Much has been written about the value, or lack of value of online lead referral companies. Some contractors want nothing to do with them, and doubt the validity of leads that come from the Internet. Before I go too far, let me explain how one company works with its contractor members. If you work with a company like ServiceMagic, you choose a target area(s) to receive leads from, and you designate what tasks/projects that you are willing to receive leads for. You also complete an online company profile, and when you are connected with a potential customer, they get to see the online profile that you completed. You receive the homeowner contact information and some simple description of the work they want done. To receive that homeowner contact information, you pay a lead fee that’s based on a sliding scale depending on project size and cost.
I’ve learned that over 4 million unique visitors are going to ServiceMagic on a monthly basis. Those are potentially 4 million people who want help with some home-improvement project. While you don’t know how serious they are, what their budget is, or when they want to start, you do know they are coming from the targeted area that you requested and you now have their contact information. After working in Arlington, Virginia some years ago as a remodeling contractor, I always wanted the contact information of any neighbor who lived near a project I was doing. Because the houses in Arlington were often the same age, they usually needed the same things done, and I also knew that the demographics of the homeowners in those neighborhoods were similar because they couldn’t live there if they didn’t have a certain level of income.
I am recommending that as part of a good marketing strategy, that contractors join an online-lead referral company. More and more people are using the Internet to find the products and services they want, and green building is a very popular subject with Internet shoppers. If you decide to enroll your company with an online lead referral company, make sure you list your qualifications and experience and a green builder or remodeler on your online profile. Homeowners in certain areas are starved for good green building guidance, and as more and more people begin using online lead referral companies to find contractors, you will be well-positioned to respond to these homeowners who want to know more.
While you might challenge the validity of online “leads”, the contact information you receive from homeowners who want help will give you the value you have paid for. That contact information is the asset you are paying for. That contact information will allow you to reach out and begin building a relationship with these potential customers. Build a marketing pipeline with all of these homeowners who have provided their information. With consistent follow-up, some of these homeowners will become your customers.
David Lupberger
303-442-3702
