I received an email solicitation from Handley Wood, the publishers of JLC, offering a “subscription” to a on-line lead service. The sales guy called me and we talked for a while. $99 registeration fee, which includes them building a basic web site for me where I can show pics of finishged projects, and list a company bio.
The cost of the leads varies. Going from memory, a major renovation or addition is $45, down to something like $15 for a deck/pergola. Billed every week. I would get charged just for receiving the leads from H-W whether or not I even talked with the potential customer. I would get to list the zip codes that I work in, along with ther typoes of work. For my county, they had something like 14 inquiries last month.
Anyone have any experience with this particular service?
“When asked if you can do something, tell’em “Why certainly I can”, then get busy and find a way to do it.” T. Roosevelt
Replies
I tried it for 2 months. They sell the leads more than one person. I paid for 5 leads, and never talked to the customer. I found that most of the customers were looking for a "budget" job.
If you ask them, they will waive the $99 fee. They will tell you have to set your monthly minimum at $500. Agree to that, and just switch it to whatever you want when you set up the account.
That said, I spent $400 total on leads. Sold a deck for $6,000, so I guess it paid for itself.
I fully expect that they sell the same leads to more than one contractor. They sent 3-4 sample leads with the names changed, but they all read like a textbook: high quality, money in place, ready to go, etc.
Are you saying to agfree to pay a monthly fee of at least $500, regardless of the number of leads? And what do you mean about switching later.
"When asked if you can do something, tell'em "Why certainly I can", then get busy and find a way to do it." T. Roosevelt
First of all we're talking about Service Magic here. No need to change the names to protect the innocent. I spoke with one of there people a few days ago. Here are my problems with them.
1. $99 initial fee. Half was for a web site (cookie cutter, static, one page) which I already have. The other half was for a back ground check on my business.
2. A total of 16 leads in my area in the last 30 days.
3. I suspect that each lead gets passed to as many people as fit the discription of the work.
You had mentioned that the SAMPLE leads you received were well written & seemed to be put together well (budget, time, plans, ect..). Duh, of course they were they are trying to get your business.
I have been hooked up with contractor.com for about 4 years. I have got one job from there lead service. I get about 6 leads a month. Most of those are curb kickers, or have totally unrealistic budgets (10x10 deck for $2000). The best thing about them is its free to join. You pay as you go. Leads vary in price depending on what you do. Some can be over $100.
I use them as a form of advertising. Getting the name out there.
The post, "I got one 6k job from them so I guess it paid for itself", needs to take a hard look at there marketing & finance plans. Unless you charged the job you got the $500 you spent on the service it did not cover the cost. Those idiots from the yellow page books say that crap too but it is not true. If you think it does then go buy a new truck & on your next job charge the customer for it. See if it works for you.
The $500 I was talking about is a spending limit. You can set a limit to the amount of money you want to spend a month. If you only want to spend $200, you can set your "limit" at $200, and they will only sell you $200 worth of leads.
They don't give you a website, it is a webpage that can only be accessed through their website. The address would be http://www.servicemagic.com/yourbusinessname.
Edit: They will waive your $99 fee if you set your limit to $500. But, as soon as you hang up the phone, you can access your account via the internet, and change your limit to whatever you want. They still won't charge you the $99. The salesman on the phone told me to do.
If you decide to cancel the service you have to send them a written letter through the post office. Email doesn't count, I found out the hardway.
Edited 9/27/2005 9:47 am ET by dustinf
I dont mean to hijack your thread .
But in a way this is some simalar to a company here.
We have a handyman comapny which really isnt that does extensive adverizing. They tell them that retired capenters will come out and do work for one example . Its set up very well as you are supposed to be helping thses "part time " people with social security and such. You get the idea that you can get work done cheaper because of lower overhead. Under the ads you can get anything but a new house built. This draws tire kickers too, of course. They are partially sponsered by a credit card company and you can get the work done on easy payments with nothing down if you qualify. Cant get any easiar than that .
On the flip side it isnt retired people as its business as usual. They send you leads and you use your time to sift through the jobs and that expense is your own time. Smart on them huh? You sell the job and they get Half the selling price and handle all the business. They furnish insurance too. The tradesmen are told if you want to make 30.00 per hour for instance you simply bid 60.00. No sweat off anyone except you are selling at twice what you might normally charge. The system works as there are a few that I know that do better working for them. I know a friend thats been with them full time for about 4 years now. According to him, the key is not to spend a lot of time with anyone lead. Just walk in and bid it and leave instead of trying to sell it . Write as many bids in a days time as you can cover for all you have to do is call for more leads as they seem to never run out . He doesnt rely on getting any one lead sold. He sells a percentage and figgures hes closer to his goal when he reaches the "next " lead. The way he thinks about it doesnt get him down for the ones that fail.
Tim
All:
An organization called Everycontractor.com has just had it's business relationship terminated with the International Solid Surface Fabricators Association. EC was supposed to provide paying ($299.00) ISSFA members with "qualified leads". About 200 ISSFA members joined and none have ever publicly stated that they ran, closed, fabricated, installed and collected on a lead from EC.
However, "Balding" at EC did do a written testimonial for an escort service, which I found hilarious when I googled Everycontractor.com. L.A. Escorts or some such thing.
I have used Service magic for 4 yrs.
Have been happy with the leads. I only pay for the leads that I think are going to work for me.
I really only use the leads forwhen work slows down for a fill-in.
I have gotten some great jobs from them. Igot a lead from them a coupl of years ago that turned into a $160K job, another that was 90K. these are remodeling jobs.
Have gotten kitchen, bath and deck remodels. I think that in the 4 yrs I have spent only $3700 total.
I know that they recently purchased "improvenet".
They say they only send the leads to 3-4 people, not sure, however I have tried to accept a lead in the past and they say that they have max'd out the responses.
THey wanted me to purchase a block of leads/month, but I told them no, with no issues. I will go a coule of months without accepting any leads ,so no cost.
Capeguy that program sounds interesting. Got any more info on it?
blue
Blue:
All I can tell you is that Servicemagic has worked well for me.
No hiden costs or issues. Just keep insurance and license up to date and that's all they require.
One of the things that look out for is that they give the HO's a choice or timing to complete project. I try and stay waay for the "Planning and Budgeting" timing nad look for the "ready to hire" type.
Once you accept a lead they will send a canned email to the HO and you need to follow up with a phone call.
As a matter of fact I accepted a lead last month and the HO contact info was incorrect and they gave me credit for the lead.
I have been lucky. A couple of other contractors I know signed up for it and didn't have much luck.
I just checked my email file, and in the last 4 yrs I have received over 2700 leads.
So for me it works.
Good luck!
I know a bunch of folks that use ServiceMagic. If I can offer one key piece of advice it's this...if you're going to use their leads you MUST be able to respond VERY PROMPTLY to the customer's inquiry. Given that many of their leads are farmed out to others you need to be the first one they're talking with. I know a guy who has a policy of contacting the customer within FIVE MINUTES of receiving the lead. It's not always him that contacts the customer, it could be someone on his staff. But someone MUST call that customer immediately.
- Rob