The Good, Bad the Ugly of Purchasing Leads for Your Contracting Business Episode 65

The Good, Bad the Ugly of Purchasing Leads for Your Contracting Business Episode 65

Quote for the week

BREAK FREE BY NO LONGER CHARGING FOR WHAT YOU DO, START CHARGING FOR WHAT THEY GET.

 

Let’s talk about the good the bad and the ugly of purchasing or getting leads for your business.

Seems like every week there is one or two new lead services that want to help us get more business and more coming on line every week all to help me with my contracting business.

All under the pretense of helping you he business owner to get more leads,

So let’s take a look at a few of the big ones and see what they really have to offer. We’ve got groupon , living social, amazon local all right there to put you in front of potential customers more than you could possibly dream of   all for a price seemingly innocent because there is NO out of pocket expenditures just revenue sharing that sounds awesome  until you really look at the whole package.

They will only approve your deal as long as it will really attract your new found customer so they suggest at least a 50% savings deal on that deal and then they will revenue share 50% because they don’t want to burden you with an out of pocket upfront fee so they usually share 50% so let’s run the numbers.

You have a 100.00 product or service you run a deal at 50% savings sale price the customer pays 50.00 and the deal is presold now you get half of the 50.00 which is 25.00 from every item presold all you have to do is deliver and you pray that you can up sell or your new customer will purchase form you again in the future. Unfortunately these type customers are only shopping theses sights for deals not relationships.

Let’s move on to some of the sites that actually generate leads and sell these to you in hopes that you can grow your business.

They actually make their money by selling the same lead to multiple contractors or make you bid on the project. Some of the ones that I know about are Angies list, Houzz, Thumbtack, Home Advisor, they all do provide a good service. But is that service good enough for you. Are you just chasing that shiny object.

Are these companies targeting your target market or theirs?

Are you comfortable just competing on price?

Are you comfortable being sole a lead that has been sold to 4 others?

 One of our biggest challenges as contractors is we live under the false impression that we need more leads.

I know for the most part that is not true we need more conversions from the leads we do get.

We treat leads as sales now if they don’t purchase now, we write that prospect off and go get more leads that are low hanging fruit that want to buy now. And throw away the names of the ones that don’t close today.

We should be in the lead generating business and work the leads until you can’t get anything more out of like juicing an orange.  With your leads be like the company that juices the oranges they get all the juice thy can out of the orange then they get all the oils out of the rinds bottle it up and sell it off then they talk all the orange rinds and sell them off for feed for animals they get everything out of that orange that will make them a profit. Why not do that with your leads?

 

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