Landscaping
Landscaping Lead Value Calculator
Work out what a lead is worth, with route position factored in.
Result
This is gross profit, not revenue, and it counts the whole relationship rather than the first job. It assumes the repeat work is real for your business, which is worth checking against your own records before spending against it.
Get a Free Business AuditWhat moves the number
- Close rate and average annual customer value.
- Retention, since maintenance value accrues over seasons.
- Whether the lead is on or off an existing route.
Where this one goes wrong
Paying the same for every lead regardless of location. In a route-based business, a lead's value depends heavily on where it is, and a flat cost per lead overpays for the scattered ones.
Questions
About this calculator
How should landscaping leads be valued?
On multi-season value rather than the first contract, and adjusted for route position. Both matter more here than in trades where every job is a separate trip anyway.
Are leads outside the service area worth buying?
Only at a price that reflects the travel, or if they represent the start of a new route. One isolated customer rarely pays.
What about installation leads?
Higher immediate value and no recurring revenue unless they convert to maintenance. Worth tracking separately because the economics are different.
The formula
lead value = close rate x first job profit x (1 + repeat jobs)
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How to use this calculator
- Share of leads you win (%). Enter your own figure; the page starts at 32%.
- Average first job ($). Enter your own figure; the page starts at $340.
- Gross margin (%). Enter your own figure; the page starts at 44%.
- Extra jobs over the relationship. Enter your own figure; the page starts at 2.4.
- Share of value you will spend (%). Spending the whole value leaves nothing for the business.
The result updates as you type, so you can try a figure, see what it does to value of one lead, and change it back. Nothing you enter is sent anywhere or saved.
A worked example
These are the figures the calculator opens with. Every number in the results column below is produced by the same calculation the page runs, so you can follow it through before putting your own figures in.
What goes in
| Input | Value |
|---|---|
| Share of leads you win | 32% |
| Average first job | $340 |
| Gross margin | 44% |
| Extra jobs over the relationship | 2.4 |
| Share of value you will spend | 25% |
What comes out
| Result | Value |
|---|---|
| Value of one lead main result | $162.76 |
| From the first job alone | $47.87 |
| Value of one customer | $508.64 |
| Most to pay per lead | $40.69 |
One lead is worth $162.76 in gross profit once the close rate and repeat work are counted. Paying more than $40.69 for one leaves too little behind to be worth doing.
How sensitive the answer is
Holding everything else steady and changing only average first job, this is what happens to value of one lead. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Average first job ($) | Value of one lead |
|---|---|
| $170 | $81.38 |
| $255 | $122.07 |
| $340 example above | $162.76 |
| $510 | $244.15 |
| $680 | $325.53 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Share of leads you win (%)
- A percentage, between 0 and 100, starting at 32%.
- Average first job ($)
- A money amount, starting at $340.
- Gross margin (%)
- A percentage, between 0 and 95, starting at 44%.
- Extra jobs over the relationship
- A number, between 0 and 50, starting at 2.4.
- Share of value you will spend (%)
- Spending the whole value leaves nothing for the business.
What the results tell you
| Result | What it is |
|---|---|
| Value of one lead | The headline result. A money figure. |
| From the first job alone | A money figure. |
| Value of one customer | A money figure. |
| Most to pay per lead | A money figure. |
Seasonality is not in this
Coverage and material figures assume the area you enter. Slope, access for machinery, existing growth and the time of year all affect both quantity and labour, and none of them appear in a calculation like this.
Estimating is the easy part
The jobs you never hear about cost more than the ones you mis-measure. BDEVY builds the marketing, systems and automation that bring them in.