In my previous column, I detailed the many problems dealers face when buying leads from HomeAdivsor, Angie’s List and other lead generation companies. Here’s a quick summary of the problems I discussed.

  1. You have no control over the types or quality of leads.
  2. You have no control over how the leads get generated.
  3. Buying leads does not foster long-term relationships with prospects.
  4. Leads sold to you get sold to your competitors. Lead-gen companies are essentially putting you into a bidding war with every lead you buy.
  5. Many tactics used by lead-gen companies result in leads who are die-hard price-shoppers.
  6. You get a low quality or non-existent leads. Eight contractors sued HomeAdvisor for, among other things, selling them leads to disconnected numbers.

We all know that you need to generate leads to grow your business. That’s why, over the next several installments, I will reveal proven lead-generation strategies you can put to work in your business right away.

An Untapped Gold Mine

What if I told you that I could get you a list of leads that are superior in every way to purchased leads?

These leads:

  • are proven buyers of flooring,
  • will trust you more than purchased leads,
  • will have a shorter path-to-purchase,
  • are less likely to haggle over price,
  • are more likely to send you referrals, and
  • will be more pleasant to work with.

Oh, and you can get them for free.

I’m talking about your list of past customers. These are hands down the highest quality leads on the planet. You can’t buy leads anywhere that even come close to matching the quality of your past customer list. Previous customers are like having your own personal gold mine. The problem is, only a tiny minority of dealers ever mine their gold.

It always seems ironic to me how many dealers spend thousands of dollars per year buying leads – the names and phone numbers of total strangers! They ignore their past customers. Insanity! The vast majority of dealers don’t market to their past customers. If this describes you, it’s not your fault. Dealers get subjected to an endless deluge of hype and misinformation from marketing companies about the best ways to get new customers.

I’ve helped hundreds of dealers tap their gold mine by marketing to past customers, and the results are sometimes jaw-dropping. I’ve seen dealers come back from the brink of bankruptcy to open a second store, increase their margins, and double and triple their revenue over several years.

That’s the power of marketing to your past customers. Before buying leads, market to the ones you already have. It can change your business and your life. I’ve seen it happen many times.

Leads From Sold Jobs

When Cathy Consumer begins floor shopping, it’s almost like she’s expecting a baby. She’s excited! She talks to her friends and co-workers about it. It’s a significant, happy disruption to her life. In the weeks leading up to the purchase and installation, it’s an excellent bet at least one person will say, “Hey, we need new floors, too! Who are you getting yours from? Let us know how they do.”

That’s why you should train your sales people to ask for and generate referrals from every completed installation.

Think about it: you’ve done a great job, provided outstanding service, and Cathy Consumer now has beautiful new floors. She loves you! It’s the perfect time to ask for and get referrals.

Stay tuned! In the next installment, I’ll cover online strategies for generating high-quality leads from the internet.


To Tons Of Customers!
Jim Augustus Armstrong is The “Coach”

Jim Augustus Armstrong is the President of Flooring Success Systems, a program that equips dealers to double their profits, cut their work hours in half and beat the boxes! Many dealers have totally transformed their businesses and their lives for the better after joining Flooring Success Systems.
See what real, live dealers are saying!