Experience Files
The Plumbing Paradox: Referral Fees and Rising Competition
The Plumbing Paradox: Referral Fees and Rising Competition
I'm constantly asked about how much should we be paying plumbers for their referrals. There's no simple answer to this question, as every market & business model is going to be different.
But, I will toss this out there. Please exercise caution, as giving cash referrals to plumbers is a double edged sword. Plumbers are entering the restoration industry at an alarmingly fast rate. Often I'm hearing about this plumbing company or that plumbing company buying fans & dehumidifiers and now doing the work themselves. However poorly is irrelevant to the discussion.
I've heard of markets where competitors are paying plumbers up to and even exceeding $1000 per water damage lead. Plumbers are seeing this competition for their leads & starting to question the profitability of the restoration industry.
You can't give your entire marketing effort to a single source. Your marketing efforts need to be lean & nimble. If you see that a facet of your marketing isn't producing, you need to evaluate it. You need to see why it's not producing. Ask yourself, is this just me, or is it everyone? You need to adjust or abandon marketing efforts that aren't producing.
Which brings me to another question, are you actually tracking where your leads are coming from? If you're not tracking it, you're flying blindly. Stop being reactionary, and start planning for success.