Finding homeowners looking for a service you offer can be searching in a proverbial haystack for a needle or lead. Several companies attract and capture homeowners’ attention to their site using content and advertising. In turn, these companies sell that attention to contractors, which may seem like a good idea on the surface, but if you’ve ever paid for their leads, you know that’s not always the case.

What are lead generation companies, and how do they work?

Online directory companies, such as Angie’s List and Home Advisor, provide homeowners with lists of contractors with crowd-sourced reviews. Homeowners grade companies based on the specific criteria: price, quality, responsiveness, punctuality, and professionalism. The idea is to help other homeowners better vet the contractors they hire.

Angie’s List works as a membership site that connects its members with local companies while providing access to verified reviews and ratings. Homeowners can use the service to compare nearby businesses, find discounts, read about other customers’ experiences, request quotes, and share reviews.

But what’s the catch? If it’s suitable for the homeowners, why isn’t it good for your business?

As a busy business owner managing crews, these sites make sales opportunities seem effortless. Yes, they have the homeowner’s attention but are they your target audience? Do the customers you catch have money to spend?

The Price Shopper. Experience, quality of skills, and longevity in the industry are not always what this audience is looking for. Price shoppers want deals, and if you aren’t offering, they quickly move on to the next contractor on the list.

A Lead, Many Bids. These sites will typically put you in a queue to receive leads and include other contractors. The lead is sent out to multiple companies, and it’s a race to get the lead’s attention. This system may be useful for both the homeowner – multiple bids – and the lead generation company, but it’s not right for you.

Pay-To-Play World. According to Wikipedia, in August 2016, Angie’s List has agreed to settle three lawsuits for a payment of $1,400,000. The class-action lawsuit focused on Angie’s List’s acceptance of advertising payments from service providers and whether those payments affect service providers’ letter-grade ratings, reviews, and place in search-result rankings. Angie’s List denied these claims but disclosed that service providers’ revenue could affect the order of search-result rankings of the service provider under specific settings.

Contractor Lead Generation Strategies That Work

What is the solution to local sales opportunities without paying an arm and a leg for a lead? Own your content and control your advertising.

Our Home Services Q&A Videos strategy puts you in control of your content and positions your business in search results. It’s also the fastest way to build trust with prospects.

Learn more

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Don’t handicap your sales opportunities by only using Home Advisor, Angie’s List, etc. Expand your overall strategy to include content, Google My Business, advertising, and social media marketing. A cohesive message across multiple channels doesn’t take a lot of effort on your part to implement, but the dividends will be worth the effort.

If you are interested to know how your business is faring on Google, we can take a look. Click here to find out how your website stacks up against the competition with a FREE Website SEO Audit.