Based on some of my recent posts about reviews I was contacted by ServiceMagic. They explained their process and quality control for reviews (they claim 500K consumer reviews). Here are some verbatim excerpts from the email I received:
Only homeowners who were matched to a contractor through ServiceMagic are allowed to submit a review, so the “legitimacy” issue is taken care of at the onset.
We have a team of 25 people who spend much of their time reviewing each R&R before it’s posted. We do this to identify any unsatisfied homeowner (rating score of three or lower). That score triggers customer service outreach to the parties involved. In roughly nine out of ten instances the negative rating is the result of a misunderstanding or a lack of communication between the homeowner and service professional. Consequently, our staff is trained to mediate and help the parties reach a resolution. In most cases, the consumer retracts their negative rating after the situation was rectified by the service professional and both parties are happy as a result.
We also give service professionals the opportunity to respond to ratings posted about them. We know there are two sides to every story, and do not wish to leave one side without a voice. That’s especially the case when a negative rating gets posted.
We’ve added the ability for consumer-reviewers to reach out to one another. Someone posting a review can indicate that they’re willing to be contacted by other consumers in the event they have a specific question about what’s been written, or in a general sense, the performance of the contractor they’ve been matched to.
Angie’s List does something similar with dispute resolution.
I especially like the final point about consumers contacting one another. That obviously doesn’t apply in a category like restaurants, but it’s very useful and valuable in “high consideration” categories such as remodeling and home repair.
October 10, 2008 at 7:02 am
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February 25, 2009 at 3:49 pm
I used to be a Service Magic Contractor. I had great reviews and earned them. I am saddened but not surprised that I am reading about Service magic doing unethical things. They abuse the contractors in a big way financially. Basically they are a huge ripoff to small contractors even if they are good ones such as myself. Repeat leads, people who have no intention of doing any work, people who ask for returnvisits for new estimates on the same work, people who do not return phone calls and emails….and an absolutely horrible system for making good on bad or mistaken leads.
Service Magic stinks all the way around.
March 3, 2009 at 10:14 pm
Ouch, sorry to hear that you had such horrible results with ServiceMagic George. Myabe I should have read this review prior to signing up – which I just did today. I’m an architect in Albuquerque, New Mexico and I figured that $33 per lead was pretty fair, if you land one in 5 or 6. But if only one in 20 leads to a contract, this will not work for us.
July 4, 2009 at 6:54 pm
I signed on with Service Magic back in 2001. Paid for and received about two dozen leads. I found that most consumers were looking for the cheapest price and not quality. In 02/03/04 did complete three jobs off Service Magic leads but with very little profit margin.
Recently in 2009 receivced e-mail from Service Magic inquiring about joining Service? Checked my Service Magic profile only to find all previous history/reviews with them had been deleted .
August 18, 2009 at 2:59 pm
I have had a few of your contractors contact me but I have no way of evaluating them. In the past there was a five star rating that was easy to access to help me decide which contractor to use.Now?
December 5, 2009 at 6:56 pm
We had three boilers and a chimney liner installed. The workmanship was excellent. All Phases Mechanical is a company we would feel good about recommending.
We would like to give All Phases Mechanical a five star rating.
January 15, 2010 at 6:21 pm
Just so everyone knows, George here has copied and pasted this same review on every review site imaginable. I am of the impression that he has affiliations with competitors. Why else would someone waste their time like this as opposed to finding better means of business. Either that or he is just a very angry man in general.
January 17, 2010 at 10:43 pm
I am new with service magic about one month . I have had four leads so far three of them were customers looking for products not contractors. the only one making money is service magic so far. I don’t want to quit but if they don’t give me credit for the bad leads I will have to. service magic has given me three free leads to make up for it so I fill that they are at least working with me. i’m in it for the long run ( I hope )
June 2, 2010 at 11:47 pm
I was contacted repeatedly to be a contractor for SM. Very aggressive pitch with several calls. Glad I didn’t. I find their whole business construct to be of questionable ethics – promoting those who pay for leads and denigrating those who don’t. Their qualifications are a joke. Anyone willing to pay gets in until the complaints add up.
But the real clincher is their incessant spamming. I’m getting 3-54 emails a day soliciting contractin work “in my area” No company branding – multiple 3rd party mailers with no safe “opt-out” and the links resolve to…
servicemagic.com that’s where you guys are getting your “quality” leads from…
In my case, it’s enraged me enough to post anywhere I can. Avoid this company – whether contractor or consumer – take the effort to make real connections and get REAL referrals instead of paying a middleman to supply the highest bidder.
June 13, 2010 at 5:15 pm
us pavers install new driveway. it took only three days to complete. great job, everything cleand up. morris the man in charge was wonderful. his crews came on time. very professional.
June 25, 2010 at 2:59 pm
I am a contractor and signed up to find a surveyor as a customer for a project and they could not respond. I tryed to unsubscribe the service and I could not. Also I singed up as a contractor in the past and they did not link me with any relieable clients at all, they all were just lookie-lous. Most of the clients were not screened at all it seemed. Avoid Service Magic at all costs.
September 30, 2010 at 6:06 pm
Needed a roof replaced — was contacted by Lopez Complete Interiors Inc.
Contractor was punctual, polite and professional. He E-mailed me TWO
estimates (I live about 40 miles away from his office). One estimate was
for an asphalt roof the other estimate was for a metal roof. It took him
about 4 days to get back to me — but I was very impressed with the
content and thoroughness of his estimates. I took some time out to check
the cost of materials with some of my local businesses and — his figures
almost exactly matched theirs. As regards both types of replacement roofs
— the contractor took time out to contact the roofing material manufacturers
to find out what installation requirements were necessary for their warranty
to remain in place. Unfortunately — the work could not be performed due to an anticipated loan “falling through” but — if I ever come up
with the money — I have a pretty good idea who will get the job !!!
April 19, 2011 at 8:30 pm
Their pricing model is designed to be obscure and put business owners in a position to spend more than they make on marketing thus allowing Service Magic to maximize short term profits at the expense of residual benefit of their company. They have left the door open for sites like http://FindProfessionalsNow.com and others to create an ROI on marketing model to allow service pros to lean on online lead generation services as their marketing arm long term.
September 26, 2011 at 3:18 pm
I joined Service Magic a few months ago. I am very disappointed with the service. They not only mislead the contractors who join, they mislead the consumer also. I have recieved more leads for projects that a consumer cant even be reached. In fact its about 5 to 6 times the number of consumers that you can actually speak with. They told me I would compete with qualified contractors. Yet they do not require contractor to have the lead paint cert. that is required in Pennsylvania. I have this cert. but have to compete with contractors who dont. Consumers beware who you use from this service.
September 26, 2011 at 3:29 pm
James, George may have posted his post on numberous sites, but everything he said is completely true. They do rip of contractors with leads. Out of over 20 – 25 leads, I have only been able to speak with and/or set an estimate with 5. They also mislead the contractors and consumers. They do not make sure contractors meet all the legal requirements to do construction. I meet all the leagal requirements for Pennsylvania, yet compete with contractors who do not. The lead cert is a perfect example. Also the few projects I was able to bid for, Service Magic sent them 5 to 6 contractors. I was told when I joined they would only send 3. Its hard enough to compete with 5 to 6 contractors for 1 project, but when they are not legal its easy for them to low ball the job. I have taken all the courses and paid all the fees required to do my line of work so I have more overhead. What the consumer has to realize is the contractors who are not legal may be ripping them off, and it may be very difficult to take any action after they are.
October 31, 2011 at 4:10 pm
I used servicemagic. I canceled my service with them after they charged me $265 without emailing me or calling me or warning me what it was for. After a two months they charged me again of $42.
EVEN AFTER I CANCELED THEY STILL KEEP CHARGING.
Huge Scam!!!
When you call to talk to customer service your ALWAYS on hold for 30-40 minutes to speak to somebody.
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