Canadian Contractor

Steve Payne   

Contractor referral model… is flawed and not sustainable

Canadian Contractor Marketing & Sales Business

"The costs are too high and quality standards are not uniform," says Alec Beraskow.

Last week, we reported that the Mike Holmes group had shut down its “Holmes Referred Contractors” program. They said that they wanted to focus more on the other business activities that  Holmes does – including homebuilding and Holmes Inspections.

Alex Beraskow (myreno411.com) was one of many posters who don’t believe contractor referral programs work, period. (But then, Alex is running his own program, as you can see if you go to his website.)

“The “referral model,” while attractive to some big box stores and others, is flawed and not sustainable. The costs are too high and the quality standards are not uniform. For example, 50 clients do not all have the same standards.

The best method of assessing quality along with price performance is crowd sourcing of client reviews.”

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