Very few contractors begin their businesses through marketing. Most start in sales or in the trades and are therefore less familiar with the cost and value of marketing investments.
Below are five common marketing misconceptions that need to be understood and discredited to have a successful business marketing plan.
- Exclusive leads are the best leads. When purchasing leads, generation companies often charge a premium for “exclusive” leads. This does not always guarantee that you are the only one with the homeowner’s information. Today, homeowners research online and reach out to contractors directly via website forms or online ads. So, while paying a fee to have exclusive access to a lead sounds great, several other sources may already have the information.
- Referrals and word of mouth are the best ways to build business. While recommendations from reliable sources are among the most important factors when choosing a contractor, it is hard to scale a business relying solely on them. Creating a balanced marketing plan consisting of referrals, print and digital ads, and leads from third party providers is essential.
- Leads that don’t close are dead. Start thinking of your leads as they are – living, breathing people. According to research 58% of homeowners put their projects on hold because they found they weren’t financially ready to complete the project. The research also notes that most homeowners are planning to start their project 30 days or more after inquiring about your services. Many homeowners need several touch points be it phone calls, email or direct mail before moving forward. Delivering financing options is a way to speed up the project and ease the prospect’s mind. In-house financing with Foundation Finance gives your client a number of options.
- Digital marketing doesn’t work. There are many reasons contractors have a bad taste in their mouth for digital marketing. Most don’t have a system in place to track the process of a lead becoming a customer. Luckily, today there are many tools that can provide clear source tracking through your sales funnel.
- Purchased leads are too expensive. If you have a successful sales funnel, purchasing leads can lead to a very positive return on investment. Consider the quality of the lead and the cost for each before investing. There will be some leads that never convert into a sale, but many contractors find that for every $1 they spend, they return $10 in revenue.
Understanding the return on investment of your marketing efforts can be the difference between making money and wasting money.
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