We all know that the key to success in any business is leads. Now, with so many roofing companies struggling to find new customers, you need every lead you can get your hands on. So how much should you be paying for roofing leads? It depends on where they come from and what kind of customer it provides.
The cost of leads is a hot topic in the roofing industry right now.
It seems like every day there are new studies on how to get leads, and what kind of lead you should be looking for. But nobody has really addressed the question: how much should you pay for them? Is it worth paying $30 for a lead, or is it better to pay $500 per lead if they turn out to be high quality customers? Or do you risk spending too much money on low-quality leads that might not convert into any business at all?
The answer lies in understanding where your leads come from, and what kind of customer they provide. I’ll go over some common sources below.
The answer depends on what you are trying to achieve with the leads. Different types of roofing leads will provide you different kinds of customers and results, so we need to take that into consideration when deciding how much they’re worth. Here’s an example: let’s say that your average sale price (ASP) for roofs in your market is around $14,000 (this would be high for most markets). So if you get one customer from each $500 spent on marketing, then spending $500 per lead should should give your an actualized ROI of 2700%, right? Well actually not quite – there are still some other factors at play here.
Roofing Lead Prices in 2021
In the roofing industry, it’s not quite as simple as that. For example: let’s say you have a lead for $500 and they want to schedule an estimate. In reality, this customer might either be really loyal or just looking around because their budget is small – so much smaller than your ASP. They may turn out to be next year’s best client with a large budget, but chances are they won’t buy from you immediately. If you’re spending too much on leads without having enough information about them ahead of time (like what kind of work they need done), then there goes all those profits right down the drain! You can spend upwards of $500 per lead if you know exactly which ones are going to convert into business, but if you’re spending that much on each lead without knowing anything about them then it’s likely not worth the expense.
So, what is the industry average for roofing leads?
On average I’ve found that $150 – 300 per lead is a good price for most roofing companies looking to generate new leads in their market. If they are coming from someplace like AngiesList or HomeAdvisor (which provide very low quality customers) then this might be too expensive because your chances of converting them into actual business is quite small and you could end up wasting all those marketing dollars. However, more selective sources such as Google Ads and Facebook Ads will give better results with less money spent overall since there are fewer costs involved than say pay-per-lead brokers or other advertising channels where paying for each lead is necessary.
So what kind of roofing leads are you looking for? Well, that depends on your business model. I’m not an expert in how every company does things but some sources provide better value depending on the type of clients they generate and their ability to convert them into paying customers. The more information about potential customers ahead of time (such as what work they need done), the better – this means you can make a better decision about whether or not it’s worth buying these particular leads from this specific source at all! This may change based on market conditions such as competition levels and where people look for companies like yours; which makes strategic marketing choices even more important over time than ever before. So if we know that this customer is likely to be loyal and pay up for work, then we can decide whether or not it makes sense to spend $150-$300 per lead.