Contractor Leads Companies Bad For Business

Contractor Leads
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I work with contractors that have paid top dollar for contractor leads and were massively disappointed with the crappy results they have received. I am not talking about small companies that sell leads, In my opinion, I’m talking about some of the top contractor leads companies, along with other pay per lead sites.

Let me define “crappy results”, after working with contractors and looking over their past and present leads they received, the leads they pay for dearly in the range of $15 to over $50 per lead, most of the contractors are just breaking even if the’re  lucky. They receive a great number of leads from people wanting a quote to compare to quotes they already have, or just to see what it might cost on a passing thought, or as a requirement of an insurance claim they are making, which they may or may not even do the work after receiving the money for the claim. And to top this off, the contractor leads company not only sends them the lead but also sends it to multiple contractors, which only increases the chance for low-balled quotes and ticking off the home owner wanting a quote, only to have several contractors calling and bugging them for the work, most of the time causing them not to even answer or call back some of the contractors that have paid for that lead.

To make matters worse, some of the contractor leads companies will resell the same leads to smaller leads companies to sell to more contractors, just to increase their profits.

Imagine running all over the area chasing potential customers down, burning up gallons of gas and time, while all along not making enough back on jobs to turn a small profit. Who wants the hassle, when there’s a better way.

With the proper website setup you can run your own leads capture system. Setting up a good landing page with an easy to fill out capture form, then using inbound marketing to drive traffic into your landing pages, you can avoid paying for each and every lead, good or bad.

The money you will save can go into increasing your own website, not the leads companies. Growing your own list of customers, for less than what most contractors pay per month for leads. Commercial Break 🙂 We have setup full websites, social media and video marketing to drive targeted prospects to request quotes that are higher quality and have a much better chance of closing the sale and for much less per month than some of those high cost leads companies charge.

I rounded up a couple of examples of what contractors are saying next, the comments on these stories are very enlighting:

Service Magic – Business, Marketing, and Sales – HVACSite

by: hvacsite

Anyone have luck with service magic? It seems like since the economy went downhill service magic followed. I probably ServiceMagic, Inc is being sued for bad faith business practices along with one of their subsidiaries.

Service Magic Scams both contractors and general consumers

by: pissedconsumer

End result, out of work contractor that may have been legit for there original field, an unhappy customer that has to pay more a second tine to have work done twice, and the people that run ServiceMagic a few dollars richer off


Let me know your thoughts on this below in the comments.

Until next time,

Mike Storzieri Signature for


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