CONSTRUCTION Accounting ARTICLE - More and more contractors turn to lead services

Target Audience: Construction Industry Professionals, Business Owners, Project Managers, Contractors, Construction Accountants

Some people may not consider construction companies to be as sales oriented as, say, auto dealerships or magazine publishers. But, in a tough economy, locking in on where you can find your next job is more important than ever. To this end, more and more contractors are turning to lead services to get the jump on competitors.

3 primary options

If you decide to give a lead service a try, you’ll need to determine how you’d like to receive your leads based on your budget and the time you have to sift through them. Generally, you have three primary options:

1. A subscription-based service. These are usually print or electronic bulletins compiled and distributed weekly or monthly. Subscription-based services are relatively inexpensive but require you to comb through the results, and they may not provide enough specifics.
2. A pay-per-lead service. This option is basically the “on demand” version of a subscription-based service. For as little as $150, you can buy a batch of leads whenever you choose. This may be the least expensive option but the same caveats that apply to subscription-based services apply here.
3. A database service. These are Web-based tools that allow users to conduct specific searches and can cost up to several thousand dollars per year. Lead databases, however, allow for the highest degree of customization and access to the most specific information.

The right choice

Either a subscription-based or pay-per-lead service likely won’t break the bank and might be a good way to test the waters. But bear in mind that you’ll need to dedicate time and personnel to working through all the leads.

So if you’re serious about using a lead service, and can afford to do so, you might want to take a calculated risk and sign up for a database. That way if, say, you mainly work on restoration and health care construction projects, you can immediately drill down into those areas.

Before making any choice, however, do some due diligence. Search for lead services online and read their customer reviews. If you find a few you like, ask them for references. Many providers also allow you to test their services via a free trial period. And, if opportunity allows, ask friends or colleagues who are already using a lead service about their experiences.

Not magical, put practical

Nearly two-thirds of contractors and manufacturers say they’re much more likely to use a lead service, according to a November 2008 survey from Reed Construction Data. Although lead services can’t make jobs magically appear, a carefully chosen one can fill your prospective sales pipeline and save you some time.

Find out how our expertise in construction accounting can add value to your business. Email us or call us at 1 (888) 875-9770.

related links

Construction Newsletters & Articles

Specialized Construction Services

Construction Contract Audits

Construction Resources

Auditing & Accounting

Seminars & Events