As a contractor, how much are you spending on gutter leads? Regardless of the size of your business, both small and large contractors need to evaluate their return on investment (ROI) to determine the ideal cost of gutter leads before moving forward with a lead generation service.
When determining the right cost of gutter leads, it is important to look at your out-of-pocket expenses and the upside potential of your spending. Yes, you will have upfront expenses for residential gutter leads; however, when you see how much business gutter leads bring to your company, then it is easy to understand why it makes sense to invest in a lead generation service.
Budgeting for Residential Gutter Leads
The key to success with investing in a lead generation service is to find the “sweet spot” between maintaining your budget and supporting steady growth for the company. The cost of gutter leads will affect your expenses each month. At the same time, working with a lead generation service, such as Modernize is an effective strategy to add to your bottom line.
Why should you know your ROI? Because these numbers will influence your decision when determining the correct cost of leads. Then, you will be more effective in dialing in the proper budget that meets the long-term goals for your company.
The Importance of Calculating ROI
If you are bringing in more profits than you are spending on lead generation, it is a good investment. ROI is a way to measure the profitability of your investment.
Ask yourself: how many times would you invest $1.00 if you consistently receive $1.25 or $1.50 back in return?
While the actual return on investment varies depending on your business and chosen provider for gutter leads, you need to know what you will receive when putting money into the service. ROI is a key performance indicator that shows how well your business is doing – and potential areas for improvement.
How to Calculate ROI
It doesn’t take an advanced math degree to calculate ROI, but you need to look at your current spending and profits for gutter leads. Or you can focus on what you do best, working with homeowners and installing gutters, and let an experienced advisor or lead provider help with the data analysis.
When calculating ROI, you need to subtract the initial value of the investment from the final value of the investment, which then gives you the net return. Next, you take the net return and divide it by the cost of investment. Once you have the number multiply it by 100 percent. How much money are you spending on gutter leads? What is the overall return that comes back to your company as a result of lead generation?
ROI = (Total Revenue of Projects – Cost of Leads) / Cost of Leads
For example, say you completed five jobs from a batch of gutter replacement leads. In order to learn your return on investment, you’ll want to subtract the cost of the batch of gutter leads from the total revenue you generated from the five completed jobs. You’d then take that number and divide it by the cost of your batch of leads. Finally, multiply It by 100 and you’ll have your ROI percent from that unique batch of leads.
If your ROI calculation results in a positive figure, it means the total returns exceed the total cost. In other words, you made more money on your return than how much you spent on gutter leads. Alternatively, if your ROI calculation is negative, that means the total cost exceeds your total returns. In other words, you are spending more money on leads than closing deals.
The Cost of Modernize Gutter Leads
It is not a simple answer to identify the cost of Modernize gutter leads. Instead of offering contractors cheap workarounds to bring in short-term leads, we focus on the long game. Our highest priority is in developing lasting partnerships and sold relationships. So, we always dedicate the time to understand your unique needs and goals.
The cost of residential gutter leads varies depending on some of these factors:
- Homeowner intent
- Market location
If you are ready to learn more about the cost of gutter leads, reach out to our pros team to discuss Modernize gutter leads. We have a proven system that transforms the homeowner experience when installing or repairing residential gutters. Our digital marketing channels connect your contracting business with qualified leads in real–time.
Our goal is to make sure that your Modernize gutter leads cost less than the profits you are bringing in on the projects. This personalized approach addresses your unique needs, thus optimizing overall results by connecting you with the ideal customers for your services.