Why Most Lead Generation for Contractors Sucks

As a contractor, you obviously want more clients – and you know there are plenty of ways to get them. Some ways take time, some take money, and some take both. And because the array of options can be overwhelming, contractors are notorious for picking the first option that they’re given, instead of exploring their choices.

So, you’ve hired a lead generator. Maybe it’s one of the dozens of pay-per-lead services out there, or a pay-per-click (PPC) marketing company. And when you hire this lead generating company, you started getting a ton of leads!

But…how good are the leads you’re getting?

Let’s be clear – there’s nothing inherently wrong with lead generation. We love lead generation; it’s the backbone of the services we provide for our clients. But you have to be sure that the leads you’re getting are going to result in profitable jobs for your company, right?

More Is Not Always Better

I can hear you thinking “What? Why not? We always want more leads!” but imagine this: you get the worst client possible, someone you absolutely don’t want to work with, 100 times over because your lead generation efforts aren’t properly focused. You get leads that don’t know how to properly value what you offer, are out of your service area, or are just shopping around (leads that don’t actually result in jobs).

When you don’t have properly focused lead generation campaigns, what you’re paying for is headaches – trying to sort through calls, emails, and messages from people that may not ever lead to a sale.

As a contractor, you have to look beyond the first step of getting the lead. You need to think about who the lead is, how they would be served as your client, and how they would impact your profitability.

What Kind of Business Do You Want?

Instead of asking yourself “What kind of lead generation should I do,” ask yourself “What kind of business do I want?” When you ask this question, it leads you down the path to targeted lead generation, and you’ll start asking questions like:

  • Who is my ideal client?
  • Where are they located?
  • How can I reach them?

While it’s easy to sign up for one of the many contractor lead gen services out there, hire a PPC agency, or hire an SEO firm, and assume that by putting together a lead-generating team, you don’t need to do anything else, you’re actually damaging your chances of getting quality leads. What you need to remember is that these companies are going to do what they do best – delivering whatever audience they can access. And in a lot of cases, the audience they give you are the clients you don’t want, who don’t fit your target demographic, and who might negatively impact your profit margin.

The Contractor Lead Generation Trap

If you do hire one of these lead generation agencies (or several of them), you may get caught in a trap – because you paid for the lead, you think you have to take the work, even if you don’t want it. And once that cycle starts, it’s really easy to get stuck. You’re taking more work to see a return on your investment (ROI) from the lead generation, but then you get overwhelmed with the work you didn’t really want to do in the first place – and you might risk losing out on clients you do want, because you’re stuck working with bargain-hunting, slow-pay (or no-pay) clients.

In most cases, the premium clients that you’re looking for – the ones who are willing to pay more for high-quality work and a better customer service experience – aren’t entering their personal information on the third-party lead generation sites. They’re not going from HomeAdvisor to Networx to who knows where in their quest to find a great contractor.

Instead, these premium clients (who will pay you more money and cause fewer headaches) are asking friends, family, or advisors for a referral and heading to the web to do their own research. Even if they’re going directly to a contractor recommended by a trusted friend, they want to see pictures and reviews first-hand. They want to research a contractor themselves, to figure out who will provide them with the best value and experience.

Essentially, they want to find a contractor they KNOW, LIKE, & TRUST.

The Better Way to Reach Prospects

We’ve established that traditional lead generation services for contractors may not get you where you want to go, but that doesn’t mean that all lead generation is bad. Once you’ve thought through the kind of business you want, your ideal client, and where they are, lead generation can absolutely work for you. But it requires a little more thought and commitment than simply hiring a third-party lead generation company and hoping for the best.

For instance, you might get the best leads with a direct mailer, narrowly targeted to a community or neighborhood you want to expand to. Or maybe you know that your ideal client is someone who reads home improvement magazines, and you can put an insert in those publications directed towards them.

The point is that once you’ve identified your ideal client, you can focus your lead generation efforts on them. You can think about where they are, what they’re reading, and what they’re doing, and then build on that knowledge to help you generate leads that are actually valuable.

A more focused approach will yield better leads than a general campaign, and will actually require you to spend less – because you’re attracting clients who aren’t so price-sensitive.

Why Our Program Works

When you work with Contractor Dynamics, we’ll walk you through the process of defining your business and marketing goals, going step by step to figure out your ideal client, what you’re looking for with your business, and where you want to focus your efforts. We handle the details up front so that there’s no wasted effort and you see improved results.

While our approach does take a little more work up front, the payoff is huge. After all, you’ll enjoy less-stressful marketing that’s more profitable for you in the long run, because you’ll be connecting with leads that you want instead of wading through a sea of leads you’re not looking for.

Like most things in life (and in business), it comes down to making a choice. Would you rather pay a lot of money for lead generation that might work but might cause you more stress and headaches than you want? Or would you rather work with a team who can show you exactly how to find leads that will help your contracting business grow and thrive?

If you’ve decided it’s time to improve your lead generation and connect with the clients you really want, get in touch with Contractor Dynamics today. Let us schedule a strategy call with you and show you what can happen with targeted lead generation and an effective marketing strategy.

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