What is a decent price to pay for leads?

Edi

Edi

New member
Location
Illinois
I just called a lead seller company, they want $75 per lead. I have never paid for leads before, probably is something I have to do this year. Around here "tree services" are multiplying like the Gremlins in the movie. And driving the prices down.
Some of my loyal customers are asking me to beat some ridiculous prices, so I may need to find new customers.
Just want to check what is the average lead price.
 
Wow, that is much higher than leads cost around here! The lead services in this area mostly charge around $25-35 per lead. There is one cheaper service (Porch) that bills $16/lead, but their leads seem to be even poorer quality than the other services.
 
1) what is the lead for? $500 worth or work or $5000? I know...you don't know that until you accept it, but you should have a general feel... whoever is providing you leads should have some data on that.
2) how many others are getting that lead? If you have "exclusive" rights to that lead until you either accept or reject it, it is worth more than them sending the lead to 5 companies and putting you in a race against time to be the first one there.
3) why are you not the lowest price? Are the other companies not paying insurance or workers comp? Are they providing a different level of service? Or are they doing the same things as you and are just operating more efficiently or satisfied with a lower income? If the former, that is a communication thing. Of the later...well, you need to decide if you can operate at a lower ROI or weather the storm.
 
PS: I cringed at paying $25 per lead when I was with home advisor a few years ago. Especially since those were the lowest close rate. MUCH better rate on referrals from customers.
 
ATH said:
1) what is the lead for? $500 worth or work or $5000? I know...you don't know that until you accept it, but you should have a general feel... whoever is providing you leads should have some data on that.
2) how many others are getting that lead? If you have "exclusive" rights to that lead until you either accept or reject it, it is worth more than them sending the lead to 5 companies and putting you in a race against time to be the first one there.
3) why are you not the lowest price? Are the other companies not paying insurance or workers comp? Are they providing a different level of service? Or are they doing the same things as you and are just operating more efficiently or satisfied with a lower income? If the former, that is a communication thing. Of the later...well, you need to decide if you can operate at a lower ROI or weather the storm.
Click to expand...
Some are coming from neighbors states,some aren't insured, some are landscaping companies that just hire a Climber on the weekends and some are guys with a pick up and a chainsaw.
It's not just me.The other companies around here are feeling the same. We have noticed this couple years ago but we didn't put much attention besides it was nothing we can do about.
 
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Edi said:
Some are coming from neighbors states,some aren't insured, some are landscaping companies that just hire a Climber on the weekends and some are guys with a pick up and a chainsaw.
It's not just me.The other companies around here are feeling the same. We have noticed this couple years ago but we didn't put much attention besides it was nothing we can do about.
Click to expand...
We have the same problems here, and have for a few years. I think these lead generation services are part of the problem, as they make it easier for someone with no skill, money, or experience to find unsuspecting customers with no marketing effort of their own.
 
Edi said:
Some are coming from neighbors states,some aren't insured, some are landscaping companies that just hire a Climber on the weekends and some are guys with a pick up and a chainsaw.
It's not just me.The other companies around here are feeling the same. We have noticed this couple years ago but we didn't put much attention besides it was nothing we can do about.
Click to expand...
All you can do is set yourself apart from the others and it will cut down competition
And customers that normally hire the guy in a pickup are usually not the type of clientele you want
 
LARGE SIGNS ON CLEAN TRUCKS
IN YOUR TARGET MARKET get advertising only to your target market.

Personally, my shop is in the middle of my target market. My service radius is about 5 miles.
IME, the more concentrated and close to home the target market, the better, especially when storms hit.




My chip truck says,
"Ask us about your trees!"



Quality work.
Give our biz cards like water.



Less intermediate money-grabbers.

You don't want lead-generation, you want sold-job generation.
Pay other people for leads that close... other tree peeps, landscapers, customers (potentially provide extra services they didn't have money for when you worked for them/ didn't consider, when you're out working for their referred neighbor).
 
So I will say this about leads, and I want to say upfront I do video work for one of the lead generating companies and they are the sponsor of my YouTube channel. This particular company does charge more than say home advisor etc. but there are several very strong advantages, you don't compete for your leads, you choose the zip code or codes to get leads from and those are protected just for you. You do have to be a legit company with insurance to be in their system. They vet out the work to try to ensure you quality leads. They customize their targeting to each area specifically to get you the best results, and so much more. Does every company NEED leads, well that really depends on the size of your company and your ability to do your own marketing. I know from shooting dozens of testimonials with all different size companies, this lead generating company works and works well.
 
southsoundtree said:
LARGE SIGNS ON CLEAN TRUCKS
IN YOUR TARGET MARKET get advertising only to your target market.

Personally, my shop is in the middle of my target market. My service radius is about 5 miles.
IME, the more concentrated and close to home the target market, the better, especially when storms hit.




My chip truck says,
"Ask us about your trees!"



Quality work.
Give our biz cards like water.



Less intermediate money-grabbers.

You don't want lead-generation, you want sold-job generation.
Pay other people for leads that close... other tree peeps, landscapers, customers (potentially provide extra services they didn't have money for when you worked for them/ didn't consider, when you're out working for their referred neighbor).
Click to expand...
This is the best advice in this thread in my opinion. CLEAN EQUIPMENT! He didn’t say “new,” just clean. If you buy used equipment, budget in the cost to repaint them. Our company has never paid for leads or marketing. We spend our money on nice equipment and a high quality website. We work hard to earn 5 star google reviews from our clients and we bend over backwards to make our clients happy even when they are being unreasonable.
 
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