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ServiceMagic, Inc. / Fraudulent business practices of ServiceMagic, Inc.

1 14023 Denver West Pkwy, Lakewood, CO, United States Review updated:
Contact information:
Phone: (303) 963-7200

I had been contacted by ServiceMagic Inc in my business. They say they will give leads to work for $10.00 per lead. What they did was give leads that were dead ends. One lead was to build a garage. I am a garage door installer, not a garage or any other type of builder. The other leads never even had any answer on the phone.

I wrote and complained about the leads and the billing for these. They continued to bill me, so I wrote and told them why I should not be billed. Now, I got a letter today form CMI, a collection agency for them. They want $52.50 to take off a negative report. The report was wrongfully made to begin with. I suppose many would just pay the $52.50 so that they do not have a negative report. That is what they are counting on. Figure, if you get every customer for $52.50 and do nothing in return for it, you can make a decent living by ripping off other businesses. I would appreciate any ideas on what else can be done regarding this business. I am making a complaint to the Better Business Bureau and Consumer Affairs. Please, if you have a negative experience with them, report them so that they can be stopped! Thank you.

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  • Ci
      6th of May, 2008

    Maybe we can get a class action lawsuit going to force Service Magic to stop thier unethical business practices.

    0 Votes
  • Kr
      25th of Aug, 2008

    I work for Yes we do telesales but it is important that if you are thinking of joining a service like this you are aware of everything that goes on. The pseron aboves first complaint is that he is a garage door guy he does not build garages. This is a homeowners mistake in filling out a service request. Homeowners are not contractors they are homewners and they do not always know what they need done. This is where contractors come in to inform the homeowner. ServiceMagic provides 5 circumstances in which we provide lead replacements. This happens to be one of them. Did the contractor even know this? Did he ask the right questions and become fully informed of how we work. My thought is no. I am not bad mouthing this contractor but lets be real. Contractors are sometimes dumb, impatient, selfish, un-licensed, un-insured, etc. It is so hard to really get someone in the service and fully inform them of how we work. We are the next generation form of advertising and it really is the most cost effective way to find actual customers that lead to jobs/contracts. My retention rate as of 2 years at SM is about 75% or 3 out of 4. The people that ask the right questions and do great work make a lot of money from us and expand their business. Poeple who are contractors and not bussinessman usually do not do well within the service!
    As far as the leads that didn't turn into anything. This does happen and that is why we do a checklist with a 3rd party within SM. It is imprtant that this person ask the contractor questions regarding the funamentals of the service. If the contractor disagrees with anything, the checklist will be rejected and the contractor cannot move forward. We asked him a question that stated these are leads and not guarenteed jobs do you understand? This contractor obviously said yes. Not all jobs are going to close but if i send you 10 leads and you close 1 you should make a profit. after you grow you profile which contractors often neglect you should increase your closing ration making SM more effective in the long run. This contractor obviously only took on a few leads and now is complaining versus understanding what you must do to be successful in the program.
    The person above wrote "Maybe we can get a class action lawsuit going to force Service Magic to stop thier unethical business practices." How do you know this contractor is good at what he does. Maybe he never called the homeowners back right away and other more professional contractors won the job. Then is it servicemagics fault or the contractors? If the job was landed then the contractors!

    0 Votes
  • Kg
      17th of Nov, 2008

    Just to inform the new readers of this post, the above contractor is currently enrolled into our program and doing great!

    0 Votes
  • Jc
      25th of Jun, 2009

    Obviously, whoever answered from Service Magic is uniformed that Service Magic REQUIRES the contractors to be licensed and insured before they can even do business with Service Magic. So when they said:

    Contractors are sometimes dumb, impatient, selfish, un-licensed, un-insured, etc. It is so hard to really get someone in the service and fully inform them of how we work. We are the next generation form of advertising..

    It makes me wonder whether they even know what they are talking about? The contract was taking leads from Service Magic, so he had to be insured and licensed, daaa?

    Personally, I have a business that is advertised on Service Magic
    and I know all the rules of the game. I have gotten several leads that were profitable and several that were dead ends because either the customer did not fill out the forms with correct information or the customer rep did not transcribe it correctly over the phone. In either case, what bothers me is that Service Magic has not given me credit for any of the leads that fit within their "criteria" for giving credit
    and it has been past 7 days. So, yes, this is very unethical in practice.
    They are quick to charge the contractor for the lead, but drag their feet on issuing credits or don't issue them at all. Whats up with that?

    Now, to clump us contractors all into one group and call us dumb, insured, impatient, and selfish just turns me off all the more and
    shows how unprofessional this person really is. Does Service Magic know how they are representing this corporation?

    0 Votes
  • Ka
      13th of Oct, 2009

    I would love to take Service Magic to Court. I am the office manager for a construction business and heard all the guidelines and Information that "Steve" from SM gave me.
    However, after we accepted and paid for a lead, the customers number was disconnected and her email address was fake. I called SM for a credit and they said they would check into it. No word back from them and I can't get a hold of Crystal who is managing our account... We have had a total of 18 leads and not a one have panned out. I have called and emailed when a lead is accepted and yet nothing. Most people are just fiddling around on the internet and have no intention of having any type of contracting work done.
    So do I think Service Magic is a rip off??? YES
    O and to the guy who works there and thinks we are all dumb... he is a tech stuck in a cubicle who answers the phone. Im sure you had to have a Masters Degree for that, right?

    0 Votes
  • Rk
      11th of Dec, 2009

    Overall, lead generators are a better form of selling than traditional marketing. If you close one deal for every ten leads, you would lose much more money sending mailers, paying for an outsourced salesperson/telemarketer, or hiring a marketing company to accomplish these goals. If you didn't get a refund from print advertisement (newspapers, magazines, mailers) would you complain and form class action suits?! Have to spend money to make money. If you're not happy, change. Pick up the phone and call a few thousand prospects from a purchased list, or create a website to generate traffic, or whatever else you "know" that works. If it's not a referral, good luck waiting for the work to come your way.
    I have been a contractor longer than I wish to realize, and I'm sick and tired of other contractors complaining about everything everyday. If you can't handle the business of owning a construction company, go back to work for one that knows how!

    0 Votes
  • Wd
      12th of Jan, 2010

    I got both an unsolicited call and email from these folks today. They are both now in my spam folder (got to love Google Voice). Why are they marked as spam? It was unsolicited, the person leaving both messages had the attitude that I wanted to, nay, NEEDED to hear from them, and because what they are offering is as worthless.

    The messages belong in the same folder as those emails telling me how much women want their men to produce gallons of more seminal fluids during sex. They both are laughable, presume to be from "experts" who may very well be (but who cares), and they are driven only by a desire to take money from your pocket.

    When I googled them this page came up just below their listing.

    I've been hounded lately by these types of companies and by SEO companies. Most of them are legit but even those are hiring people at low wages that are just there for a pay check - they don't know what they are doing and don't care about the job.

    Why would I trust even the smallest part of my businesses future to these folks? What kind of business person would I be if I can't find any customers on my own?

    If you own or work for a company like this why not do something productive with your abilities like sell tangible goods or worthwhile services? There are far too many companies like this in the US and they are just phantoms. They're companies that exist purely to make money off of the work that businesses should be doing themselves or otherwise should not be in business.

    +1 Votes
  • Cr
      15th of Sep, 2010

    Servicemagic is an unwanted expensive middleman adding no value to the contractor - consumer relationship. Contractors pay stiff fees to join, and for every "lead" provided, whether they get the gig or not. Information about contractors is scanty and inaccurate - many are not there for long, and pass on their bad experience to the end customer.

    I was approached to be a contractor in a cold call. The salesperson was aggressive and scripted, I wasn't interested, but kept getting repeat calls. My first question kept getting circumvented, simply: "How much does this cost?" The price structure was ludicrous. For most people on either side, there are direct ways of getting in touch with each other - all much cheaper and more satisfying. SM does not provide more customers to your market, or more contractors... All they do is give contractors willing to PAY a little extra edge in reaching lazy, less informed customers - and these are not necessarily GOOD customers.

    The insult on top of this is that I was added to a spam mailing list immediately after declining. 3 or more emails per day - not branded with servicemagic's name, but anonymously offering contractors for a variety of services. They all resolved through a link bidding system to Servicemagic! I was getting additional spam from these same illegal marketers. Servicemagic had no website unsubscribe page, or department to deal with this. I finally contacted a public relations person who said she would stop this flow (they were evading my fairly aggressive spam filter). No luck. She claimed 3rd parties were not following "their rules". Uhhhh hello! So don't pay them!

    The pressure of the economy I think has pushed them to more aggressive and unethical behavior to support their huge infrastructure - financed entirely by contractors passing on their fees to customers. Sad. Do whatever you can to make sure this leech business model does not survive!

    0 Votes
  • To
      12th of May, 2011

    ServiceMagic is a great company of whom use picky shoppers know this is our best bet to get a quality professional. Going to court for $50 give me a break !!! SM is Legit and above comments are from other companies trying to hate. So WTF ever !!!

    0 Votes
  • Ar
      21st of Jun, 2011

    If you are a contractor that has had problem with ServiceMagic, I would enjoy speaking with you. Why? I am the owner of an appliance repair company that is having problems with this company of thieves. E-mail [protected]

    0 Votes
  • Sm
      22nd of Jun, 2011

    Good afternoon ARGFL –

    I am sorry that you are frustrated with us and would like to get a chance to discuss what kind of problems you are having with us. You can contact me directly at 303.963.8066 or e-mail me at mblack [at]

    Thank you and I look forward to speaking with you.

    Mandy Black

    0 Votes
  • Sm
      22nd of Jun, 2011

    Good afternoon ARGFL –

    I am sorry that you are frustrated with us and would like to get a chance to discuss what kind of problems you are having with us. You can contact me directly at 303.963.8066 or e-mail me at mblack [at]

    Thank you and I look forward to speaking with you.

    Mandy Black

    0 Votes
  • Jo
      28th of Jul, 2012

    A good way to eliminate alot of the frustration with the interpretation of the services provided in a lead service like this, would be ONLY pay for leads where you actually get the job. Charge a % of the contract agreement which would be fair to the service provider as well as the contractor. It would give the service provider more incentive to actually make sure the homeowners are serious and not wasting the contractors time and money. It's a shame this country is in such a shambles job wise that every body and their brother has to resort to becomming a contractor to try and make a living. It leaves vultures like Service Magic the opportunity to cherry pick bank accounts.

    0 Votes
  • Jc
      20th of Aug, 2012

    @ joe Moise

    This would make sense in an ideal world, where everyone calls you for work, but when you need leads, but have vultures like Service Magic, hijacking your company name and replacing your number with theirs, even after canceling the service, this can become a challenge! Take them to court?? Hardly!! Service Magic is part of a vast enterprise of internet businesses owned by some mega corporation and enough money to string you along for decades, bleeding your time and money away...

    0 Votes

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