What Does The Failure Ratio Mean?

What does the failure ratio of among home inspectors mean?

I once discovered that in the area of business start ups that has the highest rate of
failure was multi-level-marketing (MLM). It was shown that the failure ratio
was so high because it is a type of business that takes very little investment
to get into. Therefore the loss factor of going out of business is minimal. Or as
the old saying goes “easy in, easy out”. It becomes very easy to quite,
when you approach a business causally.

For a long time, the home inspection industry has been portrayed by those
who hawk “home businesses” as just another option among various self
employment ideas that one may purchase and learn via the mail. Many
have been pulled into the HI field with little more than a dream to finish
their last mail-in test so they could have a diploma and start their new
inspection business.

Since most people who went into this business treated it with such casual
effort, it has flooded the market with a constant supply of new wannabe’s
seeking the easy dollar of self employment. But 90% of theses new
converts will be out of business within 3 years.

Why?.. Answer: “Easy in, easy out”. This is not a get rich quick business
and it has more to do with good communication than inspecting.

But the HI industry is changing and the public perception of a home inspector
is changing. There has been a massive migration of real estate transactions
going though the internet. The people are more savvy than their predecessor
and are seeking out qualified home inspectors more than ever.

The search for a high quality inspector is increasing and the expectations
are increasing with it. Because of the exponential growth of the HI industry
and it’s impact on the buying and selling of property, the regulation of our
industry is coming as well.

Agree with it or not, but we are leaving the realm of being looked at as
“Johnny Fix-It” with a flash light and are now being held to a higher standard that
will be punishable by law in more and more states. This is not an endorsement
of regulation, but only an observation of the obvious. Deal with it.

With the added stress of these expectations, regulations, insurance
expenses and liabilities, the little casual inspectors are giving way to
a more equipped and intense breed of Professionals. The internet
is causing an end run around the Realtors control of who does the
inspection. As more people are educated they are seeking their own
personal choice of inspector on the web.

InterNACHI has positioned itself as the premier supplier of the
inspector’s needs in the future, who must be internet savvy, a better
marketer, and better trained than those who are falling to the way side.

I suggest that each inspector put their best features and benefits in
front of the public with exhaustive detail. This will enable the consumer
public to recognize your superior abilities and services easier. List
every singles detail of what you offer and can provide.

As the old saying goes about writing an ad… “benefits, benefits, benefits”…


Such as digital photos, quick turn around reports, years of experience,
education, qualifications, designations, willingness to help and being
available on demand, better equipment and tools, superior service
with a mind for details, service area, professional titles, professional
company name, quality domain name, email support, toll free number,
always answer the phone, courteous, caring, confident, well versed
on how to communicate on the phone, knowledgeable advise on the fly
on any given moment, good appearance, nice vehicle, willing to tell the
truth in the face of opposition, wisdom to be quiet at the right time,
prompt and never late, a good listener, going the extra mile above
and beyond the call of duty, home warranties, ancillary inspections,
taking credit cards, a killer web page, post inspection follow up service,
helpful advise, and a smile from a friendly heart.

Every aspect of your demeanor and how you present your business
must exude a superior confidence and yet the maturity of a humble
helping spirit. You must shine above the rest to survive. Be prepared
for the struggle to endure until your business reaches critical mass.
Seek a good mentor and don’t be afraid to learn something new
every day.

Believe in yourself and communicate your willingness to do a superior
inspection and help in any way you can. It has been noted that
people rate a business primarily from the way they were treated
and the way the other person made them feel.

** “People may not remember exactly what you did, or what you said,
but they will always remember how you made them feel.”

We are not those who fail.

Good luck.

Very good post!

Thanks for the effort you put into being an InterNachi member!


As always, your posts are appreciated.

very nice!!!

Great post of advice, encouragement, and admonition-
Thanks, John!

Johns post is another example of why this particular organization (NACHI) is in the forefront of our industry. Excellent Post and much appreciated.


John, you hit the nail on the head. good post, Been saying the same thing for past year.

Very good post John, thanks!

Excellent!! You should publish that for prospective inspectors.
Thanks for insight.

I concur