Though this hasn’t yet been confirmed – Shakes today published that he had some very trustworthy insiders information that claimed the fall of BestContractors.com as confirmed.

Though this info has not yet been confirmed by BestContractors.com parent company, HomeSphere or VC firm Greenhill SAVP – you can bet that there is some struggles going on within the organization as this was without a doubt a massive bust for VCs and all involved parties alike.

Here’s the full story:

On January 12, 2009 HomeSphere a “premier provider of technology-leveraged supply chain services to the homebuilding and remodeling industry,” had launched news about acquiring BestContractors.com who “provides an unbiased reputable directory of home improvement and repair professionals.”

Reference: January 12, 2009 – HomeSphere Acquires BestContractors.com

On October of 2009 I wrote a blog post that indirectly predicted the downfall of BestContractors.com.

Rumor has it that my prediction was correct. Though BestContractors.com to date is still live I can only assume if this story tells true. I have not yet received comment from a HomeSphere representative confirming the fall of BestContractors.com. One thing I have heard is that the BestContractors.com team was officially let go.

Notice to readers: This info has not yet been confirmed by BestContractors.com parent company, HomeSphere or the backing VCs Greenhill SAVP (Greenhill & CO.) I will let you know when I get further info.

Should Greenhill SAVP want a tremendous investment opportunity the should really consider the vast developments of iClick Creative.

More so than ever, there are more and more marketing channels coming available that specifically target home improvement contractors. Here is a quick breakdown of the best and worst marketing strategies for home improvement contractors.

Worst Marketing Strategies

Contractor Referral Services (non-exclusive)
Home owners are getting smart as well as educating themselves on how ‘referral services’ really work. They are discovering that ‘getting multiple bids’ is simply a marketing tactic to have their information resold to a network of hungry, dog-like contractors ready to bite at any work that comes their way.

Now contractors are getting a bit burnt out too, especially when they only make quality contact about 2/10 times and close really only 1/10 leads, if that.

I am assuming this portion of the article is referring to ServiceMagic.com? – Scottsdale SEO

These leads simply said; cost more and do less and make our list of one of the worst marketing strategies for small home improvement contractors.

Outsourced Pay-Per-Click Management:
Before I get into personal reasons on why home improvement contractors should steer clear of outsourced PPC Management firms, also known as local internet advertising companies.

According to recent study from Jupiter research, more than 70% of small business owners who outsource their PPC campaigns are dissatisfied – and here are a few reasons why…

High Average Cost-Per-Lead:

The average website converts at 6%, most outsourced PPC firms charge you roughly 30-50% of your budget for ‘Management Fees,’ so let’s see what your expected ROI is on a $1000/mo budget for an average website owner…

1. Monthly Budget: $1,000
2. Budget after ‘Management Fee’: $600
3. Average Cost-per-click: $10
4. Total Clicks: 60
5. Actual Leads: 3-4 (based on an average site conversion rate of 6%)
6. Average Cost-per-lead: $333

Now granted, this number can very – but not by much. Some Local Internet Advertising firms who specialize in PPC might charge you a flat monthly ‘management fee,’ or take a undisclosed % of your budget as well as up charging your cost per click.