So What About Those Lead Services?
In the construction and contracting service business, there is no shortage of lead generation platforms to subscribe to. And to keep things simple, when we talk about Lead Gen, we’re specifically referring to services where there is a pre-qualified lead that you are invited to bid on. This can take the shape of homeowners submitting their project info onto a website, or a commercial GC who invites subcontractors to bid on their specific trade.
In either case, you may or may not be paying for the actual lead, but you are more than likely paying a fee to join these programs. After reviewing these services and interviewing many contractors, we thought we’d write about the pros and cons of these lead services, so you can decide if they make sense for your company.
First off, let’s chat about the Pros:
1. When you join a lead generation service, you are automatically exposed to many potential projects. These ‘lead’ companies compile all sorts of information relevant to their leads from project scope, contact information, and the budget. In a nutshell, lead gen services can give you quick and easy access to potential clients and to new projects.
2. By simply listing your business on a lead generation site, you can increase your exposure to potential clients who might not have found you otherwise. The mere fact that you can now be found on these sites may help grow your business.
3. Consider the time Savings: Using a lead service can save you time by providing you with pre-qualified leads that match your business’s criteria. So as opposed to cold calling or email marketing, where it can take quite some time to develop a good lead, lead services provide projects that are ready to bid on now.
Now onto the Cons:
1. Why lead generation services may not be a good investment. First, there’s going to be a ton of competition. There are lots of companies just like yours all vying for the same projects. You will have to work hard on separating yourself and potentially lowering your prices to be competitive.
2. Cost: In many cases, you are going to pay a high fee for simply getting on a lead generation site or pay for the leads themselves. And even with all that expense, you are not guaranteed to win the job.
3. So, What About the Quality of Leads? One of the most common complaints is that the leads from these companies are quite poor. The information is either out of date or incorrect. There seems to be a low level of quality control when it comes to the leads themselves. Lead companies are more interested in pushing the quantity of projects, as opposed to the quality of their projects.
In conclusion, what are we to make of this? As with anything in the construction business, there needs to be a balance, so you do not become overly reliable on just one source of leads. Consider incorporating a more holistic sales and marketing approach. While it may make sense to join one of these lead services, continue to call upon prospects and past clients to further strengthen your relationships. Run email marketing campaigns and keep your social media fresh. Finding and winning more work is a full contact sport. One needs to successfully employ a multitude of strategies to win more work.