You ask, "How Much is a Lead Worth?"

9 replies
I've discovered a pretty good resource I'd thought I'd share for Christmas, ho, ho ,ho.

When trying to create niche websites, research is very important. You need to ask the following questions:
  • What are the most profitable industries?
  • How much can I make or should I charge per lead/sale?
  • What keywords should I focus on?
ServiceMagic.com has done all the work for you.

Service Magic provides cost per lead data on virtually all home services-related industries and some others including pet sitting ($10/lead), photo portraits ($12/lead), wedding DJ ($12/lead).
How do I use this information?

  • If you are a SEO or web designer that wants to know how much a lead is worth to a customer, here is your answer.
    • You can now more accurately calculate SEO ROI vs. other marketing methods (SEO looks damn affordable compared to ServiceMagic!)
  • If you want to create a local home services directory website, this information will tell you:
    1. What industries should I target
    2. How much is a lead worth to my customers
  • If you are looking for a niche in home services, this information will tell you where the most money is, and what markets may have low competition (instead of trying to rank for “[location] construction,” you can now try to rank for “[location] garage construction”
  • Domainers (people who buy domains and sell them) can use this information for acquiring the most valuable domains
The most profitable service industries

The Master List: All services with price per lead greater than $50

Service Magic has two different pricing structures. The numbers shown are the less expensive program, which involves pre-paid accounts (“Premier Pro”). The pay-as-you-go option is far more expensive (10-35%, an average of ~25% more per lead). This is called Lead Select. Keep in mind that the numbers shown may be 1/3 more than shown.
  • Roofing, Siding & Gutters
    • Roofing – Install or Replacement - $55/$66
      (Same price for Asphalt Shingle, Flat, Foam, Single Ply, Metal, Natural Slate, Traditional Tile, Wood Shake or Composite)
    • Siding
      • Exterior Painting or Staining: Liquid (Spray-On) Siding – Apply – $55/$66
      • Concrete, Brick & Stone: Brick or Stone Siding – Install – $50/$60
      • Vinyl Siding – Install or Replace – $55
      • Wood or Fiber-Cement Siding – Install – $55
  • Senior Housing
    • Nursing Home – Medicare/Medicaid – $65
    • Nursing Home – Private Pay – $65
  • Additions, Remodels & Renovations – Construction
    • Additions, Building Outbuildings & Structures
      • Addition to Existing Structure – Build – $50/$60
      • Garage – Build - $50/$60
      • Greenhouse – Build – $50/$60
    • Remodels & Renovations
      • Bathroom – Remodel - $50/$60
      • Kitchen – Remodel - $50/$60
      • Pool Enclosure – Build – $50
      • Shelter or Outbuilding – Build – $50
      • Major Renovation – Multiple Rooms - $50/$60
      • Remodel to Accommodate a Disability - $50/$60
      • Disability Elevator or Chair Lift – Install - $50/$60
    • Site preparation
      • Building Site – Preparation and Clearing - $50/$60
      • Demolition – $33/$50
    • Roofing: Roofing – Install or Replacement
    • Recovery Services – Disaster
      • Major Home Repairs (General Contractor) – $50
      • Recovery Service – Earthquake Damage – $50
  • Architects, Builders, Designers & Other Professionals
    • Builders & General Contractors
      Custom Home, Log Home, Newly Constructed Home – New Community, Newly Constructed Home – Older Community – $55
      Modular Home – $50
    • Engineer – Soil – $50
  • Heating & Cooling
    • Air Conditioning & Cooling: Central A/C – Install - $42/$51
    • Central Heating System: Central Heating System – Install or Replace - $42/$51
    • Heat Pump – Install or Replace - $42/$51
  • Windows & Doors
    • New Windows – Multiple - $42/$51
  • Electrical, Telephone & Wiring
    • Electrical for Additions & Remodels – Install – $50/$60
    • Home Automation System – Install / Service – $50
    • Building Automation System – Install / Service – $60
    • Audio/Visual System – Install – $60
    • Generator – Install – $33/$50
    • Solar Panels/Electric System – Install – $42/$51
  • Plumbing
    • Faucents, Fixtures & Pipes: Plumbing for Additions & Remodels – Install - $50/$60
    • Septic System – Install or Replace - $33/$50
    • Boiler or Radiator Heating System – Install – $33/$50
  • Painting & Staining
    • Exterior Home or Structure – Paint or Stain - $42/$51
    • Interior Home or Surfaces – Paint or Stain $36/$54
    • Specialty Painting: Faux Finishes, Mural or Trompe L’oeil, Textures - $36/$54
  • Flooring
    • Hardwood: Hardwood Wood Flooring Install or Replace – $38/$57
    • Tile: Stone (Granite, Marble, Slate, etc) – Install – $33/$50
    • Laminate & Vinyl: Simulated Wood or Stone Laminate – Install – $33/$50
  • Carpentry & Cabinets
    • Wood Fence – Install - $33/$50
    • Carpentry Framing – Install – $50
And the most expensive lead is?

With a per-lead price of $80/lead, real estate developers top the list.
Download the PDFs Here:

Code:
http://bit.ly/cLnXly
#how much is a lead worth
  • Profile picture of the author Voasi
    ServiceMagic also sells the leads to various contractors. One lead might get sold to 3-4 different people. Times the number you see there by 2 or 3 and you'll have a good number to charge per lead on an "exclusive" level.
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    • Profile picture of the author akazo
      Originally Posted by Voasi View Post

      ServiceMagic also sells the leads to various contractors. One lead might get sold to 3-4 different people. Times the number you see there by 2 or 3 and you'll have a good number to charge per lead on an "exclusive" level.
      Well not exactly. So if you get 1 out of 3, you have to charge that one 3x the fee in addition to what you would normally charge. Most _reputable_ contractors would have a hard time absorbing that amount or passing it on to customers. Either that or they spread it our over all customers, but then they start losing competitiveness.

      God bless Service Magic, they have built a great business. But I wouldn't harm my brand by raising prices enough to cover their fees. On very high end work, it is not as much of an issue as for lower tier stuff - like stoppages for plumbers.

      But this gives great leverage to marketers like me who can charge a slight premium for the same leads with no competition and everyone is happy.
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  • Profile picture of the author cscarpero
    Nice, this is very helpful!
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    I'm an online marketer and mortgage loan officer.

    Connect with me at www.Scarpero.com

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  • Profile picture of the author cscarpero
    Went to the link and found this:

    *Exact Match Lead Fees are 1.5X Premier Pro Fees - ask your representative about the ServiceMagic Exact Match service.

    I wander what that means?
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    I'm an online marketer and mortgage loan officer.

    Connect with me at www.Scarpero.com

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  • Profile picture of the author Vincenzo Oliva
    "Exact Match Leads" are from people searching your exact business name. Which seems strange to me because if they're searching for it wouldn't they contact you already? Why would you need to pay a "premium" fee for the lead that likely already strongly considered your service? But I guess you can call them to hard sell "So I see you've been searching for us" wtf? How did you know that? :-)

    I think this is a pretty good rule of thumb guide to use. But for the company itself, they seem to have a number of complaints about their practices.

    Which makes me think that this is a good angle to use for prospects. By buildimg them a custom "lead magnet" they can avoid all the hassles and wasted money regarding "rip-off" lead buying services.
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    • Profile picture of the author BerkleyStreet
      - Are these rates considered "Regional"? Could I expect to be able to sell leads for at these prices anywhere?
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  • Profile picture of the author qu4rk
    Does anyone have access to an updated list now that they are homeadvisor? Or have the prices stayed the same or are less?
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    • Profile picture of the author Rus Sells
      From what I know I believe the prices are relatively the same. Keep in mind that the pricing is also for sharing the lead with more then 1 ServiceMagic/HomeAdvisor member.

      Originally Posted by qu4rk View Post

      Does anyone have access to an updated list now that they are homeadvisor? Or have the prices stayed the same or are less?
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