Ever since the internet came along, it has changed how people search for service providers. No longer do they look in the Yellow Pages for businesses and start calling around, or call in response to a print ad they got in the mail. Now, they go to sites like Google or Yelp to find reviews, or even to local Facebook pages to get referrals.
In the past, online reviews were a gold mine for consumers. Yes, there were some fake reviews, but for the most part, the reviews were from actual customers who had used the company’s services in the past. Even though the reviews were posted by complete strangers, consumers tended to trust them, and businesses with a lot of positive reviews reaped the benefits.
Then, people started using local Facebook groups to ask for referrals. Need a plumber? Go to your neighborhood’s or city’s Facebook page to see which company people have used and been happy with. The company with the most referrals should be the best, right? In the past, this might have been true, but not anymore.
Some local businesses have caught on to the trend of people asking for referrals on Facebook and have formed what are known as “referral groups.” In these referral groups, business owners get together and agree to refer each other on Facebook. Then, when someone in a Facebook group asks for a referral for a great local electrician, all of the referral group members flood the comment section with the name of the electrician in their group. The original poster will see many people recommending the same company and could assume that the company with so many positive recommendations is the best in the area.
Here’s the problem: most of the people recommending the company from their referral group have never even used the services of the company. They have just agreed to refer them in exchange for a referral for their own company.
If you just need a company to provide you with one-time service, finding one through a referral group might not be that big of a deal, but if you are looking for company referrals for a major project, like a custom home builders in Temecula, you need to look beyond the company that gets the most positive referrals on Facebook.
There are a couple of ways to spot recommendations from referral groups. First of all, the people doing the referring are often “top contributors” in the group. This is because they do a lot of commenting in the group on behalf of their fellow group members. Second, their comments are typically very generic. They will be comments like “So-and-so is the best in the business!” or “I would definitely contact so-and-so!” Group members may even comment on each other’s comments with statements like “I agree! So-and-so is top notch!” If you want to take the time to do a little more digging, you can click on each of the commenters’ profiles, and you will likely find that they are all small business owners themselves.
Some people find this type of referral marketing to be dishonest, since the referrals are only based on a reciprocal agreement made among group members. But others see it as just another way to get the word out about their business, aside from paid marketing or advertising.
The point of this article isn’t to demonize companies that are engaging in this type of marketing. Rather, it’s to make people aware that it exists and to do their due diligence before hiring a company simply based on the number of positive referrals they receive online. Hiring a custom home builder in Temecula is a huge decision, and finding the right one for your project will great impact the outcome! Take your time and research any company that is referred to you. Make sure they are fully licensed and insured (at the bare minimum). Look into their experience, specifically with custom home builds in the Temecula area, and talk to past customers if possible.
