If this video does not load immediately, please wait a few moments as it downloads. While you wait, you might enjoy the following transcript of the video.
Per Lead ROI for this Advertising Medium
In order to help you get a better feel for the kind of impact our advertising solutions can have on your business, we always like to ask a few questions to try to back into your ROI. It's a simple calculation, but it offers a real glimpse into the power our marketing efforts can have on your business.
First, out of 10 new customer leads that are contacting you, and only you, how many do you typically close? This number varies depending on the industry, and on the contractors themselves. But you probably have a good feel for your ability to close a customer.
Let's take a remodeling contractor that has decided to purchase 10 leads per month from us at $67 per lead. Because of the nature of this business, the close rates are typically lower than that of an electrical contractor or plumbing contractor, for example. Nevertheless, let's say they only close 1 lead. In order to determine their ROI for those 10 leads, we need to know what that job was worth...is it $30,000, $50,000, maybe more? Let's just say it's $35,000.
In this case, this partner will have paid $670 in order to add $35,000 to their books.
Let's take another example...an electrical contractor wants to purchase 20 leads per month for $22/lead. Let's say their close rate is a solid 50%. So that is 10 new customers. Those electricians that are watching this...what's your average ticket? Is it $300? $500? More perhaps? In this case, let's say the average ticket is $450. This would mean our partner would have paid $440 in order to see a return of $4500.
Obviously, these numbers are just examples, but we invite you to do your own calculations to determine what effect we can have on your business.