Congratz on landing a potential client.
If you dont mind, can you elaborate your process a little?
How did you find those clients? Scraped from yellowpages? Google Places etc.?
and whats your pricing model?
Thanks
I made a total of 2 calls.
I googled "energy efficient windows". Then I looked at the adwords listings and found what appeared to be a local, family owned operation. When I went to their website it looked kind of like something I would build and lease so when I called I asked the owner if he was leasing the website. He said no, so we continued. Talking to the owner is key here because I don't want to deal with a company who has to have a board meeting to make a decision.
I quickly asked him this question: If I could send you leads for your business would you pay me a commission? If he answers no to that question then I know I'm speaking to an idiot or I'm speaking to someone who has way too much business (and I found a great niche).
Next question: What is your average ticket?
Then: What would you pay me for each job? I liked every answer. He told me Service Magic was charging him $61 a lead. I told him if I charged per lead then it would be quite a bit more than that because he would be exclusive. Then I shifted the conversation away from per lead and went back to commission.
Here's the deal. I have windows, roofing, and a few other related websites that are sitting around collecting digital dust because I've been involved in other projects. I decided to take knockoutlocal's advice and try the commission per lead model because the reward is higher. In the past I didn't want to screw around with that because I didn't want to have to track everything. I just set sites up and charged a monthly fee.
Frank (the owner) and I talked about a 10-15% commission for ever closed deal. I don't do any closing, I just send him the leads. Then we will get together once a month to go over leads vs deals closed. I get paid when the contract is signed. Avg jobs are about $30,000. Even if I get him a fence lead (which is very low ticket size) and it turns into a siding deal I get paid on the entire job.
If I ever catch him screwing me, which I don't think will happen with this guy, then he knows I can take my sites and point them elsewhere. I hit the jackpot with this guy. He was local, he's involved in every job he does, and he has sales reps. So, he's not too big, and he's not too small. Plus, he doesn't market on Craigslist or Facebook...
Then I called a roofer that I went to school with and he's going to pay me 20% of the profit which is normally $5,000 to $8,000.
I never liked this model in the past but after talking to a kitchen and bath cabinet guy last month (he offered me 9% per job, avg job $30,000) and reading knockoutlocal's post I thought I'd give it a try. Since I finished my last project I'll have more time on my hands to devote to this stuff.