[tvjunky]

Sure if you assume HomeJoy as a lead Gen model, loyalty on both sides could be a problem. HomeJoy generally positioned their service like that. However, I don't think that was the intent in the long term. If loyalty is a problem with a service business then your customer acquisition has a flaw (high discount) or you provide no additional value to the customer (quality control, customer service, insurance, backup cleaners).Certainly the loyalty problem exists with "traditional" services as well. The big franchises stay in business by first providing good service and second loyal workers. Those factors plus acquiring the right kind of customer provides the recurring revenue this type of business needs to survive.