How to fend off the construction marketing scammers?

You receive the intrusive calls and emails every week (perhaps every day).  Someone is offering you an opportunity to achieve "Page 1 ranking" on Google.  Or someone is telling you that for a modest fee, you can be introduced to the movers and shakers within your client community at a special invitation-only conference.  I've been "invited" to China several times in the past year.

Now, certainly some offers that you receive are truly worthy of consideration.  And I certainly have some respect (and perhaps pity) for the underpaid minions hired to make the inconvenient marketing calls.  (I can't say so much positive for the scamming spammers, however.)

The telemarketers, canvassers and spammers market with the numbers game.  They figure that if they make enough calls or send enough emails, someone will bite.  The cost per lead influences the strategy, as does sales training for the telemarketers and copy writing skills (and coding abilities) for the spammers -- especially successful ones that are able to evade your spam blocks.

I have a simple solution for these operations and virtually all inbound solicitations.  Ignore them UNLESS they can in their first sentence identify a credible person who you respect as a referring source, and provide a real reason for doing business with them.

Heck, that is a blunt rule, but it has a corollary.  In your marketing, unless you can achieve the same relationship focus with your outbound direct sales calls and messages, you should stop, take a cold, hard look at your priorities, and reset your strategies.  (Unless they are currently working, in which case, well, I suppose you are succeeding at the numbers-game approach to marketing.)

If you rethink the process then you will see how a much more effective direct sales marketing campaign can start -- with your existing, truly satisfied clients.

Ask them for their help in spreading the word.  Obtain referrals, references, and reputation back-up.  Then you can call -- and drop the names which matter the most to your potential clients (outside their own names, of course.)

Does this approach work?  Well, most of our own sales result from phone calls, faxes and emails.  Many are to people with whom we have done business in the past, but at least 25 to 30 per cent a month are brand new potential clients.  However, we always call on reference from someone they know and respect.  You can do the same thing, yourself -- and ignore the others.

Storm chasing vs long-term relationships: Two sides of the same coin

The website for Urso Construction LLC is a holding page (no content) but owner James Urso's storm-chasing marketing in Ohio attracted attention from the local newspaper. This is a Google maps image of where the business is located.

This Google News alert under the keywords "construction marketing" caught my eyes last night. In Roofer Offers Unusual Marketing Ploy the Port Clinton, Ohio News Herald reports:

DANBURY TOWNSHIP -- When an out-of-town construction company began distributing flyers and knocking on doors in several area neighborhoods recently, some people became suspicious.
Urso Construction LLC, based in Cardington, about 40 miles north of Columbus, ran a full court advertising press promoting new roofs at no cost to homeowners.
Sue Cunningham, a Danbury Township resident who lives in the Perrysburg Estates subdivision, said she was suspicious.
"We had numerous visits and also cards and flyers," she said.

The story proceeds to describe how her insurance representative thought the offer was fraudulent, then the company's owner, James Urso, who said the company is not replacing just any roof.

Specifically, he said, they will replace roofs damaged during a severe wind and hailstorm that occurred June 25.

"This is one-hundred percent legit," Urso said. "I'm just doing what other contractors aren't."

Well, of course, some others are -- this is the business of "storm chasing", noticing where a hail storm is likely to cause roof damage, and then moving into the marketplace with aggressive marketing to encourage homeowners to file insurance claims. Provisions in Ohio insurance law make this ploy both rational and practical, as in storm-damaged areas, insurance claims cannot affect your coverage or ratings. In other words, if you qualify, and there really is storm damage (often invisible to the naked eye), the contractor can get the insurance company to repair or replace your roof, for "free".
Fair enough. I learned about this stuff during my visit to Ohio last November, and a posting by Ed Falko on contractortalk.com puts the storm chasing game overall, though not referring to any specific business, in a less-than-positive light.
Compare "storm chasing", however, to the processes involved in winning most significant construction contracts or business. You'll find the market divided into two groups: the frequent, repeat users of construction-related services and the occasional client, who might need a one-time major project.
Frequent users usually have a combination of sophisticated procurement procedures and rules and lots of hidden rules, based on experience and relationships. You'll certainly find that in much government work -- sure, the opportunities may be "open" to anyone who qualifies, but you are much more likely to win if you have a solid track record and get along with the individuals running the department.
Occasional users, whether they be for major residential remodels, or a business expanding to a new location, are harder to find at the early stages of the decision-making curve. In any case, they are generally not going to rush their decisions: They will listen to trusted advisers, friends, colleagues, and others before believing anything you say. Sometimes, friends give them bad advice, but it is "more right" than your perceived self-interest. Here, you need relationships with the people with the key relationships to make things happen.
Is "storm chasing" (done ethically) bad? Of course not, but you will need to travel in spaces which make many people uncomfortable. Yes, you probably need a hard-rock canvassing crew to succeed.
Is relationship-building and finding lucrative projects involving scale and scope, what you want to do? For most readers here, it is. The challenge, as I've discussed over the past couple of years, is that I cannot give you a one-size-fits-all-universal-solution-that-you-can-implement-in-10-minutes.
Then again, look at the start of this posting: A news article in a local publication. James Urso certainly didn't seek out the news coverage, which isn't totally flattering, but at least gives his side of the story. But what if Urso had been pre-emptive and thought of ways to connect with the news media in his area before the reporter called? (And does he have a proper website for his business?)
I sense that for many people in the construction industry, media relations and publicity are true "sleeper" marketing resources. Probably few contractors use these resources because they are uncertain (you cannot control how or when the media will report on your business -- though you can influence the decisions), and require everything else to be in good order first: Your service quality, reputation, and marketing collateral including website and follow up systems need to be in place before you even think of seeking out publicity.)
But the main thing is probably lack of knowledge. Here, while I may not know how to shingle a roof and have no interest in chasing storms, I can help.

Can a party overcome the negative consequences of canvassing?

Leonard Megliola at Bestline Plumbing in Los Angeles keeps thinking up new marketing ideas -- and maintaining successful older ones. He is one of the leaders in implementing practical marketing approaches, and should be an inspiration to other contractors wondering how to really build their businesses in good and hard times.

This weekend on Contractortalk.com he suggests another idea, which he thinks will help mitigate some of the negative results of his (successful) canvassing initiative.

Actually, this is something I have been thinking about for many years.

Next week, I am going to look for a location in a neighborhood where I can give away free hotdogs, soda, chips, coffee mugs, calendars, ink pens, helium balloons, and literature. We may even get one or two arcade rides that will be free for small children.

As we draw in a crowd, we will hand out literature explaining the free services we will be providing in their neighborhood for the next week. We will set appointments at the booth. For those who don't set an appointment, we will warn them that our canvassers will be knocking on their doors to bother them.

We will deliver 5,000 brochures one day before the show and 5,000 brochures on the day we have the showday. Each brochure will have a coupon that will give free hotdogs, soda, water, mugs, etc. We will use our 10 inch by 6 foot Acrylic tube filled with candy to help draw a crowd.

This campaign will cost about $2,000 to $3,000. One good job will leave me with a profit and we will build a very good presence and branding effect that will be long-term. I may do this two times a year in each neighborhood.

Everybody love a good free hotdog.

I like these ideas, and I like his use of flyers, and so on, and think they all are good and valid approaches -- though I stand my ground that canvassing, while undoubtedly effective and profitable, is a bad form of marketing in most circumstances. Free hotdogs are good; waking up people at their homes, and disturbing their dinners to sell homeowners stuff, is not -- for the majority who don't want to be bothered with intrusive selling messages. But I can't argue against canvassing's effectiveness.

Should you start your own business?

I've been following (and enjoying) John Poole's Constructionomics blog as he struggles with the challenges of unemployment and is now at the early stages of starting his own business. Recessions are often the best time to open a business because you simply can't afford bad habits and if you are determined and skillful, you can find opportunity.

But you need to find the opportunity, of course, and that is the challenge for anyone who is uncomfortable with the selling occupation. Starting up, unless you have some incredible good fortune, you will need to sell -- and it rarely is easy, especially when you don't have a track record.

John has wisely (but I deliberately put wisely in small type) chosen to use resources like SCORE, operated by the SBA. Experienced businesspeople, unless they live in the government space, tend to be a little wary of government assistance programs. Yes, you can access them, and if you play the system well, make good money in that space, but it can be an uphill battle as you battle bureaucracy, existing relationships, MBE rules, and the like.

I'm happy to note that quite a few readers are googling this blog through my references to the Brooks Act. Anyone hoping to sell construction design, engineering and project management services should read this stuff carefully because unless you are well connected, you won't gain access to direct government business and you will be relegated if you are "lucky" to be an underpaid sub-contractor for much government infrastructure work.

Sure, it is easy to tell a budding entrepreneur what won't work, but what will? Here things get complicated because the advice I gave myself would not necessarily resonate with others. Before I started in business in 1988, I had a secure, relatively high paying government job, which I quit to sell real estate. But I made that truly risky move at the end of a boom, where neophytes in the real estate industry could do well. (I simply don't know how well someone just starting out as a commissioned Realtor would do now.) The decision proved wise in an important way: I needed to learn how to sell to be in business, and that is just what I did.

Can you overcome lack of selling ability/experience and knowledge with great marketing? To a point, yes. Great marketing (including great blogging) often creates opportunities, and it is wonderful to receive the invitation to propose a project, or have your call returned quickly because a previous or potential client recognizes you from your marketing. But if you can't ask for an order, and actually go out and find the business, all the marketing in the world won't do you much good.

My advice to John would be to be ready to accept a commission sales job, whether it be canvassing, telemarketing, or whatever. Not as a permanent career, but as a base for learning some of the realities of selling. Spend three to six months doing this stuff and you'll at least understand the basics and receive some rudimentary sales training. Perhaps take a few different jobs -- no one is going to hold it against you -- and cross fertilize ideas and insights.

My next piece of advice is going sound like sacrilege in relation to my previous posting (and with respect to the misfortune befalling anyone who tries to canvass at my home.). I think anyone starting out in the construction industry has the best chance by seeking and winning smaller residential jobs, and the best and most inexpensive way to win these is to pound the pavement -- yes canvass! You certainly don't need to worry about the Brooks Act!

(You can assemble a crew of inexpensive subs and suppliers to do the actual work, of course.)

John and others should take this advice with a grain of salt. I am not the oracle of brilliance and one thing is clear, there are many different paths to business success. It is good to get started.

Intrusions and irritations: The morality of spam, canvassing and telemarketing

I'm starting to stir the pot on other forums with postings questioning the morality of canvassing.

Meanwhile, just after slamming the door on a canvasser at our home (I admit my manners here are terrible), I received another "blog comment" with an embedded link from someone trying to gain link juice and "SEO status" for their service. The effort to seek publicity wouldn't be bad, but clearly the organizing seeking the publicity had contracted an offshore vendor to send out "personal" comments to bloggers to escape the spam filters.

And one reason I'm not rushing to move to Wordpress from Blogger is that Wordpress's anti-spam filters are not strong enough: Sure the spam won't be published, but I have to read through the spam comments in the first place.

Spam, of course "works" -- or spammers wouldn't spam. So does telemarketing and canvassing, when you use these methods "properly". I put "works" and "properly" in quotes because I mean here they can be profitable for your business in generating quick and relatively economical leads.

But they are still wrong, in most cases.

Wrong is a moral rather than business word. Many immoral businesses are very profitable. The most profitable businesses are probably both immoral and illegal (though my brother is a drug dealer, and his business is profitable and is both moral and legal -- he owns a successful pharmacy in Vancouver.)

The point here is that some forms of marketing are effective but they cost far more to the people who are victims of the marketing "pitch" than the people who can benefit from the service. Do we have the rights as marketers to force ourselves into people's private spaces, when we don't know (or aren't reasonably certain) that they can really use and want our product or service?)

I would argue it is immoral to steal people's time and personal space to try to sell them stuff.

So how do you get around this quandary, (and by default, when is it morally correct to canvass, telemarket, and even send unsolicited mass emails (spam)?

You are giving useful information or materials, without expectation of return, and and what you give has enough value to justify the inconvenience you are causing.
An email with really good tips and insights that can help readers regardless of whether they respond to your email might technically be spam, but is probably not going to cause you any problems. When you knock on the door, and tell someone you are about to do work in the neighbourhood, and to call if there is a noise or debris problem, I don't think anyone would consider your uninvited visit offensive.)

When you truly respect privacy, personal space and the other person's circumstances.
This is both on a group and individual level. You need to size up the situation. If you are canvassing, calling cold on a bitter evening winter after a rash of home invasions in the neighbourhood is probably not a good idea. On a summer day, when people are out and about, and you have satisfied yourself that most people in the neighbourhood can use your service (or you can see it is necessary) you won't step too far over the line.

Alas much intrusive marketing for the construction and other industries these days fails these two tests. Go ahead, if you want, and if it is legal. But it is still wrong. Find another way.

Tricks, gimmicks, and shortcuts

This comment I received overnight (about 2 a.m. EDT) certainly seemed flattering.

Dude, GREAT blog. This whole site that you have set up is top-notch. Well done. I stumbled across it as I was looking for an article on general contractors.

I’m really looking forward to reading all of your archives. Terrific job, keep it up!

However, my sixth sense immediately told me something didn't ring right here. Why would anyone write such flattering remarks for an old posting relating to the Ontario General Contractors' Association? Must be, I ultimately correctly deduced, an effort by someone to steal a back link through a form of comment spam/management.

However, the back link wasn't obvious from the surface. I only discovered the trick when I posted the remarks and discovered the link embedded in the name "Janee Martin". I then immediately deleted the comment, after a cursory examination of the referenced site.

Paradoxically, the site may have had some value to the blog's readers. But why should I extend it any respect if the organization seeking attention is playing tricks and games, and presumably using an offshore service, to manipulate things.

These observations lead to a larger, more challenging question: Is it wrong to use tricks, gimmicks and short-cuts to achieve your marketing aims? And here, I cannot give you a clear answer.

Earlier in the day, for example, I saw how I could get a (purported) "free ride" with an email "blast" to thousands of people, many of whom have asked to be removed from my mailing list.

The extra mailing would take just a few minutes to set up, and would not cost a cent financially -- at least in the immediate sense. And I probably would recover some valid names and maybe a few clients, while others, perhaps fuming at the spam, would simply hit "delete" or send a spam complaint to the mailing service, not me.

Why not go for it?


But I hesitated, and then rightfully decided to stop. Maybe a follow-up or verification mailing can be justified, but it needs to be handled carefully and the intent of people asking not to be bothered again by me must be respected. Until I can scrub the list clean of anyone who asked to be removed, the email won't be sent. And if I send it, I will think hard and fast about the content and relevance first.

Then, late last night, one of my talented representatives saw for the first time the "send" list of a regional construction association. We certainly don't have permission to use this list for advertising or marketing -- but he deduced that he could send out an email inviting readers (if they wish) to submit suggestions for a guest column or editorial contributions to the publication. It is unlikely anyone will be offended by that kind of offer. A trick? Maybe, but good marketing as well (as long as he doesn't routinely repeat the exercise with the same list.)

So, what, after all, are the rules here?

In the perfect world, I suppose, we would all only send and receive marketing messages we really wish to get. And when we achieve this perfect match, we almost inevitably succeed. Consider the natural flow of personal relationships, word of mouth, and inbound inquiries.

Potential (and current/former) clients want to do business with you, so they seek you out. Undoubtedly this is the easiest and most enjoyable way to sell anything.

However, most marketing communications efforts involve some waste and (worse) irritation of people and organizations who, often for truly valid reasons, will never do business with you.

This sort of thing happens when you "force your pitch" on someone at a networking event (rather than focusing entirely on the person you are speaking with's real interests), in intrusive advertising, telemarketing, and (painfully) spamming. Telemarketing and canvassing probably are the most intrusive approaches, but they come with a trade-off -- the need to personally interact with the person you are troubling. So you either pay handsomely for the canvassers or callers to "take the rejection" or you endure it, knowing that you can gracefully back off and move to the next "prospect".

Spam, frankly, is one of the most challenging (and perhaps tempting) options. If you have a list, it costs virtually nothing to force it out on people's email, and you don't (directly) have to face the rejection. So why not just do an email blast!

The cost, of course, is in your reputation and your chance at a future relationship. Remember as well, spam can be on a small scale. Some Public Relations agency, trying to interest me in a marginally relevant story, sent the same release -- and follow-up "personal" email to me and two employees of my organization on leave, so all three emails landed in my mailbox yesterday. I deleted them all.

But another PR representative sent a straightforward news release, without any purported personalization, to more than one address. Most of these announcements land in the round basket (okay) but this one stood out -- I followed up and will probably write a story on the topic. When does spam become newsworthy?

I believe the more you can engage people with good stuff and the less you resort to intrusion and disrespect, the more you will succeed at your marketing. But sometimes it doesn't hurt to break the rules. Just be aware of the risks and real costs when you do.

An effective (Canadian) canvassing strategy

Canvasser Keith Cressy at our home

As I pulled into the driveway Friday afternoon, Keith Cressy, a canvasser with SpringMasters Canada approached me to offer driveway sealing.

After my initial gut "go away" response, I thought, why not use the opportunity to ask some questions. The difference between this encounter and the last time I directly faced a canvasser (in the winter, after returning from my canvassing research trip to Columbus, Ohio), is that it is spring! A beautiful June day, and anyways, I am not behind the door of my house in private space not wishing to be disturbed, but outside, in public space, and so much more receptive to communication.

Cressy said he learned about the commission-paid job through "flyers all over town". (Well, the flyers are probably distributed where students and young people hang out, because I personally haven't seen any). However, presumably the flyers direct candidates to this SpringMasters Canada jobs website, which makes fascinating and effective use of video imagery and testimonials to draw visitors into the story.

Cressy says commissions vary, between 18 and 23 per cent, depending on whether the canvassers are working weekdays or weekends (the rates are lower on weekends). This is obviously a rational approach since the work is easier presumably on weekends and the added commission costs are offset by more effective scheduling.

Spring Masters Canada provides a variety of seasonal, summer-type services including landscaping aeration, dethatching, top dressing and over-seeding, driveway sealing, and outdoor window washing. Cressy provided a simple but well designed flyer outlining the different services and fixed prices for each of the services (or of course, package discounts for larger services).

I couldn't find any negative (or for that matter, positive) client reviews of the company's services or employment policies though the enterprise appears follow several intelligent practices to make the canvassing program successful:

• It has a structured and systematic recruiting system;
• It focuses on spring and summer markets, using young and student labour (thus avoiding the hostility and practical problems of canvassing in Canada in the winter);
• It backs its canvassing with solid image building and corporate resources.

Different roads for different folks

That's me, getting ready for my ride through the Malibu Canyon to visit Bestline Plumbing in Gardenia (Los Angeles). Not everyone likes sportbikes, and not everyone needing plumbing services is middle-aged or older. You need to define your niche and demographics in setting your marketing goals.

Leonard Meglolia at Bestline Plumbing in Los Angeles says he finds virtually none of his business from the Internet, and virtually all of his clients are middle aged or older. (The older client demographic has remained consistent from the start of his business, he says.)

Accordingly, for him, the website doesn't serve much marketing purpose, and if his salespeople are going to provide images of what needs to be done, they will print and give the photos right to the homeowner.

Is this the only way to go? I think not. Just as some people drive Buicks, and others prefer sportbikes, still others believe motor vehicles are gas guzzling environmental headaches, and prefer the bus or bicycle. The right marketing approach depends on many circumstances, including your target market. (Bestline may not find younger clients profitable, but surely homeowners in their 20s and 30s also have plugged drains, failing pipes, and wish renovations including new bathrooms and kitchens.)

As well, it is interesting that Leonard Meglolia engages in communications in online forums like contractortalk.com and uses his website to connect and provide resources for other contractors.

You might also note how Meglolia is willing to try new things, and in the process, discovers ways to make his core marketing methodology -- flyers -- even more effective. He tried a canvassing strategy, and developed a new kind of flyer offering free services to support the canvassing initiative. He is shocked by the huge response to this new flyer. The natural question to ask is: Why not just use the new flyer (modified to correct some flaws he developed) and forget the canvassing process? In other words, the enhancement to his core business method has occurred when he tried something different.

Cross fertilizing canvassing ideas

Leonard Megliola at Bestline Plumbing in Los Angeles arranges to deliver this flyer before his canvasser starts door-knocking, He says the canvassing campaign is now highy effective because of the genuine free service offer.

Can this blog take credit for facilitating the cross-fertilization of a referral/repeat client marketing idea in the Washington DC area, with a plumbing contractor's canvassing program in southern California? Yes, according to this contractortalk.com thread started by Leonard Megliola at Bestline Plumbing in Los Angeles.

In his canvassing campaign, he sends out an advance flier offering free plumbing services, then when the canvasser door-knocks, a plumber is ready to provide the free service.

We started our canvassing campaign about 5 weeks ago and the start was very bumpy. We changed our tactics a few times and we are just starting to see amazing results. We have only one door knocker and he is getting 3 to 6 hot leads every day and we gave estimates on almost every lead for prices ranging from $3,000 to $16,000. There are many reasons we did not close sales for the first few weeks. The main reason was because we used the same system for closing sales we use when customers call from other advertising campaigns. We got into a home, found problems, and attempted to close a sale. Now, on the first day, we go into a home, make small repairs, and follow through with closing the sale the following day, after we build trust and a warm relationship.

We came up with what I think is a terrific canvassing campaign. The day before we canvass an area we hand-deliver the ad that on the bottom of this post. This ad is to warm up the customer and prepare them for our canvasser's visit. The following day, we send a plumber to the neighborhood with the door knocker. We tried sending the door knocker alone to set appointments, but this did not work because most people cancelled, or we had to play cat and mouse.

Like many people I always thought door knockers take a beating from customers and I was surprised to find we get a friendly welcome from almost every person.

We have a lot of changes we will be making. We will set up a database and track every house on every street, so we know every person in a neighborhood. We are going to set up farming areas and put the door knocker's picture on advertising for their area so we can make every person 'their plumber'. We will be able to back-track to go to people's homes who were not home.

The way I met my door knocker may be important. I put an ad in the Los Angeles Times, interviewed over 300 people over the phone, hired three, and they flaked. I decided to start soliciting to people who were soliciting to me, so I told a sales rep, who was trying to sell me something, about my door canvassing and he came to work for me. He is one of the nicest and most professional salespersons I ever met. In the next few weeks we will start adding more door knockers until we have four and I am very confident we will close $20,000 to $30,000 every day.

I originally offered my door salesman a guarantee of $100 per day as a draw against a 7% commission for getting the lead, plus 5% to 7-1/2% for closing the sale when he gains enough experience. After the first day, I knew the campaign was going to work, so I raised his guaranteed salary to $150 per day. This week, after closing the 3rd sale, I raised the guaranteed salary to $200 per day, and I may raise the % for getting the lead to 8-1/2%. My overall advertising budget for my company is 10% to 15%, so 8-1/2% for getting a lead leaves me a little cushion for managing the door canvassing.

These figures are based on our average contract price. When the door salesman sells a job for $6,000 he will get 8.5% x $6,000 = $510, plus for closing the sale, he will get 7.5% x $6,000 = $450 + $510 = $960. If he sells only 3 jobs per week he will earn $2,880 x 52 weeks = $149,760 per year, plus if he is the manager of 3 more salesman who are paid $15 per hour plus a much smaller commission, he will earn about $300,000.

I know there are a lot of companies that are doing door canvassing, but this is new to me and really exciting. I hope companies that need more business give this serious consideration.

You may have noticed that my company gives away (or offers) $5,000 in free services, every month, for elderly persons with financial difficulties. While we put in writing that we will never take money from a person who is recommended for assistance, we do a lot of work for members of churches and the churches themselves. This week, we signed a contract with a church for a 14,000 sq ft Torch Down roof for $38,000.

"The more you give for free, the more you get back"

My favorite is:

"You get more bees with honey than you get with vinegar"

In a follow-up posting, Megliola notes:

I actually got the idea of giving services for free from this forum. It was from the Contractor Marketing Ideas Magazine that mentioned a handyman who was giving away 1/2 hour of free service to customers.

He is actually referring to this blog's posting about Hopkins and Poirier's approach to their 25th anniversary.

I'll see this myself within the next couple of weeks, when I visit southern California.

The new way for online construction marketing

We've just wrapped up (at 11:30 p.m. on Friday) an intensive online business session, where I and two of the company's employees, Chase in St. Catharines, ON and Karen Buckley in northern Virginia, engaged in some pretty intensive and resourceful email exchanges.

Of course, I don't expect this company's employees to be available for work near midnight as the weekend starts, but the Internet makes this sort of thing possible and feasible. Individually, we're just catching up on our business; with emails and web reviews; it just happens we're all working collaboratively as midnight approaches.

Why not?

These observations provide important clues for your marketing approach in 2009. The online space operates with astounding geographical and temporal range. Sitting in our family rooms with wireless laptops, we work in spare minutes off hours and get lots done.

You can use these tools -- and respect your clients -- by sending personalized emails, images, even estimates, any time day or night when it is convenient to you and your clients.

Note I am not suggesting you spam or send junk email; and if you wish to use an online newsletter or any other form of mass communication electronically, remember the importance of obtaining permission first.

But personalized one-on-one emails (where appropriate with individualized image or video links/attachments) are powerfully effective for marketing because they can reach your potential and current clients when they otherwise would be unreachable, without intruding in their space or disrupting them when they don't want to be bothered. This is much different than the irritation of having to go to the door to say 'no' to a canvasser or answer your phone from some ill-informed telemarketer.

Construction Marketing: Leads and sales when you are just starting out

You don't need fancy marketing materials in the start-up stage if you are willing to burn some shoe leather and have a simple, defined niche and service offer (and, better, you enjoy your work). The contractor using this note claimed he could earn $10,000 to $20,000 in sales in less than four hours canvassing. I haven't been able to validate the claim, however.

Many new businesses start during recessions and the often are the most successful and viable enterprises when conditions recover. Often, you start your own business during hard times because you have nothing to lose -- you have lost your job -- and you know you have the talent and ability to succeed.

The challenge is you don't have piles of money to waste, and you need to get business, fast. Unless you have some rich relatives to back you (you might, in which case you are blowing their money, not your own), you must preserve every cent you have and decide how to use your time and resources effectively.

This blog is not a general source of business start-up advice; I focus purely on marketing issues here, but that is part of my advice. You need to focus your energies in a specific niche and area of expertise, framed within a geographical or social market space. In other words, you can "do everything" if you wish to offer handyman services (minor work under $5,000) within a rural community or defined (small) urban neighbourhood. You are not going to succeed if you try to do everything and go after big jobs in a wide area (assuming, in the first place, you can obtain licensing or bonding to get this type of work at the outset.)

Conversely, you can position yourself as an expert in something like (this is just off the top of my head), "heritage building repainting" if you serve a community with specific heritage preservation laws and have the relevant credentials, or "stock car garage fitting" if you happen to know a lot of NASCAR people needing that type of service.

Two practical clues to ideal focus are (a) the first project that may have fallen into your lap (perhaps from a relative or someone who knows your expertise and (b), whether you are really, amazingly, fascinated and love doing the work because the opportunity represents who you are in your entire inner self. The second point may seem absurdly idealistic when you are just trying to make a few bucks, quickly, but is actually truly important at the business start-up stage. If you don't really love your work, if you are just doing the work to survive, you are likely to live on the edge of failure permanently, or at least until someone offers you a less-crappy job. (Because most business start-ups are worse in pay, working conditions, and 'security' than the most crappy jobs.)

Next, you need to find clients. You are going to have to do it the hard way, at the start, but you can still finesse things. Perhaps you can obtain testimonials from previous clients where you worked as an employee elsewhere (beware of course of non-compete and non-solicitation requirements in your employment contract; if you have these, you may be able to get out of them, but you should be willing to spend a few hundred dollars for legal advice before you start.)

You can:

• Call friends and relatives;
• Call on your network through your church, social clubs, or (if you are established in these spaces) Internet social network sites;
• Use free advertising resources such as Craigs List;
• Canvass and/or telemarket: Can be highly effective if you are willing to burn the shoe leather, handle the rejection, and sincerely offer your service. See my earlier posting about a rather surprising canvassing success story.

You should not pay cash for advertising, and be wary of commercial leads services, at the start. First, you don't know what you are doing, and second, you will find that unwise decisions can drain whatever capital you have.

Remember you need to focus your energies within a specific niche, community, or market speciality, and if at all possible, offer a service that you really want to provide with passion, heart, and energy. Your will to work and your enthusiasm for your trade or speciality will carry you much further than millions of dollars in capital or slick marketing materials.

Values, trust and selling technique

This ad is posted on the home page of Doug Hillyard's business in Pennsylvania. Hill rightfully takes me to task on the contractortalk.com forum for taking pot shots at sales trainer and consultant Phil Rea.

Doug Hillyard at American Dream Vinyl Company in Mill Hall, PA, has taken me (rightfully) to tasks for remarks about sales trainer and consultant Phil Rea on the contractortalk.com forum.

You are way off base with your Phil Rea comments. I tend to think that the way you do things in your post are intrusive. Let me ask you: Are you currently operating your own home improvement company?

Or are you just trying to sell articles? Phil Rea would smoke you any time with his material and to boot he wouldn't come on a site like this and start putting down your work. He has entirely too much class for that.

In my area using some of Phil's techniques we have lots of success and I think it was you that said on here about two years ago that it (canvassing) would run its course and make people mad. Well it didn't. Oh sure, there's always the one or two boneheads but most people actually are happy we found them because they didn't know who to call.

Your other ideas for lead sources are good one however they are staples to running and staying in business and nothing new to the way most on this site are already doing.

i guess what I'm saying is like anything else, for some its great for some not, but who are you to judge with your opinion not being fair?

(Editor's note: I modified the grammar here -- writing is my business -- but you wouldn't want me to be selling or installing vinyl siding, which Hillyard's business undoubtedly does very well.)

Hillyard is absolutely correct that I have never met Rea, nor actually tested or evaluated Rea's services. Based on testimonials such as Hillyard's, if you wish to build your business with door-to-door canvassing, you may find value in using Rea, so I provide a link to Rea's website here.

Nevertheless, as I posted in response to Hillyard's observations, some of the business practices recommended by Rea go against my values.

Am I speaking too harshly of someone I know only a little? Trouble is, while I acknowledge canvassing is often effective (and have sought to see first-hand the process), it is against my values. Phil Rea is undoubtedly effective in teaching people how to sell. Maybe this type of in-your-face selling is right for you and your business, but I'd rather develop relationships based on respect and lasting trust.

However, while I may have the right to my opinion that sales techniques where you don't leave cards so people won't know who to call to cancel appointments, or where you push people to canvas door-to-door to win barbeques, or you wear large name badges to build 'trust', are downright destructive in the long term, I don't have the right to slag Rea without knowing him and his approaches better.

My values are that the harder you have to push and sell anything, the more we want to run away. We want to make our own free-will decisions without pressure or intrusion, and when the business respects our time, privacy, and ability to make an informed decision on our own schedule. The "we" here is a family thing -- you'll find similar values are shared by my wife and friends. (And maybe a huge section of the population, reflected by the legislative push for do-not-call legislation and restrictions on canvassing and other forms of cold calling.)

Undoubtedly, intense selling and closing techniques are effective in certain industries and circumstances, but I think where we all want to be is in a place where we can manage the flow of inbound inquiries and referrals where people choose to call or contact us because they think highly of yo business.

You still want to be good at sales -- you don't want your business to be like the store which has beautiful displays but no one to answer your questions or gently nudge you to make the right decision -- but you, if all goes well, want your salespeople to have such respect in the community that they are seen more as friends than sales reps (though they still must make their numbers and achieve real sales results to earn their pay.)

Nevertheless, I've always respected that not everyone needs to share my values to be successful in business -- and it looks like, based on Hillyard's testimonial, and others on Rea's site, that if you want to learn how to knock on doors, he may be able to show you how to do it effectively.

The wrong way to market

Is this the right way to market?

Listen to this advice from a sales guru who advocates door-knocking canvassing posted in this contractortalk.com thread.

Never leave a card with people that schedule Phil (Rea) says because they may call to cancel, only leave it with those who don't schedule. Where a large badge that says soliciting and if you need a permit use it as the badge either way the bigger a badge the more trusting you seem to be.

In other words, push yourself in the possible client's face, set an appointment, and make it so hard to cancel that you can show up and high pressure them into signing a contract..... And wear a big badge to win 'trust'.

Sure, is this really the right way to build a solid business built on integrity, respect, and solid referrals?

There are better ways.

Canvassing in Columbus: How to knock on doors

Joseph Needham puts a brochure in a door as he shows Rob Sangster how to canvass in a Columbus, Ohio neighbourhood. (Below) Feazel Roofing President Mike Feazel in his office. Feazel wants to hire a team of 25 canvassers/salespeopole.

I felt a little like an FBI surveillance agent today, sitting in the back seat of a car, camera in hand, as I observed canvassing consultant Joseph Needham show Rob Sangster, working on contract for Feazel Roofing, how to knock on doors.

On a blustery, windy day, just two days before Thanksgiving, the job seemed thankless. Sangster, a former NHL Hockey draft pick originally from Ontario, met his wife in Columbus while on the then-farm team for the Vancouver Canucks. Now he has a part-time hockey practice business, but wants something more for his family.

Feazel Roofing president Mike Feazel, following an Internet search, decided to contract with Needham to help set up an ambitious canvassing-sales program with the goal of putting 25 reps in the field. Sangster is the first -- he may well lead the team -- once advertisements appear in local newspapers and candidates attend information meetings in a local hotel.

This is not a 'typical' canvassing assignment, but Feazel Roofing is not a typical roofing company. Feazel says about a third of his business comes from local radio ads -- he estimates his budget is upwards of $200,000 a year. He roofing company is the most prominent roofing contractor in Ohio -- and is expanding its 'storm division' which enters markets after major wind or hail storms, where roofing services suddenly are in demand. (The company does a little commercial work, about 10 per cent, but avoids new construction -- "there's no profit in that type of work," Feazel says.

So when Needham received the call from Feazel, the assignment reflected a very different challenge than just fulfilling an order for his $350 canvassing training disk, or his more simple $10,000 to $15,000 budget canvassing training and set up model. (For this amount of money, you would build a system starting with a single canvasser, growing to three to five, each of which should bring in enough leads to provide at least one sale a day -- the sale could range in value from $1,200 to $10,000 or more; perhaps averaging about $5,000, Needham says.)

Feazel wanted Needham to remake the story, to rebuild the picture, and to change the model of business. Needham generally trains canvassers to be lead generators -- Feazel wants them to be sales reps as well. In Feazel's model, canvassers will carry ladders in their cars and if the homeowner really wants an on-the-spot inspection, he will be able to get out, go on the roof, and make a proposal. (This certainly wouldn't work in Ontario and some other markets -- unless the roof estimator had safety harnesses and other gear, no way should he be on the roof.)

We rolled into an upper middle-class neighbourhood of relatively new houses, recently hit by a hail storm. Needham pointed out two roof shingle types; one is definitely better than the other, and the better one can withstand the storm, and thus the homeowners wouldn't need a new roof.

The other type, less expensive to build, had real problems -- and many of these are not obviously visible. The damage is also covered by insurance, and because it relates to a catastrophe, individual homeowners don't need to worry about their premiums rising if they file a claim.

So the trick is to drive through the neighbourhood, assess whether the roof is the 'right' (cheaper) type, and then knock on doors, to see if they would like a free inspection, and if anything is found wrong, to prepare a proposal for repairs that would be covered by the home owner's insurance. (And if you agree to put a sign on the lawn, you can have a $250 credit towards your insurance deductible costs.)

This type of situation, Needham says, is a perfect example of where canvassing makes business sense. Homeowners really can use the service -- and since they are not out-of-pocket in any major way -- gain real benefit by allowing the canvasser to present the case. (Some homeowners say they've had an insurance adjuster review the property and say there is no damage: Feazel and Needham show canvassers the counter-argument -- that the insurance adjuster represents the insurance company, not the homeowner, and if they find problems on the inspection, they'll go to bat with the insurance company to get approval before proceeding with the job).

Sangster, of course, felt the pain of the door knocking. Cold. blustery weather is not the best time to canvass, Needham acknowledged. If you want to set up a canvassing program, it is often best to do it in the spring. And you are going to have to work hard and creatively to find canvassers -- probably going through 21 or more candidates before you find one that 'sticks'.

Canvassers need to be able to stomach rejection and the obvious stigma associated with door-to-door work. (Needham says few women are interested in the job, but he has had a few interesting experiences with women in the houses he canvasses -- a subject probably best not reported here in great detail.)

Good canvassers, usually earning a modest wage with a bonus for each appointment they set, can earn $30 to $40,000 for part time work (four to six hours a day) for the warmer months of the year. Some graduate to work in sales -- canvassing is certainly good practice for a sales career.

In the middle of the day in Columbus, few people were home. Sangster met one homeowner who said she would use the company the insurance company recommended. (Needham had an answer to that objection). Needham, meanwhile, found a homeowner who welcomed an appointment. He took down her information and called the order into the office.

Later in the afternoon, as Needham drove with me around various neighbourhoods, he explained that he fell into canvassing when, after obtaining a degree in psychology with a minor in sociology, he needed work, so went to a roofing company near his home in the Battle Creek, MI, area. The company owner suggested that instead of getting on a roof installing shingles, he might be better suited to going out and bringing in the business. And he did -- achieving astounding results.

Eventually, word got around, and Needham discovered other roofing contractors wanted to know his secrets, so he began work on the canvassing manual. Now, he says he sells 30 to 40 of them a year on the Internet.

Needham emphasises that he trains canvassers never to go where they are not wanted. If a 'no soliciting' sign is on a door (or entrance to a neighbourhood), he'll stay away. Canvassers must be presentable and non-threatening -- no pierced faces, or scary scars!

Is this a magical formula for everyone? Obviously not -- You need the systems, processes, and organization to handle the leads, (or the willingness to stomach the rejection and tension involved in canvassing yourself), and obviously this type of canvassing works rationally when there is a visible exterior problem or qualification for the service (it would be harder, if still possible) to canvass for interior renovation and maintenance work.)

Needham asked if I would like to go to a door with him. "No way," I said. "I can't think of anything I would like to do less (personally) than to knock on doors. In fact, I abhor canvassers when they knock on our door at home."

But in researching construction marketing, in assessing the options and choices, it is my interest to understand how things work, whether or not they reflect my personal values and interests. Here, Feazel Roofing's Mike Feazel and I share the same values. "The biggest mistake some people make in marketing is to impose their personal interests in their marketing -- the issue here is what matters for the clients." I agree, in part. I also believe that you should always align your work with your interests and strengths; and if you realize you need some expertise, talent and strengths more suited to a task, you should hire or contract for these services.

Columbus canvassing

Today, I'm heading for a brief visit to Columbus, Ohio, to observe how consultant Joseph Needham trains a local roofing company in the art of door-to-door canvassing. The journey into the U.S. heartland just before Thanksgiving will also give me a much clearer picture -- on the ground -- of the state of the economy, and the direction contractors need to take to survive challenging economic conditions.

The larger vision:

Last night, I watched Glengarry Glen Ross, a classic (for anyone interested in construction and real estate sales) movie which plays on the stereotypes and attitudes of hard-rock sales representatives of the old style: The 'closers' who will manipulate, cajole, trick, cheat, do whatever needs to be done to get a sale.

On Tuesday, I'm heading to Columbus, Ohio, to visit with canvassing consultant Joseph Needham as he shows a reputable local roofing company how to organize door-to-door canvassing projects.

Readers here know how much I personally abhor blatant, in your face, and intrusive marketing like canvassing and telemarketing; and how the stereotypical sales attitudes of Glengarry Glen Ross are far from my value systems.

Then why do I spend time watching videos like Glengarry Glen Ross, and more significantly, why am I ready to spend several hundred dollars on plane fares, hotel, and rental car services to see door-to-door canvassing training in action?

The answer is simple: If the goal here is to provide Construction Marketing Ideas, then preconceptions and personal prejudices must take second-place to learning and recognizing that alternative approaches to marketing have value and utility, and can be effective in different circumstances.

The question is, can these 'harder' approaches to marketing be integrated within the softer, brand-focused approach -- based on referral and repeat business relationships -- that I advocate? Or will the decision to use assertive marketing strategies threaten or destroy your well-established brand and reputation?

I believe the answer is you can use both styles, provided you are careful and practice some simple segmentation.

As an example, I'm working now with a traditional (and very successful) salesperson who guns for the close. He isn't quite as blatant as the guys in the Glengarry Glen Ross video, but certainly takes a transactional approach to his business.

So, I wasn't surprised that it took him only a day after I clued him in on a well-developed personal relationship that he initiated communication with this well-connected individual, presumably to draw out leads and make some sales. Sensing the potential damage this could cause to the relationship, founded on giving, sharing and mutual respect, I phoned my contact and gave him a heads up about the sales rep, suggesting he be cautious in sharing leads and personal references just yet.

But I certainly am not closing the door to the new representative's initiative -- in fact, we are paying several hundred dollars for leads which would work well with his style of selling: The difference is these leads are based on commercial data, not personal relationships. He can go to bat for our business with these leads without damaging established relationships, and bring in truly worthy sales (and cash) for both himself and the business as a result.

Which will give you better return?

Here are additional details about the ongoing Construction Marketing Ideas poll.

If you could allocate $10,000 with the goal of achieving a 10 per cent increase in results on a $1 million business, would you achieve better results by improving your client service/employee systems to attract more repeat and referral business, or should you advertise, telemarket/canvas or spend it on leads services?

The ongoing Construction Marketing Ideas poll shows that, at present, 76 per cent of businesses find most of their new business through repeat and referrals. This means, your $10,000 investment in increasing your repeat and referral volume would generate on average $76,000 in new business (assuming a 10 per cent gain.) Compare the results for a similar investment in telemarketing/canvassing -- your return would be $6,000.

Of course these numbers are misleading for two important reasons:

First, if you have built our business around advertising, telemarketing and leads services, you are undoubtedly using these resources effectively and profitably, or you would stop.

And, secondly, if you are using these resources, if you convert the new clients into long-term customers who speak highly about your business, you'll garner years and years of valuable business from each lead you convert through the resources among the 24 per cent.

Nevertheless, it makes sense for you to consider improving your processes and systems to encourage repeat and referral business before you spend significant sums of money on other forms of marketing.

The marketing paradox: The less you 'try', the more you succeed

If there is an irony in marketing, it is this: The greatest results seem to come from the least effort. You pick up your phone, and a former client calls you and invites you to bid on a job -- or even better, you are told a competitor is bidding, and the client really wants you, so could you come in with a proposal of your own, with the expectation that you will win. (In the AEC world, this is called "wired" proposals -- with qualitative as well as quantitative measures, fairness is often in the eyes of the beholder -- and the business that wins (and thinks things are fair) usually has an inside track from the beginning.)

Clearly, you have good reason to feel good about the progress of your business when this sort of thing happens in less-than-buoyant economies. I'm sure it is happening for some of this blog's readers -- others, however, are in a more difficult situation: Their flow of repeat and referral business seems to be drying up; as low-cost competitors and aggressive marketers fight for the smaller pieces of the pie that remain available. "What should we do," they ask, sometimes floundering, sometimes reaching desperately for lead services, or faulty and ill-planned advertising campaigns.

I continue to believe the best approach in marketing, always, is to give value -- to current, former, and potential future clients. In the new environment of Permission Marketing, you need to create resources and services to win and sustain your clients' good-will. But if you have to put food on your table to survive, while you build your package of services and gifts to your marketing community, you may have to get down and dirty -- calling in favours, asking old clients for some special help and, in some cases, engaging in hard-to-do cold calling and canvassing. (In the next few months, I expect to study canvassing closely with canvassing consultant Joseph Needham to gain a better understanding of how to effectively implement this methodology.)

What can you give to your clients that creates value and memories? A simple gift basket on the completion of the work might work wonders (and a hand-written Thank You card is always helpful.) Straightforward and simple to implement do-it-yourself maintenance tips may be worthy; (coupled with marketing where appropriate for maintenance contracts.) Informative, insightful ideas, maybe some humour, maybe contributions to local homeowners associations or business improvement groups; maybe support of relevant trade associations within your commercial marketing community. And of course you can consider the blog and e-letter.

Of course, getting the basics right: Courtesy, respect, and truly competent work will go much further than fancy marketing campaigns. You really win if you connect with centres of influence, community leaders, and others who carry weight beyond their obvious status. But you'll connect with these leaders best if you treat everyone you do business with the same fairness, respect and dignity.

Then, if all goes well, the fun begins. Your phone rings, or your email pings. The caller or emailer is ready to place a huge order, sign on for a major project, or invite you to bid on a job (telling you that you will win it.) It seems just a little too easy and simple -- but of course it isn't -- you've paved the way and prepared yourself for the opportunity. You've found the magic marketing formula.

Motivation, eh (2)

The low budget 1992 movie, Glengarry Glen Ross, (see video clip in previous posting) can teach us something about motivation.

I learned about the movie clip in the previous posting from a contractortalk.com posting by WPC07834, a New Jersey based marketing consultant who has been using the forums to (effectively) promote his door-to-door canvassing consulting service. He started the thread "10 step selling method" with this question: "Does anyone have the 10 step selling method they can post or email me?"

I piped in (before someone posted the video clip) with this 10-step program, which reflects my values:

OK, here's my 10 steps

1. Hire sales reps systematically, carefully, prudently

2. Treat all employees with respect; expect the same (with accountability) in return

3. Ditto for current/potential clients and the community at large

4. Return calls promptly even from solicitations (I've converted more than a few to sales!)

5. Blog, involve yourself in your community, support associations, without worrying about 'getting business' (it will come).

6. Deliver more than expected to current clients, with respect and where possible fun.

7. Respect your clients and prospects time -- if you are going to call cold, be sure you are offering something more than just another 'offer'.

8. Recognize the power of relationships, especially within the supply chain, and position yourself accordingly.

9. Respect privacy, (I will be courteous with business callers during business hours, but never knock on my home door to sell anything, ever!)

10. Have fun. If it's a grind, find something else to do (or get someone else to do it who enjoys it.)

WPC0784's response:

Ok, Nice try but not what I was looking for. This is more like what I had in mind.

Does anyone know this?

1.Entry

2. Warm Up

3. Measure

4. Company story

5. Product demonstation

6. Price condition

7. pre close

8. Close

9. Button up

10. Replace the lead

I use the 3 step method.

W arm up

P itch

C lose

Ok, but what about that video clip, posted to the thread without comment by California kitchen remodeller A.W. Davis? WPC0784's initial response: "I love that part. Its pretty motivating."

I decided to take a few minutes to look into the source of that clip a little closer. Turns out, from Wikipedia, that:

Glengarry Glen Ross is a 1992 independent film, adapted by David Mamet from his acclaimed 1984 Pulitzer Prize and Tony-winning play of the same name. The film depicts two days in the lives of four real estate agents and how they become desperate when the corporate office sends a representative to "motivate" them by announcing that, in one week, all except the top two salesmen will be fired.

It turns out that the big-name actors for the low budget film liked the script so much that they voluntarily took pay cuts and (without compensation) stayed around the set for the filming-- no one needed to coerce them or 'sell' them on working on the project. Also, it turns out that, despite the film's low budget, it still lost (a little) money in production.

This takes me back to Alfe Kohn's "Punished By Rewards" thoughts regarding intrinsic and extrinsic motivation, the debate between salary versus commission, and the values and approaches we use in instilling pride and motivating sales results. I sense, reading the posts here and looking into these issues more closely, that WPC0784 are at the opposite end of a very close spectrum.

It is no secret that I detest selling models which involve pushing yourself in the face of reluctant consumers (or business owners) and instead advocate the more positive approach of systematically building on referral and repeat business (a process, incidentally, that WPC0784 uses effectively in the forums to attract clients for his door-to-door canvassing consulting service). Instead, I advocate building a talented team, with a culture of mutual respect, high performance standards (accountability) and active integration of your current business operations with the market business development for new clients. The idea is to attract the right people (with the right intrinsic motivation) to draw out the positive qualities of clients, suppliers, and the marketplace to attract and retain business. In this context, cold calling and pavement pounding have their (small) place but effective and meaningful long term relationships are the centre of the strategy.

But, when we go back to the Glengarry Glen Ross example, we find some interesting points, showing the delicious ironies here. The film's producers were able to tap into the intrinsic motivation of highly talented actors who took a (personal) financial bath to have the opportunity to play in the movie, but even a low budget, and talented stars, could not make the film profitable In the end, effectively, you may find both ends of the marketing and sales model -- the high-pressure, intense, performance based in-your-face push marketing; or the softer, more humane, respectful, and longer-range vision relationship approach both 'work'. The explanation of which approach to use, and in which context, probably relates to your own values, and your own marketplace. And as WPC0804 shows, you can use one approach (soft) to sell the other (hard). Just some food for thought.