When looking for a plumber, electrician or other contractor, most people turn to their network of friends and family for recommendations. Now, they can supplement those efforts with one more powerful resource for finding a pro.
Referral Buzz, a Minneapolis-based startup, aims to connect contractors with homeowners and provide feedback and information from individuals in a homeowner's social network.
"There are some sites that have comments, but if I'm looking for a referral, I want it from someone I trust," says Referral Buzz co-founder and president Lisa Schneegans. "It's like going on Hotels.com and seeing the feedback there. People might be raving about a place, but if I don't know them, I don't trust it as much as a review from someone I know."
The idea for Referral Buzz was sparked when Schneegans and her partner, Klaus Schneegans, sold Praxis Software Solutions in 2006 and decided to renovate old houses as a new career path. Unfortunately, the housing market hadn't quite hit bottom, and the pair ended up losing quite a bit of money, but they came out of the experience with a new business idea.
"During that time, we worked with a lot of contractors, and consistently, they told us that they got business through referrals," she says. "But when we asked how they managed those, it turned out that they didn't have a systematic approach. So, we decided to use our technology backgrounds to create a referral-based system."
In addition to giving homeowners valuable feedback, Referral Buzz gives contractors a way to formalize their referral systems, which allows for better marketing.
Currently, the service has about 100 contractors, which is a strong start, considering the site has only been live for a short time. A notable addition has been
Bachman's Landscaping, Schneegans says, which gives Referral Buzz a good boost of credibility.
"Like any entrepreneurs, we want everything to go faster," she says, with a laugh. "We want at least 1,000 Twin Cities contractors on the site by the end of next year."
Source: Lisa Schneegans, Referral Buzz
Writer: Elizabeth Millard