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ServiceMagic Named Home Improvement Provider on NYTimes.com
Golden, CO (Dec. 20, 2005) - ServiceMagic®, Inc., (www.servicemagic.com) the leading online marketplace connecting homeowners with prescreened and customer-rated residential contractors and home service professionals, today announced a relationship with NYTimes.com, establishing ServiceMagic as a provider of home improvement contractor services on the NYTimes.com Home & Garden Classifieds Directory section.
Through the relationship, NYTimes.com will add 1,400 prescreened and customer-rated ServiceMagic residential contractors who work in New York to its Home & Garden Classifieds Directory section, creating a robust directory for NYTimes.com users searching for home improvement professionals. Each year, approximately 62,000 consumer service requests are made by ServiceMagic consumers in New York.
The NYTimes.com Classifieds are one of the most visited destinations on the Internet. One and a half million unique visitors read NYTimes.com each day. ServiceMagic is the Internet's leading online marketing solution for residential contractors and home service professionals and facilitates more than 150,000 consumers service requests per month to its more than 35,000 member businesses who specialize in home building, remodeling, architectural services, roofing, fences, decks, painting, flooring, plumbing, landscaping, HVAC and much more.
"This new arrangement provides us with a significant opportunity to promote our services, putting a directory of our customer-rated professionals right at the finger tips of NYTimes.com users," said Craig Smith, vice president of ServiceMagic. "NYTimes.com Home & Garden Classifieds Directory visitors make up a large and very attractive homeowner demographic for our contractor customers."
"The NYTimes.com and ServiceMagic relationship will help NYTimes.com to meet a need for our users by providing a robust directory of relevant high-quality home services vendors in the tri-state area," said Ira Silberstein, director of Classifieds Operations for NYTimes.com. "We fully expect that ServiceMagic recommended home services professionals will live up to the high standards that our readers have come to expect from the NYTimes.com Classifieds."
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Growing Number of Online Consumers Hire Maid Service during Holiday Season
ServiceMagic reports growth in consumers using its online service to hire maids during the holidays
GOLDEN, Colo. (Nov. 7 2005) - The holiday season is full of "to-do's" leaving many without time to take care of the little things to get their homes ready for the holiday season - like cleaning their house. According to ServiceMagic, Inc., (www.servicemagic.com) a national Web based business that connects consumers with home service professionals, the percent of consumers utilizing its free online service to hire a maid service doubles during the holiday season.
"As everyone knows well, during the holiday season there are too many things to do and not enough time to do them," said Rodney Rice, co-CEO of ServiceMagic. "The time pressures put on by the holidays and the added stress of entertaining and hosting the in-laws send more than twice as many folks to ServiceMagic in search of prescreened maid services. Short of boarding the in-laws, we are doing what we can to help our homeowners get through the holidays sane."
While hiring a maid service seems as easy as a phone call away, there is more to it than scheduling a time and place. Because time is of the essence during the holidays, many people have turned to online matching services like ServiceMagic (www.servicemagic.com). The company connects consumers with prescreened and customer-rated home service professionals and residential contractors - it has 35,500 member businesses with nearly 2,000 maid services.
If a consumer chooses to hire a maid service this holiday season, ServiceMagic suggests they meet with the service at their house since onsite visits not only let the maid service see what they are dealing with, but it also gives the consumer the chance to meet the professionals. Additionally, the most effective estimates come from professionals who can see the house first-hand.
Tips for Hiring a Maid Service
The key to any successful home improvement project is doing ones homework. ServiceMagic helps save consumers time by prescreening its 35,500 member businesses for applicable state licensing and insurance and provides past customer feedback. To avoid any issues that may arise, ServiceMagic suggests consumers consider doing the following homework and asking a few specific questions before hiring a maid service, especially if they are not a prescreened ServiceMagic business:
• | How much experience do they have and how long have they been in business? |
| • | If it is a maid service, is employee turnover high? (While this is typical, it helps to ask why.) |
| • | What specific tasks (dishes, dusting, kitchen/bathroom cleaning) will be done? |
| • | Will the consumer or the service provide cleaning supplies? |
| • | If the service is provided by an independent individual, check to see that personal homeowner's insurance will cover people working in the home. |
| • | Ask the service to provide a copy of their insurance certificate and verify with the insurance agency or carrier that the policy is still in good standing. |
| • | Ask the service to provide a copy of their license or check with the state licensing board. It is important that you verify the license is still in good standing. |
| • | Call the references and if possible go look at the work. |
| • | Don't pay in full until the project is completely finished and you have completed your final inspection. Avoid paying in cash and be sure to get a receipt for all payments. |
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Homeowners Taking Action to Conserve Energy Costs this Winter
ServiceMagic® reports a 32 percent increase in online consumers' energy conservation tasks
Golden, CO (Nov. 15, 2005) - In the face of higher energy costs many Americans are choosing not to sacrifice comfort but instead are taking matters into their own hands. ServiceMagic, Inc., (www.servicemagic.com), a national Web based business that connects consumers with prescreened and customer-rated residential contractors, reports a 32 percent increase in online consumer service requests related to energy conservation during the fall of 2005 as compared to 2004. Projects ranged from adding insulation to installing new windows and doors to replacing and servicing central heating systems.
"Americans have heard the warnings that energy costs are on the rise and they're taking action. Some are addressing the issue with small fixes but many are thinking longer-term," said Rodney Rice, co-CEO of ServiceMagic. "We continue to see consumers using our service to hire prescreened contractors to help them make their homes more energy efficient. From simple improvements like adding weather-stripping around windows and doors to more involved improvements like replacing older windows with double-pane, energy efficient ones, homeowners are doing their part to eliminate wasted energy and money."
According to the Environmental Protection Agency, the average American household spends $1,500 annually on energy bills - a number that may go up as much as 50 percent this year. Almost half of that energy goes to heating and cooling the home. On average, homes heated with natural gas will see the biggest increase in energy costs this winter with a 41 percent increase, according to the Energy Information Administration, followed by oil with a 27 percent increase and households heated by electricity will see a 5 percent increase this winter. However, should colder weather prevail, expenditures could be significantly higher.
| • | Taking action to conserve energy will not only lower monthly energy bills, but may help around tax time as well. Many homeowners may not realize that when tax season comes, they can benefit from their energy conservation efforts. Earlier this year, Congress passed the first comprehensive energy bill that will help American families save energy and money at tax time. Homeowners may be eligible to receive the following credits. |
| • | Up to 30 percent of the cost, or up to $2,000, for installing solar-powered hot-water systems used exclusively for purposes other than heating swimming pools and hot tubs. |
| • | Up to $500 on the amount spent to upgrade thermostats, to caulk leaks, or to stop energy waste. |
| • | Up to $200 credit for installation of new exterior windows. |
| • | Up to $300 credit for purchases of a highly efficient central air conditioner, heat pump or water heater. |
| • | Up to $150 for installation of a highly efficient furnace or boiler. |
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ServiceMagic Recieves WebAward at Web Marketing Association's Annual Competition
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Golden, CO (September 13, 2005) - ServiceMagic®, Inc., (www.servicemagic.com) the leading online marketplace connecting homeowners with prescreened and customer-rated home service professionals, has been awarded the 2005 Outstanding Website WebAward by the Web Marketing Association (WMA). The WebAwards is an awards event where websites are recognized, competing head-to-head with other sites within their industry and against an overall standard of excellence.
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The WMA was founded in 1997 to help set a high standard for Internet marketing and corporate web development on the World Wide Web. Staffed by volunteers, this organization is made up of Internet marketing, advertising, public relations and design professionals from around the country. Now in its ninth year, the WebAwards is a premier annual award competition that judges website development against an ever increasing Internet standard and against peer sites within their industry.
Launched in 1999, ServiceMagic offers homeowners a free online resource to connect with prescreened and customer-rated residential contactors and home service professionals as well as access to articles, tips and guides regarding hundreds of different home improvement information in its online library. At the same time, ServiceMagic offers its 34,000 member businesses a complete range of interactive services and solutions for marketing and managing their businesses online.
WMA, an organization devoted to establishing high standards for Internet marketing and corporate Web development, annually recognizes the individual and team achievement of Web professionals who create and maintain outstanding corporate websites. Entries were judged on design, copy writing, innovation, content, interactivity, navigation and use of technology.
For more information on the 2005 WebAward Competition, please visit www.webaward.org.
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IJCSA Partners with ServiceMagic® to Give Members Access to Leading Online Marketing Resource
Golden, CO (August 30, 2005) - ServiceMagic®, Inc., (www.servicemagic.com) the leading online marketplace connecting homeowners with prescreened and customer-rated residential contractors and home service professionals, today announced a strategic partnership with the International Janitorial Cleaning Services Association (IJCSA), a resource center for janitorial cleaning services, maid services, carpet cleaning and window washing services. Through the relationship, the two companies will provide IJCSA members a means to dramatically increase their revenue and profits by reaching the increasing number of consumers utilizing the Internet to find residential cleaning services.
ServiceMagic creates a connection between ready-to-buy consumers and its prescreened member businesses that are matched to consumer service requests. During the first two quarters of 2005 ServiceMagic received more than 66,000 consumer requests from homeowners specifically looking to hire a professional to help them clean their residence, which is the type of work in which IJCSA members specialize. ServiceMagic currently operates nationally, attracting over 2 million unique consumers to its website each month and facilitating more than 150,000 monthly service requests to its 33,000 member businesses.
Founder and Administrator of the IJCSA and owner of Purity Cleaning, Kevin Carnahan, claims ServiceMagic has been an excellent source to generate new business for his own company and has seen the targeted leads increase his bottom line. According to Carnahan, "ServiceMagic is a cost-effective and targeted marketing method for IJCSA member businesses who are looking to grow increase their sales and expand their business."
IJCSA represents the interests of over 300 janitorial cleaning services, maid services, carpet cleaning and window washing services in 50 states and five other countries. Upon acceptance into the ServiceMagic network, member businesses will begin receiving targeted customer leads in their area. Unlike traditional marketing such as the yellow pages, ServiceMagic members can target certain types of projects that they find most profitable and specific locations in which they like to work. For more information on becoming a member, IJCSA members can visit http://www.servicemagic.com/ext/627139 or call 877.947.3648.
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ServiceMagic Launches Online Directory for Home Builders
Golden, CO (August 29, 2005) - ServiceMagic®, Inc., (www.servicemagic.com) the leading online marketing solution for residential contractors and home service professionals, today announced a new online directory for small and medium-sized home builders. The new service allows builders to cost-effectively market to online customers in their area. In the last year, ServiceMagic had more than 40,000 consumers submit a detailed request to find a home builder and builders can now get listed in ServiceMagic's directory to market to these consumers.
Unlike other online directories, ServiceMagic requires consumers to go through a detailed interview and provide contact information before viewing home builders. Through this process, the company weeds out over 95 percent of the people who come to its website, connecting its home builder members to consumers serious about meeting builders. It also allows ServiceMagic to match the consumer to the right builders based on their answers to specific questions. Consumers can review detailed builder profiles in the directory, including photos of homes and floor plan samples, and reach out to those they wish to contact based on how well the home builder matches their individual needs.
"The directory model was designed to better showcase our home builder members and facilitate the right connection between consumers and builders based on the consumer's needs," said Michael Beaudoin, Co-CEO of ServiceMagic. "The service helps our member home builders connect with customers who are truly interested in working with them and who are likely to be a good match for the builder."
To help consumers select home builders that fit their individual needs, ServiceMagic presents each home builders member profile page to the consumer. Member profiles contain detailed information about the individual home builder, including the primary type and style of homes built, up to 50 photographs and/or floor plans, as well as the price range and square footage of their average builds. Builders pay a monthly subscription based on expected impressions to be included in the directory.
The number of consumers seeking home builders online continues to increase. Research from The Kelsey Group, a research and consulting firm, shows that 70 percent of adults in the United States used the Internet as an information source when shopping locally for products and services in 2004, including home builders. ServiceMagic's online directory creates a cost-effective and targeted way for home builders to showcase their work and connect with prospective customers.
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ServiceMagic Completes Acquisition of ImproveNet
Denver, CO (Aug. 10, 2005) – ServiceMagic®, Inc. (www.servicemagic.com), today announced the
successful completion of its acquisition of the stock of ImproveNet, Inc., a leading online home services marketplace. ServiceMagic purchased all of
outstanding shares and in-the-money warrants and stock options of ImproveNet for approximately $6.7 million in cash or approximately $0.12 per share.
Effective upon the closing of the transaction, all residential contractors in the companies' respective networks will benefit from access to leads via
the improvenet.com and servicemagic.com websites. In addition, the 1-800-Contractor phone number and 1800contractor.com website will continue to
operate as a service of ImproveNet, Inc.
Shares of ImproveNet common stock, which prior to the acquisition traded on the over-the-counter bulletin board under the symbol "IMPV", will no
longer be traded.
Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include statements relating to ServiceMagic's or IAC's anticipated financial performance, business prospects, new developments and similar matters, and/or statements preceded by, followed by or that include the words "believes," "could," "expects," "anticipates," "estimates," "intends," "plans," "projects," "seeks," or similar expressions. These forward-looking statements are based on management's current expectations and assumptions, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. Actual results may differ materially from those suggested by the forward-looking statements due to a variety of factors, including changes in business, political, and economic conditions due to the threat of future terrorist activity, actions and initiatives by current and potential competitors, the effect of current and future legislation or regulation, the ability to expand our reach into international markets, and certain other additional factors described in IAC's filings with the Securities and Exchange Commission. Other unknown or unpredictable factors also could have material adverse effects on ServiceMagic's or IAC's future results, performance or achievements. In light of these risks, uncertainties, assumptions and factors, the forward-looking events discussed in this press release may not occur. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date stated, or if no date is stated, as of the date of this press release. Neither ServiceMagic nor IAC is under any obligation and does not intend to make publicly available any update or other revisions to any of the forward-looking statements contained in this press release to reflect circumstances existing after the date of this press release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.
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Elk Premium Building Products Forms Strategic Relationship with ServiceMagic
Elk Peak Performance Contractors Gain Access to Fast-Growing Online Consumer Marketplace
Golden, CO (July 12, 2005) – ServiceMagic®, Inc. (www.servicemagic.com), the nation’s leading online marketplace connecting homeowners to prescreened home service professionals, today announced a strategic relationship with Elk Premium Building Products Inc. (Elk), a manufacturer of premium laminated asphalt shingles and subsidiary of ElkCorp (NYSE:ELK). Through the relationship ServiceMagic will provide Elk’s Peak PerformanceSM Contractors with a means to increase their business by reaching the increasing number of consumers utilizing the Internet to find roofing professionals.
"Online marketing is new to many of our business customers and can seem overwhelming," said Curt A. Barker, Elk VP of Sales & Marketing. "However, as the number of consumers turning to the Web to find local roofing professionals increases, our contractors need to find an efficient way to get Internet leads. ServiceMagic is a proven, targeted, online marketing tool that is cost-effective and will enable our customers to effectively grow their business through the Internet."
ServiceMagic creates a connection between ready-to-buy consumers and its prescreened member businesses that are matched to consumer service requests. In 2004, the company processed more than 1.4 million consumer service requests. ServiceMagic currently operates nationally, attracting over 2 million unique visitors to its Web site each month and facilitating more than 125,000 monthly service requests to its more than 32,000 member businesses. To date, ServiceMagic has facilitated more than 4 million consumer requests for home services, representing an estimated $10 billion in consumer spending.
Elk Peak Performance Contractor and ServiceMagic member, Jennifer Azulay – Gil’s Roofing, Inc., said, "ServiceMagic has become a very important lead generation tool for my business. The company sends only targeted and qualified leads to us, which result in paying customers. Our business has grown as a result of the customers we have found through ServiceMagic."
The Elk Peak Performance Contractor Program is an exclusive sales program. Continued membership in the program is measured by homeowner quality ratings. Elk Peak Performance Contractors receive many benefits as part of the program including marketing materials, enhanced warranty offerings, lead generation, reward points and earn shares of ElkCorp stock. For more information on Elk roofing products and the Peak Performance Contractor Program visit www.elkcorp.com or call 877-947-3648.
About ElkCorp
ElkCorp, through its subsidiaries, manufactures Elk brand premium roofing and building products (over 90% of consolidated revenue) and provides technologically advanced products and services to other industries. Each of ElkCorp's principal operating subsidiaries is a leader within its particular market. Its common stock is listed on the New York Stock Exchange (NYSE: ELK). See www.elkcorp.com for more information.
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ServiceMagic®, Inc. to Acquire ImproveNet, Inc.
Acquisition Strengthens ServiceMagic's Position as the Nation's Leading Internet Marketing Solution for Residential Contractors
GOLDEN, Colo. and SCOTTSDALE, Ariz. (June 23, 2005) - ServiceMagic®, Inc. (www.servicemagic.com) and ImproveNet, Inc. (OTC Bulletin Board: IMPV), the two leading online marketplaces that connect consumers with prescreened residential contractors and home service professionals, today announced they have entered into an agreement whereby ServiceMagic will acquire all of the outstanding stock of ImproveNet. The combination of the two companies will create the most effective, comprehensive and targeted Internet marketing solution for residential contractors. ServiceMagic has agreed to buy all of the outstanding shares and in-the-money warrants and stock options of ImproveNet for approximately $6.72 million in cash or approximately $.12 per share.
Together ServiceMagic and ImproveNet will offer residential contractors and home service professionals the most complete range of interactive services and solutions for marketing and managing their businesses online. The combined consumer bases and contractor networks are expected to drive more leads to participating contractors and improve choice for consumer members. The increased demand is projected to result in more than 165,000 consumer service requests every month to member contractors, which represents an estimated $400 million in monthly home improvement related spending by homeowners.
"By joining forces with ImproveNet, we will be well positioned to capitalize on the growing number of consumers seeking home service professionals and information on home improvement projects through the Internet," said Rodney Rice, co-CEO of ServiceMagic. "Our combined resources will improve both of our existing services to meet our growing consumer demand."
Subject to completion of the transaction, ImproveNet business lines will transition to ServiceMagic, including ImproveNet.com, AdServePRO™, ImproveNetPRO.com, 1-800-Contractor and 1-800-CONTRACTOR.COM. The transaction is expected to close in the third quarter of 2005, at which point the services will be combined. Residential contactors in the ImproveNet network will be transitioned to ServiceMagic; resulting in an ultimate increase in ServiceMagic's network of prescreened residential contractors.
"We are excited to join forces with ServiceMagic," said Jeffrey Rassas, CEO of ImproveNet. "We believe this combination will drive significantly greater lead flow to our contractors, increased exposure for advertising partners and improved choice for our homeowners."
The transaction is subject to customary closing conditions, including approval of ImproveNet's shareholders, which if not satisfied in the anticipated timeframe would cause an extension of the expected close date. Under a separate agreement, certain members of ImproveNet's senior management, each of whom are significant shareholders of ImproveNet, have agreed to support the transaction.
About ImproveNet
ImproveNet, Inc. is a home improvement network for consumers, home improvement service providers and manufacturers, offering a reliable referral-matching service and comprehensive solutions. The ImproveNet® TrueMatch™ platform automatically connects homeowners to screened contractors, architects, designers and builders available in their area. Through ImproveNet's website and 1-800-Contractor, ImproveNet has been connecting homeowners to screened and system-rated contractors for over eight years. ImproveNet.com offers thousands of pages filled with management tools, product showcases, visualizers, expert advice, and active message boards, providing its customers and associates with instant access to the home improvement marketplace. The ImproveNet AdServePRO™ service delivers the latest industry news on product and services. For further information visit www.ImproveNet.com.
Important Disclosures
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include the information relating to possible or assumed future results of operations of ServiceMagic, Inc. ("ServiceMagic") and its affiliates and ImproveNet, Inc. (OTC Bulletin Boards: IMPV), including those preceded by, followed by or that include the words "believes," "could," "projects," "budgets," "estimates," "intends," "expects," "anticipates" or similar expressions. These statements reflect the current views of ServiceMagic and ImproveNet, Inc. ("ImproveNet") with respect to future events, and are based on information currently available to ServiceMagic and ImproveNet. These forward-looking statements are subject to risks, uncertainties and assumptions that may affect the operations, performance, development and results of ServiceMagic's and its affiliates' and ImproveNet's businesses. The following important factors, in addition to those described in the filings with the Securities and Exchange Commission made by ServiceMagic's parent entity, IAC/InterActiveCorp, and ImproveNet, could affect the future results of ServiceMagic, its affiliates (including IAC/InterActiveCorp) and ImproveNet, and could cause those results to differ materially from those expressed in the forward-looking statements: material adverse changes generally or in economic conditions in the markets served by our businesses; future regulatory actions and conditions in our businesses' operating areas; competition from others; successful integration of our divisions, including recently acquired businesses; product demand and market acceptance; the ability to protect proprietary information and technology or to obtain necessary licenses on commercially reasonable terms; the ability to expand into and successfully operate in foreign markets; and obtaining and retaining key executives and employees. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. ServiceMagic and ImproveNet undertake no obligation to update or revise the forward-looking statements contained in this press release, whether as a result of new information, future events or any other reason.
Additional Information and Where to Find It
ImproveNet will file with the Securities and Exchange Commission and mail to its shareholders a proxy statement that will contain information about ImproveNet, the proposed transaction and related matters. SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT CAREFULLY WHEN IT IS AVAILABLE, AS IT WILL CONTAIN IMPORTANT INFORMATION THAT SHAREHOLDERS SHOULD CONSIDER BEFORE MAKING A DECISION ABOUT THE TRANSACTION. In addition to receiving the proxy statement from ImproveNet by mail, shareholders also will be able to obtain the proxy statement, as well as other filings containing information about ImproveNet, without charge, from the Securities and Exchange Commission's website (http://www.sec.gov) or, without charge, from ImproveNet at www.improvenet.com. This announcement is neither a solicitation of proxy, an offer to purchase nor a solicitation of an offer to sell shares of ImproveNet.
ImproveNet and its officers and directors may be deemed to be participants in the solicitation of proxies with respect to the transactions contemplated by the merger agreement. Information about the participants in the solicitation will be set forth in the proxy statement to be filed with the Commission.
Elaine N. Schoch
ServiceMagic, Inc.
(303) 963-8028
eschoch@servicemagic.com
Erica Schramm
ImproveNet, Inc.
(480) 346-2073
erica.schramm@improvenet.com
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Growing Number of Consumers Use Internet to Find Residential Contractors
3 millionth consumer utilizes online matchmaker to find a home service professional
GOLDEN, Colo. (May 25, 2005) - ServiceMagic®, Inc. (www.servicemagic.com)the leading service connecting homeowners with prescreened and customer-rated residential contractors, reported today that it has now helped over 3 million homeowners in the United States find a local home service professional. During the month of April, over 156,000 consumer service requests were submitted, representing a 23 percent increase over the same month last year. Top requests for April 2005 included maid service, landscaping and adding an addition to a home.
Finding a reputable contractor through the yellow pages can be tough. According to The National Association of Consumer Agency Administrators, complaints about home improvement contractors topped the list of consumer complaints in 2004. ServiceMagic reduces the frustration and risk associated with finding a quality contractor by allowing consumers to submit a free request online and match to several local prescreened contractors. The service has amassed over 125,000 Ratings & Reviews from consumers who have worked with contractors in the service. These Reviews are available for consumer preview prior to hiring.
Over 28 percent of ServiceMagic's traffic now comes from repeat users or word-of-mouth. Consumers cite the ease of finding a reputable contractor as the key reason for returning to the site and telling others about it.
"During the last six years ServiceMagic has proven to be a valuable and important tool for consumers seeking reputable residential contractors and information on home improvement projects," said Rodney Rice, co-CEO of ServiceMagic. "The growth and repeat usage we have experienced confirms that consumers are going online to find local service professionals and that they are finding success with ServiceMagic."
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Internet Becoming Primary Marketing Resource for Many Residential Contractors
More than 30,000 contractors now connect with online customers through ServiceMagic
GOLDEN, Colo. (March 30, 2005) - ServiceMagic®, Inc. (www.servicemagic.com)today reported that approximately 31,000 residential contractors and home service professionals are now marketing their services on the Internet through its online marketplace. The company has increased the number of member businesses in its national network of home service professionals by 30 percent over the past year and 11 percent over the quarter ending Dec. 31, 2004.
While traditionally consumers have turned to the Yellow Pages to find residential contractors, the use of print directories is projected to decrease by approximately 20 percent over the next four years according to The Kelsey Group, a Yellow Pages consulting and research firm. The Internet is quickly becoming a primary tool for consumers looking for residential contractors and home service professionals. A recent survey by The Kelsey Group and Bizrate.com reveals that 61 percent of consumers feel that the quality of online information is better than the quality of offline sources, including the print Yellow Pages. As a result, online marketing has become an effective marketing vehicle for residential contractors.
ServiceMagic specializes in bringing targeted customer leads to home service professionals based on their preferred geographic area and work type. The ServiceMagic marketplace platform moves information between customer and contractor to facilitate a good match and connection. ServiceMagic network member businesses are screened for applicable state licensing and insurance and pay only for the customer leads they receive.
In a recent survey, ServiceMagic member businesses that have been with the service for a year or more reported growing their business on average by 28 percent. "My business has grown 35 percent as a direct result of my ServiceMagic leads," said Jim Wilczynski, owner of Home Services Group and a prescreened ServiceMagic member business. "Online marketing has proven to be my best and most cost-effective source of new business."
"ServiceMagic has been helping residential contractors grow their businesses through the Internet for the last six years," said Michael Beaudoin, co-CEO of ServiceMagic. "Our network continues to grow steadily because ServiceMagic has proven to be a cost-effective and targeted online marketing tool for residential contractors."
To date, ServiceMagic has facilitated more than 3.7 million consumer requests for home services, representing an estimated $8.5 billion in consumer spending nationwide.
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Matchmaking Services Can Help Homeowners Avoid Home Improvement Problems
Contractor grievances top 2004’s list of national consumer complaints
GOLDEN, Colo. (March 24, 2005) -
When it came to finding a contractor to remodel her basement, Washington, D.C. area resident Jacqueline Sellers did what many homeowners do – she asked her friends and family for referrals. After months of construction by four different contractors, her basement is still unfinished and she’s out thousands of dollars. Nightmare contractor stories are not new; however, many homeowners aren’t aware of the resources available to help them avoid problems.
According to a recent report from The National Association of Consumer Agency Administrators, home improvement contracting topped this year's national list of consumer complaints, beating out automobile sales, auto repair, credit fraud and telecommunications complaints.
"There are quality contractors out there that will do a great job – the first time around. It’s simply knowing where to find them," said Tom Kraeutler home improvement expert and host for the nationally syndicated radio show The Money Pit. "The yellow pages and personal referrals can only tell someone so much, leaving a homeowner with a lot of homework to do and unfortunately, most people don’t have the time to spend looking for the right contractor to work with, which can lead to a poor selection."
Following a heavy rain storm that damaged Sellers’ roof, instead of turning to friends and family for referrals she went online to ServiceMagic.com, a matchmaking web site for consumers to connect with prescreened residential contractors, plugged details about her project into a form and added a note saying her roof needed immediate attention. Within an hour, Sellers had two local roofing companies call her to arrange a time to meet and discuss her needs. The roof was repaired within a week and Sellers was amazed at how easy the process of finding and hiring a qualified and reputable contractor was.
Services like ServiceMagic®, Inc. (www.servicemagic.com) connect homeowners with prescreened and customer-rated residential contractors in their area. In fact, over 86,000 consumers in the Washington, D.C. area utilized the free service last year to find a contractor (from maid services to custom home builders and everything in between). ServiceMagic performs background checks and screens the contractors in its national network, consisting of over 30,000 residential contractors – over 1,200 in the D.C. area – to verify they hold applicable state licensing and insurance. Consumers rate the contractors they hire through ServiceMagic so future consumers can view this information prior to making a hiring decision. Additionally, the company provides a customer resolution center and customer guarantee if projects go awry.
Tips for Hiring the Right Contractor
Doing one's homework is key to a successful home improvement project. ServiceMagic helps homeowners with their homework by prescreening its member businesses for state licensing and insurance and providing past customer feedback. Kraeutler suggests consumers consider doing the following homework, especially if they are working with a non-ServiceMagic contractor.
- Verify Insurance. Ask the contractor to provide a copy of their insurance certificate and verify with the insurance agency or carrier that the policy is still in good standing.
- Verify Proper Licensing. Ask the contractor to provide a copy of their license or check with the state licensing board. It is important that you verify the license is still in good standing.
- Check References. Don’t just call the references but if possible, go look at their work.
- Finalize the Contract Before Starting on a Project and Document all Changes. Make sure all changes to the original contract, no matter how small, are documented and signed off by both parties.
- Pay Upon Completion. Don't pay in full until the project is completely finished and you have completed your final inspection and for larger projects, don't make the final payment until the project has passed the final building inspection. Try to avoid paying in cash and be sure to get a receipt for all payments. Some states have legal limits on the amount of a down payment contractors can ask for; check with the Contractor State Licensing Board to verify the limits in your state.
- Get Detailed Estimates. Know exactly how much everything is going to cost so there are no last-minute surprises.
- Check with the Better Business Bureau.
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Mr. Handyman & Molly Maid Partner with ServiceMagic® to Give Members
Access to Leading Online Marketing Resource
Golden, CO (March 3, 2005) - ServiceMagic®, Inc., (www.servicemagic.com) the leading online marketplace connecting homeowners with prescreened and customer-rated residential contractors and home service professionals, today announced a strategic partnership with home service franchises, Mr. Handyman and Molly Maid, both members of Service Brands International (SBI), a group of service companies providing a variety of timesaving services for consumers. Through the relationship, the three companies will provide 356 Mr. Handyman and Molly Maid franchises a means to dramatically increase their revenue and profits by reaching the increasing number of consumers utilizing the Internet to find residential cleaning services and handymen.
ServiceMagic creates a connection between ready-to-buy consumers and its prescreened member businesses that are matched to consumer service requests. In 2004, the company received more than 1.4 million consumer service requests. Over 80,000 requests were from consumers specifically looking to hire a maid service and more than 23,000 looking for a handyman. Both were in the top 10 most requested services from consumers in 2004. ServiceMagic currently operates nationally, attracting over 2 million consumers to its Web site each month and facilitating more than 125,000 monthly service requests to its 28,000 member businesses. To date, ServiceMagic has facilitated more than 3.4 million consumer requests for home services, representing an estimated $8.5 billion in consumer spending.
"With the Internet becoming more widely used among consumers looking for local businesses like maid services and handymen it's important for our members to reach potential customers through this medium," said John McLellan, chief marketing officer of SBI. "Prospecting online is proving to be cost-effective and targeted in reach and ServiceMagic is an established online tool that will help members grow their business."
"We're very happy with the targeted leads ServiceMagic sends us and have seen a real increase in our business since we've joined," said Dan Hastings a Mr. Handyman franchisee in Gaithersburg, MD.
Molly Maid represents the interests of over 226 home cleaning service franchises in 35 states. Mr. Handyman is a full-service residential home repair and maintenance company with more than 130 franchises nationwide. Upon acceptance into the ServiceMagic network, member businesses will begin receiving targeted customer leads in their area. Unlike traditional marketing such as the yellow pages, ServiceMagic members can target certain types of work that they find most profitable and specific locations in which they like to work. For more information on becoming a member, Molly Maid franchisees can visit http://www.servicemagic.com/ext/407920 and Mr. Handyman franchisee can access http://www.servicemagic.com/ext/356605.
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ServiceMagic®, Inc. Launches One-to-One Online Marketing Service with Citysearch®
Exact MatchSM Provides Prescreened & Customer-Rated Residential Contractors a New Resource to Tap Growing Local Search Market Access to Leading Online Marketing Resource
GOLDEN, Colo. (March 1, 2005) - ServiceMagic®, Inc. (www.servicemagic.com), the nation's leading online marketplace connecting consumers with prescreened and customer-rated contractors and home service professionals, today announced the launch of its new one-to-one matching service in partnership with Citysearch®. Exact MatchSM delivers a one-to-one match for consumers searching online for local home service professionals. The partnership with Citysearch marks the beginning of ServiceMagic's integration into IAC Local & Media Services following the acquisition of ServiceMagic by IAC/InterActiveCorp (NASDAQ: IACI) in September, 2004.
With Exact Match, ServiceMagic creates and hosts a member business's web page (containing profile information on the service professional, including Customer Ratings). ServiceMagic optimizes the placement of the individual member web pages to appear within the search results of local search engines and online directories. These web pages are now available within Citysearch, enabling Citysearch to provide its consumers with a direct connection to prescreened and customer-rated home service professionals. Exact Match is viewable on all 141 cityguides in the Home & Garden category to which Citysearch provides content.
"Exact Match creates a one-to-one connection for both the consumer and our member businesses," said Michael Beaudoin, co-CEO of ServiceMagic. "We have created a way for home service professionals to get broad Internet exposure without having to pay huge up-front fees, build and maintain a complex web site or become Internet marketing experts or search engine gurus. We do it for them and they benefit from an increase in targeted consumer demand."
"The Citysearch and ServiceMagic partnership creates a unique experience for our users," said Briggs Ferguson, CEO of Citysearch. "It allows for our users to get the precise services they require with the assurance that the vendors are of high quality."
Exact Match takes pay-for-performance advertising a step further than existing competitive platforms by creating a searchable web page and delivering targeted leads only to an individual matching service professional - ensuring they only pay for the leads they want.
"Despite consumer trends toward Internet usage, small and medium-sized businesses have yet to widely adopt online marketing," said Greg Sterling, an analyst with The Kelsey Group, a research and consulting firm. "We project local commercial searches will grow from approximately 10 percent of all search activity today to 25 percent by 2009. Therefore, online marketing will become increasingly important for small businesses as consumers turn more often to the Internet to find local information."
HOW IT WORKS: When a consumer conducts an online search for local home service professionals and clicks to review the ServiceMagic member's Exact Match web page, they can directly connect with the service professional by either submitting an online service request or calling a local phone number provided by ServiceMagic; both options route the consumer through a short interview to confirm the request matches the service professional's work type and geographic area. Following confirmation, ServiceMagic connects the consumer directly to the service professional; service professionals are then charged for the consumer lead.
Today, ServiceMagic's 28,000 member businesses use the company's Market MatchSM service to generate targeted customer leads via the ServiceMagic web site. With Market Match, consumers submit a home service request with ServiceMagic and the company then matches them with up to four prescreened and customer-rated local businesses that compete for the consumer's job. The Exact Match service complements Market Match by offering a new way for consumers to connect with specific service professionals and a new way for these businesses to market themselves directly to online consumers.
ABOUT CITYSEARCH®
Citysearch is a leading local search service, providing the most up-to-date information on businesses, from restaurants and retail, to travel and professional services. Citysearch empowers users to make informed decisions about where to spend their time and money by delivering more than two million editorial and user reviews and ratings of local businesses. Through its unique Local Pay For Performance (PFP) service, Citysearch enables businesses to capture their most relevant customers online while paying only for the leads received. Citysearch is both the number one provider of in-depth restaurant information on the web, influencing more than a million people a month about where to eat, and the number three local directory, supplying information for every domestic zip code. Citysearch is an operating business of IAC/InterActiveCorp (NASDAQ: IACI).
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Should You DIY or Hire-A-Guy for Your Next Home Improvement Project
Can doing-it-yourself actually cost more?
Golden, CO (Feb. 17, 2005) – When it came to adding electricity to his sunroom, John Martens believed he could easily get the project started to save time and money on the initial labor and then call in a professional to finish the job. Bad move
"John ended up spending around $2,500 on this project and more than $800 was simply us redoing a lot of his hard work," said Brad Richards, a Master Electrician and a prescreened ServiceMagic professional who was ultimately hired by Martens. "John wasn't aware of all the electrical codes in the area and his work wasn’t up to code so we needed to get everything where it needed to be."
Richards says had Martens not called an electrician, he would have overloaded his system and caused a fire in his house.
Indeed, before tackling any home improvement project homeowners should always consider total dollar cost, safety, and convenience, in addition to the amount of time they will have to invest and their expectations of the level of quality of the finished product to help determine if they should DIY or hire a professional. Additionally, they should ask themselves these questions:
Do you have the knowledge and skill to do the work?
Be realistic with your skills and knowledge and consider the end results. If you lay concrete for a new sidewalk, will it look as professional as you would like? Do you know enough about the chemical composition of concrete to end up with a sidewalk that will last?
Can you make the situation worse?
If you find you’re in over your head, you may wind up calling a professional to bail you out. Not only will you pay a contractor to fix the initial problem, you run the risk of having to pay even more to fix what you messed up.
Can you bring harm to yourself and your family?
According to Underwriters Laboratory, 164,000 Americans sought emergency room treatment last year for injuries from falling off a ladder. You need to assess the risks involved to determine if the expected savings of doing-it-yourself is worth the risk. Both electrical and plumbing projects are ones you should typically leave for the professionals.
What is the value of your time?
Your time is valuable, and likely your spare time is even more valuable. While you may be able to handle painting the outside of your house, ask yourself if it is worth paying someone to scrape the old paint off, apply primer and two coats of paint and then clean up (likely in less than a week) versus you spending a month or more of evenings and weekends to do the same job.
"DIY has become very popular over the last few years and we tell those who are handy to go for it," said Rodney Rice, co-CEO of ServiceMagic, Inc, an online service that connects consumers with prescreened residential contractors. "However, we have seen more and more consumers contact us to find a residential contractor to help them fix a home improvement project they tried to do themselves."
One reason homeowners take on DIY projects is the fear of hiring a professional, understandable considering home improvement contractor complaints were the source of the most consumer complaints last year, says the National Association of Consumer Agency Administrators.
Companies like ServiceMagic(www.servicemagic.com) connect homeowners with prescreened, licensed, insured and customer-rated residential contractors in their area. The company also provides homeowners with tips and advice on home improvement tasks along with access to a free project estimator so homeowners can get a feel for the price range of a project – including labor.
While he fancies himself a DIY guy, John Martens acknowledges there are projects homeowners should seek professional assistance on. "There are certain projects I know I need professional help with," he says. "And as a homeowner, I also know finding a qualified and reputable contractor can be a difficult and time consuming task. ServiceMagic has become a great free resource for me, helping me to quickly and easily find contractors."
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PDCA’s Newest Associate Member ServiceMagic® Gives Members Access to Leading
Online Marketing Resource
Golden, CO (Feb. 9, 2005) – ServiceMagic®, Inc., (www.servicemagic.com) the leading online marketplace connecting homeowners with prescreened and customer-rated residential contractors and home service professionals, today announced a strategic alliance with the Painting & Decorating Contractors of America (PDCA). Through the relationship, the two organizations will provide PDCA members with a means to dramatically increase their revenue and profits by reaching the increasing number of consumers utilizing the Internet to find residential painting and decorating professionals.
ServiceMagic creates a connection between ready-to-buy consumers and its prescreened member businesses that are matched to consumer service requests. In 2004, the company received more than 1.4 million consumer service requests. Over 51,000 requests were from consumers specifically looking to hire a painting or decorating professional. ServiceMagic currently operates nationally, attracting over 2 million consumers to its Web site each month and facilitating more than 125,000 monthly service requests to its 28,000 member businesses. To date, ServiceMagic has facilitated more than 3.4 million consumer requests for home services, representing an estimated $8.5 billion in consumer spending.
"As Internet usage among consumers increases, online marketing has become more important for our members to utilize to reach potential customers," said Dr. Ian Horen, CEO of PDCA. "The Internet is proving to be a cost-effective alternative to use for prospecting and ServiceMagic is an established, proven online tool that we believe will be extremely useful to our members in helping them grow their business."
"ServiceMagic is an inexpensive way to get highly qualified leads," said Sean Armstrong of Paint Concepts, a member of both PDCA and ServiceMagic. "I have closed a high percentage of the leads I get from ServiceMagic and generated $150,000 in business last year"
PDCA represents the interests of over 3,000 professional painting and decorating contractors nationwide. Upon acceptance into the ServiceMagic network, member businesses will begin receiving targeted customer leads in their area. Unlike traditional marketing such as the yellow pages, ServiceMagic members can target certain types of work that they find most profitable and specific locations in which they like to work. For more information on becoming a member, PDCA members can visit http://www.servicemagic.com/ext/478055.
CONTACT: Elaine N. Schoch
ServiceMagic, Inc.
(303) 963-8082
eschoch@servicemagic.com
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BeHomeWise and ServiceMagic®, Inc. Form Partnership
Customized Online Marketing for Custom Home Builders and Remodelers
McLEAN, VA – BeHomeWise, Inc. (www.BeHomeWise.com), the industry’s leading system for business intelligence and Internet lead management, has partnered with ServiceMagic®, Inc. (www.servicemagic.com), the nation's leading online marketplace connecting consumers with prescreened and customer-rated contractors and home service professionals. Through this partnership, BeHomeWise (BHW) and ServiceMagic will join forces to deliver custom home builders and remodelers increased revenue and profits – helping them to take advantage of the increasing number of consumers using the Internet to find residential contractors.
To celebrate the launch of this partnership, BHW and ServiceMagic will each be offering substantial discounts to the other company’s customers.
"The industry's leading builders already understand the incredible value of online leads and have developed systems to capitalize on them," said Robb Cohen, President and CEO of BHW. "Smaller builders and remodelers have only recently begun to embrace online technologies in the same way that larger builders and remodelers have in order to stay competitive. ServiceMagic offers the best opportunity for these building professionals to market themselves online."
"For smaller builders and remodelers, online leads are extremely precious, because so few have an online presence that is capable of capturing and converting prospective customers," said Geoff Kulesa, Vice President of Marketing and Business Development for ServiceMagic. "Contractors and builders simply cannot afford to let these leads slip through the cracks. BeHomeWise products not only prevent this from happening but actually help companies prioritize and respond to leads quickly and effectively. The combination of our offerings provides a powerful way for builders and remodelers to obtain new targeted leads and manage them effectively."
BeHomeWise has a track record of success in meeting the needs of custom and small volume home builders. In 2004, the company launched its Event Management Program at the Northern Virginia Builder Industry Association (NVBIA) Custom Builders Council Parade of Homes. For Parade of Homes, and other events, the BHW Event Management Program using a unique registration system and swipe card system to help builders:
- Gather accurate and comprehensive shopper data in high traffic areas during events
- Rank and qualify shoppers as hot prospects for each builder
- Track shoppers' purchasing behaviors, with an understanding of how many event participants actually buy a home
- Follow up on their hot leads right after the event, so leads don’t fall through the cracks
- Measure the success of their event marketing
"We are truly excited by the limitless possibilities of this partnership, in which all parties benefit in a symbiotic fashion," adds Cohen. "The more success ServiceMagic has in securing high-quality leads for its customers, the more these customers will need to manage and prioritize these leads in an intelligent and profitable manner. Whether it’s the homeowner, the contractor/builder, ServiceMagic, or BeHomeWise, everybody wins!"
For more information, visit www.BeHomeWise.com, or call toll-free (866) 246-6399.
About BeHomeWise
BeHomeWise is quickly emerging as the nation's leading system for business intelligence and Internet lead management for home builders. Founded and developed by new home sales expert, Robb Cohen, BeHomeWise offers Web-deployed prospect management solutions for converting prospective new home buyers into sales. The BeHomeWise software system, B-Wise, integrates leads from all of a builder’s various marketing channels (including walk-ins, search engines, portals, Web traffic and Realtor referrals) and automatically prioritizes these based on who is most likely to buy. Today, BeHomeWise is used by dozens of home builders in the US and Canada, including Shea Homes, DR Horton and Comstock Homes. These companies, and others, have gained competitive advantages by enthusiastically adopting cutting-edge sales automation technology like that offered by BeHomeWise. Learn more about BeHomeWise by visiting www.BeHomeWise.com, or by calling (866) 246-6399 (866-BHOMEWZ).
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The National Kitchen & Bath Association Forms Strategic Relationship with ServiceMagic, Inc.
NKBA Members Can Now Tap Fast-Growing Online Consumer Marketplace
Golden, CO (April 11, 2005) – ServiceMagic, Inc. (www.servicemagic.com), the nation’s leading online marketplace connecting homeowners to prescreened home service professionals, today announced a strategic relationship with the National Kitchen and Bath Association (NKBA). The NKBA will promote ServiceMagic to its members as a means to increase their revenue and profits by reaching the increasing number of consumers utilizing the Internet to find plumbers, remodelers, builders, designers and other kitchen and bath professionals.
ServiceMagic creates a connection between ready-to-buy consumers and its prescreened member businesses that are matched to consumer service requests. In 2004, the company processed more than 1.4 million consumer service requests. ServiceMagic currently operates nationally, attracting over 2 million unique visitors to its Web site each month and facilitating more than 125,000 monthly service requests to its 31,000 member businesses. To date, ServiceMagic has facilitated more than 3.7 million consumer requests for home services, representing an estimated $8.5 billion in consumer spending.
"ServiceMagic’s system allows NKBA members to spend less time and effort marketing, prospecting and qualifying leads since the system brings potential jobs to them," said Bill Schankel. "ServiceMagic is a proven online tool that we believe will help our members cost-effectively target the growing number of consumers searching the Internet for local kitchen and bath service professionals."
Unlike traditional marketing such as the yellow pages or direct mail, ServiceMagic allows home service professionals to target prospective customers who have indicated a need for the specific types of work they find most profitable in the specific locations in which they like to work. In a recent survey, ServiceMagic member businesses that have been with the service for a year or more, reported growing their business on average by 28 percent and many report that ServiceMagic has become their lowest cost form of advertising.
NKBA member Lou White with Castle Home Improvement, Inc. says, "ServiceMagic has helped me grow and maintain my business. In fact, the leads I receive from ServiceMagic account for about 20 percent of my business. Everyone has leads in the spring but the key to a successful business is maintaining consistency throughout the year and ServiceMagic helps me do this – I’m busy even during the off season."
NKBA comprises nearly 11,000 companies and more than 30,000 individuals involved in all aspects of the residential kitchen and bathroom industry. Upon acceptance into the ServiceMagic network, member businesses begin receiving targeted customer leads in their area. Unlike other online lead generation services, there are no monthly membership fees, long-term commitments or back-end fees upon project completion. For more information on joining ServiceMagic and to learn about the special NKBA partner discount, members can visit
http://www.servicemagic.com/ext/504380 or call toll-free (877) 947-3692.
About NKBA
The National Kitchen & Bath Association is an international non-profit organization that serves and represents the firms and individuals involved in all aspects of the residential kitchen and bathroom industry. NKBA was incorporated in 1963 as the American Institute of Kitchen Dealers and changed its name to NKBA in 1983 to represent the entire industry. As the only trade association dedicated exclusively to the kitchen and bath industry, NKBA is the leading source of information and education for consumers and professionals alike. To date, the NKBA serves over 30,000 members.
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