Roofing
Roofing Lead Value Calculator
Work out what a roofing lead is worth in gross profit and the maximum it is worth paying for.
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, which in roofing is lower than in service trades.
- Average job gross profit rather than revenue.
- Whether the lead is storm-driven, which changes both conversion and value.
Where this one goes wrong
Valuing leads on the average job. Roofing job values vary enormously between a repair and a full replacement, and a lead source producing mostly repairs is worth far less than one producing replacements.
Questions
About this calculator
What is a roofing lead worth?
Close rate multiplied by average gross profit, which in roofing means the lower conversion has to be accounted for. High job values can make even a low close rate worth paying for, but only if the arithmetic is done.
Are shared leads worth it?
Only at a price that reflects competing for the same homeowner with several other companies. The close rate on shared leads is materially lower and the price should reflect that.
Should storm leads be valued separately?
Yes. Volume, urgency and conversion all differ, and blending them produces a value that fits neither.
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 $9,800.
- Gross margin (%). Enter your own figure; the page starts at 34%.
- 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 | $9,800 |
| Gross margin | 34% |
| 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 | $3,625 |
| From the first job alone | $1,066 |
| Value of one customer | $11,329 |
| Most to pay per lead | $906.30 |
One lead is worth $3,625 in gross profit once the close rate and repeat work are counted. Paying more than $906.30 for one leaves too little behind to be worth doing.
How sensitive the answer is
Holding everything else steady and changing only average first job, this is what happens to value of one lead. It is worth knowing which of your inputs the answer actually hinges on, and which barely move it.
| Average first job ($) | Value of one lead |
|---|---|
| $4,900 | $1,813 |
| $7,350 | $2,719 |
| $9,800 example above | $3,625 |
| $14,700 | $5,438 |
| $19,600 | $7,250 |
Every other input is held at the example value while this one changes, which is not how a real job behaves. Treat it as a guide to which number matters most, not as five separate quotes.
What each figure means
- Share of leads you win (%)
- A percentage, between 0 and 100, starting at 32%.
- Average first job ($)
- A money amount, starting at $9,800.
- Gross margin (%)
- A percentage, between 0 and 95, starting at 34%.
- 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. |
What this cannot see
Material quantities assume a clean rectangular plane and the waste factor you enter. Valleys, hips, dormers, penetrations and a steep pitch all raise real waste, and a tear-off frequently uncovers decking that was not in the quote.
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.