by David Lupberger/ServiceMagic.com

When I started my contracting business years ago it was pretty simple to think about marketing my company. The industry standard was to buy an expensive ad in the yellow pages in hopes of someone calling and to beg clients to refer you to everyone they know. That was before something called the internet began changing our society and the very way commerce is conducted in the world.

Now, we can more effectively target our advertising and marketing messages. And not only are clients referring us to people they know – countless others have access to the good and bad experiences they’ve had with us. In a recent ServiceMagic.com poll, 23% of the respondents said they now use the internet to research home improvement contractors. In the same poll, only 10% said they flip through the yellow pages. That’s a significant message to us, and it rocks the foundation of the way we’ve traditionally done business.

Having said that, I know that wading into the deep waters of internet marketing is enough to make you gulp for air. So, here are some ideas that might give you just enough to go on and some key terms you should have in your vocabulary.

The three major search engines, (Ask.com, Yahoo.com and Google.com) are the bridges that will connect the casual internet user to your company. These websites are constantly scanning the web and storing information on the jillions of websites.

The important thing is that you are on the web to begin with. Whoever you choose to build your website should include a lot of “tags”. Tags are keywords that the aforementioned search engines actually look for, in order to more closely match the keywords typed in by the consumer. It’s the most direct way to “lead” your potential client to your website.

That comes close to defining one of the more important terms you should know: Search Engine Optimization. Search Engine Optimization (SEO) describes your efforts to make sure those search engines rank your site as high as possible when they return a list of websites they found for the consumer. Assuming that #1 is where you want to be ranked, then you have to bury enough searchable keywords in the text of your website. This is a basic task that builds in complexity as more SEO pros (yes, there are people who do this for a living) try to tap into what resonates best with the search engines.

On the same note, you should also know about (and consider using) Search Engine Marketing (SEM). Basically, SEM is paid SEO. It’s not as complicated as it seems. If you’ll notice, when a search engine turns up a page of results, there are positions on the page for “sponsored listings”. The companies you see there are in a bidding war with each other. They’re all paying the search engine for keywords or key phrases (tags). Obviously, the company who offers the most for a keyword gets the most prominent position.

If you see a “sponsored listing”, then know that those companies are running a Pay-Per-Click advertising campaign. Pay-Per-Click (PPC) is just as it sounds. You will pay every time someone clicks on the link to your website. It could be as little as ten cents a click or as high as several dollars, depending on what your bid was. Successful PPC users have the time and the resources to win the bidding wars and make adjustments to their keywords.

Even though the poll we referenced earlier shows the internet outpacing the Yellow Pages, it doesn’t mean that the YPs are going away quietly. YP, meet IYP. The Internet Yellow Pages are trying to pick up where the phone book versions left off. But, it’s not apples to apples, as they say. IYPs have been forced to mold themselves in the shape of internet search engines. Yes, you can still pay up front and buy a standing advertisement. Or, in some IYP directories you have to bid for keywords just like the search engines have you do. It’s a give and take.

If you pay for a standing ad, you’re not taking full advantage of the cost-savings of the internet (but at least you’re still on the web in some capacity!). In the other case, you’re spending your valuable time and energy managing keywords when you could be out working jobs.

Online Lead-Generation Services combine the best of both worlds. You get the functionality and the access the internet provides, as well as cost-effective marketing methods that target the people you want. In some cases, they even connect them directly to you. And the service does the vast majority of the work for you. These companies have the staff, the expertise and most importantly the time to manage thousands of keywords for the SEO efforts. They handle the complexities of the paid search engine marketing and the pay-per-click campaigns – and they do it well. They have to.

By enrolling in these services, you should expect for them to set you up with an online profile, which is sort of your own, little website. This profile can be found by search engines and brought up on the results page after a search. It’s a way for consumers to find out about you on the web… and also for the company to prescreen the homeowner so you don’t have to spend a lot of time talking to people who aren’t looking for your services.

By now, you may have heard stories about the websites that allow consumers to post comments about the service industry. They can do so anonymously, which can lead to abuse in the form of fraudulent and damaging postings. However, online lead generation services should be expected to maintain a verified ratings and review system. Simply put, that means that only people who’ve actually been customers are allowed to post comments and the integrity of such comments are verified. This protects the integrity of the system and the reputation of the business.

Hopefully, your clients are savvy enough to figure out which systems are dependable and which are not. If they are, ask them to post a comment about your services.

Homeowners are catching on to these services, finding them to be “one stop shopping”. They can locate professionals who handle the specific task they want to tackle. They can be confident that these professionals meet certain qualifications. They can read reviews from other customers, as well as see pictures of other projects completed by these home service professionals.

Getting your company online is essential for future growth, and perhaps survival. It should be considered a mandatory element of any marketing strategy. It is becoming the new industry standard.