Mike Jeffries' eight low or no-cost lead generation ideas

Mike Jeffries offers at closingsuccesssystems.com a weekly service (via autoresponder) to provide "eight different low or NO cost ways to generate 25, 50 or even 100 Quality leads."

Here is a summary of his eight suggestions. I've cut some portions of the content of this week's email in part to respect his copyright, and in part because if you want any of these approaches to work you will need to do just a little more work than read a single blog posting.

Endorsements - "Find a business owner or influential homeowner and get them to endorse you to everyone they know - see an example in the download - this could mean 250 or more opportunities."

Referrals

(Offer) Additional Services or Products

Past Customers - "Probably the biggest opportunity that people don't tap - reactivate, reconnect - tell about new services or products or projects ask for referrals if they don't have any needs now."

Other Similar Groups/Markets

Joint Ventures

Co-marketing

Past successful tactics - "Do what brought you clients before."

"If you implemented all, or some, of these tactics, you've seen an increase in your business," Jeffries writes. "If not, now is the time to review each week and start generating more lead flow - which is the life blood of your business success."

Mike can be reached toll Free at (866) 926-5100. and his website is at http://www.ClosingSuccessSystem.com. Maybe we should have a conversation about joint ventures and/or co-marketing. As it is, this referral is free because the suggestions are indeed wise.

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Vapourware? Maybe not.

I don't believe a part-time business just three weeks in operation qualifies as a "Professional Contracting Association" and hate the cheesy squeeze-page set up on Steve Sellers' marketing materials, but behind his site are actually some useful free resources.

Steve Sellers from Professionalcontractingassociation.com, based in New Jersey, responded to my email inquiry when I prepared the Vapourware Marketing posting yesterday. In my email to him, I asked:

If I'm wrong in my assumptions, we should communicate so I can write an accurate story. If I'm right, don't worry, no one should be able to trace you from this posting and I never name individuals/organizations (negatively) publicly in the blog.

If the truth is somewhere "in between" also let me know -- while I can't write an artificially positive review, we can still share notes.

His answer:

"In-between" would be the most accurate. This IS a new venture for me, although I am not new to Internet marketing. That being said, I owned/operated a small construction company in New Jersey (you are right about the Eastern U.S.), and no, this is not my home address--it is an office.

Long story, but we are shutting down our construction business this month... I'll be happy to share all of the torrid details over the phone...

I've tried very hard not to over-inflate my claims and if it appears that I have done so, then any feedback would be highly appreciated!

He followed up with a phone conversation and emailed some rather interesting material behind the site, including a marketing e-book and a six week course on how to effectively structure and operate a contracting business.

It turns out he has a contracting business which he would like to sell or quit; a manager is operating it while he works at another full-time job and he tries to make his Internet marketing business viable.

He told me he got into trouble when he purchased a maintenance franchise; the franchiser didn't know the business, and it lost thousands of dollars until he ditched the franchise and learned how to do things himself. Last year, the business turned a small profit.

"Why not validate your approach by making your contracting business truly successful," I asked him. He said he is disillusioned with the business and the harrowing experience the ill-fated franchise put him and his family through. He is burned out. His manager would like to purchase the business, but of course doesn't have the spare cash.

Sellers' Internet business, meanwhile, has been in operation for three weeks. He has sold one marketing system, a newsletter/email follow up management system provided by The Halos Marketing Group.

His Adwords budget is $10.00 a day, and this generates 15 to 25 leads -- of which about half of one per cent convert to a request for a free newsletter subscription. But since the system operates on autoresponder, it may turn out to be a modest part-time business if he can sell two or three marketing packages a month.

Fair enough. Is this vapourware? Digging beneath the surface, maybe not. Sellers has hard-knock experience. His e-course, which is right now free, is quite well presented and provides practical and useful materials. (Free is also a rather good price!)

I'm not sure I'd pay the fee for the marketing/newsletter package, but you might want to check his free course at http://www.6weekbusinessremodel.com. And since his marketing e-book is also free, you can check it here: http://www.professionalcontractingassociation.com/Marketing.pdf.

I still wish he wouldn't use the word "Association" when he is operating a small, part-time one person business. And I really hate the cheesy squeeze page "Internet marketing technique" format. Every time I see this sort of site, I feel like running for the hills.

Nevertheless, the free stuff is quite good and he really has been in the business, so I'll keep my mind open and grant him a hyperlink for his blog at http://professionalcontractingassociation.com/blog/

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Lead nurturing

Clay Posey posted this entertaining video from Hubspot.com on his site.

Clay Posey at mychiefmarketingofficer.net sent me this email after completing my "spammy" survey seeking to understand if there is a way to convert initial inquiries from this blog to requests for special advertising-supported features within the Design and Construction Report.

(If you wish to see -- or take -- the survey, you can find it here.)

I read your blog post about the results - interesting. Yes, the survey you sent out tends to be on the “outbound” side of things. Emailed surveys are perceived as “spammy”. Even unsolicited emails to an opt-in list get bounces these days. Let me offer a couple of observations if I may.

First, in regards to the instrument design, your choices were very narrow (which can be good) but they were not inclusive. Regarding question three, your answers are restrictive. I would have included an option for “available at no cost to me.” Everyone knows that advertising pays for publication if they’ve ever done any advertising at all. The fact that you can create an advertorial piece at little or no cost to the client is really quite amazing. You could always explain the advertising in a marketing or sales conversation. And I’m sure you realize 15 is not a statistically valid number. Any given outbound campaign I do results in a 2 to 3 per cent opt out with the occasional spam. If your bounces were shown as SPAM and not just unsubs then I’d really have to think about why. I know Constant Contact's Spam check feature would have caught any obvious problems. That fact is disturbing.

Second, in regards to inbound marketing, it is anything but passive if done correctly. Your blog and your high Google rank are huge for lead generation. They are inbound tools at their best. Inbound, in a nut shell is about getting found (Creating interesting compelling content coupled with superior SEO efforts), converting (this is the "not passive" part of calls to action {step 1} leading to stunning offers {step 2}) that change visitors to leads) and then a solid LEAD NURTURING PROGRAM to convert leads to sales. You’re a pro so I don’t even want to begin to sound like I’m schooling you on marketing, but I’m betting that the gap in your program is related to lead scoring and lead nurturing. What you are doing so well with your blog and your SEO works so well that when coupled with the rest of the program, the results eclipse all other marketing efforts.

I have a client who is an architect. He was actually my first client. Last year he had two leads off of his web site. Every keyword he wanted to rank for was at least 100 pages deep in Google. I started working on his inbound marketing in earnest last March. In June, he was on the front page of Google for 15 of his keywords. For two of them, he ranks number two. He also had 17 leads off of his website. Zero from his outbound efforts by the way. It all boiled down to getting him found, giving folks a reason to stick when they got to the site, creating specific landing pages for specific personas, having a stunning offer for them to respond to and then tracking to analyze and improve the effort. It will only get better over time.

Intrigued, I have invited Clay to work with me to solve the lead nurturing problem with this blog. Can we redefine our methodologies to encourage more positive results, and relate more closely the lead quality and ranking to our sales efforts?

We discussed the best approach to take, and Clay recommended that we try out variations in the communication/copy and measure results with a/b testing. That is, we compare the existing/standard approach with an alternative, and see which one pulls greater responses. We may need to conduct several a/b tests over time, as we tweak the system, hoping to find a "home run" but regardless, seeing how the quality and effectiveness of the leads management system can be improved.

In the weeks ahead, I'll report on our progress. You'll see as the story unfolds how we develop new business and build a system for leads management and sales which can be effectively adapted to your own organization. If, as I think will happen, Clay succeeds in solving my challenge, he will rightfully earn the strongest endorsement possible (and of course validate some other marketing principals outlined in this blog, namely that respectfulness, sharing, and contributing without worrying about immediate results are far more effective marketing methodologies than conventional, irritating and intrusive advertising and sales practices.)

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Clay Posey, principal at www.mychiefmarketingofficer.net took the time to answer the questions I posed about my challenges in making this blog an effective marketing resource. Here is his email (reprinted with permission):

Mark,

Thanks first of all for your work. I always enjoy the read. You asked some questions at the end of your last email. Here is my two cents worth:
Does "Construction Marketing" require hands-on locally based consultations, or advertising in relevant media that we don't provide?

“Often I think this may be the case as to hands on, face to face consultation. MY primary target market is the construction and related industry (Architects, engineers, etc.) This is where I’ve spent my career, and as you know, we are hands on folks. Bricks and Mortar.” However, leveraging web 2.0 tools is changing that. Reaching the millinials that now are taking their place in this marketplace helps too. They are digital natives; we (40++ in my case) are digital immigrants. As for advertising… well, it’s dead.”

Do we have the credibility and proof that we can deliver more expensive services, for a fee, because of this blog?

“You should, by now. The trick of course is to get buy in from your audience. What “freemium” material (other than the blog) do you offer that people can sign up for? White papers, webinars, reports, tools, etc. To get these, people have to go through a “squeeze page” where you collect (squeeze) info from them on an opt in form.

Permission to follow up is an explicit part of the form. Lead Nurturing follows and ultimately, the sales process.” Here is a link to a vendor/partner of mine that just published a great post on getting business from your blog. Mike does a fantastic job of showing how you can have thought leadership (which you have) and business (which is sounds like you may not) too. http://blog.hubspot.com/”

Whenever I've overtly tried to sell anything through this blog or the newsletter, I usually achieve nothing but negative backlash.

“Not a question outright, but implied. Look at Mike post above. He gives meaningful content and then a couple of offers at the bottom of the post, for a webinar and a white paper. He’s not selling there, but I promise, once you grab the “freemium material”, he or one of his reps will be in touch. It’s a permission based process – no negative backlash when they ASK YOU to sell them.”

Do you have ideas or suggestions of your own to solve this challenge?

“Nuff said, except for, check out Inbound University (http://www.inboundmarketing.com/university). It’s a great place for old school marketers to get retrained to web 2.0.”

Maybe you can help me solve this marketing puzzle.

“I’d love too. Drop me a line back, give me a call, or catch me at Twitter, Facebook, or LinkedIn.”

Best,

Clay Posey, principal
www.mychiefmarketingofficer.net
404-419-7691
404-345-5235 cell or text

These are useful resources and I will follow up with Clay in the near future.

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Lead generation services: Some further observations

Mark Paskell has posted this comment on a National Association for the Remodeling Industry (NARI) linkedin.com group thread, which is worthy of republishing here:

LinkedIn Groups Group: National Association of the Remodeling Industry (NARI)

Subject: New comment (140) on "Should NARI lead the charge to expose the unscrupulous tactics of lead generation companies to protect the rights of contractors?"

Hello Everyone

Thanks again for sharing. I think maybe its time to conclude this thread. I would like to share some observations.

I think most agree that the relationship between contractors and LGC's is seriously strained.

This thread did not receive any participation from the trade publications that sell their magazines to contractors. Maybe they don't want to risk their advertising revenue that they get from LGC's.

There were no happy contractors sharing their stories about how satisfied they are with services provided by LGC's. One would think that the LGC's would ask some of their happy clients to come and counter the comments made by so many contractors.

We learned that NARI is not a partner with SM and has allowed them to join as a national member.

We learned that many NARI members are concerned that some LGC's may be in conflict with the code of ethics. Specifically bait and switch tactics, misleading advertising and claims about the service provided by LGC's.

We also learned from SM that they can't provide qualified leads because they don't know the needs of their contractor clients. See the following quote from SM

"A lead generation company can't qualify your leads. They don't know enough about your business. A LGC provides an introduction, where a homeowner who wants some help leaves their contact information. While there is a place on the service request to list budget and timing, most homeowners don't know the answers to these questions. They want help and direction, and they go online to try and find that help.

"What LGC can do, however, is provide you with the contact information for homeowners in targeted areas that match the demographics of your best customers. You may not know their budget, their timing might be unrealistic, or they might just be window shopping. But you do collect their contact information so that you can follow-up in the future. If you can demonstrate that you are an expert in what you do, provide project pictures, and helpful tips and checklists, you have an opportunity to make them a customer.

As Robin said, a LGC is an add-on to a company's marketing program. Build a database of potential customers, and over time, some of that potential will convert into sales." (Dave Lupberger, Service Magic)

We learned that if someone wants to complain officially to NARI that they have to file a grievance in writing. Otherwise NARI cannot do anything officially. One would think from reading the posts that there is a preponderance of evidence to support a grievance. Maybe no one wants to be the bad guy.

Finally, we learned that the if you want good qualified leads you are probably better off generating leads yourself through methods not including LGC's.

The observation that lead generation services provide information that can be integrated into your own marketing and relationship-building strategies is probably the most important consideration in using Lead Generation Services. Too many contractors dream that the commercial, high volume services, will provide highly qualified leads that will convert into sales in one or two calls -- and many are disappointed with the results, especially contractors who have relied primarily on repeat and referral clients and are unfamiliar with effective marketing practices.

(There are exceptions, usually local services where the individual operating the LGS has an intimate understanding of the market and contractor clients. Here, fees are significantly higher -- sometimes upwards of 10 per cent of contract value -- but contractors report the leads are relevant and problems are quickly corrected, and often the leads service provider only expects commission payment when the lead converts to a meaningful order.)

I've applied to join the Linkedin.com Contractor Lead Generation Forum group.

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More on lead generating services

The NARI (National Association of the Remodeling Industry) Linkedin.com forum posting on Lead Generation Services continues, after several days, to attract dozens of postings from various members making observations about these services. The thread is only accessible if you are a member of the group, but as far as I can tell, you don't actually need to be a NARI member to sign up and gain access.

Contractors, I sense, have a love-hate relationship with the LGS industry. Some feel they are virtually scams, imposing themselves between potential clients and their businesses, selling badly unqualified leads (or worse, reselling leads originally 'discovered' by another LGS.) Others say, if they work the leads properly, a certain percentage convert, and if the conversion rate is satisfactory, the LGS earns its keep.

In the thread, contractors debated about the value of qualified versus unqualified leads -- some said they will pay handsomely for leads where the prospective client is really ready to do the work, not just tire-kicking. And in fact, I've seen some examples where this type of LGS exists: Ned Overton in Washington described a local service he uses who charges a 10 per cent commission -- but the leads are usually excellent, and if the prospective client is stalling, the LGS gets to work to encourage client action. (Overton builds the commission into his sales price; and of course the LGS in this case is only paid when the sale is completed.)

On the other hand, I've read reports of LGS which provide nothing of real value after sucking the contractor in with up-front fees or automatic credit card charges. I won't name names here -- but you can see some horror stories on this Contractortalk.com forum.

Frankly, I really can't quarrel with contractors who use lead generation services intelligently, and regard the costs like other advertising and marketing expenses. If they convert the leads to sales and the cost per conversion is within their break-even matrix, then the LGS is providing value; if not, it is dumped.

But there is a bigger issue here -- and it touches on whether you are running a commodity business playing a "me too" game or really want to get ahead of the game in marketing.

Lead Generation Services are like the Yellow Pages of the past (and yes, I realize some readers still use and get business from the Yellow Pages). You pay to access a marketplace or directory of potential clients, but you have little differentiation and are spending a lot of money to be seen near your competitors. You are virtually inviting low-price-wins-the-job business. This is hardly a way to make good money in contracting.

In the ideal situation, you want leads which are not spoiled by other contractors fighting you at the same time for the work. Obviously the best leads in this channel are repeat and referral leads (and systematic programs to encourage these referrals should be a key part of your marketing.)

But to grow, and to sustain yourself during a recession, you will have to advertise, and advertise some more, in appropriate media. If you get it right, your ads will be the only ones seen (or one of only a few) by potential clients within your niche.

How can you find the most appropriate media to use? Check with your best clients, learn what they read, listen to, and like, and then go for it.

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