The Difference Between a Full Schedule and an Empty One (Ep 293)

Leads, leads, leads — every business needs them! 

Today, Max explores the difference between the bucket method and the pipeline method for managing leads. 

Which approach do you use to keep 12 months of work lined up: the bucket method or the pipeline method?

Watch today's episode on the whiteboard --> https://www.youtube.com/playlist?list=PL76rc3DrCOMb7VM9icAOQmLodNCSZTfKf

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Transcript

SPEAKER_00 0:00

The bucket method will feed you today, but the pipeline method will help you sleep at night. On today's episode, I'm going to chat with you about the difference between the bucket method lead generation and the pipeline lead generation and how it helps me create 12 months of work in front of our building company. Enjoy. How old are you going to be before you start to experience life like you want it? I want to tell you right now, whether you like it or not, there is a better way to do business. Hi everyone, welcome to the Business for Builders Podcast. My name is Max. I'm your host. Uh, appreciate you dropping in. Uh, good morning, afternoon, or evening if you're on Podcastville, um, if you're in YouTube land, good to have you along for the ride as well. Um, as usual, want to give you something you can tuck under your arm and uh and really implement in your business. And today, because this is what you know, after all my years in franchising, it's it's like, well, I need leads, Max. I need leads, I need leads, I need leads. And so today we're gonna talk about, I'm just gonna probably try and take another angle on helping you realize why branding and marketing is probably one of the apex predators as it relates to success in your business. And so, you know, I'm gonna try and use conversation around bucket versus pipeline and the fact that, you know, a lot of what we do is reliant on word of mouth because it's really out of ignorance and misunderstanding that we don't really have a good uh quality uh you know finger on the pulse as it relates to all things marketing outside. And so I think this is more of an introduction, and I just want to maybe try and drive home what you're doing is inefficient as it relates to lead generation. Okay, so so basically what you're probably using first is the bucket method, and the reason being is because this is a very reactive mechanism, okay. And so, in other words, what happens is you'll have people come to you, or you'll have, you know, where that you know, or you'll have people that come to you because of referrals that have been made. So it's one of those two people come to you, um, or people will be referred to you, okay. And so that is very reactive. In other words, you just got to sit here and wait for your phone to ring, right? Which what I know is that what that will do is that'll you'll have no leads and then you'll have leads, and then you'll have no leads, and then you'll have leads, right? And so what that does, that then converts into cash, no cash, then you'll have cash, good, and then you'll have you'll be back in the valley, no cash. You can never, I could never build a business that way, right? So referrals are powerful, absolutely, but they're the cherry on top, uh, cherry on top, but consistent, uh they're inconsistent and they're difficult to control. You have no control. Why? Because they're coming at you and you reacting to that inquiry, right? Um, many builders and general contractors rely entirely. Matter of fact, they brag about it, which I will tell you, if you're one of those guys, now there's only there's only a very small pinch of building companies out there right now who don't actively market that do rely wholly on uh word of mouth, okay, that maintain several million dollars in revenue per year. Okay, but I'm telling you, it is a one percenter, that is it. Okay, so for the rest of us, we have to consider options outside of the bucket method, right? Um many builders rely on the word of mouth approach until the phone stops ringing, right? Which is normally uh about here, and then they realize they've got no jobs here, and so there's gonna be lack of cash flow, right? So we're gonna live in this little valley over here and have no dough, okay? Um very much the cherry on top, but it's got nothing to do, and because it's a cherry on top, it's got nothing to do with the structure that's inside your business, right? It's not a growth strategy, period. Number two, right? Now we're talking about the pipeline method. Okay, we've got pipeline, which is completely different. Now, I mean, I say all of this because obviously, if we're talking about the old bucket, right, A, it can only carry so many leads, right? Right? So the the the the volume, okay, is questionable, and then the consistency is questionable, and then what you've got to do is you've got to pick that darn thing up and move it. It's like the guys in Alberta and wherever they move, they move oil, either tankers or pipeline. What's more efficient? We'll build a pipeline, let it go. Okay, so tankers are already used, I suppose, with micro dispersion. I don't know how it works, but all the Albertans they know what's going on. So if you're in Alberta, you can send me an email, let me know how it works. But the philosophy is this is limited, it is not a growth strategy. Okay, whereas then we start talking about the pipeline method, you know, where we set this pipeline up and it just continues, right, to just drive leads into your inbox. So if you were to go on SmithandSonsons.ca and you go and fill out my fairly high friction inquiry form, because I want to try and do a little bit of qualifying because we've got a lot of work in front of us already. Um, you that your inquiry will end up in my job tread. And guys and gals, you know what column it goes under? Suspect. Suspect, right? Because that's when I view it, there's no guarantees, right? But when I've got enough of these leads coming through, that's why my inquiry form is high re high friction. A lot of questions, not hard questions. But if you're just a tie kicker, you're probably not gonna go through the drama of filling out my inquiry form. Job done. You will circle back though once you're more serious, and you will, because you want more accurate data from me, the builder, so you're gonna give me the the proper data, okay? So that is the pipeline, the problem method. So a pipeline creates predictable lead flow and stability, so therefore it's a better strategy. Uh, consistent branding and content keep your company visible. So remember, we we're good builders. So my videographer's been on two of our jobs this week, I think. Uh definitely on one yesterday. And so what we're doing is we're at demo stage, reframing, plumbers are done, sparkies are doing pre-wire. So it's it's that there's this um consistency in creating organic that keeps our, you know, keeps people knowing that, yep, we're still in operation, we're still going. Um, and then they do are they entertained, are they informed? Well, that's the whole object of that. And then what that can do is drive to the website, know that they know that they're dealing with someone who's a professional, who's an authority. They go through and they tick all the boxes and answer all the questions, and then I know my type, my my quality of lead is actually increasing because of my the way I've got my inquiry network set up. So make sure you're doing good content. People want to know who they're going to be talking to, as far as the company and the culture and how they do it, and are they an authority or are they, you know, a bit weak as water, all that kind of stuff, right? You've got to make sure that your consistency is there so that they get visibility, very recent, and it's very relevant to maybe what their inquiry is around. Every marketing activity should include a clear call to action. So, you know, it's I I think a lot of the time we we think that we've got to go. So call us today, you know, all of that. And I'm not against that, I'm not saying that's wrong, but I'm just saying, would I like to have that yelled at me on social media if I was watching your channel? Probably not, because I'm smart enough to know when I need to reach out to you, big fella. That's the deal. Okay. So what I want to do is I want to overcome that inertia and compel them, get them excited about. Well, I've just seen Max's 20 video testimonials. I want that experience. I've just seen Max talking about that project that's mid-construction, it looks beautiful, it's right on the lake, blah, blah, blah. Right? That's what we're doing is we're we're we're giving the social proof, we're we're showing that we're an authority, it's a no-brainer. And then when they get, they respect my uh time, because a lot of these good people do, and they will actually go through and give me as much data as possible. And that helps me then really get to the cut to the chase. Right. Uh, every marketing activity should include that CTA. Now, obviously, the number, what do we got here? Number three. Um, why would a pipeline change anything? Gosh. Uh, why the pipeline? A healthy pipeline creates confidence and reduces desperation. See, when I've got choice, now I might look at the end of the day, on average, do your own numbers, but from what I've seen, having run, you know, a multi-million dollar franchise group and and across, you know, a dozen general contractors, and the data we would trap as it relates to conversion rate, both from lead in to contract signed, or from um, you know, uh that uh pre-construction agreement to a construction agreement, we have those rough percentages. And we've got a good enough, like let's call it talent pool or or you know, enough people to know that on average it's 20%. Okay. And so when you get them into a uh uh a pre-construction agreement, it's about 90% conversion rate. But if we go back to one out of five, guys, when five leads come in the door, there's only one job there. Now you might have to talk to 10 leads to get two jobs, or you might have to talk to, you know, nine leads to get one job. This is the game that we play. And if you want more surety and certainty and less headache, go and work a job for somebody. Show up at eight, go home at four, enjoy your weekends. Right? But if you if you can't see yourself in that environment, then you've got to take this bull by the horns. It's not like it, there's no middle ground here, you know, unless you just want to be a $200,000 a year handyman, which there's nothing wrong with that. Go do that if that's you. But if you're listening to this, odds in, odds on is you want at least to be run the million-dollar company. I'm sure of that. Okay, it allows you to qualify the clients more selectively and professionally. See, when you've got, you know, this build-up that's in front of you, or you've got that many leads, you can be swift, right? And so, what I focused on in the last month, lead comes in, I look at the job, I might request more information, more photographs, I will take that eye, all of that, and I would put it into my my AI assistant, and I would then look at the job based on some historical data, and I will put together an estimated price range. That can happen in less than 48 hours. Now, I've got jobs right now where people have said, Max, I think you're the company that is going to give us the peace of mind, and it might only be a $20,000 job. And but I've got communication, so I've got good indication I haven't spoken a word to them, I haven't even got my truck to go see him. Now, am I is there some that could fall through the cracks? I think so. I think so. But I'm looking at the upside and the amount of time it takes me to get to set upside, and because I am shrinking from inquiry, first phone call or first contact, let's say initial contact to the building contract over a 12-month period, because I've shrunk the sales process using an approach which includes artificial intelligence, that now allows me to expedite the process with a high level of accuracy and a high level of confidence, and it helps me sort out who are the players, who are the presenters who are the pretenders. Okay, because when I when I don't where I have no reservations about, well, it's a Renault and I'm not sure I can give you an estimator, blah, blah, blah. If I have a homeowner that says to me, mate, I'm going to get seven quotes from seven different builders, you'll probably never hear from me again. So instead of doing that site visit where you where you find out that there's seven builders, sometimes I just throw an estimated price range. And I'm telling you, I mean, I might have spoken about this one in the last few podcasts, I can't remember, but I went and saw a certain medical professional and I said, mate, it's gonna be a hundred grand. He hasn't chased me. Okay, I then run it through artificial intelligence. I've got it sitting on my system as an estimated price range, and I've hesitated to send it to him because he's kicking tires and he just seemed a bit flaky. So, mate, I'm not gonna spend any more time on that, but I'm telling you, artificial intelligence told me it was 115 to 140 grand. Move on. Speed, speed, speed, speed. Builders stop chasing work and start choosing projects strategically. See, the guys, take it from me. The freedom that I find when I'm running this whole program and I'm not there yet, I'm far from there, but I feel really good at how quickly, A, because we've and you know what we've done, the knock-on effect is this. We've now starting to improve what we do. We have a pretty good Google ads set up, but I'm being told now that I'm wasting money and I hate that. I'm like, right, well, let's get more specific, let's get more targeted, let's build another landing page, let's get another URL, right? Let's have all of the content on that page suit the SEO strategy for our Google Ads. We run a separate Google Ads to that, but you know why? Because what I decided is that I want to target one type of project. Live, like I know a dozen big business coaches and they're all over the shop like a mad woman's breakfast. And I know because for me as a business coach, who do I talk to? I just talk to you guys and gals. I stay in my lane. I've made the joke before that if Jenny, my hairdresser, came in and said, Max, I want you to give me business coaching, I'd say, Jen, just wait a minute, I've got to go and Google some shit. Because it's just, dude, this is what is runs through my DNA on a daily basis. I mean, I started my apprenticeship as a carpenter in 1989. Most of you folks who are watching this hadn't even born, weren't born for another 15 years or more, right? And so I've been living this for a long time, right? And then I it came to my attention the failure rate for builders was significant. I'm like, I know why, bro. Because I sat at my TAFE college where I did my technical, I did my drafting, and we did some practical, and there was no talk back in the early 90s about financial management and business development. There was none, right? And then they wonder why the failure rate's 50% of builders in the first five years. Okay. So we talked about the bucket, the pipeline, we've talked about the why. The next thing we're gonna talk about here is um pipeline plus project schedules equals forecasting power, right? So I'm not gonna write, yeah, you know what? Um, so let's do this. Pipeline plus your project start schedule equals what did I say here? Forecasting power. When we're talking about forecasting, the parent of forecasting is so that I get a sleep at night factor because I've got some certainty in contracts, things that are stacked up ready to go. See, so if I want a project, let's say we're in the month of May and I know I want a project to start in October. Well, the average gestation period for a small reno is three to four months. Like if it's around that quarter million dollars, 350 grand, that it's easily three to four months, right? Depending on how organized you are, right? So if that's the case, and let's say we're in May, June, July, August, September, I've got three to four months to land another $300,000 deal. If it's a million-dollar deal, it's probably gonna take me more like six to nine. So I sit here in late May of 2026, knowing full well whether we're about to wrap up one of our biggest jobs that we've done to date in the next two to three weeks, right? Knowing that we've just two weeks into a four-month reno, which is gonna take me up to September, what I need is I need to be finding these folks here and start figuring out who's the players and who's the pretenders. Because I know it's gonna take me three to four months to close a deal, and so that means right now we've got nothing to do in October. Pipeline that gives you leads, plus the use of your project start schedule, where you can, you know, and that comes off the back of using Gantt charts inside of Job Tread, right? When you have got that together, what you've got is you've got forecasting capability. So now I sit here, know that I know to the day, now we've got a small deck job to fit in there somewhere, and you know, there's a few little cling-ons, smaller jobs. We've got a little mobile home job that we're, you know, helping out a homeowner. I'll tell you what, folks, sidebar, right? That might be a $30,000 job, but mate, there's a five-star review in there, I'm telling you right now. And so when we're we're we're sort of working multiple areas within our business, branding and marketing ecosystem. So, do I do those little jobs because they're mega bucks? No, I don't. Do I am I going to retire on those jobs? No, I won't. But it's another human that has a good experience, a good interaction with you and me that can help me lead me to the next. And the other thing is I don't know who he knows. He might bump into someone at the golf course who's way above his, you know, economic, you know, um standing, but they're good guys, they get on, and he's like, Well, mate, Max just helped me out with my little job over here, mate. I know that he's just done a you know 1.1, $1.2 million second story edition. I know he could help you with your reno for half a million bucks, no problem. Guys, we're not in control of that. That's why the referral thing isn't reliable strategy. It's too ad hoc, it's too on the fly. But I'm telling you, when you've got your project schedule started and sorted out like I do, where I'm working these cold leads, these suspect leads, and I know that in October we're going to be standing there with nothing to do. I'm gonna push like anything to convert suspects into prospects and prospects into jobs, but then what we don't understand is when something can come in as a word of mouth, cherry on top. Now, all of a sudden, between the combination between Max working his ass off in sales over here and then a cherry on top coming along, now I've got work till June next year. That's what I'm talking about. So, guys, give your head a shake. If you're already doing it like I'm doing it, great, okay? But if you're wondering why you've got hills and valleys in your business, this is probably why. It's got nothing to do with estimating and pricing, just by the way. We're talking about branding. Now, don't be a good brander and then be a shit estimator and a shitbuilder, right? You've got to put the package together. Got it? Right. Better forecasting, support staffing, cash flow, and operational planning. So then we get into a position when we've got good cash at banking and we've got three to six months worth of our expenses in the bank, not touched, there for an emergency, then we know that we can start to think about expansion, how we're gonna do that, right? And so we're talking about, guys, we talk about consolidation and expansion, two different phases of play. Consolidation is to make strong that which you have. Expansion is self-explanatory. It's like we're building, we're we're making the business bigger, we're creating more complexity in the business because it's no longer a simple little ecosystem with me wearing all the hats, right? I've now opened it up, I've got more people to deal with, I've got more headaches to and to and problems to overcome, right? You're a troubleshooter, you're a problem solver, you're a gangster, right? Doesn't just because your business gets bigger doesn't necessarily mean it gets easier, right? You want to control more but do less because when you whatever you are having to do, it's not in operations as far as execution on the site, it's now controlling, it's about governing, it's about handling, right? You begin building a bay a bow wave of future projects and opportunities. Because this is what this is why now I, as a business owner, just like you, feel in control. Because when we've got that kind of work in front of us, and then I'm working on more sales, and I get a cherry on top, now all of a sudden I go from having four or five months in front of us, let's say, um, to having 12 months in front of us. See, what that does then is that because I'm in demand, our building company, me and Jed are in demand, we're starting to build a reputation. The longer we go down that reputation development path by getting these little five-star reviews, the more my authority increases, the more my ability to increase the price point that I need to not only service the business but to grow the business increases. So this is not a stagnant thing. For me, as a as a as a you know, a real authentic entrepreneur who's probably messed it up more times than he can think about, it's like 80% of the time I fail. But I tell you what, when I get the 20% right, it's exponentially greater than if I had just sat there and tried nothing. Okay, so there is power. Failing forward is a thing, right? You you success consists of getting up one more time than you get knocked over. But in the knocking, in getting knocked over, you I trust, I pray you learn something. It makes you stronger, it makes you better, it gives you thicker skin. Okay? Sort of digress there just slightly. Right, so number five here is just a bigger picture, and this is really, I guess, when we talk about, you know, all of the nuts and bolts that are involved in the first four, we're talking about, you know, on the whole scale of things, the whole ecosystem of your business, marketing creates attention. That's the idea. That's why Gary Vaynerchuk will say run as much stuff or Organically, find out what resonates with your marketplace, pull that in, attach a call to action, and send it as a paid up a paid a paid campaign, right? Marketing creates attention. Pipeline creates predictability. I've just talked about what I'm looking at between now and Christmas, what I need to do. I need to get another three to four to six month to nine-month project, you know, by October one. Okay, so my pipeline is going to help me get some inquiry and then help my system will help me discern as to who are the players, who are the pretenders, who's qualified, who's disqualified. And I start working on them now because I understand three to four months is a minimum what it's going to take me to close a deal. Okay, so when I've got that pipeline, I've got the predictability, it's almost like I could stand here today and go, I guarantee you, in four months' time, we'll have another six to nine months work. And the game continues. And you know what? Between now and the end of the year, end of 2026, I'm in December of 2026, I'm gonna be a better operator than I am today. Why? Because we've got to be in it. We can't just be doing the same thing expecting a better result. It just doesn't happen that way. Predictability then creates better leadership, better decision making, and more lifestyle. What a great way to finish. Okay, so the bigger picture is that marketing creates the attention. So if you're not marketing, how much attention are you getting? None. They don't know you, you can't put yourself forward as an authority, you can't develop social proof, nobody knows about you. And people, I'm telling you, when homeowners, they're gonna do so much legwork on you and your company that they won't call you if they can't find anything. They're not gonna take a pot shot. They want someone who's an authority, who's reliable, who has a good rap rap sheet, who has a good reputation, who has, you know, a very organized approach to the business. And then pipelines create predictability, right? Which is what we want. We want to be able to forecast because, guys, okay, today, if you've got no work after next week, now what are you gonna do? Well, you're gonna go straight into anxiety mode because you don't even know how you're gonna pay your bills, put fuel in the car, feed your kids, God knows what. Right? So if you've done it really badly up till today, duly noted, got it. Can you get better tomorrow? Yes, you can. Right? But it's gonna be through education. You've got to learn. So, guys, if you can't afford business coaching, for God's sake, I'm telling you, 65 bucks a month, go to the contractor academy, elitebusinessadvisory.com forward slash academy. Right? Get in there, watch the videos, right? And don't just watch them once and tick them off. Learn it. Learn it, learn it. It's got to become part of you. When I get on stage and play Billy Idol, you know, Rebel Yell, I don't have to think about it, look at my prep board, you know. I know what's coming up, I know how to do this, I've executed this a hundred times, right? I've prepared for this, right? So start if you want a better business tomorrow, start getting better today, right? And then predictability creates leadership, decision making, and lifestyle. That's how it happens. The bucket may feed you today. Here's the deal the bucket may feed you today, but the pipeline helps you sleep at night and gives you that predictability. Guys and gals, go build a kick ass business, and uh, I will see you on the next episode. Cheers