ServiceMagic.com

i called them the other day and i do not believe a 99 dollar set up fee and a referral fee for each referal they send you is worth it for an internet referal. Better to spend your money driving traffic to your site. Im sorry i left them my phone number. i told them i wasnt interested and the lady has called me 2 times since....anyway, thats Just my opinion.
 
I used them last season for a couple of months.

I have large yellow page ads and a web site so I got alot of the same people calling me and using SM. I decided not to contiune with them because I was paying them for a lead I already got from my other ads.

I will say that in my area the pw contractors on SM are really inept. They had lots of bad reviews from customers.

I used a hardwood flooring guy I got off SM to install new custom floors in my home. Everything was on a 45 angle and a border in Brazilian Cherry.

I had some many problems with the guy it actually became comical. His guys even went into my kitchen which was plasticed off and taped off to get in my fridge to drink my beer!

I think SM attracts lesser quality contractors that can't afford to pay for Yellow Page ads or have any advertising budget at all.

Sure they do the due dilligence by checking insurance and licencing but that doesn't mean anything when there's someone in your house drinking your beer and messing up the job.
 
They are desperate for contractors as that is how they make their money. They take every lead and send it to 4 or 5 guys at $11 each.

I refused to pay the set up charge and they set me up for free. It turns out that was even too much!
 
ServiceMagic treats me pretty good. You do have to be on top of your game to get the most from it. You have to constantly be trying to get a hold of the customers. I've had many referrals already this year I will close maybe 1 of every 5 but still worth it. I would only use them for deck restoration leads because those are worth more money. Other words I don't mind losing 4 servicemagic leads and only getting one and making $800.00. Also last year I looked at the numbers and you can also add in neighbors you serviced from servicemagic customers.
 
I have used it for a year with good results. I think it does depend on your market (is it saturated with others in the business?) Its alota rippin and runnin and telephone callin, but if you're a good salesman, it might be worth it. It keeps my phone ringing.
 
:) I agree with A Plus
I too have a YP ad and web site, and they were giving me the same shoppers I got, and asked me to pay for them, LOL
My advice, no way.
 
We've had over a 200% ROI with them, and that includes paying the set up fee. Been using them for going on 5 years now and still going strong. Won their Contractor Spotlight last summer as well.

It doesn't work for everyone though.

Celeste
 
With target marketing and your own campaign, one should see a 1000%-2000% ROI on advertising. Celeste, with a 200% gross ROI that means you are spending 50% on your advertising/lead acquisition cost. That's way too high for an established business. Ten percent is the number one should shoot for. For every dollar spent on advertising, a company should be billing $10.
 
pressurepros said:
With target marketing and your own campaign, one should see a 1000%-2000% ROI on advertising. Celeste, with a 200% gross ROI that means you are spending 50% on your advertising/lead acquisition cost. That's way too high for an established business. Ten percent is the number one should shoot for. For every dollar spent on advertising, a company should be billing $10.
Click to expand...
That sounds right, as usual from You Fen Kenner, I mean Ken Fenner :)
I grossed about 275, 000 last year, spent 17, 000 on ads.
I am a little on the low side of the ratio, but am established 14 years.
 
Last year, we spent about $1100 with service magic. Our first lead has grossed us over $12k. Other leads were accountable for about another $15k.

It has worked for us. Not a homerun by any means but does work. Disclaimer.... Much better results for our Cleaning Service Leads versus the Pressure Washing Leads.
 
Okay - my 200% was not a literal figure.

We've spent in the neighborhood of $2K on leads in the past 4 years and have netted (after expenses, gas, payroll ) over $20K. That is closer to accurate than what I stated.

Point being.....Service Magic works VERY well for us.
 
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