Using INTERNET REFERRAL Services

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Customers using Internet Referral Service to locate electricians prove too costly. Most referrals charge the contractors $30 or more per customer even if the customer decides not to proceed on the project. To offset the losses, contractors subscribing to Referral Service Companies add hidden charges to all customers' bills to stay affloat. In my case, for a span of 30 days, I get 9 phone calls from customers provided by the Referrals. 7 calls only inquiring some information but I still get charged and only 2 calls created the job. My QUESTION in everyone's experience, IS IT PROFITABLE TO USE THE Internet Referral Services:
 

Rewire

Senior Member
yes they can be profitable and yes they can lose money. Alot depends on how you use and track your referals. You were given nine potential customers you converted to to a sale. You still have seven potential customers. Hopefully you collected basic information from them and plan on a follow up call. Now you also need to track your average ticket for the cals you do convert are you maximizing the sale.30 days is not a good snapshot of how well this could work out.
 
Referral services/good no good?

Referral services/good no good?

Thanks for your input Mr. Rewire. 30 days is not long enough to check the effectiveness of what the referral services have to offer.

I checked other local contractors and was told nightmare stories. If the Referral services provides the member contractor's business number to prospective customer and that person call, even without leaving a message to the contractor's answering machine, the Referral Services still charges you their minimum of over $30 per referral.

It is not my choice to join them ever again. Contractor will always be in the lossing end. Don't take my word, Try it and let me know your results. Charge ranges from $300 - or more $ a month depending on the number of customers' callers assigned to your number.
 

jmellc

Senior Member
Location
Durham, NC
Occupation
Facility Maintenance Tech. Licensed Electrician
I have had several of these guys to call. Most wanted a lot of $ with no sure success. I have grown weary of advertisers. My best results from any ads anywhere were more advertisers calling to sell me more advertising.:rant:

I am getting some emails from Thumbtack.com. They will do a per lead rate of 3 or 4 dollars. Not too bad. However, they always want a price on something that is unclear. They will charge the fee even for me to send a request for more information. Example: price for a 40 amp double pole ckt about 35 feet from panel to crawl space. What brand/variation of panel? Snap in or bolt in? Fuses or breakers? Does panel have space? Crawl space open all the way or walls to deal with? 12 inches high or 6 feet high? Straight line from A to B or 30 foot detour around HVAC ducts & equipment? Dry or 6 inches of mud? I am not entirely comfortable even then, as customers either do not know what other variables to mention. Plus, the leads I see so far are just far enough that I'd lose $ to travel there & price it, then travel later to do it.
 
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