Angie's list has been getting a lot of attention lately. From its IPO last year to the massive advertising campaign it has launched. Even posting a loss recently their membership has grown nearly 66% based on their reports. For a long time I liked how their system worked. Customer's paid to have access to a business listing as opposed to most of the sites where the service provider buys leads. It was free for my business and while I didn't get lots of high value projects, I got several small service type jobs that where good and profitable. Everything seemed well until I got a sales call last week from my "Ad Sales Representative". She starts on what appears to be a call about making sure all my information is accurate and then switches straight to selling me advertising. She asks me how I'm liking angieslist and I tell her "I like it because I don't have to pay for leads and it's much more ethical than most lead generation sites". No sooner than I state that she cut into how would you like to increase your exposure. Right now you're in a bucket of contractors and for a fee…

New for 2013 is the Official Contractors Club Directory. I get several requests a month from homeowners using the "Contact Us" site looking for a contractor. I typically don't respond to them unless I know someone in the area off hand. I figured by introducing the Contractor Directory section to the site it will give us all an opportunity not only to make ourselves available to the homeowners browsing the site but internally as a list of who's doing what and where. I have not made an official set of requirements and won't until we find a bad apple. So as of know it's safe to assume that those listed in this directory are ethical and have nothing but the best intentions when it comes to serving the public.

5 years ago most specialty contractors had a simple business model that consisted of buying the biggest ad in the yellow pages they could afford and letting the phone ring. For most it worked and it worked well. Fast forward to today and most don't even have a phone book in their house. If I need a to find something I normally just pick up my phone and search for it. If I'm researching for a company to come install new windows I'm most likely going to use my desktop PC in the evening where I can spend the time reviewing several local contractors websites. This is when pay per click (PPC) advertising really let's you narrow down who see's your ad and puts you right in front of your prospects exactly when they are looking. Unlike traditional mailer's that you have a post card designed and just blast them out falling on many customers that don't need your services. PPC puts you in front of them when they are looking.

One of the simplest and cost effective things to do to reinforce your company's brand is sending out a simple "Thank You" letter. Most customer's feel that when hiring a contractor the final payment is the only leverage they have. This goes a long way and lets the customer know that just because you cashed the final check you are still there and appreciate the business. This will help enforce that your company truly does appreciate them being happy and will make them more comfortable about referring you to friends and family. What I have always done is kept a general 3 paragraph template and just customized the middle paragraph to fit each customer. This makes it more personal while still keeping it an efficient step towards building your customer relations. Here is an example that I use:

If you're like most contractors Nov-Feb are some of your slower months. Some plan ahead and start early in the summer by offering small yet substantial discounts if customer's are willing wait until the winter months to start their project. The ones that do this have a surplus of work and have been through this slow period before, the other's where happy to stay working during the busy season but now are finding themselves going into winter with little to no work. In general no matter how much work you have winter is just a slower period for business in general. Less daylight, holidays, weather, etc. So this is a good time to tighten up your books and work on future marketing.