Traditional Strategies
So, here's a question I have for you. Who wants to expand markets? Who's looking to add more sales reps? Who wants to figure out better marketing tactics? We all have to do these things, right? Traditionally, here are the main things that most contractors focus on in order to grow revenue.
1. Purchase more leads
2. Add more reps
3. Enter a new market
Purchase More Leads
So it's like, “Hey, we want to grow.”
“Let's buy more leads.”
“Man, these leads are awful.”
“They never convert.”
“I can never get a hold of them.”
Have you ever had this happen? Because I always hear talk in the industry that all of the lead aggregators are awful, that the leads are terrible, and you can never get a hold of them. There is definitely some truth to these complaints and it is definitely an area where Cognitive Contractor can help.
Add More Reps
Again, traditional businesses will add more reps in order to grow revenue. Let’s say you want to open a new market. You set a target at 5 million. You’ll need to add 7 new reps. You’ll need to get 500 leads a month. The problem here is that there are more details to consider in order to secure a predictable outcome. Consider the business as a whole, the operation and the scalability of what you currently have. Determine who is most likely to do business with you and from there, ask yourself, what types of reps do best with the type of consumers I'm going after? When you add new reps, there are a lot of tools out there to consider. Have you tried outsourcing companies for recruiting? I’ve done quite a bit of that and it's been very effective. I highly recommend that you take a look at it when the time comes to add more reps.
Enter a New Market
At the end of the day, when you open a new market, what happens? You spend a lot of money. That’s right. It's like, I'm going to take a bunch of cash and inject it into this market. Just like an experience I had in Arizona. I put a lot of money into it and it didn't work. I didn't have everything I needed to make it successful. So many times I see contractors do the same. Have you ever expanded into a market that didn't work? It’s awful, right? But that's what we do as contractors. We try to grow and expand. And so, having more of a system, a process to it is crucial to get the results that you're looking for.
Whenever you enter a new market, put some rules in place. Let’s say that a storm hits and you open up a new location to service those homeowners. In the first 30 days, set a minimum number of contracts to justify being there. Send a small team to start. You don't want to commit a bunch of your reps because you’ll become overextended. You’ll need to pace the increases in overhead alongside your revenue growth in that market.
WATCH THE VIDEO PRESENTATION
This article is an excerpt, Part 3 from the live presentation with Josey Parks at the IRE 2021. Watch the full presentation by clicking on the button below.
Please share this article on your favorite social channel.
