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The money is made on the backend
The problem isn't your leads. It is you. Real examples inside.
Andy Walker
December 22, 2024
Two Problems Holding Service Business Back
In today’s newsletter, we will cover the biggest problem I see inside of home service businesses.
These are exclusive insights from working with over 200 home service businesses, including some of the top franchises in the country.
Time and time again, I hear owners saying, “These leads aren’t any good.” or “The ads are not getting enough leads.”
The leads are not bad. They are searching for your service in your area.
The problem is in two parts.
Sales process & ability to understand data.
There is no process or organization on the backend for managing a sales pipeline.
If you want to compete with pro’s you need to have operations like you are one.
From new lead to deal closed, you should know exactly what stage they are in.
Second, you move too slowly. When a new lead comes in, you need to have time to contact in under 5 minutes.
Every minute that passes without you contacting them lowers the probability you have of closing them.
Speed to lead.
The second part of the problem is the inability to understand data on a longer-term time horizon.
Most are too focused on direct ROI from digital marketing. I spent $2,000 this week. How much did I make?
This is not how it works.
The majority of your money will be made on the backend.
If you provide a half-decent service, you should be able to do two things.
Collect a review
Get a referral
Every single customer you get should lead to the next. Whether it’s word of mouth, being seen in the neighborhood doing work or having your trucks on the road.
Even the leads that you do not close you can still make money from.
Maybe not today or next week, but you now have a the contact information of a prospect interested in getting services from you.
It is very probable they will need the service again in the future.
Every year, you should attempt to retarget and reactivate them with special offers and personalized targeting.
The difficult part to wrap your mind around is that it is difficult to have a clear attribution of the ripple effect of landing one job, especially when that ripple effect may not come full circle for a period of months.
The best operators understand this.
Take a look at our client Sam. He scaled a roofing company to $40M/year in just a few short years.
You need to maximize every single lead you generate through paid. Don't rely on paid alone. What if instead of lowering your PPC price per lead, you generated one organic lead off of every ppc acquisition you generated.
Option A: Brainstorm how to get ppc CPA from $500 to $400.… x.com/i/web/status/1…
— Sam Allsopp (@sam_allsopp_)
9:04 PM • Dec 10, 2024
Thats all.
Love you,
Andy
How To Scale Your Service Business to $1M As Fast As Possible
How I can help you:
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