By Greg Vanden Berge
I can't believe the money that some of these online
contractor referral services are actually making today. It's getting to
be out right robbery, and these costs are passed on, to the people that
are using these referral services.
Let me explain, some of these companies charge outrageous fees and to
give you an idea, some of the larger remodeling projects, can be
anywhere from $55 and up.
Could you imagine paying $100, for a home remodeling referral?
Some of these contractors are paying large amounts of money, just to get
your phone number and the opportunity to bid your job. The contractor
pays the contractor referral service company a $70 fee, no matter what.
If the contractor doesn't get the job, he still has to pay the online
referral service company, the $70.
Now it sounds like the contractor is out $70, but the construction
company really isn't out that money. Here's what happens, let's say that
the online contractor referral service provides the contractor with five
jobs and each job is costing the company $70. The construction company
has now paid over $300, and advertising expenses.
Guess who pays these advertising expenses. The homeowner, or property
owner is the one who ultimately ends up paying these advertising
expenses. Keep this in mind, people using the online construction
referral services, could end up paying, lots of money in the long run,
to use a service that doesn't cost them any money at the very beginning.
It wouldn't hurt to do a little bit of investigative research, or ask
the contractors, how much they pay for these services. If the contractor
tells you that you're not going to be paying any money for these
services and you believe them, you'd better go back to basic business
school 101.
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