Read the full article: Best & Worst Marketing Strategies for Home Improvement Contractors
More so than ever, there are more and more marketing channels coming available that specifically target home improvement contractors. Here is a quick breakdown of the best and worst marketing strategies for home improvement contractors.
Worst Marketing Strategies
Contractor Referral Services (non-exclusive)
Home owners are getting smart as well as educating themselves on how ‘referral services’ really work. They are discovering that ‘getting multiple bids’ is simply a marketing tactic to have their information resold to a network of hungry, dog-like contractors ready to bite at any work that comes their way.
Now contractors are getting a bit burnt out too, especially when they only make quality contact about 2/10 times and close really only 1/10 leads, if that.
I am assuming this portion of the article is referring to ServiceMagic.com? – Scottsdale SEO
These leads simply said; cost more and do less and make our list of one of the worst marketing strategies for small home improvement contractors.
Outsourced Pay-Per-Click Management:
Before I get into personal reasons on why home improvement contractors should steer clear of outsourced PPC Management firms, also known as local internet advertising companies.
According to recent study from Jupiter research, more than 70% of small business owners who outsource their PPC campaigns are dissatisfied – and here are a few reasons why…
High Average Cost-Per-Lead:
The average website converts at 6%, most outsourced PPC firms charge you roughly 30-50% of your budget for ‘Management Fees,’ so let’s see what your expected ROI is on a $1000/mo budget for an average website owner…
- Monthly Budget: $1,000
- Budget after ‘Management Fee’: $600
- Average Cost-per-click: $10
- Total Clicks: 60
- Actual Leads: 3-4 (based on an average site conversion rate of 6%)
- Average Cost-per-lead: $333
Now granted, this number can very – but not by much. Some Local Internet Advertising firms who specialize in PPC might charge you a flat monthly ‘management fee,’ or take a undisclosed % of your budget as well as up charging your cost per click.