah, they expect a 40-60% closing ratio on tha bids you get to put in from their referrals, or you are done. Don't forget that you are including their little slice in your bid. That crumb breaks down to 18% on jobs from $1k to $5k,15% from $5k to $10k and 10% over $10k!If you can get an extra 18% on a $5k job, you weren't going to make any money on it in the first place!
But they do have one redeeming feature. If you refer a contractor to them, you get 1% of their billing for 3 years;so don't be surprised when they call you because I gave them everybody's number off the forum.:-)