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).

Regards
AB

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!

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.

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.

http://www.warriorforum.com/war-room...-business.html

made this years ago now but it may help

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

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.

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.