Generating leads/sales and subcontracting the work

[learnster]

I saw a youtube video where they described advertising for house work like cleaning or installing alarms/security systems and then subcontracting out the work to a local company. They make a commission or the difference in what they sell for and pay for the work.

I imagine building a good relationship with a supplier/contractor and having an agreement with Any thoughts on whether this is a viable model would be appreciated.

Any thoughts on whether this is a viable model would be appreciated. And is there a name for this type of business?

 

[Mr D]

Basically the same as other subcontracting work.

Of course you have the marketing costs (considerable expense), the customer complaints, the disputes etc to deal with.
Great if you have lots of contacts.

Its a viable model - some do it. I can think of several large companies who do it in some fashion - my wife worked as a cleaner for one who did such local contracts for a national firm.

Of course if your subbie lets you down you have to take care of the job. Paying someone else to do it? Someone more expensive who wants payment up front...?

 

[billybob99]

Nothing new here.

Its basically outsourcing.

Have a friend that has a website for locksmiths and its all contractors, started off in the city and is pretty much national now.

Advertises a certain rate on the website and has agreed a certain rate with the locksmiths in question - keeps the difference.

As above have to factor in advertising costs etc.

 

[Mitch3473]

Nothing new here.

Its basically outsourcing.

Have a friend that has a website for locksmiths and its all contractors, started off in the city and is pretty much national now.

Advertises a certain rate on the website and has agreed a certain rate with the locksmiths in question - keeps the difference.

As above have to factor in advertising costs etc.

I used to do work for a guy who advertised his emergency plumbing services in ALL the Yellow Pages and simply answered the phone then passed the work on to selected plumbers in the given area.....he did very nicely out of it but that was way back when in the good old days.

 

[fisicx]

Probably easier and more lucrative the make YouTube videos describing common business models.

 

[billybob99]

I used to do work for a guy who advertised his emergency plumbing services in ALL the Yellow Pages and simply answered the phone then passed the work on to selected plumbers in the given area.....he did very nicely out of it but that was way back when in the good old days.

I agree - its nothing new.

I know many software developers that front an agency model that do this and everyone else in between.

The guy doing plumbing or anything else doesn't need intricate knowledge, its more having the right contacts and marketing it well.

 

[Darren_Ssc]

I used to do work for a guy who advertised his emergency plumbing services in ALL the Yellow Pages and simply answered the phone then passed the work on to selected plumbers in the given area.....he did very nicely out of it but that was way back when in the good old days.

Was he AAA111 Plumbing by any chance?

 

[Mark T Jones]

As others have said, it's not a new or innovative model - none the worse for that.

the question you need to address is what value are you adding?

 

[Mitch3473]

Was he AAA111 Plumbing by any chance?

No, A A Ardvark and sons.

 

[Naheed Mir]

It's actually outsourcing, not a new thing. You have to market a product and sell it. After selling, you will get a percentage out of each sale made.