Cost per Lead Question

[Big Will]

Hey guys, I'm a Marketer who's somewhat new to the Tree Service niche.

I've got a guy who I sent 11 leads to this month, and he's giving me crap on the monthly fee.

I'm only charging him $300, because honestly I don't know what the leads are worth.


My questions are:

What's the average tree removal / stump removal ticket price?

What's your profit margin for these jobs?

How often do you close the deal when giving an estimate?


Thanks in advance ya'll

 

[Del_]

I doubt your leads are much better than opening a phone book and making cold calls at random.

That's why you are getting crap.

 

[ATH]

How many of those 11 does he close?

Does he charge for initial consult regardless of closing on the lead?

How busy is he without your leads?

that is abut $30 per lead. If I was paying $30 per lead for cold leads, I wouldn't be too excited either. however, if that vast those were solid leads that resulted in work I could tolerate that. But to be on the hook for $300 every month not knowing whether that I would get jobs out of it sounds like a lot...especially if I am already as busy as I could be without spending that $300.

"Average price" is useless. When people ask on the phone "how much does it cost to prune a tree" I tell them between $100 and $5000 - impossible to say without seeing the tree, and every tree is going to be different.

I close better than 85%. Generally people calling me want me to do their work and I just need to be fair with the price. I'd expect better than that out of paid leads.

 

[TreeProfessional]

In Australia each lead is worth approximately $16 assuming you have a 1 in 3 chance of being successful. For my business I'd be happy to pay $25-50 per lead if they were a 50/50, or buy a lead at 5% of each jobs total ($50 for every $1000).

 

[Big Will]

I doubt your leads are much better than opening a phone book and making cold calls at random.

That's why you are getting crap.

The leads are good, its all google leads. I'm in Local SEO. Mostly tree removal leads, a couple stump removal leads, and then maybe a few of something else.

He says he closes 50% on estimates over $500

 

[ATH]

I wouldn't pay anything for 50/50 leads...

 

[jefflovstrom]

We market ourselves, we create our own leads,
Jeff

 

[Del_]

We market ourselves, we create our own leads,
Jeff

Same here. I've never paid for a lead and never will.

 

[DR. P. Proteus]

The leads are good, its all google leads. I'm in Local SEO. Mostly tree removal leads, a couple stump removal leads, and then maybe a few of something else.

He says he closes 50% on estimates over $500

It common for a man to contradict himself over the course of his lifetime. Its true, and this is normal and a part of growing and learning. There is really nothing wrong with it, its natural.



However when a man spews contradictory information like a winning jackpot machine then the obvious conclusion is that that man is just repeating the thrown together jargon he put on a suit for and sat there like a good boy and listened to like it was the word of god but without having a clue as to how conniving the entire charade is.

Well? WTF?

Maybe you don't believe me?


Maybe I am lunatic paranoiac?

Try this on:


"The leads are good, its all google leads"


Surely a man can see the contradiction here?

No?


Going on:

You say you are a SEO ( whoopee!), a Mr. Big Time, but that you don't know very much about what you are doing, even going so far to say you " honestly, don't know how much to charge".

I could keep going but my head is spinning.

 

[DR. P. Proteus]

I doubt your leads are much better than opening a phone book and making cold calls at random.

That's why you are getting crap.

Nah, the leads are good! They're from google, I googled it, they're good!

 

[jefflovstrom]

The guy was a spam troll, he won't be back.
Jeff

 

[Del_]

The guy was a spam troll, he won't be back.
Jeff

I'd like to meet his tailor.

 

[jefflovstrom]

I'd like to meet his taylor.

Tailor?
Jeff

 

[Jed1124]

ADL is one of the most important metrics that large companies use to determine where their marketing dollars are most efficiently spent.
The big 3 in tree care are paying attention to it on a daily basis.

 

[DR. P. Proteus]

Tailor?
Jeff

D
Little old lady

C
got mutilated

G
late last

C
night




And I tell you what, when a person uses the word 'niche' in front of me, the form their lips take make me want to shoot them. They keep talking to me thinking I am listening but I am thinking other things and focused on the rage. Same thing with people who hiss their S's.

 

[Kigiin]

Some here are harsh. Leads are the lifeblood of most businesses. And the internet is a huge source. I am in the same business as the OP and my clients get great value, otherwise they wouldn't continue to pay me. Now I understand everyone views lead generation differently, and not everyone wants to pay for leads. Fair enough. A cat can be skinned multiple ways when it comes to getting new business.

 

[Jeff Beeler]

Hey guys, I'm a Marketer who's somewhat new to the Tree Service niche.

I've got a guy who I sent 11 leads to this month, and he's giving me crap on the monthly fee.

I'm only charging him $300, because honestly I don't know what the leads are worth.


My questions are:

What's the average tree removal / stump removal ticket price?

What's your profit margin for these jobs?

How often do you close the deal when giving an estimate?


Thanks in advance ya'll

Those leads can be great it depends on so many factors.
Been doing lead gen for my tree company for 19 years. I have had months I generated 500 leads for my 3 sales guys. I close 50% but my guys are a little lower.

It's a numbers game. My average job 10 years ago was $1300 but now it's $1,800.

If a company isn't putting 10-20% of groas back into marketing each year in their first 5 years or if they are doing under 7 figures then they just like where there at and are not wanting to grow any bigger.

Profit margin is based on how well they manage and sell their jobs etc. As well as if they are pulling a big salary out.

Example $30 a lead. Sell 1 of 3 then cost is $90. If average job is at least $1000 then that is perfect. What most don't get is LTV (life time value) of the customer for repeat and referals. But most haven't grown to 7 figures in 4 years. Plus I live and breath market and sales.

Use to do lots of SEO now mostly Facebook.

 

[jefflovstrom]

Those leads can be great it depends on so many factors.
Been doing lead gen for my tree company for 19 years. I have had months I generated 500 leads for my 3 sales guys. I close 50% but my guys are a little lower.

It's a numbers game. My average job 10 years ago was $1300 but now it's $1,800.

If a company isn't putting 10-20% of groas back into marketing each year in their first 5 years or if they are doing under 7 figures then they just like where there at and are not wanting to grow any bigger.

Profit margin is based on how well they manage and sell their jobs etc. As well as if they are pulling a big salary out.

Example $30 a lead. Sell 1 of 3 then cost is $90. If average job is at least $1000 then that is perfect. What most don't get is LTV (life time value) of the customer for repeat and referals. But most haven't grown to 7 figures in 4 years. Plus I live and breath market and sales.

Use to do lots of SEO now mostly Facebook.

 

[old CB]

Today I got my second call of the week from these guys, always a fast talker with a radio voice. "Hey, this is __ _______, I'm looking for a tree service out there in Boulder." If he was from around here he'd know I have a Boulder address but I live on the side of a mountain and work in the foothills, not in town.

Here's what you lead-generators need to know: Those of us who do good work in this business (like any other business, I guess), your name gets around. Satisfied customers give your name to their neighbors. I have work enough on word-of-mouth basis, besides county work and a bit of promotion, that I don't need to give you any percentage of my check for you bringing a job to me.

That's why I don't call back.

 

[Del_]

Today I got my second call of the week from these guys, always a fast talker with a radio voice. "Hey, this is __ _______, I'm looking for a tree service out there in Boulder." If he was from around here he'd know I have a Boulder address but I live on the side of a mountain and work in the foothills, not in town.

Here's what you lead-generators need to know: Those of us who do good work in this business (like any other business, I guess), your name gets around. Satisfied customers give your name to their neighbors. I have work enough on word-of-mouth basis, besides county work and a bit of promotion, that I don't need to give you any percentage of my check for you bringing a job to me.

That's why I don't call back.

I am quite certain that we have people who are selling leads posting here lying to us saying they are in the tree biz. That is how they operate.