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Most of those services sell the same lead to three or four different contractors (if they can), so you're usually in a competitive situation. But it's no different from a yellow pages customer who often calls two or three companies looking for quotes. The difference is that you can turn the Internet lead pipeline off and on as you need it, whereas with the yp ad you're stuck with it for the year.
Many of the lead generation services have a "pick and choose" option so that you can look at the lead before you buy it, instead of being forced to accept everything they send you. Service Magic has this (they call it Lead Select) but they don't tell you about it unless you ask.
I have gotten two large and profitable hardscaping jobs this year from purchased Internet leads. One sold for $40,000 and the other for $48,000. Both leads only cost me $8, but I had to buy many more leads and weed through them to find these two gems.
I just happened to be talking to a hardscaping contractor today who says he spends about $6000 per year with Service Magic and he is happy with the results he's getting.
Stuart
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