# Purchasing online leads



## Easy Outs (Oct 18, 2014)

I'm not sure if this is the correct section so I apologize in advance. 

Have any of you had success with bids from online resources like Thumbtack or Home Advisor (most interested)? Throughout the year I've had good success with some similar companies. However, the price for Home Advisor is considerably higher. In reality if the leads are good it would be worth it for my business model. Honestly, I'm cheap at heart and hate the idea of spending a $350 membership fee to then pay for leads. However, I hate thinking about how much money I waste "cold calling" or canvassing businesses.


----------



## jhall22guitar (Dec 11, 2011)

Depending on your area and how you feel it could be worth it. I have not used the service, but if you figure you pay $350 for membership + the fee for a lead, that could be paid off by the addition of one client for the winter (depending on snowfall and other factors), but after that the cost you need to make back per client lowers since you split the 350 between them. 

How much are they charging per lead?


----------



## Easy Outs (Oct 18, 2014)

$15-36 per lead I believe. I had the salesman email me information regarding our conversation. On the phone he said it would only be me or maybe 1 more person competing. In the emails (corporate produced) it says up to 3 others plus myself competing. I watched a bunch of videos and it seems they oversell the leads often and claim the customer must be confused and contacted other contractors on their own too. I think I'm going to pass unless I hear otherwise from someone potentially credible.


----------



## jhall22guitar (Dec 11, 2011)

I would stay away too, they are in it to make as much as they can and their fine print is probably 100 pages long.

Spend $1000 on some flyers and stick them on mailboxes (thats legal right? ON not IN)


----------



## JMHConstruction (Aug 22, 2011)

When home adviser was whatever it was before they changed names, I had a 30 day free trial. I used it for my deck business, not snow. I never landed one job. That was 3 or more years ago and they still call and bug me! They kept sending leads, and I'd say 80% didn't even return a phone call. It wouldn't surprise me if they were fake. I think I payed $20 a lead, but no membership fee for 30 days. I canceled after about 25 days. Supposedly I was one of 2 other companies, but I did one bid and he was raving about how they got over 10 companies competing for their business. I don't know if with the new name anything else has changed, but it didn't work for me.

Fliers are great, if they're legal in your area. So many companies were doing them most cities around me banned them. I put up yard signs while I'm at a job, and give my card to everyone I talk to. Most of my business is word of mouth now, but with fliers you could chose exactly what houses you wanted to put them on.


----------



## immortal.ben (Feb 28, 2015)

I get 99% of my business off of Thumbtack. Can't afford Home Advisor yet. I just signed up with Porch (affiliated with Home Depot or Lowes, I forget which), so I can't tell you how it does yet.

Thumbtack, however, has been awesome for my business. I was awarded "Best of 2015" contractor status based on customer reviews. 

I have also been looking at the similar service Amazon offers, but have not decided yes or no. I have also done the "postcard stuck in the front door", and am planning an EDDM within the week.


----------



## jhall22guitar (Dec 11, 2011)

immortal.ben;2048359 said:


> I get 99% of my business off of Thumbtack. Can't afford Home Advisor yet. I just signed up with Porch (affiliated with Home Depot or Lowes, I forget which), so I can't tell you how it does yet.
> 
> Thumbtack, however, has been awesome for my business. I was awarded "Best of 2015" contractor status based on customer reviews.
> 
> I have also been looking at the similar service Amazon offers, but have not decided yes or no. I have also done the "postcard stuck in the front door", and am planning an EDDM within the week.


I have my full time job as well as trying to help my father grow his general contracting company (its just him full time and I help when I can, he's stuck in his old ways and won't hire anyone, doesn't have the full time work for me) and we are on Thumbtack, issue is that my father has lost all of his reviews and stuff he had from past clients, as well as photos of the jobs :angry::angry::angry:


----------



## JMHConstruction (Aug 22, 2011)

Where have I been that I haven't heard of thumbtack? I may have to check em out.


----------



## immortal.ben (Feb 28, 2015)

jhall22guitar;2048472 said:


> I have my full time job as well as trying to help my father grow his general contracting company (its just him full time and I help when I can, he's stuck in his old ways and won't hire anyone, doesn't have the full time work for me) and we are on Thumbtack, issue is that my father has lost all of his reviews and stuff he had from past clients, as well as photos of the jobs :angry::angry::angry:


Wow! That has got to be frustrating. Has he tried calling them? They have always been extremely helpful over the phone to me.

I have read on a couple forums that people insist Thumbtack is a scam, but I am here to say that it is most definitely not. They even asked me to become a "Pro Mentor" to help other contractors (not in my state) have more success with the service.


----------



## Ne1 (Jan 15, 2007)

Home Advisor was a complete waste of time and almost impossible to get my membership canceled. The only leads I got were people waiting till the night before a big storm and wanting you to show up instantly and of course do it for the cheapest price. You get charged for every idiot sitting at home that fills out a request for a bid for snow removal.


----------



## Meezer (Apr 3, 2010)

JMHConstruction;2048345 said:


> When home adviser was whatever it was before they changed names, .


It was called ServiceMagic. They ran out of "magic" ......


----------



## jhall22guitar (Dec 11, 2011)

immortal.ben;2048557 said:


> Wow! That has got to be frustrating. Has he tried calling them? They have always been extremely helpful over the phone to me.
> 
> I have read on a couple forums that people insist Thumbtack is a scam, but I am here to say that it is most definitely not. They even asked me to become a "Pro Mentor" to help other contractors (not in my state) have more success with the service.


No no haha, i meant my father had them written down from previous jobs (he int very good at the whole internet smartphone thing so i handle it) I was setting up the profile and he was saying how many old photos and comments from clients he had, and BOOM they are missing.

I think thumbtack has its place, we don't pay for it though, if thats an option?


----------



## advancedprop (Nov 10, 2015)

just scored a big trailer place for snow i get a lot of my snow leads on thumbtack


----------



## immortal.ben (Feb 28, 2015)

jhall22guitar;2050947 said:


> No no haha, i meant my father had them written down from previous jobs (he int very good at the whole internet smartphone thing so i handle it) I was setting up the profile and he was saying how many old photos and comments from clients he had, and BOOM they are missing.
> 
> I think thumbtack has its place, we don't pay for it though, if thats an option?


You buy credits, and use the credits to place bids.


----------



## coke813 (Aug 24, 2015)

I got a call from Home Advisor a couple weeks ago and I immediately got the feeling that it was some kind of scam. I have caller ID on my cell phone and I said why are you calling me from Kansas? I told the guy I was not interested. I googled them and quickly found tons of complaints. It appears that they charge high fees for questionable leads. And most of the time the leads aren't serious, or they already have hired someone else. Then a week later, the same guy called me again! I asked him why he called me when I already told him I didn't want to pay them for any leads. I got in an argument with him about what I read online. He got all defensive, it was actually kind of entertaining.
Maybe if you live in an area with a lot of people using this service and you are desperate for customers, then it might be worth a try, but I felt very uncomfortable with the call and I would tell you to stay away from them. You would be much better off spending your advertising dollars locally.


----------



## jhall22guitar (Dec 11, 2011)

immortal.ben;2051784 said:


> You buy credits, and use the credits to place bids.


That is correct, now I remember. Shows how long it had been since I was on the account. I believe I used some free credits they gave us or we bought a few, and every customer said we were too expensive, not sure how, as I know we are less expensive than 90% of contractors we talk too, its a 1-2 man show for us so we have less costs.

Oh well!


----------



## immortal.ben (Feb 28, 2015)

jhall22guitar;2052025 said:


> That is correct, now I remember. Shows how long it had been since I was on the account. I believe I used some free credits they gave us or we bought a few, and every customer said we were too expensive, not sure how, as I know we are less expensive than 90% of contractors we talk too, its a 1-2 man show for us so we have less costs.
> 
> Oh well!


Yeah i hear that too sometimes. The way I see it, I have spent relatively little on Thumbtack when compared to the revenue it generates for me. I consider it advertising. Extremely affordable advertising.

There are a few frustrating things about the service, but they are continually soliciting ideas for improvement. They have implemented a lot of new things in the last 6 months or so.

I have really good luck saying things like "In order to give you the most accurate quote, I would need to stop by the property and take a look at what you have going on."

That way I get to meet them, ask the questions I need to ask, take any measurements I need, and let them know when to expect my bid via email. Then I leave a business card, and a great first impression.


----------



## jhall22guitar (Dec 11, 2011)

immortal.ben;2052109 said:


> Yeah i hear that too sometimes. The way I see it, I have spent relatively little on Thumbtack when compared to the revenue it generates for me. I consider it advertising. Extremely affordable advertising.
> 
> There are a few frustrating things about the service, but they are continually soliciting ideas for improvement. They have implemented a lot of new things in the last 6 months or so.
> 
> ...


I might have to look into using it more its always better when you can get out and actually meet them.


----------



## royalrooter77 (Jan 23, 2014)

I just read that Home Advisor is trying to buy Angies list for $512 million. If I figure out how to post a link to the Forbes article I'll add it for everyone's viewing pleasure. 

I don't use either of these companies. I did use Corkd for awhile, not the wine site but referral site. They offered a lot of dead leads so I discontinued the service


----------



## PPP (Jan 5, 2005)

I actually use Home Advisor (since from when it was Service Magic). I have found you need to be VERY specific in the service area and the services that you offer. It can add up pretty quickly. But you can set limits. You do really need to be able to return calls QUICKLY. I get at least half of the jobs from the leads that I get. They are not usually big money makers but they are profitable. It was tough in the beginning.I changed my phone number to a Google.number and the phone gets forwarded to me plus 3 of my employees. I have to admit if it wasn't for that feature it would have never worked. There is definitely a degree of aggregation that comes along with it. I only spend 50 to 60 a month on this service. The tried and true methods work best. Join the Chamber of Commerce, Kiwanis, Moose, Masons, Elks, get involved in your community and it'll all come together. But you need to work it and be an engaging personality.


----------



## Snow Commandor (Jan 30, 2011)

Meezer;2050498 said:


> It was called ServiceMagic. They ran out of "magic" ......


I used to be with Servicemagic & they sucked. Being charged for every lead regardless of weather you wanted the lead or not. Getting tons of leads just for one time services and not steady ongoing service. I'll never go back!


----------



## GimmeSnow!! (Oct 23, 2008)

Servicemagic is probably the single most aggrivating company I've ever dealt with. They hijacked my company info and posted it on all of those free profile websites with a different phone number. They managed to get all of their listing higher than my website and Facebook page. Then when people would call the phone number they would send the lead to me and charge me for it. After I got into a fight with them over that and cancelled they left all of the sites up. When I tried to take control of the sites I had to confirm that i was the actual company owner. Guess how? They text or call the phone number they had on file to verify. Then to top it off my customers would look me up online and get the phone number off the profile sites. When they called servicemagic would say that my company was no longer servicing the area but they would be happy to connect them with another great local company.


----------



## JustJeff (Sep 9, 2009)

They're all just another internet service provider that wants to bid any given job out to the cheapest vendor and then take 60% of the cut and charge an annual service fee. You guys have at it, I'm out.


----------



## pnoone (Nov 25, 2014)

Another thumbs up for thumbtack. I've done ok with snow removal leads and absolutely killed it this year with landscaping leads. Just today I gotta lead removal job from a thumbtack lead that also turned into snow removal work and a full day of tree work once I started talking to the client about what else they've done. Well worth it.


----------



## Snow Commandor (Jan 30, 2011)

pnoone;2058119 said:


> Another thumbs up for thumbtack. I've done ok with snow removal leads and absolutely killed it this year with landscaping leads. Just today I gotta lead removal job from a thumbtack lead that also turned into snow removal work and a full day of tree work once I started talking to the client about what else they've done. Well worth it.


Am I missing something here, cause Thumbtack just gives you a vague description of the job and expects you to submit a bid completely sight unseen. This to me makes no sense @ all. There's so many various factors involved in pricing a job. Factors that we as contractors won't know without seeing a job firsthand.


----------



## immortal.ben (Feb 28, 2015)

Harleyjeff;2053585 said:


> They're all just another internet service provider that wants to bid any given job out to the cheapest vendor and then take 60% of the cut and charge an annual service fee. You guys have at it, I'm out.


Don't know who or what you are talking about, but Thumbtack does neither of those things.


----------



## immortal.ben (Feb 28, 2015)

Snow Commandor;2075123 said:


> Am I missing something here, cause Thumbtack just gives you a vague description of the job and expects you to submit a bid completely sight unseen. This to me makes no sense @ all. There's so many various factors involved in pricing a job. Factors that we as contractors won't know without seeing a job firsthand.


True, and this is why I respond to the request that I cannot five a firm bid until I can see the project, ask questions, and take measurements of needed. It works for some (like me), but apparently not for others.


----------



## pnoone (Nov 25, 2014)

immortal.ben;2075238 said:


> True, and this is why I respond to the request that I cannot five a firm bid until I can see the project, ask questions, and take measurements of needed. It works for some (like me), but apparently not for others.


Exactly. It's really just an introduction to a potential new client- I never bid without seeing the work first. We get around 80% of the jobs we bid from Thumbtack. We spent just over $100 in fees this past season and it brought in more than $15k of additional revenue as many Thumbtack clients will also want additional services throughout the year. One client we got was a horse farm that needed 40 yards of mulch, 6 acres of weekly mowing, some waterscape repair, tree trimming and snow removal. These clients are using the service because they don't know any providers so odds are you'll get all of their landscaping work.


----------

