Why You Should NEVER EVER Become a Program Contractor
I spend a lot of time interacting with restoration contractors through online discussion forums especially here on LinkedIn about how to grow restoration business. One of their favorite subjects is bashing program work and program contractors. Few topics get the attention of consultants and contractors alike more than the many reasons to avoid program work. Few subjects get more posts or does more to raise their ire of others than does mentioning the ways insurance companies abuse and underpay their program contractors. Most industry observers and franchise consultants agree that we have been in a decade long movement dominated by TPAs and program work that continues to accelerate. Most of these scorn this as bad, bad, bad for the industry and for contractors … and on it goes.
There are so many reason why you should never ever become a program contractor unless …
… Unless you like having the check sent to your customer without your name included instead of to you with your name on it
… Unless you like competing against other contractors hoping you will get the job
… Unless you like paying for leads that may or may not become jobs
… Unless you like depending on your sales staff to grow your business
… Unless you like using your marketing dollars on work you hope to get instead of paying for work you have completed
… Unless you like working with unpredictable rogue adjusters who apply their unique brand of adjusting at will
… Unless you like writing estimates and presenting bids you never get
So now you have found me out. I am actually a huge proponent of program work to grow restoration business for a lot of reasons …
… You get paid faster on the front end as well as when the job is complete
… A highly skilled and motivated staff of business professionals work hard every day to send more work to you. You get added to one client carrier and then another and another, and every time your sales and revenue increases. In time you might be like my company and be a program contractor for nearly 30 top tier insurance companies. What do you think that would do for your growth and revenue trajectory?
… There is safety in the program. The contractor is safe from abusive and unethical practices of those rogue adjusters who apply their own brand of adjusting to your claim. The decisions regarding program standards and requirements are consistent and fair, and are imposed on every level of adjusting and work.
… You like not having a local adjuster show up on site, don’t you? Most often the program contractor assumes the role of the local field adjuster by completing a comprehensive and accurate scope of repair fully documented to verify each and every aspect of that scope. The desk adjuster simply compares the documentation and photos with repair line items, and if the damage is apparent there is NO disagreement.
… You use your marketing dollars to pay for work actually completed rather than competing with countless numbers of competitors for SEO, pay per click, HomeAdvisor, Angie’s List, or the attention of local insurance agents. Wouldn’t you rather get work on a rotation basis than on a competitive one?
… Personally, I have always liked the variety of claims provided by program work. I value the variety of work be it mitigation, managed repair, large loss, fire and smoke, roofing, and general remodeling. Each revenue source provides a new opening for growth and opportunity. Many contractors compete for water damage and possibly rebuild, but lose out on the higher revenue and more profitable large loss and fire rebuilds. Many may never have the opportunity to break into the roofing industry where profits are also strong.
… I especially value working for a company whose sole means of growth is using their sales staff to get more work for me
What’s your take on becoming a program contractor now? Are you in or out – or should I ask “do you want in or out?” It’s clearly a no brainer – there is no opportunity like the one afforded program contractors. There is greater consistency and protection in a program than outside. Nothing propels growth faster than becoming a Network partner with one or more TPAs.
Those who would say otherwise clearly are missing out don’t know what they are talking about.
Reference: Coaching Plan – The Revenue Generator: The Ultimate Revenue Booster for Your Business Sales Growth
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