By Johanna Wiseman, RE/MAX Preferred Professionals
Real estate is one of several industries that have been invaded by exploitative referral websites. This business platform shows up in targeted ads on all forms of media, inviting consumers to websites with names that sound easy, safe, and helpful.
For example, you need a contractor, a nursing home, a used car, or a real estate agent.
If you search online, you will find many sites promising to connect you with the “best” professional in whatever field you are searching. Going forward I’ll say agent, but I could just as easily be saying plumber or home health aide. Let’s look at the wizard behind the curtain. These websites are not offering a free or impartial public service; though you may not realize it by the way they structure their ads. They claim their service is free to the consumer, but that is not the whole story. In fact, they are in the business of extorting a portion of the fees you would pay directly to your service professional.
Yes, it’s a racket. The website attracts you and collects your personal information. Then their telemarketers call agents and offer to connect them with ready customers. The agent must first agree to pay a fee or a portion of their future earnings if they’re hired for the job. Only then will any contact information be exchanged. As a consumer, you may think you’re getting a referral to an experienced and highly-rated professional, but in reality, you’re just getting someone who will buy the introduction. Often, the pay-to-match process pulls in candidates based outside the target area who “don’t know the territory” or will overcharge for the distance. In short, the recommendations can’t be relied upon to result in quality referrals. You might waste your time calling or meeting with a candidate that is clearly not the right person for the job, or worse, hire them and then realize they’re not the best match after all.
As a service professional, I prefer to be recommended on my own merits, by satisfied customers. I’m perfectly capable of negotiating my compensation directly with my clients. Instead, these websites position themselves to intercept consumers who are searching to hire someone, for the simple purpose of claiming a piece of the pie.
This concept applies to an infinite list of professions and services: music lessons, home repair, health care, and window treatments. You name it, there’s someone trying to shave off a portion of the job money without actually doing any work. And once they have a consumer’s contact information, they can sell it to other solicitors.
You can locate reliable services without subjecting yourself to this pay-to-play business model. Protect yourself from profit-driven data collection. Research and observe websites where consumers can rate service providers for jobs completed so that you can evaluate candidates without being required to share your personal information. Ask your neighbors, friends, and co-workers directly for their recommendations when you need help. Reliable information will lead to a better outcome. For your hiring needs, avoid the internet clearinghouses, and shop local!
Local expert Johanna Wiseman of RE/MAX Preferred Professionals can be reached at 908-705-0652, or visit www.MyBridgewaterHome.com.
