Are we selling ourselves short

11 replies
Was reading some old Jay Abraham books, and I realised we are selling ourselves short big time when it comes to some offline businesses. Some of these guys are charging upwards of $100/hr and we asking for too little when it comes to bringing them in new customers. So I thought if I make a site for example a plumber. rank myself page 1 for city+plumber. whats stopping me from sub contracting the customers I get from this website to a few plumbers with a 60/40 split. Depending on the no. of hits and how well I can make a good lead generating site it is certainly more profitable than straight out leasing and SEO for clients. Would love to know if anyone has tried this and how it worked out.
#selling #short
  • Profile picture of the author TWalker
    I've thought of that too.

    But it would be more of a lead sales thing. I will sell the plumber: 3 leads per week at $150 each or whatever.

    I wouldn't want to get all tied up in what he is charging, or trying to charge customers and subcontracting work because I know NADA about it.

    Although it could work what are you thinking of doing bidding on plumbing jobs and then splitting it? Nah too much.
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  • Profile picture of the author Doran Peck
    Brilliant.

    If you want the quality service providers to continue to do work for your leads, you'll need to give them a much higher percentage.

    But yes...this is seriously big thinking.
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    • Profile picture of the author rugman
      Here is the problem - your site - your name on it - your ph#. You are depending on the plumbers to show up and do the work. I have been in the service biz for a long time and working with contractors - SUX! Even if you give them 70% and they get a chance to put one of their own jobs on at full price they will cancel yours - I promise! Better to rent them the site and just put their info on it.
      Just my 2cents after over 20 years in the service biz.
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      • Profile picture of the author Abdi Shakur
        Originally Posted by rugman View Post

        Here is the problem - your site - your name on it - your ph#. You are depending on the plumbers to show up and do the work. I have been in the service biz for a long time and working with contractors - SUX! Even if you give them 70% and they get a chance to put one of their own jobs on at full price they will cancel yours - I promise! Better to rent them the site and just put their info on it.
        Just my 2cents after over 20 years in the service biz.
        That was my biggest worry the legal side of things As you and redlegrich mentioned
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  • Profile picture of the author redlegrich
    I would agree with rugman, you are too involved with the business end of things of which you admit you know nothing about. What if the guy does not show up, you get the call? What if he does a crappy job and they come after you? Who pays who? How do you end up getting your cut?

    Just build a good site and sell it or lease it. Stick with what you are good at and stay out of someone else's business.
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  • Profile picture of the author redcell1
    It would be your name/reputation in some one else's hands.

    You also might get undercut, told the job didnt pan out (when it did) and then taxes ,etc for that.

    It is a good idea, but even the big boys take a fee (Servicemagic) and continue to do what they do best, marketing.
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    Just here to see the shenanigans.

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  • Profile picture of the author Chris Rivers
    Abdi,

    I agree with Rugman and Tim and would strongly reccommend leasing the website to the service professional on a long term basis, especially if you're just getting started. If you need cash flow, then definitely don't tie up your money into their performance.

    Yes, it's a much smaller pay day, but at least it's a pay day.

    Plus, at least for me, leasing a website is a much easier sell when the website is already ranked and generating leads.

    However, the main problem that you may run into is finding a reputable service professional that will pay on time and not get all weird on you after a couple of months.

    I ran into that problem when I first started and that's when I started using my marketing materials to disqualify potentially bad clients.

    I spend $50 - $100 to mail out postcards, emails or use little local ads to drive traffic to a squeeze page or hotline with recorded message. Then they get a free report or video which includes my contact information at the bottom.

    This way I only get people who want to be contacted. I spent six months, got discouraged and wasted a ton of money with one niche before I finally did what the marketing guru's told me to do to attract prospects to me.

    I was lucky to have figured that out while I had other sources of income, so I had the time and patience to do that.

    Chris
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  • Profile picture of the author herb44
    It sounds like the brokering business! I would want to sell leads to plumbers and match them up with customers but I would charge them a leaf based upon what customer wanted. That way if it's a bug job you could say charge ten to fifteen percent cost of job on that lead as compared to just selling a lead based upon a flat charge. You would have To know price breakdowns by industry but way more Lucrative than flat leads sales. For instance -uncle Harry's appliance repair has a price breakdown. Sheet for services rendered. In that case plumber has nothing to lose. He pays you -he gets his money from. Customer. Everyone is happy. Only catch -you have to supply great prefiltered leads!
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  • Profile picture of the author Hugh
    As for leasing, I can get higher rates with open-end rental agreements.
    They will pay more if there is no long term commitment. I get two months
    up front, then they can quit at any time. Hand-shake deal.

    Hugh
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    "Never make someone a priority in your life who makes you an option in theirs." Anon.
    "Some see private enterprise as a predatory target to be shot, others as a cow to be milked, but few are those who see it as a sturdy horse pulling the wagon." -- Winston Churchill

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