Really Understanding PPC for Roofing Companies
For us it’s simple… We know that you can find success for roofing companies with digital marketing. Especially if you’re honest and transparent up front, and willing to set appropriate expectations. See, pay per click advertising, especially in the roofing industry is all about knowing your numbers. Below is a typical scenario that we come across daily.
Let’s use the name, The Best Roofer as the example. Most of the time, The Best Roofer is highly motivated to scale their roofing company and somebody, whether it be an industry expert or their friend at a local bar-b-q has suggested using PPC (otherwise known as Google Ads, Pay Per Click, Digital Advertising) as a tool to help them grow.
The Best Roofer is inspired and ready to get going. They start searching for local agencies that can help them “run ads”. They then conduct their first call with, (let’s call them, “The Typical Agency”). The Typical Agency has an agenda, close this hot lead that just came in through their website. The easiest way to do that is, agree with everything the customer says and promise them the world or dare we say, use the “G” word, that would be GUARANTEE.
The Best Roofer says on this introductory call, “I want 100 leads per month, and I close everything, well say 90%”. The Typical Agency says, “no problem, we can get you there. Just sign here, press hard, and we’ll be off to the races.” The Best Roofer “Oh, and we only want rips and replacements, we don’t want those cheap repair calls”. The Typical Agency “Of course, that’s easy.”
Here is the problem with “This Common Scenario” …
- Roofing Leads Are Expensive, Especially If They Are Quality Leads
- Nobody Closes At 90%, I Don’t Care Who You Are
- Repair Calls Are Typically Less Expensive but You Have To Be Able To Actually Close
You see, the agency is so motivated to hire the roofer, they don’t care what they say or what they can deliver, they just want that roofing companies’ money. We believe in setting proper expectations up front. This causes us to turn down more business than we take on, but for the roofing companies we represent for pay per click, they stay long term because they are actually making a significant ROI.
Expectations have to align with growth. Yeah, you can go buy 50 – 100 leads from Angi but that doesn’t mean they are any good. Roofing company Owners and Marketing Directors tell us weekly the horror stories about those lead aggregators. We have one company who recently shut off their Angi budget of $2,500 per month and kept their pay per click budget about the same when switching to us, which was $5,000. They told us, “The garbage leads and time suck or chasing tire-kickers has stopped but, our revenue actually went up and it’s only been our first full month with you.”
Let’s understand the real numbers involved with PPC for roofing companies. Pay per click is nothing more than data. You have to be able to understand the data, interpret the data, find opportunities within the data and most importantly, expose the data.
We like to say, roofer marketing is just like snowflakes, no two are the same. You can put together a $5M roofing company with 15 employees in Tampa, FL, and create the same size company in Atlanta, GA or Hartford, CT and you’ll have 3 completely unique scenarios. Yes, all 3 companies are exactly $5M in revenue and have the same employee count, but let’s consider some of the differences. There are many statistics and variables to account for.
- Population density
- Different competition in each market
- Higher or lower risk tolerance from the competition in each market
- Weather (hurricanes in Tampa, hail in Atlanta, snow & steep slope in Hartford)
- 2 of the 3 do commercial
- 1 of the 3 commercial represents 50% of their revenue
- 1 of the 3 wants to start getting into commercial
- 1 company has 5 of their team as canvassers and sales
- 1 company has 1 salesperson
- 1 company doesn’t have a dedicated closer
- Tampa has been around 15 years and has 300 reviews
- Atlanta has been around 5 years, has 100 reviews and wants to open a new market
- Hartford scaled fast due to commercial but only has 12 reviews and has been around 3 years
- Because of their lack of tenure, they are still figuring out their processes
- They use a call center vs. dedicated in-house appointment scheduler
- 2 of the 3 have no automation
- 1 of the 3 has no CRM
- Quality of the websites varies by company and market
- All 3 are sporadic at best with their social brand
- Only one has 6 wrapped tracks
- Company #2 has only the owner’s truck wrapped and they use all subs
- Only one has ever shot an amateur video
This list can go on and, on all day, but the point should be made by now. You should never buy into the guarantee given to you from a marketing agency that is out to get your money. We do not make guarantees, for what should now be the obvious (see above).
Roofing PPC is purely a math formula. The goal at Best Roofer Marketing is to get you the best cost for a high-quality call, period. You may be ready by now to schedule a free strategy session. If so, contact us here.
Still want more proof, let’s look at some typical PPC metrics for roofing companies.
Average conversion rates typically hover around 10% in the roofing industry. Cost per clicks varies widely, with small markets coming in as low as $15 - $20 (top of page) to major metros going for $50 - $100 (per click). Yes, you read that right. See the below example of setting appropriate expectations for a roofing company in Tampa, FL. These are real results from a real client.
A Real-Life Roofer Marketing Case Study Scenario
Their budget of $7,000 per month is yielding around 30 quality calls (or a call per day). These calls vary between Commercial, Residential Replacements and Residential Repair. This customer is a really good closer but typically has a 30-day pipeline to close rate of 50%. You can see the full case study here.
CPL = $233
Leads = 30
Closes = 15
Type = 7 Repair
Type = 5 Replace Shingle
Type = 2 Replace Specialty (metal and tile)
Type = 1 Commercial
Cost = $1,500 per repair (7)
Cost = $15,000 per replacement (5)
Cost = $20,000 per specialty (2)
Cost = $20,000+ per commercial (1)
Total Gross = $145,500/mo gross sales x 35% margin = $50,925 net volume or a 7.28:1 return in net sales. So, putting $7k in the bank will never return you a 7x ROI in 30 days. But you have to be able to work and understand the real math.
PPC for Roofing Companies will typically yield an average return of between 4:1 and 10:1 after 90 days. There is a ramp up in each new market with AdWords. Yes, you will get calls in your first month, but it takes time to really dial in a campaign and get the maximum results possible with Pay Per Click Advertising for Roofers.
How Much Should I Spend on Ads?
Roofing companies that are established (over $3M in annual revenue) typically spend a minimum of 5% - 8% while companies that are just starting out need to spend more. Oftentimes, new companies should be spending between 10% - 15% of their gross sales on marketing
Out of your entire marketing budget, we recommend anywhere from 40% - 60% of your budget going towards ads if you are in a growth phase. See the example below.
Annual revenue = $3,000,000 and you’re spending 8% of your gross sales on marketing.
8% of $3M = $240,000
Allocating 50% of your total budget towards ads means you are spending $120,000 annually on ads or $10k/mo.
We’ve all heard the old adage, “It Takes Money To Make Money” and in the case of growing your business with online marketing, that sentiment is very true. Trying to “dip your toe in the water” is only wasting money. We strongly recommend either doing ads with an appropriate and competitive budget for your specific market and company size or waiting until you do.
At Best Roofer Marketing, we treat your money as if it were our own.