Contractor Marketing 101

To grow your company, you must spend money on marketing. Unfortunately, relying on word of mouth alone is usually way too slow.

To create any kind of expansion as a contractor, one would need to spend 3% to 8% of the Gross Income each week on marketing campaigns. This percentage varies according to the time of year. We have found that the return on advertising dollars in the spring is much higher than in the winter.  In other words, in the spring, $5,000 can result in 50 Leads, and with the exact same campaign run in the winter, that $5,000 will only bring in 20 Leads. Therefore, it has proven successful to set aside money from the winter budget to use during the spring and summer; spend 3% in the winter and 8% in the spring.

It is also important to realize that if you spent nothing at all, you would still get leads coming in but not enough to keep your team of sales reps and crew working. 

Imagine this scene. It’s Monday, and Mr. Lead Man shows up at your door and opens up his coat and says “I have 20 internet leads that I can sell you for $225 each, 5 sign leads for $78, 4 calls to the hopper leads for $125, 6 PPC leads for $310 and 12 direct mail leads for $325.” You say, “okay, I’ll take all of them.”

That’s 47 leads for $11,150 or $237 per reach. You need to know if that’s a good deal or if you’re getting robbed.  Part of your decision-making process is to know how many leads the Sales Department is demanding of you and how busy your crews are. Lets say your target is around $125 per reach, not $237, but if we have sales reps that have no appointments and crews needing work, you might consider making that purchase. If that’s the case, you then would need to get busy finding more sign leads and hopper leads and working to reduce the price of internet leads. 

Unfortunately, there is no Mr. Lead Man that shows up each week. Your “Mr. Lead Man” is the marketing campaigns that your team is running.

Keeping track of your marketing dollars is vital to running your marketing department effectively. Each campaign should have a separate statistic that is graphed each week. The campaigns should have a set strategy that is run and adhered to. 

Each week the success of each marketing campaign should be reviewed, and a condition assigned to that campaign itself.  The head of marketing should know at all times what the cost per reach, the cost per sale and the percentage marketing cost to sale is and if it is going up or down. There should be a target for both the number of leads and the cost to get those leads as well as the marketing percentage of the eventual sales that you make.

The main objective of the marketing department is to ensure that a lead pipeline is developed for ALL products of the company, (Example: ponds, paving stones, landscape designs, landscapes and maintenance). In our parent construction company, we have developed an extremely workable pipeline that is the main engine that we use to run the company. When leads are down for 3 to 4 weeks in a row, it does predict a down turn in appointments, estimates, sales, GP and gross income. Using this marketing pipeline enables us to be in touch with our marketing spend at all times and have a sure-fire way for controlling the leads you get into your company.

Not sure where to start marketing for your company? We can help. Our contractor marketing division is backed by decades of experience. Our AIMM Marketing team can streamline the lead generating process and get you results FAST. What sets us apart from other contractor marketing companies is that we don’t just stop at leads, we get you profitable jobs. Our customers have seen over a 400% increase in profit in as little as 3 months. To set up a time for a free marketing consultation, click the button below.

Not sure where to start marketing for your company?

We can help. Our contractor marketing division is backed by decades of experience. Our AIMM Marketing team can streamline the lead generating process and get you results FAST. What sets us apart from other contractor marketing companies is that we don’t just stop at leads, we get you profitable jobs. Our customers have seen over a 400% increase in profit in as little as 3 months. To set up a time for a free marketing consultation, click the button below.

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