One of the most recurrent questions home contractors often ask is, “How much do the home improvement leads cost?” This is a fair question. However, this is not where you should put your focus. You can buy home remodeling or refurbishment leads for as little as $25 each to as much as $200. So what makes the difference?
The simple answer is: conversion rate.
Buying leads that have a maximum conversion is where your money and efforts are worth investing. So, the right question will be, how much do exclusive home improvement leads cost that have the potential to convert into your paying customers.
Well, to solve this mystery, we have come up with this comprehensive guide in which we will share the ins and outs of home improvement leads.
So, let’s get started!
Table of Contents
A Glance at U.S. Home Improvement Industry
In recent years, there has been tremendous growth in the U.S. home improvement sector. As per the Statista report, the industry solely generated $538 billion in market revenue in 2021 and is expected to reach $620 by the year 2025, leaving a sea of opportunities for home contractors. The following are some of the further mind-boggling statistics of the U.S. home improvement market:
- An American household spends an average of $3,000 a year on home remodeling and refurbishing services.
- More than 50% of states’ homes were built before 1980, increasing the likelihood of investing in home projects to make them functional and aesthetically appealing.
- The number of online searches related to home remodeling contractors will almost double from 2020 to 2021.
- The home improvement industry ranks in the 48th position in terms of market size.
Seeing the aforementioned numbers, it is very evident to say that the U.S. home improvement industry is rising exponentially with more Americans investing in home projects every passing year.
What are the different types of home improvement leads available?
Home improvement projects can take many forms, such as window remodeling, kitchen remodeling, bathroom or roofing repair, siding services, or more; however, the way to reach these leads via purchasing falls into the following two categories:
- Shared Leads: As the name suggests, the shared lead is sent to multiple contracting businesses so that they can close the deal as soon as possible. This further divides the rate of conversion for a company by the one-nth time, where n represents the number of home contractors.
- Exclusive Leads: These leads are exclusively shared with only one home improvement company, thus maximizing the conversion rate of becoming the paying customer.
- Aged Leads: These leads were generated earlier (often months) and may not be actively seeking services anymore
| Feature | Shared Leads | Exclusive Leads | Aged Leads |
|---|---|---|---|
| Price | Low | High | Lowest |
| Competition | High | None | Varies |
| Lead quality | Varies | High | Varies |
| Conversion rate | Lower | Higher | Lower |
| Volume | High | Low | High |
| Best for | Volume acquisition, strong sales team | Quality leads, premium services | Budget-friendly, lead nurturing expertise |
Moreover, due to ever-evolving consumer behaviors and the growing fierce competition, it has become challenging for home contractors to grab their hands on potential leads and secure the sales. For this reason, a lot of companies are investing in exclusive home improvement lead generation services.
Let’s take a closer look at their benefits first, and after that, we will move ahead towards the cost of exclusive home improvement leads.
Why do businesses spend on exclusive home improvement leads?
Did you know that 53% of marketers spend at least half of their budget on lead generation services? Shocking, right!
Well, they have good reasons to do so. For any contracting business to survive and thrive in the industry, it is crucial to have a steady flow of consistent exclusive home improvement leads in their sales funnel. This way, they would be able to close more deals and secure enough funds to outgrow their services.
Following are the additional key reasons why home repair and renovation companies are investing in exclusive leads:
Access to higher-quality leads
Acquiring leads is only good for a home service business when they have the potential to convert into paying customers. And investing in exclusive home improvement leads guarantees you that. They are high-quality leads with real-time home improvement needs that lead to a high conversion rate, making all your money and efforts worth investing in.
Greater ROI
Exclusive means there is no competition. Since the exclusive home leads are only shared with your company, this eliminates external competition and enhances your chances of winning those prospects and turning them into loyal clients. Hence, a greater return on investment.
Greater control over demographics
Demographics is one of the crucial aspects for home contractors to gain an advantage over competitors. The personalization element of exclusive leads helps home service businesses reach out to a particular region, age group, or financial earning group and convert them into your value-driven buyers.
Saves your time and efforts
Investing in exclusive leads saves you from putting additional time and effort into designing marketing campaigns and searching qualified leads. The lead generation services handle everything exclusively on your behalf.
How much do exclusive home improvement leads cost?
While investing in home improvement leads, the average cost per lead can vary from $20 (low-value leads) to $200 (high-quality exclusive leads). So far, the home improvement companies don’t have a defined process, due to which it is hard to tell the exact price of each lead.
However, the following certain factors contribute to caution when examining the rough estimate of cost per lead:
Quality of leads
Lead quality is one of the most influential factors when it comes to cost. For instance, a real-time lead indicates that a homeowner is actively looking for home improvement services and has higher chances of conversion. On the other hand, leads that are older indicate that a homeowner might want to take some additional time before they make their final call, thus reducing the conversion rate and so the cost too.
Based on these scenarios, the quality of leads is determined by two factors:
- Closing potential: It means how fast a deal can be closed and a purchase can be made.
- Revenue potential: It means how much revenue a lead will generate over a period.
Usually, the higher the closing and revenue potential, the higher the quality of the lead, and vice versa. Furthermore, a high-quality exclusive lead is 10 times more expensive than a low-value lead.
Number of leads you buy
The next factor that can significantly impact your cost per exclusive lead is the number of leads you purchase. Buying leads in bulk lowers the individual price of a single lead, thus helping you save money.
For instance, if you acquire one qualified lead that is 1–7 days old, you will end up paying $100. But if you acquire, let’s say, 1000 leads, it will charge you around $90,000, i.e., $90 per lead, because of the bulk discount or even less (depending on your bargaining skills and the seller’s flexibility).
Targeted region
The area where your targeted audience lives has a lot to do with the cost of qualified home improvement leads. Below are the reasons why:
Market demand: Since each region has a different market size and so the different market demands. The higher the competition, the pricier the exclusive home lead will be.
Advertising cost: Ad’s spending hugely varies with region to region. For example, Alabama has the highest CPC (cost per click) whereas South Dakota has the lowest. Hence, the cost for generating home improvement leads in Alabama through marketing campaigns will be higher too.
The cumulative effect of the aforementioned two factors influence the overall cost of qualified home leads.
Check out these 100% working home improvement business marketing tips and gain more customers.
Service-specific leads pricing
Within the home improvement industry, there are various services based on which the cost per exclusive lead also varies. For example, buying a window repair lead might cost you between $30 and $300, whereas a bathroom remodel lead will cost you between $50 and $500, a siding service lead $20 to $200, and so on with the other home improvement services.
Note: Again, the prices mentioned here are just to give you a rough idea of the variation in cost per lead with varying services. These are not the final prices and may vary.
Methods of acquiring exclusive home leads
As a home contractor, you have numerous ways to obtain exclusive home improvement leads, which rightly impacts the cost factor. Either you directly purchase the lead from a lead generation company or you hire a marketing company to promote your home services online and through other means such as email or paid marketing campaigns. Each of these methods comes with an attached implementation cost that overall influences the lead cost.
Learn more about how to generate home improvement leads.
From where can you buy exclusive home improvement leads?
The best way to shop for qualified and exclusive home improvement leads is to go online. There are a plethora of options available here. And what’s more, you can talk to their salesperson, state your requirements, and get the quotation in the shortest time. Compare the prices and the quality of leads, and say yes to the one in which you see the greatest deal.
Are you still struggling to pour consistent high quality home improvement leads for your home service business? We have got you covered.
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To learn more about the kinds of home improvement leads we offer, click here.
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Final Words
The U.S. home industry is growing at a much faster pace than we anticipated, with the demand for home repair and renovation services increasing every passing day. This unlocks the door to opportunities for home contractors who are in the league of providing premium home improvement services to homeowners.
Also, with this ferocious competition, it is the need of the hour for home service businesses to invest in exclusive home improvement leads. All the aforementioned numbers have already given you a rough estimate of how much it will cost you per qualified lead and the factors influencing the overall pricing.
Now that you know everything about it, it’s time for you to step into the market and find the right home lead generation service provider for you.
We hope you find this blog informative. In case of any doubt or query, feel free to drop in the comments section below. We will respond to you shortly.
