What to charge per lead...

by luke4
27 replies
Hi everyone.

I'm in the process of setting up a lead generation website for roofing contractor leads for a particular city in the US. What should i be charging per phone lead?

All leads will be exclusive to the contractor and will come through Google. The searches on Google will be for relevant terms such as"roofers (city)" and "roofing contractor (city)", so in my opinion they will be highly targeted.

I know ServiceMagic sell non-exclusive leads for around $50-$60 and distribute this to 4-5 companies to compete over. They also send the leads after they get them, my leads will be directly ringing up the company immediately. So what would you recommend i sell exclusive phone leads for? I think around $150 would be fair due to an average roof installation cost of $10,000 (based on internet research) and perhaps converting 1 in 5, resulting in a $750 cost to the business.

The lead will call up the roofing company via our site and be connected straight to them via a number i can track.

I would like to test this out by contacting the roofers myself but i wouldn't want to undercharge right away, so i'd appreciate any advice you guys have.

Thanks,

Luke.
#charge #lead
  • Profile picture of the author Affiliatebuddy
    I believe.. $100 should be base price. However you should give 3-4 free leads to each prospective client to test ( after qualifying your client).

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  • Profile picture of the author shockwave
    Luke,


    I have very specific experience with this (you can find some of my old posts). Is $150 fair? Sure it's fair from an ROI perspective as even a tiny roofing job in the U.S. is going to be at least $3-$5k or more for a full roof replacement. But that isn't all profit to the contractor.


    I will tell you now, your BIGGEST problem will be convincing a roofing contractor that you have quality leads and making sure they understand the difference between a LEAD (as you both agree to define it - full roof replacements or repairs?...etc?) and what their job is - to sell it.


    Stop right here.....and read that last paragraph again.


    Okay, now I will give you some hardcore advice if you still find you want to put yourself on this paintrain to see what you can make of it.


    1. Find companies that are already paying for leads. I would poach current ServiceMagic/HomeAdvisor roofers -- they likely don't like the deal they are getting anyway.


    2. Do a little research on the roofing company and make sure they are big enough to understand marketing. Don't dick around with the 1man operation. If the roofing company isn't doing over $100k or more per year in annual sales, then you are already starting down a bad path.


    3. Be prepared with a good rebuttal because 99.99% of the time, if you do manage to get a roofing contractor on the phone, you are going to get 1 of these two responses:


    a. Not interested
    b. How much? - and if they like what they hear, their next question will likely be "how about if you give me the lead and I pay you if I get the job" or "how about you give me the lead and I'll give you (twice, 3 times, $xxx...etc) for the lead"


    And finally, I STRONGLY suggest you make them pre-pay for leads up front. Even if it's only the equivalent of what would amount to (3) leads or so.


    Don't let me discourage you, because there are people doing this - it just won't be easy.


    Good Luck!
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    • Profile picture of the author luke4
      Thanks Shockwave, i appreciate the advice.

      The idea was to get them on board by letting them test our leads for an extremely discounted rate (I really don't like the idea of giving them away!). If i find myself struggling to even do it this way, I think I'll have to bite the bullet and give some away for free. I know they're good leads so i hopefully won't have a problem.

      My current plan was to target those who have PPC campaigns on Google Adwords because i know they're already spending money on marketing. I'm glad you mentioned targeting servicemagic customers and only targeting those with a big enough budget or the ability to handle all the sales, because this is exactly what i had in mind.

      I suppose the main problem i'd have is determining what lead is worth $150 and what lead is worth $50. But then again i suppose they could get some clients who pay $15,000+, so maybe this will even out for them. Perhaps because of this i could reduce it from $150 to $100 per lead, etc.

      Luke.

      Originally Posted by shockwave View Post

      Luke,


      I have very specific experience with this (you can find some of my old posts). Is $150 fair? Sure it's fair from an ROI perspective as even a tiny roofing job in the U.S. is going to be at least $3-$5k or more for a full roof replacement. But that isn't all profit to the contractor.


      I will tell you now, your BIGGEST problem will be convincing a roofing contractor that you have quality leads and making sure they understand the difference between a LEAD (as you both agree to define it - full roof replacements or repairs?...etc?) and what their job is - to sell it.


      Stop right here.....and read that last paragraph again.


      Okay, now I will give you some hardcore advice if you still find you want to put yourself on this paintrain to see what you can make of it.


      1. Find companies that are already paying for leads. I would poach current ServiceMagic/HomeAdvisor roofers -- they likely don't like the deal they are getting anyway.


      2. Do a little research on the roofing company and make sure they are big enough to understand marketing. Don't dick around with the 1man operation. If the roofing company isn't doing over $100k or more per year in annual sales, then you are already starting down a bad path.


      3. Be prepared with a good rebuttal because 99.99% of the time, if you do manage to get a roofing contractor on the phone, you are going to get 1 of these two responses:


      a. Not interested
      b. How much? - and if they like what they hear, their next question will likely be "how about if you give me the lead and I pay you if I get the job" or "how about you give me the lead and I'll give you (twice, 3 times, ...etc) for the lead"


      And finally, I STRONGLY suggest you make them pre-pay for leads up front. Even if it's only the equivalent of what would amount to (3) leads or so.


      Don't let me discourage you, because there are people doing this - it just won't be easy.


      Good Luck!
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  • Profile picture of the author sandalwood
    Originally Posted by luke4 View Post

    Hi everyone.

    I'm in the process of setting up a lead generation website for roofing contractor leads for a particular city in the US. What should i be charging per phone lead?

    All leads will be exclusive to the contractor and will come through Google. The searches on Google will be for relevant terms such as"roofers (city)" and "roofing contractor (city)", so in my opinion they will be highly targeted.

    I know ServiceMagic sell non-exclusive leads for around $50-$60 and distribute this to 4-5 companies to compete over. They also send the leads after they get them, my leads will be directly ringing up the company immediately. So what would you recommend i sell exclusive phone leads for? I think around $150 would be fair due to an average roof installation cost of $10,000 (based on internet research) and perhaps converting 1 in 5, resulting in a $750 cost to the business.

    The lead will call up the roofing company via our site and be connected straight to them via a number i can track.

    I would like to test this out by contacting the roofers myself but i wouldn't want to undercharge right away, so i'd appreciate any advice you guys have.

    Thanks,

    Luke.
    Luke,

    We haven't done this with roofers so I don't know what is fair. I can tell you what other people have told me which is $100 per lead. Again, I don't know.

    What I do know is that we have a lead gen site for tires. We rent it, so to speak, to a local tire shop for $200 a month plus $50 a lead. We get a minimum of 6 leads a month.

    Now, that isn't setting the world on fire but it ain't bad for one site and where we are located on this planet. I think the best answer is start high and see what they are willing to pay. We found that the 200 + 50 was our water mark for tires. If we try roofing, we will know what it is for us in our locale.

    I would imagine if we were in LA or Dallas or Boston or Phoenix or some other huge city, the price would be 500 + 100. Don't know that for sure just talking out loud. And as for roofers in those cities, I'd bet the price would be 200 per lead. Again, don't know for sure.

    Hope that helped.
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    • Profile picture of the author luke4
      Thanks for the reply Sandalwood.

      As luck would have it, one of those cities is the one i'm targeting! So this is a big help, thank you.

      Originally Posted by sandalwood View Post

      Luke,

      We haven't done this with roofers so I don't know what is fair. I can tell you what other people have told me which is $100 per lead. Again, I don't know.

      What I do know is that we have a lead gen site for tires. We rent it, so to speak, to a local tire shop for $200 a month plus $50 a lead. We get a minimum of 6 leads a month.

      Now, that isn't setting the world on fire but it ain't bad for one site and where we are located on this planet. I think the best answer is start high and see what they are willing to pay. We found that the 200 + 50 was our water mark for tires. If we try roofing, we will know what it is for us in our locale.

      I would imagine if we were in LA or Dallas or Boston or Phoenix or some other huge city, the price would be 500 + 100. Don't know that for sure just talking out loud. And as for roofers in those cities, I'd bet the price would be 200 per lead. Again, don't know for sure.

      Hope that helped.
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    • Profile picture of the author shockwave
      Luke,


      I used to work at Service Magic - so I know their pricing (even today) on what they charge per city/per job type (ie. roof replacement boston vs roof repair boston vs. shingle roofing vs. metal roofing...etc).


      I seriously doubt you will get anywhere with these SM contractors selling them leads at $100-$150 each - even if you promise they will be EXCLUSIVE leads. They don't know you or trust you. Besides, SM sells "exclusive" leads for $75-$80 each anyway (supposedly).


      You might be able to hook them buy giving them a few at VERY low cost (like $15-$20 each) for 3-5 leads. But if they don't close any of those, they will likely blame you saying that your leads suck! Then you'll be fighting the up-hill battle of convincing them of quality.


      The bottom line is the only thing you can really do is get their phone ringing and HOPE they know how to close a sale.


      If you shoot for companies that aren't currently buying from SM, then you may be better off trying the "start high" approach that Sandalwood has outline.
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      • Profile picture of the author qu4rk
        Originally Posted by shockwave View Post

        I used to work at Service Magic - so I know their pricing (even today) on what they charge per city/per job type (ie. roof replacement boston vs roof repair boston vs. shingle roofing vs. metal roofing...etc).
        Any chance you can share their pricing information with us?
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        • Profile picture of the author shockwave
          Originally Posted by qu4rk View Post

          Any chance you can share their pricing information with us?

          You can find an old pdf online if you search for "servicemagic lead fee schedule" ;-)

          Lead fees are different depending on where you are located and the type of lead you want...BUT....since I'm in a generous mood, I'll give you a little snippet of what current Roofing Lead Fees are in ohhhhhhh....let's say, metro Denver, CO area....

          So, if any of you are considering going the leadgen route, I highly suggest you get down to the nitty gritty about WHAT KIND of leads you are going to be delivering and how much it will cost. Most roofers can turn a "repair" job into a full roof replacement, so don't low-ball yourself and give them repairs for a dirt cheap price. I say charge them a flat rate for both.

          And http://www.warriorforum.com/offline-...-template.html is a Lead Gen Agreement I posted way back in 2013 you may find useful.

          P.S. - If you find this valuable, why don't you go ahead and tickle that little 'ol "Thanks" button there in the lower right hand corner of this box (assuming you are signed in) as it would be much appreciated.
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          • Profile picture of the author qu4rk
            Originally Posted by shockwave View Post

            You can find an old pdf online if you search for "servicemagic lead fee schedule" ;-)

            Lead fees are different depending on where you are located and the type of lead you want...BUT....since I'm in a generous mood, I'll give you a little snippet of what current Roofing Lead Fees are in ohhhhhhh....let's say, metro Denver, CO area....

            So, if any of you are considering going the leadgen route, I highly suggest you get down to the nitty gritty about WHAT KIND of leads you are going to be delivering and how much it will cost. Most roofers can turn a "repair" job into a full roof replacement, so don't low-ball yourself and give them repairs for a dirt cheap price. I say charge them a flat rate for both.

            And http://www.warriorforum.com/offline-...-template.html is a Lead Gen Agreement I posted way back in 2013 you may find useful.

            P.S. - If you find this valuable, why don't you go ahead and tickle that little 'ol "Thanks" button there in the lower right hand corner of this box (assuming you are signed in) as it would be much appreciated.
            Thanks, bud. The screenie you posted is a year old. And I could only find this list:

            https://katz.co/service-industry-niche-guide/

            That is from 2010, and you said you know their prices "today". It would to get my hands on a list of all niches with today's prices.

            If you were to have such a thing, that's worthy of starting a new thread my friend.
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            • Profile picture of the author shockwave
              Originally Posted by qu4rk View Post

              Thanks, bud. The screenie you posted is a year old. And I could only find this list:

              https://katz.co/service-industry-niche-guide/

              That is from 2010, and you said you know their prices "today". It would to get my hands on a list of all niches with today's prices.

              If you were to have such a thing, that's worthy of starting a new thread my friend.
              I'm going to guess that you are concluding that from the part of the screenshot that says "Effective 1/8/2014" ?

              The Bad News: Your conclusion is wrong.
              The Good News: The pricing you are looking at IS indeed "current" prices.

              The screenshot I posted comes from their LIVE website (the database of all their lead prices) The datestamp you see is that's the last time they updated their prices in their database.
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              • Profile picture of the author qu4rk
                Originally Posted by shockwave View Post

                I'm going to guess that you are concluding that from the part of the screenshot that says "Effective 1/8/2014" ?

                The Bad News: Your conclusion is wrong.
                The Good News: The pricing you are looking at IS indeed "current" prices.

                The screenshot I posted comes from their LIVE website (the database of all their lead prices) The datestamp you see is that's the last time they updated their prices in their database.
                I'm not sure if you're taking my post as derogatory, but that is far from what the intention was. It was to ask if you have a list of all niche data for what your screenshot includes (as opposed to the single page that was in the screenshot). The "today" quote in the question is reference against the 2010 list that I could find on the net...not your 2014 date. And, I was clarifying from a previous post, that's why I put the today in quotes.

                Hopefully that cut down on the confussion & clarifies it was a request for help. A copy of all the niche's they sell leads to would be a great gift if you have it.
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                • Profile picture of the author shockwave
                  Originally Posted by qu4rk View Post

                  I'm not sure if you're taking my post as derogatory, but that is far from what the intention was. It was to ask if you have a list of all niche data for what your screenshot includes (as opposed to the single page that was in the screenshot). The "today" quote in the question is reference against the 2010 list that I could find on the net...not your 2014 date. And, I was clarifying from a previous post, that's why I put the today in quotes.

                  Hopefully that cut down on the confussion & clarifies it was a request for help. A copy of all the niche's they sell leads to would be a great gift if you have it.
                  No, didn't take it as derogatory. Unfortunately, I don't have a pdf version of the "new" prices like the one referenced earlier. But, the today's pricing really won't be too much different than their old. In fact, here all the categories they offer leads for HomeAdvisor - Home Improvement - Select Your Home Improvement Category Below
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          • Profile picture of the author luke4
            Originally Posted by shockwave View Post

            You can find an old pdf online if you search for "servicemagic lead fee schedule" ;-)

            Lead fees are different depending on where you are located and the type of lead you want...BUT....since I'm in a generous mood, I'll give you a little snippet of what current Roofing Lead Fees are in ohhhhhhh....let's say, metro Denver, CO area....

            So, if any of you are considering going the leadgen route, I highly suggest you get down to the nitty gritty about WHAT KIND of leads you are going to be delivering and how much it will cost. Most roofers can turn a "repair" job into a full roof replacement, so don't low-ball yourself and give them repairs for a dirt cheap price. I say charge them a flat rate for both.

            And http://www.warriorforum.com/offline-...-template.html is a Lead Gen Agreement I posted way back in 2013 you may find useful.

            P.S. - If you find this valuable, why don't you go ahead and tickle that little 'ol "Thanks" button there in the lower right hand corner of this box (assuming you are signed in) as it would be much appreciated.
            Thanks for sharing this with everyone! I found this a couple of weeks ago through a Google search and it's really helpful. But like someone has pointed out, it's a few years old (probably only makes a few dollars difference). I thought these prices were for non-exclusive leads?
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          • Profile picture of the author luke4
            Originally Posted by shockwave View Post

            You can find an old pdf online if you search for "servicemagic lead fee schedule" ;-)

            Lead fees are different depending on where you are located and the type of lead you want...BUT....since I'm in a generous mood, I'll give you a little snippet of what current Roofing Lead Fees are in ohhhhhhh....let's say, metro Denver, CO area....

            So, if any of you are considering going the leadgen route, I highly suggest you get down to the nitty gritty about WHAT KIND of leads you are going to be delivering and how much it will cost. Most roofers can turn a "repair" job into a full roof replacement, so don't low-ball yourself and give them repairs for a dirt cheap price. I say charge them a flat rate for both.

            And http://www.warriorforum.com/offline-...-template.html is a Lead Gen Agreement I posted way back in 2013 you may find useful.

            P.S. - If you find this valuable, why don't you go ahead and tickle that little 'ol "Thanks" button there in the lower right hand corner of this box (assuming you are signed in) as it would be much appreciated.
            I downloaded your lead gen agreement a couple of weeks ago too, this has really come in handy! Massive thanks for this gem.
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      • Profile picture of the author luke4
        Originally Posted by shockwave View Post

        Luke,


        I used to work at Service Magic - so I know their pricing (even today) on what they charge per city/per job type (ie. roof replacement boston vs roof repair boston vs. shingle roofing vs. metal roofing...etc).


        I seriously doubt you will get anywhere with these SM contractors selling them leads at $100-$150 each - even if you promise they will be EXCLUSIVE leads. They don't know you or trust you. Besides, SM sells "exclusive" leads for $75-$80 each anyway (supposedly).


        You might be able to hook them buy giving them a few at VERY low cost (like $15-$20 each) for 3-5 leads. But if they don't close any of those, they will likely blame you saying that your leads suck! Then you'll be fighting the up-hill battle of convincing them of quality.


        The bottom line is the only thing you can really do is get their phone ringing and HOPE they know how to close a sale.


        If you shoot for companies that aren't currently buying from SM, then you may be better off trying the "start high" approach that Sandalwood has outline.
        I thought all leads at service magic weren't exclusive. I always thought they were advertised that 4-5 companies will receive the same leads. I've read many contracting forums that also say this (contracting companies who use service magic).

        I know where the leads are coming from, so if they don't close them it's likely that these companies aren't good at selling. I'd rather try and then offer these leads to someone else who can close a little better.
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        • Profile picture of the author shockwave
          Originally Posted by luke4 View Post

          I thought all leads at service magic weren't exclusive. I always thought they were advertised that 4-5 companies will receive the same leads. I've read many contracting forums that also say this (contracting companies who use service magic).

          I know where the leads are coming from, so if they don't close them it's likely that these companies aren't good at selling. I'd rather try and then offer these leads to someone else who can close a little better.


          There used to be a distinct difference between a Market Match vs Exact Match leads, but now the way it works is they try to position the Exact Match leads as they are "pre-selling" the lead for you and the customer can connect with you directly.


          Market Match - "Consumers come to HomeAdvisor.com and give us detailed info about their project. We match that info with your work and area preferences, and connect you with homeowners that match your needs."


          Target leads by specific type of work
          Target leads by areas you want to work in
          Set your own monthly budget
          Change your account preferences 24/7
          Leads are sent to you and up to three other pros
          Free online business profile page
          HomeAdvisor Seal of Approval for use in all your marketing materials
          Consumer ratings & reviews only from consumers matched to you through us
          Appointment scheduling
          Email reminders to prospects


          Exact Match - "Get your name out there on the most searched internet sites and business directories. We do more to promote your business online than anyone. And, you'll only pay for leads when a consumer views your business profile and then decides they want to connect with you."


          Target leads by specific type of work
          Target leads by areas you want to work in
          Set your own monthly budget
          Change your account preferences 24/7
          Consumers view your free online profile first and choose to connect with you (and up to 3 other pros)
          HomeAdvisor Seal of Approval for use in all your marketing materials
          Consumer ratings & reviews only from consumers matched to you through us
          Appointment scheduling
          Email reminders to prospects


          So yes, for the Exact Match leads, they are really no longer "exclusive" leads anymore. They try to make you feel better about it though by saying "you'll only pay for leads when a consumer views your business profile and then decides they want to connect with you". But that doesn't prevent them from viewing someone else profile and direct connecting to them either.
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  • Profile picture of the author CageyVet
    Best way I have found to price out leads is to actually talk to the clients you are prospecting and get them involved in setting the price with you.

    This is done by showing them the value of the leads from their own numbers that they supply to you.

    So you are talking to a roofer that you found by targeting PPC campaign owners. Simply ask them, what their average initial and lifetime customer values are for the types of leads(keywords) you will be sending them. Now you have some values that THEY gave you, not something that you made up or read online. Also since they gave them to you, it is hard for them to argue the value of a lead calculated from the numbers they supplied.

    Next ask them, so Mr Roofing Business Owner, if 10 or 20 people were to call you about these services how many of those could you close into a paying roofing job? OR you can ask what percentage of calls do they think they can close into customers? They will most likely over estimate their close rate but you will have a number that again, they gave you.

    So now you have the value of "their" customers and you have how many leads it will take for "them" to get a sale. Since these numbers are from the actual prospect, you are not only getting information that they can not argue with but you are also involving them in the process which starts the process of trust.

    If you did your initial research properly, you should know how you are getting the leads(SEO, PPC, Social, Classifieds, etc) and from that you should have a pretty good idea as to the traffic numbers and lead numbers possible for that niche in that location.

    Now you have some decent data to work with to figure out a pay per lead cost where half of the data comes directly from the prospect. Now you just have to work out the formula to figure out that if you send X amount of leads a month, that have a Value of Y(give to you by the prospect) and they can close Z amount of customers from those leads(given by the customer)....what that is worth to the prospect in revenue. Now form the total amount of leads you expect to send a month, it should be pretty simple to figure out how much each lead should be priced at so that the prospect can maintain a good ROI while you are still adequately paid for your services. Since all of this is built on the prospects own numbers it is extremely hard for them to dispute the price of the lead when the ROI is staring them right in the face. That every lead is valued at X amount and they are only paying Y amount for that lead.

    It is very hard for them to say NO or argue when they are part of the process to get the final pay per lead price.
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    • Profile picture of the author luke4
      Originally Posted by CageyVet View Post

      Best way I have found to price out leads is to actually talk to the clients you are prospecting and get them involved in setting the price with you.

      This is done by showing them the value of the leads from their own numbers that they supply to you.

      So you are talking to a roofer that you found by targeting PPC campaign owners. Simply ask them, what their average initial and lifetime customer values are for the types of leads(keywords) you will be sending them. Now you have some values that THEY gave you, not something that you made up or read online. Also since they gave them to you, it is hard for them to argue the value of a lead calculated from the numbers they supplied.

      Next ask them, so Mr Roofing Business Owner, if 10 or 20 people were to call you about these services how many of those could you close into a paying roofing job? OR you can ask what percentage of calls do they think they can close into customers? They will most likely over estimate their close rate but you will have a number that again, they gave you.

      So now you have the value of "their" customers and you have how many leads it will take for "them" to get a sale. Since these numbers are from the actual prospect, you are not only getting information that they can not argue with but you are also involving them in the process which starts the process of trust.

      If you did your initial research properly, you should know how you are getting the leads(SEO, PPC, Social, Classifieds, etc) and from that you should have a pretty good idea as to the traffic numbers and lead numbers possible for that niche in that location.

      Now you have some decent data to work with to figure out a pay per lead cost where half of the data comes directly from the prospect. Now you just have to work out the formula to figure out that if you send X amount of leads a month, that have a Value of Y(give to you by the prospect) and they can close Z amount of customers from those leads(given by the customer)....what that is worth to the prospect in revenue. Now form the total amount of leads you expect to send a month, it should be pretty simple to figure out how much each lead should be priced at so that the prospect can maintain a good ROI while you are still adequately paid for your services. Since all of this is built on the prospects own numbers it is extremely hard for them to dispute the price of the lead when the ROI is staring them right in the face. That every lead is valued at X amount and they are only paying Y amount for that lead.

      It is very hard for them to say NO or argue when they are part of the process to get the final pay per lead price.
      This is very good advice CageyVet, thank you for this! Showing the client the potential for a positive ROI sounds like a very good way of selling the leads.
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    • Profile picture of the author qu4rk
      Originally Posted by CageyVet View Post

      Best way I have found to price out leads is to actually talk to the clients you are prospecting and get them involved in setting the price with you.

      This is done by showing them the value of the leads from their own numbers that they supply to you.

      So you are talking to a roofer that you found by targeting PPC campaign owners. Simply ask them, what their average initial and lifetime customer values are for the types of leads(keywords) you will be sending them. Now you have some values that THEY gave you, not something that you made up or read online. Also since they gave them to you, it is hard for them to argue the value of a lead calculated from the numbers they supplied.

      Next ask them, so Mr Roofing Business Owner, if 10 or 20 people were to call you about these services how many of those could you close into a paying roofing job? OR you can ask what percentage of calls do they think they can close into customers? They will most likely over estimate their close rate but you will have a number that again, they gave you.

      So now you have the value of "their" customers and you have how many leads it will take for "them" to get a sale. Since these numbers are from the actual prospect, you are not only getting information that they can not argue with but you are also involving them in the process which starts the process of trust.

      If you did your initial research properly, you should know how you are getting the leads(SEO, PPC, Social, Classifieds, etc) and from that you should have a pretty good idea as to the traffic numbers and lead numbers possible for that niche in that location.

      Now you have some decent data to work with to figure out a pay per lead cost where half of the data comes directly from the prospect. Now you just have to work out the formula to figure out that if you send X amount of leads a month, that have a Value of Y(give to you by the prospect) and they can close Z amount of customers from those leads(given by the customer)....what that is worth to the prospect in revenue. Now form the total amount of leads you expect to send a month, it should be pretty simple to figure out how much each lead should be priced at so that the prospect can maintain a good ROI while you are still adequately paid for your services. Since all of this is built on the prospects own numbers it is extremely hard for them to dispute the price of the lead when the ROI is staring them right in the face. That every lead is valued at X amount and they are only paying Y amount for that lead.

      It is very hard for them to say NO or argue when they are part of the process to get the final pay per lead price.
      Based upon what you have here, I tried to work that out & without knowing their profit margin, it's a guess to calculate. Or am I missing something?

      Assuming:

      Send 10 lead/month
      Average customer value $3000
      Close 20%


      10 x .2 = 2 customers
      2 x $3000 = $6000 revenue
      $6000 / 10 = $600 per lead


      Profit per lead = ?


      I need that to deliver them an ROI, right?
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  • Profile picture of the author tryinhere
    http://www.warriorforum.com/war-room...-business.html

    made this years ago now but it may help
    Signature

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  • Profile picture of the author Affiliatebuddy
    I did not read this thread for few days. However Shockwave gave you reply already. Assuming $10000 as billing to average customer... I believe minimum profit will be $3-4000... If they convert 20% which is highly likely in this niche.. they are giving $500 for each order and making clients. I sell web design leads for $30-35 and average order is $1000-1500.. and i see people are very happy.

    However it all depends on quality later on. But give them a sample to test.. and start with $100.

    Regards
    AB
    Signature
    Web Design Leads Exclusive/Daily/100+ . Free Test. PM or Skype: premiumwebdesignleads
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  • Profile picture of the author MoneyDan
    Banned
    Begin at $100, a fair price for both parties. Include in your agreement the option for you to change cost at any time. If it doesn't convert as well as expected, you still left meat on the bones for the business owner. If they convert better than expected, bump up the price.
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    • Profile picture of the author DABK
      How do you know $100 is fair to both parties? Asking because I don't know that it's fair to either one. So, I'd like to know the thinking behind the statement.

      Originally Posted by MoneyDan View Post

      Begin at $100, a fair price for both parties. Include in your agreement the option for you to change cost at any time. If it doesn't convert as well as expected, you still left meat on the bones for the business owner. If they convert better than expected, bump up the price.
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  • Profile picture of the author Sandy Berth
    If you are very good at generating quality leads, you are selling yourself short. Why make $100-$150 when you can make $1000-$5000.
    Get a contract with a legit, large roofer. Set appts for him to go out and sell. Split the contract. Shoot for 50% and neg off that. You will have the contact info to follow up with the prospect, so you can protect from the contractor poaching off you. There are exceptions to that, this takes alot more work, however the payoff is so much better. You just have to get the relationships with the owners. we have done well using this method.
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