Lead Generation, Lead Generation for Contractors, Roofing Advertising, Roofing Leads, service contractor leads

How to Get More Roof Replacement Leads

 (Or Why Do I Keep Getting Roof Repair Leads?)

Most roofers set their sights on getting inbound leads for roof replacements, or commercial roof installations: the most sought-after types of roofing leads. What some business owners fail to realize is that roof repair leads can be equally as valuable to a growing business. 

We get these questions a lot! “Why do I keep getting leads for roof repairs when I really want replacement calls? So many calls for cracked shingles or shingles blown off in a storm are a waste of time. How do I get more roof installation or full replacement leads?”

Limitations of Roofing Lead Generation

Is your goal to grow your roofing business? Are you hoping to hone in on niche areas such as commercial only or roof replacement jobs?

Focusing a Google Ads or even an SEO campaign to exclusively target people who have an insurance claim or those calling from a business is near impossible to get right 100% of the time. Why? Because people often don’t search that specifically for what they are after. They have a problem or question in mind and they type it into their Google Browser. Things like “Roof repair” or “Roofing contractor near me” or “roofing services” are commonly used search terms. Also, keep in mind that many people are wishing that their roof troubles will require repair work rather than a full-blown reroof job! 

Roof repair leads are far more prevalent than preplacement

That’s where the expertise of the roofer (like you) comes in. If you aren’t willing to accept that pesky call about roof repairs, you may miss the fact that the roof is 40 years old or that it’s leaking in multiple places. All of these facts would come out during the phone investigation, or when you’re on-site taking a look at the damage. 

The purpose of online advertising is to put your company front and center, on the first page of a Google search for a good majority of times in the top position of searches in the paid ads section if you’re going that route, or in that coveted top position in the maps section or in the organic search results. A great online marketing company will get you there, positioned above your competition. They will include a compelling call to action, help you post social proof in the form of some great customer testimonials and include photos of your work – anything to build confidence in the potential buyer so that you are seen as the guy who can solve his roofing problem. 

Why Take the Roof Repair Leads?

Once that call is made or email is sent (AKA you got the lead), the rest is up to you. You’ll use your professionalism to ask the right questions to determine the size and scope of the roofing job. You’ll want to know the age and status of the roof and what occurred. You can then decide if you’d like photos sent or whether it makes sense to go out and have a look. You’ll also be first in line if it is determined that the roof has served out its useful life and it’s time for a replacement. And if you’ve been easy to work with up to that point, you will probably land the job. 

Why Waiting For Replacement Jobs Leaves Money on the Table

Of course, those re-roof leads are gold. The lifetime value of a replacement job is way higher than a couple of repairs. However, the ROI on your investment may be just as good.

For example, for a reroof, you’ve got to send a whole team, cover transportation and breaks for all of them. It’s big money and usually done within one day or two. Roof repairs can be done by one tech or a team of two, faster and with less down time and travel time. If charged appropriately, the return can be just as high. 

 

Factors to Consider With Roofing Jobs

Lead Cost: The average lead for a roof installation is Roof repair leads are often far less expensive to buy than installation leads. For example, the nationwide average lead cost for roof repairs is between $42 and $64 each. The average cost of a residential roof replacement lead with most lead generation companies is $100 – $180. The team at 99 Calls generates exclusive organic roofing leads for a flat rate of $49 each, whether repair or replacement. Why the lower flat rate? We don’t expect you to trust marketing companies to develop customer relationships! That’s your area of expertise! We leave it up to the professional contractors to answer the live calls and close the deals. 

Lead prices using PPC are far less predictable than with organic channels. The average cost of a roofing lead via Google Ads PPC campaigns with 99 Calls is $97.

Revenue: It is very true that roof installation jobs generate much more money than roof repairs. The average roof replacement brings in $12,000, where the average roof repair comes in at $980. And those small repair jobs generally bring in just $350. That said, you’d much rather handle a reroof a day than go out on 5 repair jobs, right? It all depends. Revenue alone doesn’t give the whole picture. What matters at the end of the day is the amount that stays in your bank account (AKA profit margin).

Profit Margin: By the time you pay your labor force and the cost of supplies, many contractors have little left. An article posted from roofing.com claims that the biggest problem roofing contractors face is underbidding jobs and not making enough profits. The average profit margin on a new roof is between 6% and 10%. There isn’t much room to raise pricing on a roof installation. The competition is fierce and many people underbid themselves because there’s always someone willing to bid lower to win the job. Many commercial jobs, especially if they are municipalities, are required to go with the lowest bid. When a roofer wins a job with a low margin, they’ve got to go very lean on labor and supplies and the temptation to make cuts is very real. 

How to Win With Roof Repairs

The bidding for roof repairs is often different. According to Forbes, the price to complete roof repairs is often a fraction of the cost for installs. The cost of supplies is far lower. There are also many times more roof repair jobs available than replacement jobs, and competition is much lower. A professional roofing contractor who goes after roof repair jobs can often name his price, and it’s usually bid based on an hourly rate + materials. By charging by the hour (or at least basing your bid on an hourly rate), you get to set your own profit margin. You know what your labor costs are per hour, and you can add the cost of materials needed. 

What does all this mean? That you can earn more money with less time and a leaner labor force by working those roof repair leads. Completing 4 roof repair leads can bring in close to $4000. Completing one roof installation can bring in $10,000. But what if your profit margin is 25% on the repairs and 10% on the installation (which would be typical)? Your profit on the repairs and on the installation is $1000. In the end, roof repairs offer less revenue by higher margins. 

Additional benefits of taking on roof repair leads: 

  • Saying “yes” to the job gets your foot in the door to get called back for additional work. This will build your customer base and work pipeline.  
  • Roof repair jobs can keep bringing in a good flow of revenue, even during the slower times of the year.
  • Profit margins may still be robust if you’ve got smaller, more agile crews
  • Keeping great workers on your payroll by filling days up with roof repairs will keep them happy and gainfully employed.
  • Roof repairs are great for the bottom line of a growing business
  • Is your team equipped to install gutters, siding or windows? If you provide other kinds of exterior remodeling this is your chance to upsell the customer or give them the benefit of your expert services.

Sometimes waiting for the perfect job to come along causes us to pass on lucrative opportunities in front of us. Next time you receive a call for a roof repair, think twice before turning it down. Give those less than idea leads that come your way a chance; you never know what can come of them! 

For more information on local lead generation for roofers, contact customercare@99calls.com.

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Don’t Freeze Your Leads This Winter:

3 Mistakes Contractors Should Avoid as the Slower Season Begins

Fall marks the beginning of the slower season for many contractors. The period between Mid November through the New Year yields far fewer consumers looking to remodel, move or expand. People are gearing up for the holidays and the new year ahead. Add to that the uncertainty that COVID has unleashed, and the supply chain issues that have slowed the market even further, and you may be looking at a lean winter. 

There are several common mistakes that contractors make when tighter times approach. It may seem to make sense to cut back, lay off and lay low to avoid any unnecessary expenses, but savvy contractors utilize these quieter months to build. This keeps revenue channels open and puts businesses in a prime position to enjoy exponential growth when the hot season begins.

Top Three Slow-Season Mistakes: 

  1. Scale way back on marketing – It might seem prudent to cut your marketing budget as the season comes to a close. However, when the number of booked jobs on the schedule begins to decrease, this is an excellent time to review your marketing strategy and trim out the efforts that aren’t yielding results. 
  • If you are losing money on print, it may be time to pause or halt that marketing.
  • If you are paying more for leads that you are making in jobs, it may be time to find a new lead company.  There are lead generation businesses that only charge for their performance, meaning the leads they actually produce. 
  • Google Ads may also be a viable short-term option for increasing lead volume into the winter. The team at 99 Calls is still seeing a 15 – 20% conversion rate on Google Ads campaigns. Google Ads marketing allows contractors to target specific services in selected areas so that you can get more done with a smaller budget. 

There are plenty of opportunities there to gain some leads, win new jobs, and keep your team on the payroll. 

  1. Cut back on labor – Because there is a general shortage of qualified, motivated laborers in the workforce nationwide today, if you are lucky enough to have them on your team, now is not the time to furlough or lay them off. 
  • Do what you can to keep those smaller jobs coming in, even if at lower profit margins to keep your valued workers gainfully employed.  
  • We all prefer the big jobs and/or recurring business, but those smaller gigs often lead to larger, more valuable jobs in the future.
  • Not only are you contributing to your employees’ livelihood, but you are building trust and loyalty. See #1 above for ideas on getting those smaller, one-off jobs to keep your calendar full and your people working.
  1. Take it easy and chill for the winter – It may be tempting to take a long winter nap, but here are a couple of things to do before you decide to take that much-needed vacation or rest after a busy summer. 
  • Take a look at your SEO efforts. Are you promoting the services that you offer in the winter months now? It takes time for new content to get indexed and start ranking on Google. Now is the time to promote the services you want to offer in February and March. 
  • Contact current customers and offer a discount when they book winter services. 
  • Plan your 2022 budget. What are your goals for the new year in terms of growth, revenue, advertising? 
  • Take time in the slower weeks ahead to review what’s working, what isn’t and see where you can trim the fat. 
  • Take some of your summer profits and invest them in some solid targeted online marketing. Remember, smart online marketing is an investment, not an expense!
  • Once you’ve got these things in place, take a quick break – you’ll be recharged and ready to reap the rewards of your efforts!

If the thought of laser-focusing your marketing dollars and finding low-cost, high-value leads seems out of reach at the moment, consider trying the bundle program with 99 Calls. For a $349 price tag, you’ll get set up on SEO marketing which will grow over time, and a Google Ads campaign that can start working for you immediately. 

Get Started Here

digital marketing, Lead Generation, Lead Generation for Contractors, online marketing, online marketing costs, Pay Per Click Advertising, PPC, Roofing Advertising, Roofing Leads, service contractor leads

How to Maximize Roofing Leads: A Case Study of the First Three Months of Lead Generation for a Roofing Contractor in Ohio 

by Kerri Wilkinson and Diane Lovine

Background Information and Presenting Problem

The owner of Northcoast Roof Repair, Tabetha Pierce, found 99 Calls in April of 2021 during a Google search of roofing lead generation providers. After reading about the company and checking out the positive reviews, she decided to call and learn more. Tabetha reported frustration with other roofing lead companies she tried in the past. She had not found success with any of them and felt that her direct needs were not being addressed. Her goal was to maximize the number of quality inbound roofing leads for her company as quickly as possible. 

After discussing her goals and concerns with a roofing lead generation specialist, Tabetha decided to try the less expensive SEO lead generation services, for roofing leads, knowing that it would likely take several months to rank on Google and other searches and begin to receive leads. 

SEO and Organic Lead Site Development and Setup

Tabetha decided to give SEO Lead generation a try in early May and was very excited for help with growing her Ohio business. We reviewed her service offerings, business hours and specialties. From there, a site was built (https://northcoast-roof-repairs.com/) and made live within a couple of days. 

They wanted to focus on roof repair services in Ohio for all kinds of roofs including shingle, flat, and slate. They also offer 24/7 emergency repair services. The SEO site was customized around their goals with service pages that reflect their offerings, and a design to incorporate their brand. A logo, photos, and reviews from happy customers were placed on the site and within a couple of days, the site went live. 

99 Calls also took on managements of her listings, such as Google My Business, Yelp and Bing in order to fully optimize her total online presence and help the business rank highly on Google searches. Within just a few weeks, Northcoast Roof Repairs received 3 organic leads, which is rather uncommon, but can happen. Tabetha was so pleased that she called her lead specialist to inquire about the 99 Calls Google Ads PPC program in the second week of June. 

The organic lead generation performance between May 1 and August 30 are as follows: May: 3 leads, June: 1 lead, July: 2 leads and August: 3 leads. As of this writing, they have received 8 leads so far in the month of September. These results are just a bit higher than typical for an SEO lead generation program. It is our experience that over time, rankings increase and lead volume follows. 

Google Ads Setup and Campaign Development

After seeing the quick results of 99 Calls’ SEO campaign, Tabetha signed up for Google Ads as well in hopes of ramping up even faster. She started with a modest budget of $500.00 and wanted to specifically focus on roof repair leads for shingle and slate roofs. We set out to build a highly targeted campaign to focus on her goals and because of the low initial budget, had to be very careful to construct a comprehensive negative keyword list. Northcoast was thrilled to receive a lead on the very first day that the campaign was launched. Throughout the rest of the first month, they were able to garner 17 leads. They achieved this by increasing the budget several times as it was hit and had the confidence to do so once they were able to confirm the high quality of the leads and close several jobs. 

Initial Obstacles and Challenges

During the first month of the PPC campaign, Northcoast quickly received roofing leads and hit their $500.00 budget within the first couple of weeks. When customers reach their budget limit, the Ads campaign is automatically paused and they have the opportunity to keep the account paused or add more money to the budget. Once a positive ROI was established, Tabethy became more and more confident that she could safely increase the budget, but there were stops and starts as trust was established initially. 

PPC Roofing Lead Results

As Northcoast Roof Repairs found their footing and realized that their ROI was solid they decided to continue their progress throughout the month of June with an increased monthly budget of $1,000. Knowing that August is often a busy month and feeling solid about having enough help to handle the uptick in new customers, Tabetha decided to trust her instincts with 99 Calls and increased her budget to $1,600.00 for the month of August. This decision yielded a  total of 27 exclusive qualified leads in August and “raised the roof” for her expectations of what 99 Calls was able to do for her company. From 15 qualified leads with a late start in June to 21 exclusive leads in July, their August month was the best yet. 

Google Ads Performance Metrics for Northcoast Roof Repair June 9 – Sept. 11, 2021

  • Total Investment:     $4,755.17
  • Total Conversions:     63
  • Conversion Rate:     34%
  • Average Cost Per Lead: $75.47

For more information on Google Ads typical and exceptional conversion rates, see this article: https://blog.99calls.com/?s=conversion+rate

Summary of Results and Plan for Business Growth

During her first four months of organic lead generation services and her first three months of running Google Ads, Northcost received 9 organic leads and 27 leads from Google Ads. 99 Calls charges just $49 for exclusive roofing leads and was able to achieve PPC leads at $75 each. At these prices for qualified roofing leads, they would love to increase the budget and double, even triple results. However, the biggest obstacle at this time is labor. Tabetha states that she is constrained by the number of qualified roofing employees she can hire. Her immediate plan is to continue to service the leads she has while building her workforce. Once armed with enough roofers to service the leads coming in, Tabetha states that Northcoast Roof Repairs will be ready to increase their budget even further, and the lead team at 99 Calls is looking forward to the challenge!

Carpet Cleaning Leads, cleaning business leads, digital marketing, How much is online marketing, Lead Generation, Lead Generation for Contractors, online marketing, online marketing costs, painting leads, Roofing Advertising, Roofing Leads, service contractor leads

Are You Just Spending, or Investing in Your Business?

Effective Lead Generation is an Investment – Not an Expense

Are you treating lead generation costs or prices per lead as monthly expenses? If so, you haven’t found the right company to partner with!

Does thinking about setting a “marketing budget” make you cringe? Do you immediately imagine your bank account balance going down, down, down? If you see your lead generation budget as a regular monthly expense, you may be wasting a lot of money! Expenses are car payments, electric bills, and internet costs. Good lead generation is an investment. Something that GENERATES revenue for your business, not an expense.

Most lead generation companies charge a flat rate per month and don’t promise anything in return. Yes, that’s probably an expense. But there are a few pay-for-performance companies out there that can prove their value to you month after month. In addition, many companies no longer require contracts, so you are free to take your investment elsewhere if you aren’t seeing the returns you were lead to expect.

If you want my team to just take care of your online marketing click here for a consultation.

Most Lead Generation May Cost You

The budget you set aside each month for online marketing is probably being considered an expense if you are lumping it in with your other costs. When times are tight, you might think your marketing “costs” should be the first to go. Then you trim other costs to save money. If you could generate reliable leads each month that turn into profitable jobs, your lead generation budget would become a necessary investment (and a sound one, at that!) If you are constantly trying to keep your monthly costs low by cutting into your lead generation budget, you are missing out on the potential to turn your service business into a cash cow. When leads become expenses are when they don’t produce measurable results.

Example: Say you have allotted $500 each month for online marketing of your remodeling business. If you hire a lead generation company that charges a flat rate of $500 each month and tells you they will promote your business online, get you onto the first page of Google and get calls coming in, but then doesn’t produce, this would be an expense.

If you hire a different company and they tell you that you’ll only pay for qualified leads that come in and you get to determine what a qualified lead means to you, you won’t be paying an expense, you’ll be investing in those customers who call you for a quote. And the higher your close rate, the more money your business will make from that marketing investment!

Return on Investment is the way businesses measure the net increase or decrease that comes from investing money. Return on investment, or ROI is the amount of revenue you bring in, minus the amount of money you invest to make it. So if you invest $500 in lead generation, and that turns into 6 qualified leads, and you win 4 new jobs, and each job is worth $1000 in profits, Your return on investment is $4000 (profits) – $500 (investment), or $3500. Imagine if you could invest $500 every month and watch it turn into $3500. Now that’s a solid investment!

Online Marketing and Lead Generation as an Investment

Customers use online searches more than any other means to find service businesses they want to hire. If you’re not there, front and center, with a great reason for them to call you for the quote, you probably won’t get called.

Good marketing entices customers to call you for a quote, which results in jobs, which means revenue for your business. When online marketing in the form of lead generation works in this way, it is considered an investment in your business. Even when times are tight, you don’t want to stop investing in good marketing, because it’s probably your best chance to build your revenue stream back up. Instead, start slow and build as you land more jobs. And don’t spend your excess profits. Keep investing in your business and watch it grow.

How to Increase Your Lead Generation ROI

So how can you spend less money per contractor lead? What is the best way to lower online marketing costs? Get seen and called more often and win more sales from your monthly lead budget!

  1. Improve Your Visibility and Get More Calls

The more phone calls and emails you get from your monthly marketing budget, the higher the return on your marketing investment will be.

When you sign on for services for online marketing and lead generation, be sure to find a company with a complete package: Highly optimized lead generation sites that will rank well on Google, Bing, and other search engines and the ability to customize the lead generation site and listings with your unique branding.

As important as getting found is for getting calls, making your business attractive to potential customers is also critical. Entice your customers to pick up and call you by displaying high-quality photos of your work and pictures of yourself or your team on the home page. Offer a special promotion to motivate them to call you rather than your competitors.

For other tips on improving visibility and making waves with an online presence, see this article: https://blog.99calls.com/2021/03/16/maximize-digital-marketing-returns-on-a-small-budget/

  1. Improve Your Close Rate

The higher your close rate, the lower your costs per lead and the more leads you can get for the same monthly investment.

Here are the top 5 things you can do to increase your close rate, and thereby increase your returns:

Always Answer Your Phone: It seems so simple, but we see it all the time. Customers are impatient. They identify a need, search online and call the first contractor they see who looks legit. If that’s you and your phone rings, you are LOSING MONEY every time a call goes to voicemail.

Quick Quote: If you’re able to give a ballpark figure over the phone, go for it. Otherwise, schedule a visit within the next 48 hours to see the job and give a quote. Get in there before your competition.

Professionalism Pays: No, you don’t need to show up in your Sunday best, and actually, arriving in some work clothes lets potential customers know you’re a busy person who other customers already trust. Just change into a clean shirt to change and be prepared with pen and paper to take notes. Listen to what they are asking you to do, and repeat it back so they know you heard it right.

Offer Options: When you offer 2 or even three options for getting the work done, you’ll asking your potential customer not to choose between you and someone else, but between two or three price points from YOU. Offer a budget option, which less expensive materials and less expensive detail, and then one with the best quality. This also lets them know you are versatile and can work with different budgets.

Follow Up: Don’t drop an estimate and run. People appreciate a friendly reminder that you are available to schedule their job. Maybe even give them a discount if they can fill an opening you have in a given month. Persistence pays!

For more information on improving return on investment, learn why combining SEO with pay per click gives contractors the best bang for their buck: https://blog.99calls.com/2020/07/20/benefits-of-combining-seo-lead-generation-with-ppc-advertising/

Summary

If you’re ready to really start growing your service business, start viewing your marketing budget as a smart investment, rather than a monthly expense, then find a quality lead generation team to make your monthly lead generation investment work for you. For more information on getting the most from your online marketing investment, give the team at 99Calls.com a call at 800-717-4669.

Carpet Cleaning Leads, cleaning business leads, digital marketing, Lead Generation, Lead Generation for Contractors, online marketing, online marketing costs, painting leads, Roofing Advertising, Roofing Leads, service contractor leads

What is PPC Conversion Rate and Why Does it Matter?

Are PPC Leads Worth the Expense?

Turns out the cost per lead varies widely depending on the effectiveness of the marketing company you hire to run your campaigns.

Utilizing Google Ads PPC campaigns is the fastest, most versatile method of achieving a high volume of leads for service contractors. However, buyer beware; not all PPC marketing firms produce equal results. In fact, differences in performance are alarming and could mean the difference between enjoying a robust return on investment and blowing your advertising budget with little to show for it. 

There is an enormous gap between average and superior Ads performance. According to a recent article by Wordstream, a trusted authority in measuring PPC conversion results, a full 25% of PPC users report conversion rates under 1%.

Unlike SEO, or organic lead generation, which takes many months to ramp up and achieve first-page placement on Google searches (and let’s be honest, if you aren’t being found on the first page, you most likely will not be found), using Google Ads PPC to generate exclusive leads yields much faster results.

Google PPC is an auction-style platform for showcasing businesses on the first page of searches. Rather than showing in the maps (GMB) section, or the highly regarded organic results section, Google PPC ads are displayed at the very top and the very bottom of the search page.

PPC Explained

Ads are about scarcity. There is only room for 3-6 PPC ads on a page, about half posted at the very top and half at the bottom, under organic results. In order to achieve first-page placement on Google, you’ve got to be one of the top bidders. A high conversion rate is achieved when a large percentage of people who click on an Ad call for a quote (a lead). The more leads you receive for your monthly budget, the better your return on investment. 

With Google Ads, contractors are bidding per click, meaning, they are telling Google what they are willing to pay each time a potential buyer clicks on their Ad. The goal is to pay the lowest Cost Per Click, or CPC that you can but high enough to make it into a top 3 position, at least for a decent percentage of the time. Google doesn’t place 3 companies there and then walk away. The top 3 are rotated throughout the day. What gets companies up there? First and foremost is being a top bidder. 

Achieving visibility on a search is just one piece to the puzzle though. Equally as important are your click-through rates (CTR) and your conversion rates. Click-through rates are the percentage of times someone clicks on the link in your Ad to visit the landing page compared to the number of times your Ad is shown (aka impressions). If the Ad is compelling and relevant to what the person is looking for, the click-through rate will be higher. If your CTR is low, you will likely also have a low conversion rate. 

And finally, let’s talk about conversion rates. A conversion for some industries may be the collection of information (email or phone number) from a potential buyer that can be added to a telemarketing or email nurturing list. In service contractor industries, a conversion is a lead. Better, with 99 Calls, it is an exclusive lead that is delivered either through a live phone call or email. The better your conversion rate, the more leads you will receive for your monthly budget or advertising investment.

Average Conversion Rate and Why it Matters

The average conversion rate for service contractors using Google Search PPC advertising is 2.35%. This means that out of every 100 customers who click on your Ads, only two to three will actually call you for a quote. 

The worst-performing (bottom 25%) campaigns receive a 1% or lower conversion rate. One in four campaigns falls into this bottom category. In fact, nearly half of all people who use Google Ads have a conversion rate lower than 2.5%. Included in these numbers are the do-it-yourselfers who don’t think it’s worth paying the service fee to have a marketing team manage their accounts.

Imagine that your monthly Ads budget is $1000. If the average click for your industry costs $5.00, at a 2.35% conversion rate, you’d get 4-5 leads with your budget if you hire an average marketing company. 

The best performing marketing businesses, those in the top 10% of all companies, are averaging an 11.45% conversion rate. If you were using one of them to manage your Ads campaign and had the same $1000 budget and click cost at $5.00 each, you’d achieve 23 leads. That’s over 5x the lead volume for your marketing dollars! That’s why conversion rate matters.

How to Maximize Your Conversion Rate

There is a bright side to Google Ads marketing. People and businesses in the know are able to achieve excellent results with PPC advertising. The best performing marketing businesses, those in the top 10% of all companies, achieve an 11.45% conversion rate. This is far better than the average performer with 5x the lead volume for the same budget.

A small study looked at 124 customers using Google Ads campaigns managed through 99 Calls with a monthly budget of more than $300. The Google Ads specialists at 99 Calls were able to use their in-house PPC advertising system to achieve an average conversion rate across all service contractor (restoration contractors, carpet cleaners, painters, landscapers, appliance repair technicians, electricians, plumbers, HVAC, etc.) industries of 20.43%. Using the same scenario above, these contractors would have achieved 40 leads per $1000 budget, 10x the average PPC customer.

Conclusion

With the increases in online competition, SEO alone often isn’t enough anymore for a growing service business. Many service contractors have turned to PPC advertising to increase their customer base and their revenue. However, with the huge discrepancy between top-performing PPC management firms and low performers, it’s no wonder that many companies have become frustrated with PPC. They have lost trust in Google Ads. They complain that they have burned through their budgets too quickly without results. When every dollar counts, it is crucial that contractors find a top 10% company to handle their Ads campaign. Using a trusted, experienced Google Partner to manage an Ads campaign can literally make the difference between getting one lead for every 100 clicks on your Ads or 20 or more! 

Want to learn how our strategies for maximizing Google Ads PPC conversion rate can help your business? Schedule a free consultation

Roofing Advertising, Roofing Leads

The Cost of Roofing Leads in 2022

What’s a Good Price for a Roofing Contractor Lead?

Diane Lovine

How much is a roofing lead worth? That depends on many factors. The main considerations in determining lead value to a roofing contractor are the quality of the lead, how many other contractors are competing for the same job, and the likelihood that the contractor will close the job.

If the average roofing job in the US brings in a profit of $2000, would it sound reasonable to pay $200 for a lead? For some contractors, this question yields a resounding “yes” and for others, that price point is not sustainable. Let’s analyze lead pricing and lead valuation based on the factors presented.

With steep rise of inflation rates in 2021 due to supply chain shortages, the prices of goods have increased, and consequently, contractors have had to pass those increases onto consumers. That said, many homeowners in the US have a renewed appetite for home improvement repairs and projects. This is in part stimulated by increased savings due to travel and entertainment spending largely halted for a couple of years due to the pandemic.

What does this mean for roofing contractors in the US? That there is plenty of work to be had, but the price of quality leads has increased due to competition and the overall expense of doing business in 2022.

 

Lead Quality

What defines a “quality” lead?  First, is the call live, or a stale inquiry? Did the lead come from an email request or a live phone call? After years of collecting data on lead types, we have found that email leads tend to come from “shoppers”, while phone calls come from “buyers”. Although leads that are sent through email are valid and are often closed in time with some nurturing, phone calls are far superior to email inquiries. Motivated buyers are more likely to pick up the phone and speak with a contractor.

And when customers call for a quote, the contractor is more likely to set an appointment when given the ability to speak directly with the buyer. He/she can quickly begin the process of establishing rapport, developing a relationship and winning new business. When working with a lead generation company, you’ll want to ask how much freedom you will have in determining what would be considered a qualified lead.

99 Calls allows its contractors to determine what a “qualified lead” is to them by defining specific towns in which to be promoted and specific services that will be provided, such as reroofing, roof installations and roof repairs. If a consumer is calling for a service not offered by the contractor, or from an area not covered in the specified territory, it is NOT considered a qualified lead and is not billable.

If you’re being sent leads from 70 miles away, you’ll have to consider the time it takes to get out there to provide a bid and will need to factor your time into your total cost for acquiring the job. If it takes hours to provide one estimate for a roofing job, that’s time that could have been better spent giving multiple bids closer to your office.

 

Shared vs. Exclusive Leads

Another very important factor in determining a fair price for roofing leads is the number of contractors the lead is being distributed to. Is the lead being shared with multiple roofing contractors, or is it exclusive to one contractor?

Shared leads tend to be considerably less expensive than live, exclusive leads, but the chances of closing the job are greatly diminished. The last thing a roofer wants is to enter into a bidding war over a job. If a lead is sent to 4-6 contractors, a bidding war will almost certainly ensue, which will drive revenue and resulting profitability of the job down. Consumers frequently go with the lowest price when given multiple bids. Being forced to give “low ball” bids can quickly diminish earnings.

In addition, the close rate on shared leads is much lower, of course, than on leads that are exclusive, as the competition for the same job is higher.

Some roofers prefer low-priced shared leads. If you’ve got lean operating costs and high lead volume so that you can work under a lower profit margin, and are a superior closer, you may benefit from buying discounted shared leads.

However, most contractors would prefer to operate with higher profit margins and avoid bidding wars. Although exclusive leads cost 25-50% more than shared leads, the close rate could as much as double, especially if you answer your phone when it rings, speak with the customer and present yourself professionally. In this case, exclusive leads will bring a much higher return on your investment dollars and will be more valuable to your business. For more information on shared vs exclusive leads, see this LinkedIn article.

 

Roofing Sales Close Rate

The close rate of the contractor also plays a tremendous role in the value of a lead. Most contractors understand that being a trained sales professional isn’t necessary to increase close rates.

Being honest, friendly and professional goes a long way. Arriving on time and bringing a portfolio to meets with prospective customers, having testimonials from prior satisfied customers and a solid local reputation will really set a contractor apart from the competition. One of the best things a contractor can do to increase close rate is simply answer the phone, especially when purchasing live, exclusive leads.

 

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Why Close Rate and Lead Type Matter

The two biggest factors in determining your budget for buying leads are the close rate for jobs and whether the leads are exclusive or shared with other roofers. If you’ve hired a sales person to close jobs, you’ll also have a commission payment to add to your expenses.

A roofer’s ability to close jobs makes the difference between winning enough bids to run and even grow a business or not being able to scrape by. Shared vs. exclusive leads will affect acquisition cost, or the cost of acquiring each roofing job. In the examples below, let’s say the average job yields $2000, before factoring lead cost.

 

Effect of Close Rates with Exclusive Leads

Example 1: Close Rate:

Contractor “A” is a real professional. He closes 1 of every 3 leads. If he is paying $100 per lead, the job acquisition cost is $300, since he wins one job for every three bids that he provides, on average. Subtracting the $300 to buy three leads from his average earnings of $1800 per roofing job, he is netting $1500 per job. That means he’s paying 16.7% of his earnings to land his jobs.

Contractor “B” is less professional. He doesn’t follow up after dropping off a quote, doesn’t frequently answer his phone, and doesn’t present himself as “polished”. If he closes 1 of every 6 leads, he’s paying $600 for each new job. That’s 33% of his earnings being spent to land the same $1800 job.

Both contractors still must factor in their cost of goods and labor into the equation. Once these are subtracted from the gross profits of each job, the actual profit margin is figured. As you can see from the example above, contractor “B”’s profit margin will be significantly lower than contractor “A”’s.

 

Acquisition Cost with Shared vs Exclusive Leads

Example 2: Shared Leads vs Exclusive Leads:

There are many companies that sell leads to multiple contractors, such as HomeAdvisor and Networx. Some contractors find them to offer a great value. Other roofers will avoid distributed leads at all costs.

If Contractor “A” is buying SHARED leads, even if he is a fantastic closer, his close rate will decrease. He’ll be competing with multiple contractors, which often leads to bidding wars. He may need to lower his prices to be competitive. Having to lower prices to compete comes right off the top! Shared leads will decrease the close rate of even the best salesman and will decrease profitability of each job.

Less professional Contractor “B” will far even worse in a shared lead situation. If he’s only closing one in six jobs with EXCLUSIVE leads, having to lower prices to compete with multiple bidders could put him out of the game entirely.

If a contractor isn’t careful and lowers pricing too much in hopes of winning the job without paying attention to his acquisition price, profits could be minimal or worse. By the time labor, expenses and leads are paid for, (let alone those indirect expenses) he may have actually LOST money on the job!

 

Summary

Before a roofing contractor decides an appropriate price to pay for leads, he should decide if he is after exclusive leads or shared leads. Contractors can expect to pay $45-$200 for live, exclusive roofing leads. depending on the type of work, and $18-$100 for shared leads.

Great closers and contractors who are quick to answer calls will fare well in just about any situation and may even benefit from buying discounted, shared leads, all contractors, and can benefit from exclusive leads. Although contractors must be willing to pay more initially for exclusive leads, they will benefit from the much higher ROI that these leads yield.

For more information on lead generation for roofers and on purchasing exclusive roofing leads priced under $50.00, call to speak with a roofing lead specialist from 99Calls.com at 800-717-4669