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Alright. So referrals are killing the remodeling industry. Now it’s gonna seem like a really stupid title, but that’s just to get you to click on the video, so that’s totally fine.
By the end of this video, it’s all gonna make perfect sense to you, and you’re gonna be like, oh my gosh — this guy is talking about my exact business. So let’s talk about this.
When you start off your remodeling business, here’s what happens. You go out and do someone’s bathroom. While you’re working on it, maybe putting tiles in, the homeowner comes up and says, “Hey, by the way, I have a friend who wants their house painted. Can you do that?”
Your intent was to mostly do remodeling projects, but you think, well, if they want their house painted — let’s say it’s 2,500 square feet and I can make two or three grand on that project — sure, why not? So you go out, buy your paintbrushes and tools, and you do that person’s house.
All good. But while you’re working on that house, they say, “Hey, I have a friend who wants a kitchen remodel” or “They want their basement finished” — something different than what you normally do.
So you’re getting all these different types of projects and all these referrals. When you’re new in business, you think, this is amazing. It feels like free money.
But here’s the problem: now you’ve expanded your services in all directions. You hire someone to help, and at first they seem great. You send them out in the field, and they absolutely suck. They don’t have the common sense or the skill. So you fire them.
You try again. Same thing happens. And it feels impossible to find good labor. Or, if you want someone good, you have to pay outrageous wages.
When you rely on referrals, you end up taking on ten or twenty different types of jobs. As the business owner, you’ve figured out how to manage this by learning over the years, researching, hiring subs, buying the right tools, and making it work. But when you bring in someone new at $20 or $30 an hour, there’s no way they’ll be able to do all those different projects at your level. Not unless you’re paying them what you pay yourself — or more.
That’s why referrals kill remodeling businesses. You can’t advertise to grow your business because you don’t have employees who can handle the work. You can’t hire employees because no one has the experience to do all the random types of projects you’re now offering. So you’re stuck: too busy, but not profitable.
The most dangerous thing you can do is try to scale at this point. Because if you scale a business that’s already chaotic, it will break you.
So what’s the solution? The solution is to get one type of project coming in consistently — over and over again.
Let’s say you focus on kitchens. After doing kitchens consistently, you realize there are common steps you repeat every time. The way you meet with the customer. The countertop options you recommend. The flooring selections most people want. You start to recognize patterns.
Now you can create checklists. You can build systems. You can train someone new in months instead of years — because they don’t need to master twenty trades, they just need to follow a clear process for one. It’s like training someone at McDonald’s: follow the system, and it works.
That’s how you systemize. That’s how you step out of working in the business and start working on the business. But it requires a consistent flow of leads for that one type of project.
And that means you have to get your marketing right. On your website, you make it clear what your specialty is. On your Google listing, you don’t try to rank for every keyword under the sun. If you do, Google sees you as less relevant and ranks you lower.
Instead, you pick one or two specialties — like kitchens and bathrooms. That’s it. Now Google sees you as relevant, and people looking for those services are more likely to find you.
Same thing with your lead sources like HomeAdvisor, Thumbtack, Angi’s List — only take the types of leads you want. Don’t leave it open just because you can technically do the job. Stick to the projects you want to specialize in.
And there’s plenty of opportunity. You don’t need to do everything. The real opportunity is building a streamlined, systemized business that runs smoothly, grows profitably, and gives you freedom.
In the early stages, if you’re a one-man show, you may need to take whatever you can get to survive. That’s fine. But as you grow, you must specialize. And once you’re established, then you can expand into other services — but only after you’ve built a strong foundation around one.
So, start phasing out the random jobs. Stop taking decks if you’re focused on kitchens. Stop taking exterior painting if you’re focused on bathrooms. Specialize, systemize, scale — and eventually free up your time, your life, and maybe even sell the business if that’s your goal.
If you want consistent leads for one type of remodel project, reach out to ServiceAllies. We specialize in helping remodeling companies specialize. We can generate consistent leads, guarantee a certain number each month, train you to book them, and help you track which platforms are most profitable so you can grow the right way.
Thanks so much for watching. If you agree or disagree with anything I said, drop a comment below — I’d love to hear your thoughts. I’ll see you in the next video.