July 4, 2025 • 29 mins
In this episode of Digital Marketing for Contractors, we’re joined by Erik Vargas, co-founder of FollowUp CRM. Built from inside a commercial roofing company, FollowUp CRM is tailor-made for construction contractors with a commercial and residential division. Erik dives into why traditional CRMs fall short in this industry, how poor follow-up is killing your close rate, and what separates high-performing contractors from the rest.
We talk about:
- The origin of FollowUp CRM (and why Salesforce didn’t cut it)
- How lack of follow-up is losing you business
- The challenges of switching CRMs vs. starting from scratch
- Real stories of $4M jobs won through consistent follow-up
- How AI will streamline admin for sales teams (eventually)
Whether you’re still managing your pipeline on spreadsheets or using a CRM that doesn’t fit your workflow, this episode will challenge the way you think about sales systems in construction.
Want to find out how we can create a custom digital marketing game plan for your contractor business? Schedule a call with us at fatcatstrategies.com.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 00 (00:01):
Welcome to digital marketing for contractors, a
podcast for home improvementcontractors to help you crush
your lead goals and take yourbusiness to the next level.
Join us each episode as we giveyou powerful insights and
(00:24):
practical tips on the bestdigital marketing strategies to
help you grow your homeimprovement business.
Let's get started.
Janet (00:33):
Welcome back to another episode of Digital Marketing for
Contractors.
If you give us 30 minutes, ourgoal is to give you some tips to
help you run your businessbetter.
And today we are super excitedto have a special guest with us.
Our guest is Eric Vargas fromFollow Up CRM.
Eric, why don't you introduceyourself?
Tell us a little bit aboutyourself and your company and
(00:54):
what we need to know aboutFollow Up CRM.
Erik (00:57):
Yeah, Follow Up CRM is a construction-focused CRM.
And we were actually born outof a commercial roofing
contractor in Fort Lauderdalecalled Best Roofing.
And so I'm the co-founder ofthe company.
And the founder of the companyis a guy, my mentor named Greg
(01:18):
Wallach.
And He founded Best Roofing andmany other commercial roofing
companies.
And together we have designedand grown Follow Up CRM
initially for his company andthen for construction companies
now all over the country.
Janet (01:34):
Oh, that's fantastic.
So is your focus primarilycommercial?
Erik (01:39):
Exactly.
So our strength is commercial,but a lot of these construction
companies out there might have aresidential division.
That's kind of table stakes, tobe honest.
But what makes us different isthat we were built with
commercial in mind.
Janet (01:55):
So that's a little bit different for us and a little
bit different for our audience,but I love it and we can dig
into it.
We love a CRM.
Yeah, we love a CRM and we lovethe construction industry.
Fat Cat, our listeners aremostly home improvement
contractors, but a lot of themare roofers.
And they have residents.
(02:15):
And a lot of them are roofersand siding companies.
And many of those companieshave a commercial arm and a
residential arm.
So today's a little differentsince most of the time we're
talking about strictly homeimprovement.
Erik (02:27):
Well, most of our customers, I'm going to say...
uh probably 75 percent have aresident residential division
right and so that's why you knowwe're happy to have
conversations with everybody
Janet (02:40):
awesome so with that in mind um you said it was born out
of best roofing and you kind oftook what you guys knew about
what you were doing turned thatinto a crm um what makes you
different from some of the othercrms in the marketplace like
what was the impetus i mean iassume you had one already and
you must have thought thissucks.
(03:01):
We can do better.
Like tell us that story.
Erik (03:05):
Yeah.
So a couple of differentreasons.
Um, so you would be surprisedhow many contractors also think
they're software developers.
It's, it's really funny.
You know, everybody has theirway.
They want to do somethingright.
And that's, um, and that'sreally kind of the, um, art
behind it.
Right.
So Greg, back in the day, um,you know, this was now 12 years
(03:26):
ago, he actually went to aSalesforce conference.
Unknown (03:29):
Okay.
Erik (03:30):
and um there was one in miami at the time and he checked
it out he's like i know i needa crm uh this is the number one
uh one out there so i'm gonna goand learn and so that's what he
did okay and then from there hesaid this is really great if uh
you're purely residential orpurely um like selling widgets,
(03:52):
but it's not great if you'reselling roofs.
And so, um, part of the reasonwhy is just the complexity of
Salesforce.
You sign up for Salesforce andyou're just overwhelmed on
everything that you can do.
Right.
And so, um, that's howfollowups CRM started actually
was originally called bid log.
Cause, uh,
Janet (04:13):
ID log.
Okay.
Cause it's a contractor.
You're probably bidding on allkinds of RFPs and maybe
contracts.
So you got to keep up with thebids.
I get it.
Erik (04:24):
And, uh, it's funny before I came along.
Um, you know, if I was a partof that original decision to
change it, I would have kept thename.
Cause I think that name isgreat.
And, um, so bid log is a greatname, uh, for our company, but
follow up CRM, you know, uh, wegot our name because, um, that
was the primary issue that hewas trying to solve at his
(04:45):
company was the lack of followup on the opportunities.
Caitlyn (04:49):
Definitely.
Right.
Erik (04:50):
So, you know, whenever there's a storm or something's
going on, like people would callin and generating leads like
everyone thinks leads is theproblem.
But if you just called theleads from last month, you would
be surprised how many peopleare still looking for the right
service.
So.
Janet (05:11):
Oh, you are preaching to the choir now.
Caitlyn (05:13):
And I guess that's on the commercial side of things
too.
Like, I mean, we definitelyhear that on the residential
side, but it sounds likecommercial, that's the same
case.
Erik (05:23):
yeah so i guess two stories number one my personal
experience i had a leak uh twoyears ago and i'm like oh okay
this is uh my perfect chance tosee how my local residential
roofers are following up with meright um and so uh that's
exactly what i did i reached outto four uh roofers in my area
um all of them came by spent thetime to give me a quote to walk
(05:47):
on the roof etc etc guess howmany followed up out of four
Caitlyn (05:52):
one three
Erik (05:53):
zero zero zero uh yeah with a leak and uh you know this
was a three thousand dollarquote and zero of them like
followed up with me and i wasjust like if so i called the
sales process like the datingprocess
Caitlyn (06:11):
right yeah me too yeah
Erik (06:13):
and so if you're misbehaving in the dating
process the marriage doesn't getany better so um that's why i'm
like well i guess i'm not goingwith any of these guys right um
and so uh that's the problemyeah
Caitlyn (06:27):
yeah it's not big enough that's crazy so okay what
makes uh follow-up differentfrom like i mean there are there
you named salesforce that's thebiggest
Janet (06:38):
i mean yeah we we come across like accu links i think
is big in residential roofing ihonestly don't know if Acculinks
positions itself to commercialcontractors, you would know
Erik (06:49):
better.
Yeah, no, they don't.
So Acculinks is a greatcompany.
So we used to compete with thema lot.
But they're great, especiallyif you're like the end, they're
the end-to-end solution for likea small residential roofing
company, right?
And so I would say if you'reprobably, you know, $15 million
(07:10):
residential roofing company andbelow, you're going to want
acculinks and it's great sothey'll help you do like the um
the the aerial they'll help youorder materials and so that's
what by end to end from initiallead all the way to production
is what acculinks does right andthat's not what we do we are
(07:35):
the revenue system for acompany, right?
And so, yeah, actually some ofour customers, funny enough,
will use follow-up because theyhave a commercial division and a
metal division and a sidingdivision.
They'll use follow-up to trackall their leads, bids, and
customers, and then they'll useAccuLynx for the production
side.
(07:55):
So we have customers doing thatbecause they're really good at
what they do and why changesomething if it's working, so.
Janet (08:04):
So if we go back to that original name, bid log, that's
where you are in the process.
If it's on the commercial sideand you're one of three big
contractors bidding on, say, ahospital roof, then that's where
follow-up CRM is going to trackwhere you are in that bid
process.
But then once you win the job,depending on how you organize
(08:27):
your business, the installationand management of that job may
go into another piece ofsoftware.
Erik (08:32):
Yeah.
So we say we're from theinitial contact of the customer
to the contract.
So signing the deal from that,the whole sales process, that's
yeah.
Contact to contract.
That's our, that's where welive and we're going deep in
that area and going to be thebest CRM in the industry for
that.
Janet (08:52):
So right on your homepage, you call out a few
integrations like Foundation,Sage, Viewpoint, Computer Ease.
Talk to us about why it wasimportant to highlight those
right there on the homepage.
Erik (09:05):
Yeah.
So basically that's where ourbest customers come from.
So they're ready using theseplatforms.
And yeah, we are the CRM thatplugs into these platforms.
So a lot of those, you know,might be residential or
commercial companies but we'rewe're targeting more kind of
(09:25):
like mid-market um constructioncompanies
Caitlyn (09:29):
okay great so they plug right in so what what are their
integrations i mean
Erik (09:32):
yeah we have we have ton we have like 20 integrations uh
company cam one you might befamiliar with love those guys
over there um yeah really niceintegration you take pictures uh
on your company cam theyautomatically load into your
proposal at follow up.
So that's pretty neat.
We have a great Outlookintegration.
(09:55):
I think it's the best in theindustry.
Okay.
Yeah.
So it automatically can readyour email and start to enter
your lead information for youinto the system.
Caitlyn (10:08):
Oh, wow.
Erik (10:09):
Yeah.
Yeah.
It could take a document fromyour email and then save it into
the project file for you.
Caitlyn (10:16):
Okay.
Erik (10:17):
So you don't have to save it, drag it, and drop it, upload
it, all that.
So a lot of, yeah, so manyintegrations.
That's like half of the productroadmap is integrating
follow-up into the systems thatare already out there.
Janet (10:33):
Right, because otherwise you're putting the work back on
your users to manually copy andpaste from one system to the
other, and nobody likes to dothat.
That's fantastic.
So let's talk, like, who isyour...
Describe to us your sweet spot.
Like where do you feel like youshine?
What does that customer looklike?
(10:54):
What kind of pains do they havein their business?
What does the onboardingprocess look like?
Erik (11:01):
Yeah.
So our sweet spot, we call itlike pipeline management.
Janet (11:05):
Okay.
Erik (11:06):
That, that is what, I mean, I got a call from a
customer a week ago.
Unknown (11:10):
He's like, I just wanted to call you because, um,
I am now asking the owner of thecompany of my construction
companies for equity in hiscompany, because I've turned our
company from not knowing whatwe're going to close this month
to be able to predict revenue inthe future for the next six
(11:31):
months.
Erik (11:33):
And so now he is able to kind of, you know, I don't know
how many X the value of hiscompany because he implemented
this system in place.
And so pipeline management,business development, winning
the contract, that's our sweetspot.
Janet (11:54):
Oh, that's great.
So you created an amazingsuccess story, but a big old
question mark for the principalowner.
Unknown (12:05):
Yeah.
Erik (12:05):
exactly well you know it was a great time because
actually you know the guy'slooking to retire sometime soon
and you know yeah so um you knowit builds confidence you know
when owner actually we're seeingthat a lot in the industry
where you know dad ran thecompany for 30 years this way
and has all the relationships inhis head and you know kids are
(12:28):
trying to take over and sothey're implementing software
for the first time
Janet (12:33):
So you're actually working with companies that have
never really had a CRM andyou're helping them implement it
for the first time.
Erik (12:40):
Yeah, yeah.
That's actually ideal for us,replacing something that's
working.
You know, if it ain't broke,don't fix it.
But most of our customers comefrom paper or spreadsheets.
Janet (12:53):
Huh.
So I'm always kind offascinated with our client base.
I don't know if it's like ashiny object syndrome, but I'm
always surprised when there's acompany that's up and running
and they've got a CRM in place.
And then out of the blue, theyswitch to another one.
(13:13):
And to me, that is such agigantic data migration
experience.
challenge and years of notesand past estimates and closing
ratio reports and they're likei'm switching crms
Erik (13:27):
well actually we'll actually disqualify some
customers that are on crmsalready it's a red flag for us
because we've uh we've beenthrough the story too many times
it it is too painful to changeand the benefit uh so CRMs, the
(13:48):
way I say it is 80% of CRMs doall the same thing.
Janet (13:52):
They do, just the buttons in a different place.
Erik (13:55):
The UI might be different.
You know, it might have one ortwo additional features, but
really the problem is peoplethink software fixes problems.
It exposes problems.
Right.
And so that, what you'redescribing here is not a
software problem.
It's a people problem.
(14:15):
So yeah, totally, totally.
And let's say you're rollingout a CRM to 10 people.
Um, some, uh, maybe, uh,someone who's not sophisticated
would think finally now my salesteam will sell more things,
right?
The reality is you're going tosee the actual performance of
(14:39):
those 10 people and you're goingto see your top performer and
then you're going to see yourbottom performers.
And then as a good manager,then you can decide what actions
to take to fix the bottomperformers or the top performers
and promote them and stuff likethat.
It exposes what's therealready.
Right.
Janet (15:00):
So if you're most often taking businesses that are up
and running and successful, butthey've never really had a
pipeline management solution inplace and you're onboarding them
for the first time, walk usthrough some of the things that
you do to help with thatonboarding.
Erik (15:15):
Yeah, so I actually think this is the most important part
of the process.
So we have a kind of whiteglove onboarding experience.
I think we're defining it to bethe best in the industry, to be
honest, because here's what weknow.
if you onboard correctly withinthe first three months, then
you're going to be with followupforever.
(15:35):
And so you're, you have adedicated person, at least with
followup to answer all yourquestions too.
Uh, because most softwarecompanies, if you spin up a
software, um, you're it's a freetrial and that's why we don't
do free trials because you'llget a blank system and people
will say, good luck.
Right.
(15:55):
And you're like, oh, what do Ido now?
And so the nice thing about ouronboarding specialists is that
they've onboarded companies likeyours before.
And most people want a templateto copy.
And that's what our onboardingspecialists kind of provide.
Right.
And then you tweak 20% of it toyour company.
(16:16):
Right.
And so it's a lot of bestpractices.
Right.
and will help you avoid thepitfalls that you come across
when you're managing change atyour company.
Caitlyn (16:31):
Absolutely.
So I was going to say, I mean,so there's no free trial makes
perfect sense.
How does billing work?
Erik (16:38):
well we we we do we do a little bit of a free trial we do
like a guided free trial rightso it's like yeah so you can you
can uh so the way our processworks is you request a demo and
you kind of look at the systemwith somebody and then somebody
says okay i want to can i clickaround with uh can i click
around in there and so we saysure seven day free trial and
(16:58):
but we don't give you the keysand say good luck we actually do
the first two meetings with youfor free you know, to get you
in there.
And so we, you know, make sureyour logos in there, your
dropdowns are in, are in thereso that you can track what you
want to track and, you know, doa couple of calls for free.
So that's, that's what we do asa free trial.
Janet (17:20):
Perfection.
And the demo.
And then back to thatonboarding.
I'm just trying to picture likea company that's, I guess
they're using whiteboards andnotebooks and file cabinets.
A lot of notebooks.
Erik (17:32):
Yeah.
Janet (17:32):
What is your thought on, um, just picking a day and
saying moving forward it's alldigital or do you make some sort
of effort to bring history inand if you are bringing history
in what does that look like
Erik (17:46):
yeah so um this is the biggest obstacle people face
when starting a crm right umlike it really depends on the
data quality that you havegarbage in garbage out can't fix
that right so um We do have adata import tool that if you
(18:06):
have something nice and clean ina spreadsheet, we can get in
there very quickly.
And so our best companies areprobably managing some things on
Google Sheets or something likethat.
And so we can get you startedwith the past month's worth of
your data, as long as you'remanaging it well.
yeah we can get all your leadsin there and all of that but we
(18:29):
have other companies that sayyou know we have 10 15 years
worth of data in file makerright or ax crm that has been
sitting there and we're like iunderstand that you want that
but why are you going to youknow input garbage that you're
like, what was the last time youactually looked up the data in
(18:50):
there?
Oh, never.
So why?
Right.
So just helping people throughthat process.
I know it's scary to feel likeyou delete the history, but you
know, just keep act open withone user, you know, for 50 bucks
and then you can go there ifyou ever need it.
Janet (19:05):
Yeah.
Yeah.
I was actually thinking thatlike the data is still there in
the old format.
Yeah.
Just walk into the old formatto look up that old customer.
Erik (19:14):
Yeah, just have an official go live date across the
company and say, hey, we'redoing this thing on January 1st
and that's how we're movingforward.
Janet (19:22):
So talk to us a little bit about your roadmap.
I mean, if you're theco-founder and the developer,
what are you excited about?
What are some things that arein the next couple of quarters
that you're going to be rollingout for users?
Erik (19:34):
Yeah, we wouldn't be a software company if we didn't
talk about AI.
I knew
Caitlyn (19:39):
you were going to say that.
Yes.
Erik (19:41):
Yeah.
Okay.
So here's my real opinion.
Okay.
AI, a little hot take.
The construction industry mightnot be ready for it.
So you'll laugh, like I laugh,when somebody that's on paper is
asking me AI questions.
And I'm like, well, AI istrained off of your data, and we
(20:04):
can't read the data that is onpaper.
It's in
Janet (20:07):
your file cabinet.
Erik (20:08):
Right.
So we need to start withsomething.
Right.
Just start with a CRM and thenyou're going to build the data
repository for AI to actually beproductive for you.
So thankfully, if you've beenon follow up for years, then you
have that already.
Right.
And so the thing that we'reexcited about, we're still
(20:32):
figuring out the name, but we'reessentially building out a
sales assistant, a salescoordinator.
Yep.
within the crm so at most ofour construction companies uh
you you have like uh your salespeople who are out there on the
street and then you have um youknow an equally sized staff of
(20:55):
office sales people office likeuh administrative people helping
the sales people out in thefield right and and so like um
you know one of our companiesThe sales guy is out there doing
in meetings all day.
And then the admin is sendingthe follow-up emails or the
(21:15):
quotes and getting all thatstuff prepared for the customer
for the sales guy.
That is what we're buildingwith AI.
Janet (21:24):
That's awesome.
To streamline and make thatprocess more simple.
Erik (21:28):
Yeah.
So then the sales guy can say,hey, send a follow-up email to
customer XYZ.
They'll write a preview of it.
Approve, send, you're done.
Janet (21:37):
Oh, that's awesome.
That is awesome.
So what are some of thechallenges that you see in the
industry right now?
It's 2025, it's summer.
What a year.
You know, this year's beenpretty interesting.
Is it not over yet?
You know, what are you hearingfrom your clients in terms of
(21:59):
some of the things that they'restruggling with, some of the
things that they're excitedabout?
Yeah.
If we had been recording this amonth ago, we would have been
talking about tariffs.
I don't know if we're talkingabout tariffs anymore.
I
Erik (22:13):
don't think so.
I don't
Janet (22:14):
know.
I don't know.
So when you get on the call oryou're going to trade shows or
you're talking to prospects,what are they excited about and
what are they worried about?
Erik (22:25):
Yeah.
So the people that we'retalking to, it's actually no
different this year than it hasbeen for the past five or 10
years.
And it's essentially...
I know we need technology, butthe people at my company are
resistant to the change.
Put in whatever technology youwant to insert, CRM, AI,
(22:49):
whatever it is.
It's people are resistant tochange in my company and don't
want to learn something new.
Janet (22:59):
you don't really see a big difference with whatever the
headline is in the news thatthe underlying resistance to
change.
Hasn't changed.
Yeah.
Erik (23:10):
That's the lead.
It's a leadership issue.
Janet (23:12):
Oh yeah.
You know, I mean, this is kindof off topic, kind of on topic.
I went for my six month dentalcleaning yesterday.
I've gone to the same dentistfor 30 years and I've had the
same hygienist who has whatevershe gets on my nerves, but it's
on me for not switchingdentists.
They've switched software andyou would have thought that
(23:33):
aliens had invaded the planetand that she didn't know how to
get up in the morning anymore.
Like the deal that the entireoffice was making out of.
Erik (23:43):
Oh yeah.
Janet (23:44):
you know, they had been on one dental office software
and they moved to another one.
And as a patient in the chairand I'm looking over her
shoulders, like it looks a lotthe same, you know?
So I hear what you're sayingabout resistance to change.
And one of the things that,that she said yesterday was, you
know, I went into thisindustry, I became a dental
hygienist because I didn't thinkI was going to have to, I'm
(24:06):
going to do air quotes, airquote, learn the computer.
And I think we hear a lot ofthe similar kind of, um,
sentiments from inside of theconstruction industry,
especially
Caitlyn (24:16):
with the CRM,
Janet (24:17):
you know, they're like, like, I don't know about this
computer thing.
Erik (24:21):
Yeah.
Yeah.
Yeah.
And so, yeah.
And that's in a lot ofindustries to be honest, you
know, and, you know, but timekeeps on, you know, trekking
forward and, you know, yeah.
And so somebody is going tobite the bullet.
It's just when, Exactly.
And so, and then who's going tobe a part of the team, right?
(24:42):
So that's why I call it aleadership issue, right?
So some of the best practicesthat we employ when rolling out
a CRM to, and here's what I say,out of 10 people, you're going
to have two naysayers, right?
And that's just like, how doyou deal with that, right?
And so here's the number onehack.
(25:03):
Tie compensation to thereporting in the system.
Love it.
That's it.
That's it.
Hey, guys, your commission forthis month is based off of this
report, right?
Yep.
And therefore, all the thingsthat need to happen in the CRM
(25:23):
happen on the 29th of the month,right?
Right.
And then your report is readyon the 30th, right?
Janet (25:31):
And if you've got, we'll just say Bob, the sales guy
that's been there for 15 years,it's always done it Bob's way.
And he's like, where's mycommission check?
Then your answer is, well, Iran the report and Bob didn't
put his information in.
Erik (25:46):
Yeah,
Janet (25:47):
that's right.
It fixes itself.
Erik (25:50):
Yeah.
And he wants his check.
So he's going to learn thesoftware.
That's just how it is.
That's how it goes for now.
Yeah.
Caitlyn (25:56):
Any other like exciting, I guess, case studies,
like wins you want to share?
Yeah.
Success stories.
Erik (26:03):
Oh, yeah.
There's so many.
Most of our customers see anROI in the first month, which is
crazy.
Good.
Because construction is allabout relationships.
And we live in a verytransactional world.
And if one of those rooferswould have followed up with me,
(26:26):
they would have been standout inmy mind just because they
followed up like send a quickfollow-up email right no one
wants to put that little 10extra effort but here's a story
that greg told me about um afour million dollar um
opportunity that he won of thetrump building in miami
Caitlyn (26:48):
oh wow
Erik (26:49):
and that bid was out there um open for three and a half
years Wow.
Yeah.
So a long, long time it was inthe pipeline and, you know, big
jobs like that, you know,sometimes they take that long to
make a decision.
Yeah.
And so, you know, guess whathappened the first year?
(27:10):
Well, Greg asked the propertymanager, hey, why did you guys
choose us at the end of the day?
Caitlyn (27:16):
Right.
Erik (27:17):
And he's like, well, the first year, you know, out of the
20 bids we got, half of themfollowed up.
The second year, half of thosefollowed up.
So now we're down to five,right?
The third year, it was youalone following up with us.
(27:39):
And so we knew that if you'reconducting yourself this way in
the sales process, that you'regoing to do a good job with our
roof.
Caitlyn (27:47):
So you're playing the long game.
I love it.
Play the long game.
Use follow-up to play the longgame.
Yeah.
Erik (27:54):
And it's not that hard.
You just create an automatedsequence that says follow up
with the customer, you know,once a quarter and you set it
and forget it.
That's it.
Caitlyn (28:03):
All through the CRM.
Oh my gosh.
That would solve a lot ofproblems.
Yes, it would.
I love it.
How does, how does somebodylearn more about you?
A listener?
Erik (28:10):
Yeah.
You just go to followupcrm.com.
You could schedule a demo orjust look, you can look me up on
LinkedIn.
We're all over LinkedIn andYouTube.
We love customers that, youknow, do their research before.
We have tons of videos onYouTube of every nook and cranny
of the system.
And, you know, sometimes we'llhop on a demo and they're like,
yeah, I watched all your YouTubevideos.
(28:30):
I'm like, great, let's look atthe ball rolling.
And so they're ready.
Caitlyn (28:34):
We totally agree.
We love YouTube.
And I know whenever we'revetting a software, YouTube is
usually one of the first placeswe go.
Erik (28:40):
Yeah, and that's why we do everything video first, right?
And so whenever we do a newfeature, there's a video.
Everything is a video for usbecause then you can just make
it into like an article orsomething like that.
But yeah, and people don't wantto read.
They want to listen and watch avideo.
And so that's why we do
Janet (28:58):
it
Erik (28:58):
that way.
Janet (28:58):
Okay, so listeners, if you are interested, you can go
to Follow Up CRM.
You can also search for FollowUp CRM on YouTube and see a
bunch of different videosshowing what the product looks
like and how you can use it inyour business.
So Eric, thank you so much forbeing a guest on our podcast.
As always, if you give us 30minutes, our goal is to try to
(29:20):
give you some useful tips tohelp you run your home
improvement or constructionbusiness better.
Thanks again for listening toanother episode and we'll catch
you next time.
Thanks, Eric.
Thank you, Eric.
Thanks for having me.
Speaker 00 (29:32):
Digital marketing for contractors is created by
Fat Cat Strategies.
For more information, visitfatcatstrategies.com.
Welcome to digital marketing for contractors, a
podcast for home improvementcontractors to help you crush
your lead goals and take yourbusiness to the next level.
Join us each episode as we giveyou powerful insights and
(00:24):
practical tips on the bestdigital marketing strategies to
help you grow your homeimprovement business.
Let's get started.
Janet (00:33):
Welcome back to another episode of Digital Marketing for
Contractors.
If you give us 30 minutes, ourgoal is to give you some tips to
help you run your businessbetter.
And today we are super excitedto have a special guest with us.
Our guest is Eric Vargas fromFollow Up CRM.
Eric, why don't you introduceyourself?
Tell us a little bit aboutyourself and your company and
(00:54):
what we need to know aboutFollow Up CRM.
Erik (00:57):
Yeah, Follow Up CRM is a construction-focused CRM.
And we were actually born outof a commercial roofing
contractor in Fort Lauderdalecalled Best Roofing.
And so I'm the co-founder ofthe company.
And the founder of the companyis a guy, my mentor named Greg
(01:18):
Wallach.
And He founded Best Roofing andmany other commercial roofing
companies.
And together we have designedand grown Follow Up CRM
initially for his company andthen for construction companies
now all over the country.
Janet (01:34):
Oh, that's fantastic.
So is your focus primarilycommercial?
Erik (01:39):
Exactly.
So our strength is commercial,but a lot of these construction
companies out there might have aresidential division.
That's kind of table stakes, tobe honest.
But what makes us different isthat we were built with
commercial in mind.
Janet (01:55):
So that's a little bit different for us and a little
bit different for our audience,but I love it and we can dig
into it.
We love a CRM.
Yeah, we love a CRM and we lovethe construction industry.
Fat Cat, our listeners aremostly home improvement
contractors, but a lot of themare roofers.
And they have residents.
(02:15):
And a lot of them are roofersand siding companies.
And many of those companieshave a commercial arm and a
residential arm.
So today's a little differentsince most of the time we're
talking about strictly homeimprovement.
Erik (02:27):
Well, most of our customers, I'm going to say...
uh probably 75 percent have aresident residential division
right and so that's why you knowwe're happy to have
conversations with everybody
Janet (02:40):
awesome so with that in mind um you said it was born out
of best roofing and you kind oftook what you guys knew about
what you were doing turned thatinto a crm um what makes you
different from some of the othercrms in the marketplace like
what was the impetus i mean iassume you had one already and
you must have thought thissucks.
(03:01):
We can do better.
Like tell us that story.
Erik (03:05):
Yeah.
So a couple of differentreasons.
Um, so you would be surprisedhow many contractors also think
they're software developers.
It's, it's really funny.
You know, everybody has theirway.
They want to do somethingright.
And that's, um, and that'sreally kind of the, um, art
behind it.
Right.
So Greg, back in the day, um,you know, this was now 12 years
(03:26):
ago, he actually went to aSalesforce conference.
Unknown (03:29):
Okay.
Erik (03:30):
and um there was one in miami at the time and he checked
it out he's like i know i needa crm uh this is the number one
uh one out there so i'm gonna goand learn and so that's what he
did okay and then from there hesaid this is really great if uh
you're purely residential orpurely um like selling widgets,
(03:52):
but it's not great if you'reselling roofs.
And so, um, part of the reasonwhy is just the complexity of
Salesforce.
You sign up for Salesforce andyou're just overwhelmed on
everything that you can do.
Right.
And so, um, that's howfollowups CRM started actually
was originally called bid log.
Cause, uh,
Janet (04:13):
ID log.
Okay.
Cause it's a contractor.
You're probably bidding on allkinds of RFPs and maybe
contracts.
So you got to keep up with thebids.
I get it.
Erik (04:24):
And, uh, it's funny before I came along.
Um, you know, if I was a partof that original decision to
change it, I would have kept thename.
Cause I think that name isgreat.
And, um, so bid log is a greatname, uh, for our company, but
follow up CRM, you know, uh, wegot our name because, um, that
was the primary issue that hewas trying to solve at his
(04:45):
company was the lack of followup on the opportunities.
Caitlyn (04:49):
Definitely.
Right.
Erik (04:50):
So, you know, whenever there's a storm or something's
going on, like people would callin and generating leads like
everyone thinks leads is theproblem.
But if you just called theleads from last month, you would
be surprised how many peopleare still looking for the right
service.
So.
Janet (05:11):
Oh, you are preaching to the choir now.
Caitlyn (05:13):
And I guess that's on the commercial side of things
too.
Like, I mean, we definitelyhear that on the residential
side, but it sounds likecommercial, that's the same
case.
Erik (05:23):
yeah so i guess two stories number one my personal
experience i had a leak uh twoyears ago and i'm like oh okay
this is uh my perfect chance tosee how my local residential
roofers are following up with meright um and so uh that's
exactly what i did i reached outto four uh roofers in my area
um all of them came by spent thetime to give me a quote to walk
(05:47):
on the roof etc etc guess howmany followed up out of four
Caitlyn (05:52):
one three
Erik (05:53):
zero zero zero uh yeah with a leak and uh you know this
was a three thousand dollarquote and zero of them like
followed up with me and i wasjust like if so i called the
sales process like the datingprocess
Caitlyn (06:11):
right yeah me too yeah
Erik (06:13):
and so if you're misbehaving in the dating
process the marriage doesn't getany better so um that's why i'm
like well i guess i'm not goingwith any of these guys right um
and so uh that's the problemyeah
Caitlyn (06:27):
yeah it's not big enough that's crazy so okay what
makes uh follow-up differentfrom like i mean there are there
you named salesforce that's thebiggest
Janet (06:38):
i mean yeah we we come across like accu links i think
is big in residential roofing ihonestly don't know if Acculinks
positions itself to commercialcontractors, you would know
Erik (06:49):
better.
Yeah, no, they don't.
So Acculinks is a greatcompany.
So we used to compete with thema lot.
But they're great, especiallyif you're like the end, they're
the end-to-end solution for likea small residential roofing
company, right?
And so I would say if you'reprobably, you know, $15 million
(07:10):
residential roofing company andbelow, you're going to want
acculinks and it's great sothey'll help you do like the um
the the aerial they'll help youorder materials and so that's
what by end to end from initiallead all the way to production
is what acculinks does right andthat's not what we do we are
(07:35):
the revenue system for acompany, right?
And so, yeah, actually some ofour customers, funny enough,
will use follow-up because theyhave a commercial division and a
metal division and a sidingdivision.
They'll use follow-up to trackall their leads, bids, and
customers, and then they'll useAccuLynx for the production
side.
(07:55):
So we have customers doing thatbecause they're really good at
what they do and why changesomething if it's working, so.
Janet (08:04):
So if we go back to that original name, bid log, that's
where you are in the process.
If it's on the commercial sideand you're one of three big
contractors bidding on, say, ahospital roof, then that's where
follow-up CRM is going to trackwhere you are in that bid
process.
But then once you win the job,depending on how you organize
(08:27):
your business, the installationand management of that job may
go into another piece ofsoftware.
Erik (08:32):
Yeah.
So we say we're from theinitial contact of the customer
to the contract.
So signing the deal from that,the whole sales process, that's
yeah.
Contact to contract.
That's our, that's where welive and we're going deep in
that area and going to be thebest CRM in the industry for
that.
Janet (08:52):
So right on your homepage, you call out a few
integrations like Foundation,Sage, Viewpoint, Computer Ease.
Talk to us about why it wasimportant to highlight those
right there on the homepage.
Erik (09:05):
Yeah.
So basically that's where ourbest customers come from.
So they're ready using theseplatforms.
And yeah, we are the CRM thatplugs into these platforms.
So a lot of those, you know,might be residential or
commercial companies but we'rewe're targeting more kind of
(09:25):
like mid-market um constructioncompanies
Caitlyn (09:29):
okay great so they plug right in so what what are their
integrations i mean
Erik (09:32):
yeah we have we have ton we have like 20 integrations uh
company cam one you might befamiliar with love those guys
over there um yeah really niceintegration you take pictures uh
on your company cam theyautomatically load into your
proposal at follow up.
So that's pretty neat.
We have a great Outlookintegration.
(09:55):
I think it's the best in theindustry.
Okay.
Yeah.
So it automatically can readyour email and start to enter
your lead information for youinto the system.
Caitlyn (10:08):
Oh, wow.
Erik (10:09):
Yeah.
Yeah.
It could take a document fromyour email and then save it into
the project file for you.
Caitlyn (10:16):
Okay.
Erik (10:17):
So you don't have to save it, drag it, and drop it, upload
it, all that.
So a lot of, yeah, so manyintegrations.
That's like half of the productroadmap is integrating
follow-up into the systems thatare already out there.
Janet (10:33):
Right, because otherwise you're putting the work back on
your users to manually copy andpaste from one system to the
other, and nobody likes to dothat.
That's fantastic.
So let's talk, like, who isyour...
Describe to us your sweet spot.
Like where do you feel like youshine?
What does that customer looklike?
(10:54):
What kind of pains do they havein their business?
What does the onboardingprocess look like?
Erik (11:01):
Yeah.
So our sweet spot, we call itlike pipeline management.
Janet (11:05):
Okay.
Erik (11:06):
That, that is what, I mean, I got a call from a
customer a week ago.
Unknown (11:10):
He's like, I just wanted to call you because, um,
I am now asking the owner of thecompany of my construction
companies for equity in hiscompany, because I've turned our
company from not knowing whatwe're going to close this month
to be able to predict revenue inthe future for the next six
(11:31):
months.
Erik (11:33):
And so now he is able to kind of, you know, I don't know
how many X the value of hiscompany because he implemented
this system in place.
And so pipeline management,business development, winning
the contract, that's our sweetspot.
Janet (11:54):
Oh, that's great.
So you created an amazingsuccess story, but a big old
question mark for the principalowner.
Unknown (12:05):
Yeah.
Erik (12:05):
exactly well you know it was a great time because
actually you know the guy'slooking to retire sometime soon
and you know yeah so um you knowit builds confidence you know
when owner actually we're seeingthat a lot in the industry
where you know dad ran thecompany for 30 years this way
and has all the relationships inhis head and you know kids are
(12:28):
trying to take over and sothey're implementing software
for the first time
Janet (12:33):
So you're actually working with companies that have
never really had a CRM andyou're helping them implement it
for the first time.
Erik (12:40):
Yeah, yeah.
That's actually ideal for us,replacing something that's
working.
You know, if it ain't broke,don't fix it.
But most of our customers comefrom paper or spreadsheets.
Janet (12:53):
Huh.
So I'm always kind offascinated with our client base.
I don't know if it's like ashiny object syndrome, but I'm
always surprised when there's acompany that's up and running
and they've got a CRM in place.
And then out of the blue, theyswitch to another one.
(13:13):
And to me, that is such agigantic data migration
experience.
challenge and years of notesand past estimates and closing
ratio reports and they're likei'm switching crms
Erik (13:27):
well actually we'll actually disqualify some
customers that are on crmsalready it's a red flag for us
because we've uh we've beenthrough the story too many times
it it is too painful to changeand the benefit uh so CRMs, the
(13:48):
way I say it is 80% of CRMs doall the same thing.
Janet (13:52):
They do, just the buttons in a different place.
Erik (13:55):
The UI might be different.
You know, it might have one ortwo additional features, but
really the problem is peoplethink software fixes problems.
It exposes problems.
Right.
And so that, what you'redescribing here is not a
software problem.
It's a people problem.
(14:15):
So yeah, totally, totally.
And let's say you're rollingout a CRM to 10 people.
Um, some, uh, maybe, uh,someone who's not sophisticated
would think finally now my salesteam will sell more things,
right?
The reality is you're going tosee the actual performance of
(14:39):
those 10 people and you're goingto see your top performer and
then you're going to see yourbottom performers.
And then as a good manager,then you can decide what actions
to take to fix the bottomperformers or the top performers
and promote them and stuff likethat.
It exposes what's therealready.
Right.
Janet (15:00):
So if you're most often taking businesses that are up
and running and successful, butthey've never really had a
pipeline management solution inplace and you're onboarding them
for the first time, walk usthrough some of the things that
you do to help with thatonboarding.
Erik (15:15):
Yeah, so I actually think this is the most important part
of the process.
So we have a kind of whiteglove onboarding experience.
I think we're defining it to bethe best in the industry, to be
honest, because here's what weknow.
if you onboard correctly withinthe first three months, then
you're going to be with followupforever.
(15:35):
And so you're, you have adedicated person, at least with
followup to answer all yourquestions too.
Uh, because most softwarecompanies, if you spin up a
software, um, you're it's a freetrial and that's why we don't
do free trials because you'llget a blank system and people
will say, good luck.
Right.
(15:55):
And you're like, oh, what do Ido now?
And so the nice thing about ouronboarding specialists is that
they've onboarded companies likeyours before.
And most people want a templateto copy.
And that's what our onboardingspecialists kind of provide.
Right.
And then you tweak 20% of it toyour company.
(16:16):
Right.
And so it's a lot of bestpractices.
Right.
and will help you avoid thepitfalls that you come across
when you're managing change atyour company.
Caitlyn (16:31):
Absolutely.
So I was going to say, I mean,so there's no free trial makes
perfect sense.
How does billing work?
Erik (16:38):
well we we we do we do a little bit of a free trial we do
like a guided free trial rightso it's like yeah so you can you
can uh so the way our processworks is you request a demo and
you kind of look at the systemwith somebody and then somebody
says okay i want to can i clickaround with uh can i click
around in there and so we saysure seven day free trial and
(16:58):
but we don't give you the keysand say good luck we actually do
the first two meetings with youfor free you know, to get you
in there.
And so we, you know, make sureyour logos in there, your
dropdowns are in, are in thereso that you can track what you
want to track and, you know, doa couple of calls for free.
So that's, that's what we do asa free trial.
Janet (17:20):
Perfection.
And the demo.
And then back to thatonboarding.
I'm just trying to picture likea company that's, I guess
they're using whiteboards andnotebooks and file cabinets.
A lot of notebooks.
Erik (17:32):
Yeah.
Janet (17:32):
What is your thought on, um, just picking a day and
saying moving forward it's alldigital or do you make some sort
of effort to bring history inand if you are bringing history
in what does that look like
Erik (17:46):
yeah so um this is the biggest obstacle people face
when starting a crm right umlike it really depends on the
data quality that you havegarbage in garbage out can't fix
that right so um We do have adata import tool that if you
(18:06):
have something nice and clean ina spreadsheet, we can get in
there very quickly.
And so our best companies areprobably managing some things on
Google Sheets or something likethat.
And so we can get you startedwith the past month's worth of
your data, as long as you'remanaging it well.
yeah we can get all your leadsin there and all of that but we
(18:29):
have other companies that sayyou know we have 10 15 years
worth of data in file makerright or ax crm that has been
sitting there and we're like iunderstand that you want that
but why are you going to youknow input garbage that you're
like, what was the last time youactually looked up the data in
(18:50):
there?
Oh, never.
So why?
Right.
So just helping people throughthat process.
I know it's scary to feel likeyou delete the history, but you
know, just keep act open withone user, you know, for 50 bucks
and then you can go there ifyou ever need it.
Janet (19:05):
Yeah.
Yeah.
I was actually thinking thatlike the data is still there in
the old format.
Yeah.
Just walk into the old formatto look up that old customer.
Erik (19:14):
Yeah, just have an official go live date across the
company and say, hey, we'redoing this thing on January 1st
and that's how we're movingforward.
Janet (19:22):
So talk to us a little bit about your roadmap.
I mean, if you're theco-founder and the developer,
what are you excited about?
What are some things that arein the next couple of quarters
that you're going to be rollingout for users?
Erik (19:34):
Yeah, we wouldn't be a software company if we didn't
talk about AI.
I knew
Caitlyn (19:39):
you were going to say that.
Yes.
Erik (19:41):
Yeah.
Okay.
So here's my real opinion.
Okay.
AI, a little hot take.
The construction industry mightnot be ready for it.
So you'll laugh, like I laugh,when somebody that's on paper is
asking me AI questions.
And I'm like, well, AI istrained off of your data, and we
(20:04):
can't read the data that is onpaper.
It's in
Janet (20:07):
your file cabinet.
Erik (20:08):
Right.
So we need to start withsomething.
Right.
Just start with a CRM and thenyou're going to build the data
repository for AI to actually beproductive for you.
So thankfully, if you've beenon follow up for years, then you
have that already.
Right.
And so the thing that we'reexcited about, we're still
(20:32):
figuring out the name, but we'reessentially building out a
sales assistant, a salescoordinator.
Yep.
within the crm so at most ofour construction companies uh
you you have like uh your salespeople who are out there on the
street and then you have um youknow an equally sized staff of
(20:55):
office sales people office likeuh administrative people helping
the sales people out in thefield right and and so like um
you know one of our companiesThe sales guy is out there doing
in meetings all day.
And then the admin is sendingthe follow-up emails or the
(21:15):
quotes and getting all thatstuff prepared for the customer
for the sales guy.
That is what we're buildingwith AI.
Janet (21:24):
That's awesome.
To streamline and make thatprocess more simple.
Erik (21:28):
Yeah.
So then the sales guy can say,hey, send a follow-up email to
customer XYZ.
They'll write a preview of it.
Approve, send, you're done.
Janet (21:37):
Oh, that's awesome.
That is awesome.
So what are some of thechallenges that you see in the
industry right now?
It's 2025, it's summer.
What a year.
You know, this year's beenpretty interesting.
Is it not over yet?
You know, what are you hearingfrom your clients in terms of
(21:59):
some of the things that they'restruggling with, some of the
things that they're excitedabout?
Yeah.
If we had been recording this amonth ago, we would have been
talking about tariffs.
I don't know if we're talkingabout tariffs anymore.
I
Erik (22:13):
don't think so.
I don't
Janet (22:14):
know.
I don't know.
So when you get on the call oryou're going to trade shows or
you're talking to prospects,what are they excited about and
what are they worried about?
Erik (22:25):
Yeah.
So the people that we'retalking to, it's actually no
different this year than it hasbeen for the past five or 10
years.
And it's essentially...
I know we need technology, butthe people at my company are
resistant to the change.
Put in whatever technology youwant to insert, CRM, AI,
(22:49):
whatever it is.
It's people are resistant tochange in my company and don't
want to learn something new.
Janet (22:59):
you don't really see a big difference with whatever the
headline is in the news thatthe underlying resistance to
change.
Hasn't changed.
Yeah.
Erik (23:10):
That's the lead.
It's a leadership issue.
Janet (23:12):
Oh yeah.
You know, I mean, this is kindof off topic, kind of on topic.
I went for my six month dentalcleaning yesterday.
I've gone to the same dentistfor 30 years and I've had the
same hygienist who has whatevershe gets on my nerves, but it's
on me for not switchingdentists.
They've switched software andyou would have thought that
(23:33):
aliens had invaded the planetand that she didn't know how to
get up in the morning anymore.
Like the deal that the entireoffice was making out of.
Erik (23:43):
Oh yeah.
Janet (23:44):
you know, they had been on one dental office software
and they moved to another one.
And as a patient in the chairand I'm looking over her
shoulders, like it looks a lotthe same, you know?
So I hear what you're sayingabout resistance to change.
And one of the things that,that she said yesterday was, you
know, I went into thisindustry, I became a dental
hygienist because I didn't thinkI was going to have to, I'm
(24:06):
going to do air quotes, airquote, learn the computer.
And I think we hear a lot ofthe similar kind of, um,
sentiments from inside of theconstruction industry,
especially
Caitlyn (24:16):
with the CRM,
Janet (24:17):
you know, they're like, like, I don't know about this
computer thing.
Erik (24:21):
Yeah.
Yeah.
Yeah.
And so, yeah.
And that's in a lot ofindustries to be honest, you
know, and, you know, but timekeeps on, you know, trekking
forward and, you know, yeah.
And so somebody is going tobite the bullet.
It's just when, Exactly.
And so, and then who's going tobe a part of the team, right?
(24:42):
So that's why I call it aleadership issue, right?
So some of the best practicesthat we employ when rolling out
a CRM to, and here's what I say,out of 10 people, you're going
to have two naysayers, right?
And that's just like, how doyou deal with that, right?
And so here's the number onehack.
(25:03):
Tie compensation to thereporting in the system.
Love it.
That's it.
That's it.
Hey, guys, your commission forthis month is based off of this
report, right?
Yep.
And therefore, all the thingsthat need to happen in the CRM
(25:23):
happen on the 29th of the month,right?
Right.
And then your report is readyon the 30th, right?
Janet (25:31):
And if you've got, we'll just say Bob, the sales guy
that's been there for 15 years,it's always done it Bob's way.
And he's like, where's mycommission check?
Then your answer is, well, Iran the report and Bob didn't
put his information in.
Erik (25:46):
Yeah,
Janet (25:47):
that's right.
It fixes itself.
Erik (25:50):
Yeah.
And he wants his check.
So he's going to learn thesoftware.
That's just how it is.
That's how it goes for now.
Yeah.
Caitlyn (25:56):
Any other like exciting, I guess, case studies,
like wins you want to share?
Yeah.
Success stories.
Erik (26:03):
Oh, yeah.
There's so many.
Most of our customers see anROI in the first month, which is
crazy.
Good.
Because construction is allabout relationships.
And we live in a verytransactional world.
And if one of those rooferswould have followed up with me,
(26:26):
they would have been standout inmy mind just because they
followed up like send a quickfollow-up email right no one
wants to put that little 10extra effort but here's a story
that greg told me about um afour million dollar um
opportunity that he won of thetrump building in miami
Caitlyn (26:48):
oh wow
Erik (26:49):
and that bid was out there um open for three and a half
years Wow.
Yeah.
So a long, long time it was inthe pipeline and, you know, big
jobs like that, you know,sometimes they take that long to
make a decision.
Yeah.
And so, you know, guess whathappened the first year?
(27:10):
Well, Greg asked the propertymanager, hey, why did you guys
choose us at the end of the day?
Caitlyn (27:16):
Right.
Erik (27:17):
And he's like, well, the first year, you know, out of the
20 bids we got, half of themfollowed up.
The second year, half of thosefollowed up.
So now we're down to five,right?
The third year, it was youalone following up with us.
(27:39):
And so we knew that if you'reconducting yourself this way in
the sales process, that you'regoing to do a good job with our
roof.
Caitlyn (27:47):
So you're playing the long game.
I love it.
Play the long game.
Use follow-up to play the longgame.
Yeah.
Erik (27:54):
And it's not that hard.
You just create an automatedsequence that says follow up
with the customer, you know,once a quarter and you set it
and forget it.
That's it.
Caitlyn (28:03):
All through the CRM.
Oh my gosh.
That would solve a lot ofproblems.
Yes, it would.
I love it.
How does, how does somebodylearn more about you?
A listener?
Erik (28:10):
Yeah.
You just go to followupcrm.com.
You could schedule a demo orjust look, you can look me up on
LinkedIn.
We're all over LinkedIn andYouTube.
We love customers that, youknow, do their research before.
We have tons of videos onYouTube of every nook and cranny
of the system.
And, you know, sometimes we'llhop on a demo and they're like,
yeah, I watched all your YouTubevideos.
(28:30):
I'm like, great, let's look atthe ball rolling.
And so they're ready.
Caitlyn (28:34):
We totally agree.
We love YouTube.
And I know whenever we'revetting a software, YouTube is
usually one of the first placeswe go.
Erik (28:40):
Yeah, and that's why we do everything video first, right?
And so whenever we do a newfeature, there's a video.
Everything is a video for usbecause then you can just make
it into like an article orsomething like that.
But yeah, and people don't wantto read.
They want to listen and watch avideo.
And so that's why we do
Janet (28:58):
it
Erik (28:58):
that way.
Janet (28:58):
Okay, so listeners, if you are interested, you can go
to Follow Up CRM.
You can also search for FollowUp CRM on YouTube and see a
bunch of different videosshowing what the product looks
like and how you can use it inyour business.
So Eric, thank you so much forbeing a guest on our podcast.
As always, if you give us 30minutes, our goal is to try to
(29:20):
give you some useful tips tohelp you run your home
improvement or constructionbusiness better.
Thanks again for listening toanother episode and we'll catch
you next time.
Thanks, Eric.
Thank you, Eric.
Thanks for having me.
Speaker 00 (29:32):
Digital marketing for contractors is created by
Fat Cat Strategies.
For more information, visitfatcatstrategies.com.
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