Referral Networking for Contractors and Home Service Businesses
How general contractors, HVAC companies, plumbers, electricians and other home services grow through referral networking groups, and what to look for in one.
Updated Saturday, October 3
Homeowners are careful about who they let into their homes. Most hire a contractor because someone they trust recommended them. A referral networking group gives home service businesses a steady source of those recommendations.
Why home services do well in referral groups
- Every job reveals the next one. A roofer sees gutters that need replacing; an electrician hears about a kitchen remodel.
- Referred customers trust you sooner and compare quotes less.
- Trades refer each other. A good group becomes a team of reliable trades who send customers between them.
Who refers work to contractors
- Realtors and home inspectors, before and after every sale
- Insurance agents and restoration companies after storms, fires and leaks
- Lenders and bankers financing renovations
- Property managers who need dependable service all year
- Other trades already in the house
Make a group work for your business
- Be specific about the work you want: service agreements, replacements, kitchens, additions, commercial jobs.
- Show your work. Before-and-after photos in a speaking slot are memorable.
- Respond the same day to every referral, even if you can't take the job. The giver's reputation is on the line.
- Send work back. You're in homes every day; pass what you see to the members who can help.
One contractor per category
Most referral groups allow one member per trade. In a group like that, you're the HVAC company, the general contractor or the plumber everyone recommends. Look for a chapter where your seat is open.
Questions
Is a weekly meeting worth it for a busy contractor?
It's about an hour and a half a week. Members who attend consistently get the most referrals, and many contractors treat it like a standing client meeting.
Can my office manager attend instead of me?
Groups vary. Referrals follow relationships, so owners or managers who build them usually do best.