Last month, I blogged about lead and cost-per-lead stats of five MYM PPC clients. These stats were from the beginning of the year to November 4th.
Today, I want to show you the stats of the same five clients through December 2nd. In parentheses, I’ve denoted the total difference in lead count and cost per lead between November 4th and December 2nd. This will give you a better sense of what to expect from a PPC campaign once it is fully optimized.
Note: The following statistics are not for No-Risk PPC Lead Generation. We’re still in the process of switching over some of our current PPC clients to No-Risk PPC. I tell you this because once these clients are switched over to No-Risk PPC, their monthly lead count will be more static (since THEY will be choosing the amount of leads they want). Their cost per lead, however, will be similar to what you see below.
Company names are kept confidential for privacy purposes. For more in-depth details on client lead amounts and CPL, email us at firstname.lastname@example.org.
- Illinois Door Company
a. Number of leads since January 2017: 516 (+11)
b. Cost per lead: $146.35 (-$1.62)
- Utah Roofer
a. Number of leads since January 2017: 611 (+19)
b. Cost per lead: $58.55 (+$0.35)
- Washington Gutter Company
a. Number of leads since January 2017: 505 (+22)
b. Cost per lead: $123.74 (-$0.67)
- Tennessee Exterior Remodeler
a. Number of leads since January 2017: 851 (+19)
b. Cost per lead: $169.46 (+$7.76)
- Kansas Kitchen and Bath Remodeler
a. Number of leads since January 2017: 923 (+52)
b. Cost per lead: $25.35 (-$1.30)
- As you know, this is the slow season for most contractors. The increase in the amount of leads between November 2nd and December 4th for all clients is much higher during the spring and summer. (For example, client #1 typically experiences 30 to 40 leads per month during the busy season, while client #5 gets over 100 per month.)
- Cost per lead will fluctuate up and down, depending on difference circumstances. If you’re someone like client #4, a $7.76 increase during one particular month is nothing to worry about (especially when your cost per lead is sub-$200 to begin with!). The cost per lead could just as easily decrease $10 or $15 next month.
- Depending on your market and how aggressive you want to be, you can experience results like client #1 or #5.
If you think THESE numbers are good, wait until we get these clients locked and loaded with No-Risk PPC Lead Generation. I can’t want to show you THOSE results.
If you’d like to learn more details about what MYM No-Risk PPC Lead Generation can do for your company and profits, visit the official No-Risk PPC webpage. Or, shoot an email to email@example.com. We’d be happy to answer your questions.
If you’re new here, you probably don’t know that there are two types of pay-per-click advertising.
First, there’s “normal” PPC.
This is the type of PPC you’re already familiar with. The goal of “normal” PPC is to get as many clicks as possible for as low of a cost-per-click as possible. You won’t know how many leads you’re getting or what your cost per lead will be. “Normal” PPC doesn’t track that stuff.
Then there is PPC Lead Generation..
This is the type of PPC most contractors don’t know exist. But it’s hands down the better type of PPC for remodelers, builders, and construction companies.
PPC Lead Generation still tracks clicks and cost per click. It still requires a monthly budget (except when it doesn’t… more on that in a second). But PPC Lead Generation uses more sophisticated methods and technology to collect and measure what’s really important: LEADS and COST PER LEAD.
By focusing on leads instead of clicks, PPC Lead Generation actually grows your business. And does so in a quantifiable way.
MYM specializes in PPC Lead Generation. But we’ve evolved it to the next level.
No-Risk PPC Lead Generation is contractor-specific PPC Lead Generation that requires NO budget, NO commitment, and NO risk.
It’s PPC Lead Generation on PEDs.
Here is a completely scientific visual comparison among PPC, PPC Lead Generation, and MYM No-Risk PPC Lead Generation:
PPC Lead Generation
MYM No-Risk PPC Lead Generation
Here’s how No-Risk PPC Lead Generation works…
You tell us the number of leads you want. We get them to you for $200 or less per lead—guaranteed. We track every single PPC-related call, chat, and contact you get to determine your amount of TRUE leads. Once you receive and review your leads, then you pay for those leads.
- You don’t have to worry about running out of money 10 days into your monthly campaign.
- You don’t have to worry whether clicks are (or are not) turning into leads.
- You don’t have to worry about wrong numbers, calls outside your service area, or calls for services you don’t provide counting as leads.
- All you have to focus on is closing the leads we supply you. And since PPC leads are usually the hottest of the hot, that shouldn’t be a problem.
So if “normal” PPC has failed you in the past… and you can’t stomach the budget for typical PPC Lead Generation… step up to MYM No-Risk PPC Lead Generation. It will grow your business as fast as YOU want it to… without any risk.
Email firstname.lastname@example.org for more details. We can analyze your business and market to determine how many leads are available in your area. If you decide you want to proceed, we’ll get the ball rolling immediately.
P.S. When you become an MYM No-Risk PPC client, we waive our $1,000 monthly management fee for the first three months. This is to prove the program will deliver the leads you need to grow your business to where you want it to be.
In my last post, I mentioned that it’s possible for No-Risk PPC Lead Generation to finance the growth of your company.
In a nutshell…
You start with a certain amount of leads—however many you want. You make sales off those leads and put a portion of that money back into your PPC campaign. Every month, you increase the number of leads, and therefore increase your sales.
Wash. Rinse. Repeat. To infinity… and beyond.
Buzz Lightyear approves.
Now, let’s break down the actual numbers.
Say you’re a contractor that wants to start with 60 PPC leads and steadily increase that number every month. Here’s how that would go…
- 60 leads x $200 per lead = $12,000.
- Note: $200 per lead is the MAXIMUM you will spend. But we’ll go with it for this first month.
- Out of those 60 leads, let’s say you close 25%. That’s 15 sales.
- Your average sale is $10,000. Fifteen sales times $10,000 is $150,000.
- Result: You invest $12,000 and sell $150,000. (ROI = 1,150%)
- If your gross margins are 50%, that means you make $75,000 in gross profit; subtracting out lead costs and sales commissions should still NET you $25k to $40k.
- Invest SOME of those profits into more leads (and possibly more infrastructure to handle more leads) the next month…
Month 2 (your campaign is more optimized, so your cost per lead is lower):
- 100 leads x $170 per lead = $17,000.
- Out of those 100 leads, you close 25%. That’s 25 sales.
- Twenty-five sales times $10,000 is $250,000.
- Result: You invest $17,000 and make $250,000. (ROI = 1,370.59%)
- Keep going! Ramp it up even more!
Month 3 (your cost per lead is now even LESS):
- 160 leads x $140 per lead = $21,000.
- Out of those 160 leads, you close 25%. That’s 40 sales.
- Forty sales times $10,000 is $400,000.
- Result: You invest $21,000 and make $400,000. (ROI = 1,804.59%)
- Boom. Once that snowball starts rolling downhill, it keeps gaining steam and getting bigger.
You might be saying, “But Rich, my close rates aren’t that high.” Or, “But Rich, my average sale is $8K, not $10K.”
Doesn’t matter. Just adjust the numbers. Start with a smaller number of leads. Then work your way up.
I’ll do a more conservative example to prove it still works…
- 30 leads per month x $200 per lead = $6,000.
- Out of those 30 leads, you close 15%. That’s “4.5” sales. But let’s round down to 4 sales in keeping with our “conservative” approach to the numbers.
- At an $8,000 sales average, that comes to $32,000.
- Result: You invest $6,000 and make $32,000. (ROI = 433.33%)
Then follow the steps in the first set of examples above for months two, three, and beyond.
If you want to know how many PPC leads are available in your market, email us at email@example.com.
We’ll run the numbers to give you a solid idea of how many leads you can get per month. We’ll also help you determine the optimal number of leads at which to start, so you can build your way up comfortably… and profitably.
P.S. Want to run your own numbers? Visit the No-Risk PPC Lead Generation page. A little more than halfway down the page is a sales calculator. Input your numbers to instantly generate your estimated sales with No-Risk PPC.
Last week, I wrote a post titled: “The question the smartest remodelers ask about PPC advertising.”
That question is “What’s the maximum number of leads you can get me?”
(If you want the answer, send an email to firstname.lastname@example.org. We’ll take a look at your services and location to crunch the numbers and give you an estimate.)
I went on to tell you about some of our biggest PPC clients, including a company that spends up to $230,000 a month on pay-per-click advertising.
Now, let me tell you the fun little story behind the company that spends that much…
I started working with them in 2011. I went up to their office and met with them for a “kick off” meeting like I always do, where we discuss strategies and budgets.
One of their budget items, of course, was PPC. At the time, the company was doing about $40 million a year and had a marketing budget of roughly $4 million.
I scratched my head when I looked at their PPC number for the previous month. It was $20,000.
“$20,000?” I asked, “Why is this number so LOW?”
They responded that that’s just how much they had budgeted. It was $20,000 a month in peak months (seasonal business), and only $10,000 for non-peak months.
When I asked how they came up with that number, they said it was “just how much they allocated.” Basically, it was an arbitrary number.
So I had them pull the records from the previous month, and asked them if the $20,000 lasted the whole month, or if they “ran out.”
Turns out, they had “run out” of PPC money to spend on the 11th of the month.
In other words, from the 12th to the 31st of the month, they spent NOTHING on PPC. Zero. Nada. Zilch. They had no budget left.
Then I had them research what their cost per lead and conversion rate on their PPC leads had been.
Turns out, PPC was their absolute LOWEST cost per lead of ANYTHING they were doing… and the conversions were actually HIGHER than average compared to their other lead sources!
Then I found out (to my horror) that they were only running the PPC campaigns in less than HALF of the geographic area they serviced.
Why? Obviously, they hadn’t allocated enough budget.
Here’s what I said to them, word for word:
“ARE YOU CRAZY?! You should spend every possible PENNY that you can on PPC… BEFORE you spend a single cent on anything else…and I mean ANYTHING else!”
They got the point. They immediately shifted their budget out of less productive things to free it up to “max spend” on PPC.
Over the next six years, their company continued to grow (to well over $100 million), and as their footprint grew, their PPC budget grew as well… all the way up to $230,000 a month.
Honest to goodness, that’s a true story.
And here are the takeaways:
- Not everyone “gets” the power of PPC right away—even really smart people running really successful companies. That’s okay.
- You can grow into PPC. Yes, “unlimited” is the best number of leads to buy. But start with 50 or 100 a month—we’ll help you grow to as many as exist.
If your entire marketing budget is only $20,000 a month, the thought of spending all or most of it on PPC might be frightening.
But realistically, if you stagger your lead flow (50 the first month, 100 the 2nd month, 150 the 3rd month, etc.), you can just let the sales from PPC finance the growth of your company.
In other words…
Instead of having a $20,000 budget and a $2-million company, why not have a $40,000 marketing budget (half in PPC, the other half in whatever you’re already doing) and have a $4-million company?
Boom, you just doubled your sales. And there’s no risk. For proof, visit MYM’s No-Risk PPC Lead Generation page.
Next post, I’ll run the actual numbers on how No-Risk PPC Lead Generation can finance the growth of your company.