Whether or not to pay the expense of using lead generators, such as Home Advisor, has been a hot topic among many types of home service businesses, like plumbers, HVAC, carpet cleaning and more! Some industries and business niches may be more or less apt to use lead generators, but most local businesses want to understand the cost of purchasing leads vs the ROI of using them. Here are some of the issues many small business owners report when relying on lead generator companies as a primary component of their marketing plan.
Uncertain Costs, Low ROI
When planning out your home service business marketing plan, it’s important to know what your expenses could be, so you can create your strategy based on your budget. One of the issues with lead generators, including Home Advisor, is that you never know what you will be paying. You are not only charged for leads that generate actual business, but for every quote you create. This means you are charged the same for causal shoppers as you are for useful leads. The average reported ratio of useful leads is reported as 1 in 10 quotes. This means that 90% of you quotes, and the charges for them, are wasted on no or low potential customers. Additionally, many complain about the ratio of cost per true lead, which changes based on vague explanations of changing rates. Remember, lead generators are designed to make that company money, not necessarily with any guarantee of your company gaining actual business.
Unscreened Leads, Fake Leads, & No Credit Given
A common complaint is that home service providers become discouraged by leads lists that include fake or obsolete addresses and phone numbers. Companies like Home Advisor respond to these frustrations by saying they will give credit back for faulty leads. However, business owners report disappointment and difficulty in truly being awarded credit back for bad listings. Some survey responders complain lead suppliers give the impression they simply hope businesses profit enough from their few good leads to cover the cost of the ones that don’t work, regardless of the lead company’s complicity.
Competitive Lead Listings in Same Area
Home Advisor and other lead companies generally do not offer exclusive leads. This means that for your service area, every other local business in your industry that subscribes to a lead generator’s services will get the same lead listings. This creates a competitive situation locally, where only the first lead recipient has the best chance of being the initial business to reach potential customers. Additionally, 60% of these leads never answer their phone, so the caller’s time is wasted.
There’s a Better Way
What if you could spend your advertising budget to get much more than a list of questionable leads? What if you could have a great marketing company partner with you to create a custom marketing plan just for your business? Even with good leads, your business still has a lot of heavy lifting to do. You have to make the calls and get your name out there. A great marketing plan includes many elements, such as: social media, your website, local resources, networking, reviews, community events, direct mail, digital ads and listings, and cross-promotions. Home Pro digital knows how to integrate these elements in the right proportions for your business. We can show you how to market your brand with a consistent message by coordinating diverse marketing approaches, getting much better value and results at an affordable cost. Our upfront pricing and transparency about your plan keeps you in control of your marketing budget and goals. Call Home Pro Digital today to see how we can help you bring your business to the next level.