Lately, many people have asked me if an Homeowner Referral Network (HRN®) business can still do well in today’s economy?
The answer is “yes”!
While any business can be vulnerable to an economic downturn, the HRN business is more “recession proof” than most for a variety of reasons:
- In today’s real estate market, people cwho an’t afford to move are opting to expand or renovate their existing homes.
- Homes are generally our biggest investment and a priority when it comes to spending.
- In any economy, a home needs routine maintenance and repairs.
- An contractor referral service serves the needs of more affluent homeowners who aren’t as affected by the ups and downs of the economy.
And, this has been the case for several other HRN owners operating nationwide as well. For example, one HRN owner recently told me:
Briefly…because most people are NOT selling their homes these days, it makes sense for them to make them nice to live in. No doubt you’ve now heard the popular term “Stay-cations” coined because of our economic times.
Too, deferred maintenance, while it may seem penny-wise, is pound foolish…maintenance needs not only don’t go away, they get bigger and worse if not tended to, and become more costly. Smart to take care of those things now.
Consider as well, that investing in your home now will come back to homeowners when the R.E. market returns, and it will, of course, return. And the folks who have already done the upgrades and facelifts will be ahead of those who ‘get it’ after them.
Finally, remember contractors schedules are a bit lighter now which is PERFECT for homeowners! They are hungrier, there’s more flexibility in their scheduling, their pricing, etc. Not to mention that it makes this an ideal time for you to recruit them.
And a HRN owner who just launched his business this year writes:
The direct mailing is working great. I have gotten two big 100k+ remodels from it and some smaller projects. I am shooting for 3 consecutive months at 3k+ revenues by June 09 and think I can hit that easily. Thanks again.
If you’re considering the launch of an HRN in your area, please let me know. I’d be happy to arrange a time to chat with you.