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How to use Facebook Groups for lead generation.
An interview with Daniel Magazu, Owner of Ride The Wave
Welcome to this week’s edition of The Workbench, a resource-rich weekly newsletter and podcast for home service business owners.
The Workbench is managed by Bryan Shankman (@bryanshankman). After spending ten years in tech sales, Bryan is now a full-time entrepreneur focused on building The Workbench and SaaS company, ToolDesk, an all-in-one marketing automation tool for Jobber.
For this week’s newsletter, I had a great conversation with Dan Magazu, the Owner of Ride The Wave, which helps home services businesses generate leads through marketing in Facebook Groups. His method helps business owners generate 5+ weekly leads and close 30%+ of those leads.
In my conversation with Daniel, we covered how he started a mulching business during COVID, created a digital marketing business, discovered his top tips for marketing in Facebook Groups, & more.
The 8 Key Takeaways
Below are the 8 most essential insights from my conversation with Dan that you can apply to your home services business today.
1. Starting a mulching business
Following a clear pattern shared with other guests here on The Workbench, Dan started a home services business before parlaying that experience into a digital service.
Unfortunately, Dan’s freshman year of college aligned with the COVID-19 pandemic, so Dan and his classmates were sent home early. Dan started a mulching business with friends who all had landscaping experience to keep himself busy during this time.
I started MulchMasters during my first year of college when we all got sent home due to COVID-19. My friends and I were sitting around bored and wanted to start a business. We had all done landscaping the prior year as summer jobs, so we knew how to do this work. We posted a few ads in our local Facebook Groups, asking if anyone needed landscaping services, and our business was created.
Dan returned to college for his sophomore year but would head home and work on MulchMasters every summer thereafter. Dan was eager to see how big he could grow his business.
We worked on the business every summer break, and after graduation, I wanted to see how big I could grow it. At its peak, we had six full-time and four part-time employees, generating $200k in revenue and $80k in profit.
2. Making money with mulch in 4 steps
Dan kept things simple with MulchMasters. There was no company website, CRM, Facebook Ads, Google Ads, or other digital tools.
To get customers, he posted in local Facebook Groups (which we’ll touch on later in this newsletter) and then followed a four-step process to convert leads to customers.
Conduct an assessment
Provide an estimate
Order the mulch
Do the job
The assessment and estimate were completed during the same visit to the client’s property.
We would go to the client's house to conduct an assessment. We would walk the property to understand what the client wanted and how many beds needed to be edged, weeded, and mulched. We charge $60 / hour for the bed maintenance and $120 per yard for the mulch itself. Most houses needed four to ten yards of mulch, so we could create a rough estimate after the assessment was complete.
Once the customer agreed to the estimate, Dan ordered the mulch to be delivered to the client’s property, scheduled a job date, and got to work when that date came.
Before starting the job, we ordered the mulch to be delivered to the property and did bed prep, which involved weeding and edging the beds. Then, once that's all done, you start with the mulching. You use a pitchfork to grab the mulch from a wheelbarrow, place it in the bed, and spread it out. It’s a pretty simple service that is easy to learn, and most people could offer it.
3. Turning challenges into skills
Dan was new to home services businesses when starting MulchMasters and faced two challenges early on.
Through practice and repetition, these challenges taught Dan hard-earned skills he would continue to use in his business endeavors.
Estimating the price for jobs
Communicating effectively with clients
Optimistic and eager to provide value, Dan often underestimated the time it would take to complete jobs, thus underpricing his services. In some cases, Dan was underestimating the effort by 50%.
The two biggest challenges when getting started were estimating the price of jobs and communicating effectively with clients. We consistently underpriced our jobs because we underestimated how long each job would take. Often, the jobs would take twice as long as we expected, so learning how to accurately predict the scope of each job was an important skill.
Additionally, Dan had to learn how to communicate proactively and professionally with his clients.
Dan realized that the more communicative he was, even if things weren’t going exactly to plan, the more satisfied his clients were.
Another big skill I developed was the ability to communicate professionally with my customers. I updated them on my arrival times and ensured they were happy with the worker. If they were not satisfied with the work, how could we fix it? We learned a lot about customer service.
4. Creating a Facebook Groups marketing business
As mentioned earlier, Dan used a single marketing channel to build MulchMasters to $200k in revenue: Facebook Groups.
A Facebook Group is a public or private digital space within the Facebook app for group communication. It lets people share their common interests and express their opinions.
According to SocialPilot, over 1.8 billion people use Facebook Groups every month.
In Dan’s case, he used Facebook groups focused on his local community to find customers for Mulch Masters.
I got my first landscaping job for MulchMasters through Facebook Groups, which were our primary marketing channel for the business. We didn’t have a website or run ads on Facebook or Google; it all came through Facebook Groups.
Dan had such success with marketing in Facebook Groups that after his final summer after college, he created Ride The Wave to help other home services businesses market in Facebook Groups.
After the summer ended, I wanted to keep working on a business, so helping other companies use Facebook Groups as I had was a good idea. My friend Chris owned a custom pergola company that was perfect for Facebook Groups. Chris agreed to test marketing in Facebook Groups with me.
5. How to market in Facebook Groups
Dan says there are two key steps to marketing your home services business in Facebook Groups:
Join local Facebook Groups in your service area
Create a post introducing yourself, your family, and your business
When choosing which Facebook Group to join, you should look for groups centered around the local community where you live and work.
Join local community Facebook Groups within a 20-mile radius of where you offer your services. These groups typically have names like “All About Franklin Mass.” Make sure to read the group rules - some groups allow explicit promotion, while others are very against it. To find the groups, click the “Groups” tab on Facebook and search for your town name. The most popular groups are usually the first results.
Not all local Facebook Groups are created equal, though. Dan recommends searching for Groups with at least 2,500 members where multiple people post daily.
“All Things Plymouth MA,” with 15.6k members, is an example of a great group to join.
All Things Plymouth MA
Finding the most active groups takes some trial and error, but by joining many groups, you can find the ones with high engagement. You can tell how engaged a group is by seeing how many posts there are per day. Private Groups are good, too, as they have less spam. For the marketing to be successful, you’ll typically want the group to have at least 2,500 people in it.
Once you’ve found highly engaged Groups in your service area, you’ll want to create a thoughtful post with images to introduce yourself and your business.
You can also add a link to an online form to capture the information of anyone interested in your services.
Write a thoughtful post that tells your story and isn’t just an advertisement. Share who you are when you join this community, how you engage with and support the community, your family, your pets — things like that. Include at least five images in the post, not just photos of your business. Share unedited pictures of you and your family and one or two of your business or service. Finally, use an online form like JotForm to create a simple information request form to capture people’s names, phone numbers, and email if interested in your services.
6. A Facebook Groups marketing case study
Dan shared an example post from one of his clients who has performed quite well in the “All Things Plymouth MA” Facebook Group.
Dan attributes the post's success to the personal introduction message, quality photos, and clear call-to-action at the end.
Example Post
This is a post for my residential awning and siding business client in the “All Things Plymouth MA” group. We created an introductory message to introduce my client and his family. These personal details really help boost engagement because the readers feel like they’re engaging with a real person and want to support you. We discussed the business and linked it to a JotForm so people could request a quote. This post got 73 likes and nine comments and is shared in a group of 15k people for $0.
In addition to including personal background and photos, Dan recommends including quality images of your work in the post. Ideally, a before-and-after photo or a photo showing the final result of your service would be best.
The images are probably the most essential part. Include high-quality photos, both personal ones with your family or doing something you enjoy and good photos of your services or the final results of a project. You can see we included high-quality pictures of his services and family.
7. How to convert Facebook Groups leads
Once you’ve found the right Groups and are creating personal introductions with great photos, how do you convert the engagement into customers?
Dan suggests keeping things simple with an online form where people can submit their name, phone number, and email to request more information or a quote. Dan uses JotForm with his clients, but many tools provide this.
Lead Form
With my clients' forms, we aim to keep it simple. Just a quick name, phone number, and email, and then submit. From there, I set up automations for my clients to send an automated text message after the form is complete to get in touch immediately. The automation is set up via Zapier and OpenPhone, saying, "Hey, this is Name of Business. Thank you for filling out our form. What service were you interested in?"
Speed is the game's name in lead generation, so Dan connects the JotForm to OpenPhone using Zapier so that when a new lead submits the form, they instantly get a text from the business owner.
Dan recommends responding immediately to leads and waiting no longer than 30 minutes, as you risk losing the lead if you wait any longer.
It’s so important to be super responsive to your leads. The goal is to respond to leads in 30 minutes or less. Our automation ensures we follow up immediately, which is the best way.
8. The results of Facebook Groups marketing
Like any good marketer, Dan tracks data closely to measure what’s working and what’s not.
Here are some snapshots from Dan’s Facebook Groups marketing efforts:
5.7 Leads per Week
>50% Reply Rates to SMS
10% - 30% Close Rate on Leads
We track the data thoroughly for our clients. We average 5.7 leads per Facebook Group per week for our clients. Anywhere from 50 - 75% of leads respond to our initial text outreach and request a quote, then around 50% of those people become customers. About 15% of Facebook Group leads for my cleaning clients become customers. For my clients who do in-person estimates, that number is closer to 30%. Generally speaking, 10% up to 35% of Facebook Leads become customers for my clients.
What the future entails for Dan
Dan recently suspended MulchMasters' operations to focus his full attention on Ride The Wave. He’s excited to create more unique marketing channels for his clients and help them grow their businesses.
I’ve suspended MulchMasters' operation to focus solely on Ride The Wave. I enjoy the business, and it’s going well. We aim to develop lifelong business relationships with our clients by creating unique growth solutions. That growth solution is Facebook Groups, but we’re trying to create new outside-of-the-box marketing methods. We’re making door hangers for one client right now, and we’re attaching hand-written sticky notes to them and things like that. I’m excited to keep working with clients and find creative ways to help them grow their businesses.
Wow! You made it to the end; thanks for sticking with us.
We’re looking for great home service owners and operators to join the show. If you know any or are one yourself, reply to this email!
The full interview with Dan is available on YouTube below, Spotify here, and Apple Podcasts here.