My guess was that MJ was saying less consolidation and smaller businesses are better because they don't have the brand identity that larger companies have. Basically, my thinking is the larger companies will feel less of a need for a lead generation service. But on the other hand, the small businesses will like this because they can't afford the brand building these other businesses engage in.
Curious as to why you think ServiceMagic is a joke? Are you saying there should be a site dedicated to each niche like plumbers only or for some other reason?
I think there is a tradeoff here. Some niches that don't do as much SEO or advertising may be harder to convince to use your services than those who are already spending money on advertising or trying to rank with SEO. I think the key is just to have some other ways to drive traffic in case you can't get as high on the pages as you would like with SEO.



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