Manager leading a brainstorming meeting.

Pay Per Lead Advertising – Scam OR Money for Jam?

Where ever you look on the internet now there seems to be an abundance of sites offering ‘3 free quotes’ from local qualified tradesmen.

There’s HiPages, Quotify, GetQuoteThe Quote Company and Give me a quote just to name a few.

These Marketing Machines claim the main benefit to customers is that it puts them back in control by avoiding having to troll through online directories and have 3 tradesmen call you back for a FREE QUOTE. 

The so called benefit to tradesmen is they get qualified leads. Where they get to choose which jobs they quote on. Sounds great doesn’t it? But who are the actual winners on these sites? 

Consider this. A person wants to get a window fixed so they fill in their details on the Marketing Machine website and then wait for 3 tradesmen to get back to them with a quote. Now the whole nature of the word ‘quoting’ infers looking for the cheapest price.

Then here’s the double whammy. Tradies who advertise on these sites have just put themselves into a direct auction with their competitors and paid a hefty price for the privilege. Seriously Tradesmen – you don’t know who else you are competing against so you offer a cheap price to win the job and how much did you pay for the lead – $10, $20, 30 or more?

The flaw in this advertising model is there is NO WIN –WIN. The only real winner is the Marketing Machine who gets paid everytime someone enters an enquiry on their website. Let’s say it’s a small job to the value of around $120.

Customer pays $0

Tradie pays $30

Marketing Machine  gets paid $30 x 3 Tradies = $90

(now this is just an example and the actual price may be less or more than the price stated as it will depend on the marketing machine, job type and location)

So regardless of whether the customer goes ahead with the job or not the Marketing Machine gets $90. With no obligation to proceed, 3 tradies have just forked out over $90 on the right to quote one small job! (almost the same value as the job itself)

Where is the fair value in the transaction? The tradie may have a stack of ‘leads’ to follow up, which is time on the phone (not on the tools) to win a few jobs at a discounted rate.  

In my opinion, when you engage in this type of discounting model there are no winners (except the Marketing Machine who gets paid everytime regardless).

So I ask you – is this pay per lead marketing model a scam or money for jam? 

Try this on. There is a new way for customer’s to connect with glaziers where everybody wins. (no jokes)

Check out Glass Ontime – which is set to transform the Australian Glass & Glazing Industry. There’s no paying for leads and no FREE quotes. Just guaranteed jobs. You only pay a small fee when the work’s been completed and you’ve been paid.Does this sound like a better way of doing business?

Yes I have a vested interest. I am the co-founder and CEO but I’ll put my name and reputation on the line because I believe in it. But you don’t have to believe me – check it out for yourself and make your own mind up.