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Buying 3rd Party Remodeling Leads is a Fools Game

Buying leads from 3rd party providers like Service Magic is just plain insanity, especially if these are the only consistent leads you are getting. I have seen countless remodeling contractors chase around weak 3rd party leads, waste tons of time, and lose lots of money only to be left frustrated and confused by these types of lead services. It seems like a good idea, but the the real question is why doesn't it work?

Smart People Don't Use 3rd Party Sites to Find Remodeling Contractors

Yes, I said it. This isn't meant to be a jab at anyone but it's true. Smart people do NOT use 3rd party websites to request estimates from local remodeling contractors or to find any contractor for that matter. Think about it...would you rely on someone else to pick the next 3 or 4 contractors you were going to hire?

Most people understand how to search online. I would go so far as to say that most people are experts at using search engines these days. We have become so good at searching that we can quickly determine paid search ads from organic searches. We can make super fast buying decisions based on search results, how they appear, what they say, and how well the search aligns with our intent. All in a matter of seconds. We know when we land on a site like Service Magic that this is not what we are looking for to make a final decision on who to contact.

Your best prospects are NOT on Service Magic or any other 3rd party lead site. If you want a lousy lead and a sub par prospect at best, continue buying leads from a 3rd party. Great prospects know how to find the best local businesses to contact directly. They understand how to read reviews, blog content, and to quickly determine if the local remodeling company they just found is legit or not. This doesn't take that long to do so why would I use some 3rd party site to narrow this down for me?

Smart people know that those local businesses that have a great website, lots of positive reviews, good content, social presence (even a small one works!), solid guarantee, and are on page 1 of Google are typically legit. Now it's just a matter of contacting 1,2, or 3 of them and feeling them out.

You Are NOT Positioned as the Expert

Before you go and buy another lead from someone you need to understand the mentality of someone who uses a 3rd party service site. They want the cheapest service and they want you to be at their mercy. In their minds, why else would a contractor use a service like Service Magic? The contractor must be cheap and you are giving the prospect all the control. They simply submit a button and 3-5 contractors magically kill each other for a crappy project for no money. Doesn't sound like a business I want to be in yet so many of you continue to give away your money for so called "leads" and aren't investing anything into your own brand and market leadership.

You have no leverage and no positioning when you try and turn a 3rd party lead into sale. The prospect doesn't know you at all. They haven't watched any of your videos, they haven't read your reviews, they just plain don't know you.  

Marketing is all about creating that emotional connection with your prospect. Just about every product or service you buy is trying to accomplish this at some level. You could be featured on the cover of Remodeling Magazine this month and your 3rd party lead won't know nor would they care. You are just another name in a long line of people that called them that day and they would be hard pressed to remember or distinguish any of the remodeling businesses that called them from the lead request form they filled out. They have NO emotional connection to you and aren't looking for that. If you take anything away from this article, that might be the most important thing to remember. 

Every time you give away money for a lead is another dollar you failed to invest in yourself, your brand, your reputation, and your own leads that you control. 3rd party leads are something you should try as a small part of your marketing to fill your funnel, but NEVER EVER EVER should it be the only thing you are doing unless you want to simply swap your time for less money than you are worth...if you can even get them to say yes.

Become your own Service Magic and start selling your lead overflow to other contractors and control your own destiny. It's well within the realm of possibility for those who market themselves correctly and attack the market. 

Need more help growing your remodeling business? Take advantage of all the FREE resources I have on www.RyanPaulAdams.com and my download my "3 Killer Ways to Grow Your Remodeling Business" today.