[PressurePros]

You are getting five leads per week outside of your service area. You have given away twenty of them with some guys not even saying thank you and no one offering a single lead to you. What do you do with these excess leads?
A. Start selling them?
B. Continue giving them away for good kharma?
C. Not waste time worrying about it and just tell the inquiring person they are outside your area?

 

[vermontpainter]

Ken

Quite the conundrum. I ran into this last year only within my area. I have a couple of colleagues that I try to refer them to, but they are often as booked as I. Last summer I gave away about six figures of good quality work. This year, I figured out how to anticipate and grow into the calls that we know will be coming with the season.

I dont think I would refer them to unappreciative or nonreciprocating colleagues. I dont think I would sell them, as I wouldnt feel that I owned them unless I took the job and subbed them, which would not be worth my time without a sick markup. I would probably just pass on those outside of my area.

I am assuming that an expansion of the PressurePros service area is not a viable option, and I know you well enough to know that you have plenty on your plate to probably not be into that!

 

[Dave Mac]

Ken

If you feel comfortable refering another company, and they meet you standards, I think a percentage off the top for your referall would be totally fair. Your name is on the line with a referall imo so make sure they meet your standards. I personally have done 5 and 10 percent, and feel 5 is the most fair.

keep us posted on what you decide.

thanks
dave mac

 

[timhag]

Ken, with 5 leads per week outside the service area, I would contemplate expanding with the proper people in place. I did that a few years back with the wrong people, with that being said, it didn't work out.

 

[Brian]

I don't get 5 leads a week out of my area, but 5 a month is not unusual. I sell the job for other companies. They tend to be pretty easy sales. It's a win-win-win.

Brian Phillips

 

[Tonyg]

I believe that working relationships are important even with competitors. to me its a way to narrow the market. I would rather work go to a competitor that is going to produce an acceptable standard AND not underprice it. To someone I know rather than let it go to some hack going in at half price. Our market is better off. A referral helps the prospect find a reputable contractor, keeps the dollars within a tighter arena, and helps you to pick and choose what you want. I would be concerned with selling it - if the contractor did bad I would feel responsible, almost liable. If I gave it away it was done in an effort to help the consumer and even though I referred it out, I think any animosity from the consumer with a bad experience would land on the contractor.

On another note - I was recently approached by another competitor (different business) about taking a commission for refering work to them that we didn't want, or couldn't handle. Even though they are a close direct competitor, we have had a close working relationship with them for years. We have already been referring work to them but his thought was that a commission would give us more incentive to send work their way. It is a little more enticing to be more particular with what we want to do if we can still profit a little with what we give away. If you set up specific alliances that are willing to pay a small commission to take the overload then you definitely have the incentative to send more to them.

 

[Brian]

I would be concerned with selling it - if the contractor did bad I would feel responsible, almost liable. If I gave it away it was done in an effort to help the consumer and even though I referred it out, I think any animosity from the consumer with a bad experience would land on the contractor.

I share your concern. Therefore I am careful who I sell for.

I have a seperate business that handles sales for several other contractors. Before I sell for them, I go through a "hiring" process. I then do on going training. In a sense, they are no different from subs or employees. I've "fired" a number of them because they didn't meet my standards.

I get a lot of leads that aren't a good fit for my company. Rather than simply burn the lead, I try to make something positive of it. I've sold a lot of jobs within a mile of my office for other contractors. A few neighborhoods simply can't afford my price. Sometimes they need it done yesterday and I'm booked for a month. Sometimes it's a job I just don't want my regulars doing.

When the contractor screws up, I hold his feet to the fire. I'm an advocate for the home owner. I've yet to have a problem with a contractor not fixing a problem. I guess they don't want the customer and me on their back. The customer might give up, but I won't. And the contractors I sell for know it.

It really comes down to how we define our business. If we are a painting contractor, then our job essentially is to put paint on the wall. I view my business as a sales and marketing company. My job is to generate leads and sell paint jobs.

How we define our business ultimately determines where we focus our efforts and how we address these issues. How we define our business ultimately determines what kind of business we have.

Brian Phillips