"Why can't I get decent contractors from ServiceMagic?"

Question: "Why can't I get decent contractors from ServiceMagic?"

I had a complaint posed to me recently about ServiceMagic. Actually, this is the latest in a line of less-than-favorable comments I have heard for years about ServiceMagic...

Answer: First of all, what is ServiceMagic? Their ads seem to be everywhere - it seems wherever you search for anything related to home remodeling or renovation, up pops an ad for ServiceMagic.

ServiceMagic is a lead generation company that connects homeowners seeking remodeling contractors with the same - the hook being that the contractors are "pre-screened." This hook has been a part of ServiceMagic's advertising for years, since the world of home improvement contractors is one rife with fraud, abuse, or just plain shoddy workmanship. ServiceMagic attempts to codify this mess by placing some restrictions on the contractors.

How is ServiceMagic a "Lead Generation" Company?

ServiceMagic makes its money primarily by charging participating contractors fees for each qualified "lead" they receive through ServiceMagic. In other words, if a contractor gets a good lead about a homeowner in the area who needs windows replaced, he pays ServiceMagic a certain amount. Lead generation is a standard arrangement in the home improvement industry.

What are the "Beefs" with ServiceMagic?

Best as I can tell, some of the unhappy homeowners unrealistically feel that ServiceMagic is providing an unqualified stamp of approval by matching them with a certain contractor. Yes, ServiceMagic does conduct pre-screens, just as they say.

But these screen are designed to filter out the worst of the worst. From ServiceMagic's website, here are the ten points that they screen for.

1. Verify State-Level Trade License
2. Verify Insurance
3. Verification of State Business Filings
4. Criminal Records Search
5. Sex Offender Search
6. Bankruptcy Search
7. Legal Search for Civil Judgments
8. Liens Search
9. Identity Verification (SSN)
10. Identity Verification (Reverse Phone Lookup)

Summary: ServiceMagic Crummy or...Magic?

Homeowners can do many of these searches manually. Off the top of my head, I know that the trade license, state business, and sex offender searches are completely free and can be accomplished within minutes. And there may be more like that. But if ServiceMagic performs this function for you in one sweep, why not go with what they have to say?

ServiceMagic is definitely a cut above most other lead generation programs. I have seen several others in depth, and they offer no type of pre-screening of the contractors whatsoever. Yet, ServiceMagic still isn't as good as having a recommendation from a close friend or neighbor. Better yet, get the neighbor's recommendation...and then double-check the contractor through ServiceMagic.

Note: How Contractors Feel About ServiceMagic

It should be noted that the group of people I have spoken to who are most unhappy with ServiceMagic--let's be polite about it and say bitterly angry--are the contractors themselves. On their end, they feel that they are paying high fees for what amount to be lousy leads. To be fair, I have been hearing less of these comments in recent years as ServiceMagic has been tightening up its policies regarding lead qualifications.