Pest Control Company update #3. 1.5 months in. Is BNI worth it. Do you use HomeAdvisor?

[moshia]

Hey guys. Thank for all of the advice and encouragement. I appreciate you.

I just wanted to give an update and celebrate a small milestone. I am 43 days in and I have ~25 accounts and I've hit $1000 in revenue. I have a long way to go before I'm able to do it full time but I'm proud of my progress.

Right now I've only been doing general pest control but after speaking with several real estate agents and others I've realized that I need to get my termite certifications ASAP. I am getting tons on interest for that work (termite bonds and wood infestation reports). I just have to take another test and add to my state license which is another fee.

A few last things. I've been invited to apply for a BNI group, what are your thoughts there? HomeAdvisor is calling me nonstop, do any of you have any experience there?

Thanks again.

I appreciate you all. -Toby

 

[arlandriax]

@moshia So I don't own the company, but my dad owns a construction company and I work sales for him.

We use Home Advisor a lot. It's our largest source of leads, varying in cost per lead from $50 all the way up to $200.

I will say that the leads are very hit or miss. For the customer, they don't need to be seriously interested, or even interested in exactly what you do to put in a request, and once they do you've now paid for that lead. Some won't answer your calls, some will stand you up for appointments, some will lead you on for weeks and then ghost you. I've seen it all.

That said, I believe where many companies falter is that they expect the lead to automatically become a job, and that's not true. Many customers I meet are getting 2 or 3 estimates minimum, and you have to set yourself apart. Whatever you're offering has to be competitive in both outcome and price. This all requires a sales program. The companies that struggle are the ones that march in, throw down a price, and leave.

This does not apply to every category HA offers. We primarily do exterior remodeling, but we've had to pull out of some categories because EVERY lead was junk.

My tip would be to avoid "market match" leads. Home Advisor loves them, but that's for their benefit, not yours. Market match leads are cheaper, but generally lower quality.

I'd be happy to answer any other questions you have!

 

[moshia]

@arlandriax Thank you that actually helps a lot. I've got quite a bit of sales experience so maybe HA could work for me.

 

[joanzoraqi2014]

@moshia One of best friends worked for home advisor here in KC. He said it works well for some guys, but others not so much. I think it’s all what you make of the tool?

I think getting in with handyman, GCs and realtors will fill your plate with more work than you know what to do with .

Congrats !!!!

 

[moshia]

@joanzoraqi2014 Thanks!!

I'm not sure if $20-$23 a lead is worth it. Not knowing how quality the leads are.

When I'm not working my 9-5 and doing pest control I'm trying to network.

 

[charlie]

@moshia Find some concrete companies too. They usually want the dirt sprayed before pouring concrete.

 

[joanzoraqi2014]

@moshia Tell me about it.... You’ll figure it out !

 

[danseeker1]

@moshia I did a BNI group for a pest control company I used to work at (I was doing sales at the time, I'm looking to start my own biz soon). BNI is a strange beast in that some people swear by it and others think its useless; so the only way for you to find out is go to it.

BNI in my experience was kind of odd. I was able to make a couple of residential sales out of it but I didn't stay for the long haul so I cant really give an honest evaluation. Like I said though, its my understanding that BNI has a lot variables in terms of whether or not it is worth your time and money. I will probably try a different BNI group when I finally do start my company.

Just out of curiosity, how much cold calling, door knocking and giving out flyers are you doing?

 

[moshia]

@danseeker1 No cold calling, I've done some door knocking, and no flyers. I've sent out letters though.

I have heard the same mixed things about BNI. Some people swear by it and others think it's a waste.

 

[jojobear]

@moshia I started my pest control business in 2015, currently employ 2 techs and 1 admin. Congrats on your progress, it can be a really rewarding business! Here are my thoughts, feel free to DM me if you want more specific answers.

BNI​

Joining a local BNI chapter has been great for me. I hate unstructured networking (Chamber, etc), but the BNI format makes sense to my brain. It's a great way to build relationships with professionals who I can recommend (gutter guy, plumber) with full confidence. At the end of my first year, I had made back 3x my membership fees. I'm still in the same chapter after 3 years with no plans to leave.

The downside is the time requirement. As you get busier, taking 1-2 hours every week for the meeting can be a drag.

Lead Services​

I've used HomeAdvisor, Thumbtack, Porch, Angie's List, etc. Heck, I even signed up for Amazon. I don't use any of them any more.

When you're starting out (I was transitioning out of a part-time job), what you need is CUSTOMERS. You need experience actually talking on the phone, doing an inspection, and performing the service. I spent a decent chunk of money on leads during my first year, but it accelerated my MRR and allowed me to build a baseline of customers so that I could go full time.

I don't use lead services any more, because Google Local and customer referrals keep the pipeline full. Once I had a baseline, I got sick of the low-quality leads that inevitably showed up. You've gotta be quick and determined if you want to make them work.

If you're able to knock on doors, it's a better option than spending money on FB ads, lead services, or other paid advertising. I think Nick (/@mariusk) recently did an episode talking about this.

Termite Work & Real Estate Agents​

Termite work can be super profitable in the long run, but it's high risk. Every agent I've met has said "oooh we do xx deals a year, we'd love to use you for termite work!!" But, they're NOT CUSTOMERS - they're lead sources. And right now, you need customers.

Real estate agents want to close the deal and get their commission, which means they want a "clean termite letter". Termite activity can be hard to notice if you're not very experienced, and agents can get pissed if you ruin a deal. You can also spend 4 hours on the phone with a buyer, a seller, both their agents, a mortgage underwriter, and somebody's mom - all for a $60 inspection invoice.

If you don't have a few years of termite work under your belt, I'd be very selective about the realtors you work with. I waited a couple years before I got into termite inspections, and I'm glad I did. At market rates, the treatments don't make a ton of money until they renew, and it's tough to float those costs for 2-3 years when you're first starting out.

Talk Shop​

If you're in the pest control industry, it's imperative that you join the closed PestCemetery facebook group. There's a secret Owners-Only group as well. The search box on that group has helped me with basic technical problems, hiring, SaaS decisions, equipment purchasing, everything. Shoot me a PM if you can't get in.

SweatyStartup is awesome business advice, but for the pest control industry, nothing accelerated my early growth like shop talk with thousands of other people who are in the trenches around the country.

 

[moshia]

@jojobear Great advice. Thanks for writing all of that out. I've read it and re-read it a few times. I've actually just joined those groups and they're pretty great. I'll be dm'ing you soon I'm sure.

 

[seth7763]

@jojobear How much rev were you doing with 2 techs and one admin and where r u now in 23

 

[infinium]

@moshia I considered a business like this but I remember a friend of mine in college who went to work high. Smoke a blunt and then went and sprayed something around the outside of the house. He had 0 training and was just thrown into the job.

The homeowner a little old lady in her 70s ran outside to find him passed out in the yard from having breathed the chemical in. I shoot him a text everytime I find an ant in the house asking how much for his services.

 

[seth7763]

@infinium Lmaooooo