Painting
Painting Lead Value Calculator
Works what a painting lead is worth, which sets what you can pay for one.
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 AuditHow the calculation works
Close rate times the gross profit on the first job gives a lead's value, with repeat work over the relationship added. The share of that you are willing to spend sets the maximum per lead. In painting the calculation has to include estimating cost, because unlike trades that quote by phone, each lead consumes a site visit whether or not it converts.
What moves the number
- Close rate, which determines how many leads each job consumes.
- Gross profit on the typical first job.
- Estimating time per lead, including those that do not convert.
- Whether leads are exclusive or shared.
Where this one goes wrong
Shared leads close far worse in painting than exclusive ones, because homeowners collecting three quotes are frequently price shopping and the work goes to the cheapest rather than the best. Applying an exclusive close rate to shared leads overstates their value substantially, and buying them at that price is how painting businesses end up doing unprofitable work to stay busy. The estimating cost on unconverted leads is the other adjustment, and in this trade it is large enough to change whether a lead source is viable.
Before you quote
- Apply a lower close rate to shared leads.
- Include estimating time on unconverted leads.
- Compare the lead price against your own break-even per lead.
Questions
About this calculator
What is a painting lead worth?
Your close rate times the gross profit on a typical job, less the estimating cost of the leads that did not convert. That last part matters more in painting than in trades that quote by phone, since every lead consumes a site visit.
Are shared painting leads worth buying?
At a much lower price than exclusive ones, because a homeowner collecting three quotes is often price shopping and the work goes to the cheapest. Applying an exclusive close rate to shared leads overstates their value and leads to buying unprofitable work.
How do I know if a lead source is working?
By tracking cost per job won rather than cost per lead, and including the estimating time spent on the leads that did not convert. A source producing cheap leads with a poor close rate can cost more per job than an expensive source with a good one.
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 $2,900.
- Gross margin (%). Enter your own figure; the page starts at 42%.
- 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 | $2,900 |
| Gross margin | 42% |
| 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 | $1,325 |
| From the first job alone | $389.76 |
| Value of one customer | $4,141 |
| Most to pay per lead | $331.30 |
One lead is worth $1,325 in gross profit once the close rate and repeat work are counted. Paying more than $331.30 for one leaves too little behind to be worth doing.
How sensitive the answer is
Holding everything else steady and changing only average first job, this is what happens to value of one lead. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Average first job ($) | Value of one lead |
|---|---|
| $1,450 | $662.59 |
| $2,175 | $993.89 |
| $2,900 example above | $1,325 |
| $4,350 | $1,988 |
| $5,800 | $2,650 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Share of leads you win (%)
- A percentage, between 0 and 100, starting at 32%.
- Average first job ($)
- A money amount, starting at $2,900.
- Gross margin (%)
- A percentage, between 0 and 95, starting at 42%.
- 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. |
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.