If you’re a business owner and you do B to C (business to consumer), you are likely bombarded on a daily basis on the phone, in your mailbox and in your inbox with companies trying to sell you “leads.” Some claim to provide exclusive leads while others sell shared leads which is even worse but either way do you get what you pay for? In my experience the answer is a big NO. However, I have had first hand experience on the other side of the lead aggregator business as being the one selling the leads which gives me unique insight as to how they work.
Search Engine Optimization and Web Design in Kansas City, MO
Many years ago before Web Force KC was even a glimmer in my eye I took a job working for a company “Service Magic”. Sounds corny right? You have no idea. At first it was a real hippy trippy, casual office atmosphere and according to some of the mid level managers I talked to, the owners were pretty cool but the company itself was changing rapidly into an ultra corporate entity that sold millions of dollars in “leads” and I would soon learn I didn’t want any part of it. First let’s define what a lead aggregator is. A lead aggregator is usually a company with a massive website with hundreds of pages that showcase the businesses and business owners that have unfortunately opted to partner with them. Home Advisor (formerly Service Magic) is a great example of a lead aggregator in that they tend to show up in search results for pretty much anything and everything you search for as it pertains to home improvement and they almost always rank pretty prominently. The goal of the lead aggregator website is to gobble up as many clicks as it pertains to a specific search as possible from what we would assume are homeowners looking for home improvement services and then sell the “leads” to their paying contractors. Sound OK so far right especially for a small company that is just starting out and needs business? The problem is that these same “leads” are shared with multiple other contractors in your area all at the same time (or at least as fast as your internet connection is). From there, it’s a mad dash to get that “lead” on the phone and schedule an estimate but the problem is that most of these small businesses or contractors are busy working with their hands and can’t always drop what they’re doing to call the lead back immediately. So it’s essentially a race to get the lead but the bad part about it is that all of the contractors or companies that got that “lead” have to pay for it whether they get the “job” or not. Way back when I worked for Service Magic, some of the leads, particularly for services like home remodeling, cost upwards of $80.00 per lead and I can’t imagine prices have gone down since then. Now, that’s how it works from the lead aggregator and contractor side but there’s another side to the business and that’s the consumer side. The consumer doesn’t know any better as any type of marketing done by the lead aggregator typically won’t disclose that they charge contractors for leads but instead focus on how their service is free for homeowners. They boast that they do background checks and make sure the contractors are licensed, insured, etc to make the homeowner feel more comfortable with hiring someone they don’t know. As the homeowner goes to their website and completes their request for some type of service little do they know it is so on. The phone will ring off the hook, their inbox will be flooded, and it gets overwhelming because the contractors that got the lead are going to make the most of it because they are paying for it whether they get the job or not. It tends to scare off homeowners who just want to get some type of home improvement done and not have to talk to countless contractors. The bottom line is that the lead aggregator got paid multiple times for the single lead they sold to multiple people and they could care less who gets the job or if anyone gets it. Here’s the even more crazy part about all of this: some of the leads are so insane that you wouldn’t believe some of the ones I got to hear about but I will leave you with this one. One of the contractors I worked with called me directly one afternoon asking if it was all a joke. I said no, why and he proceeded to tell me that he had just paid for a lead wanting to add a room onto a trailer in a trailer court.
Lead aggregators probably have their place but I’m not sure where that is. As a business owner, you are already competing with your competitors so it makes little sense to pay more to do it in an arena you have little to no control over. Take control of your online presence and have people find you and your business for what you do, where you do it, and why you are different than your competitors. That’s what Web Force KC does for our clients.
Call Web Force KC at (816) 462-9128 for effective web design and online marketing in the Kansas City area.
