Lead Generation & Advertising
Beyond reputation, you can actively generate leads.
Sources of leads
- Referrals — still the best and cheapest; ask for them.
- Repeat customers — stay in touch with past clients.
- Lead services and local directories — can work, but watch the cost per job.
- Local advertising — Google ads, social ads, signs, vehicle wraps.
Track what works
Always ask "how did you hear about us?" and spend more on what brings the right, profitable jobs. Don't fall back on chasing low-bid work — market for the customers you actually want.
Going Deeper (Intermediate)
Beyond referrals, you can buy leads: Google Ads / Local Services Ads, lead services (Angi, Thumbtack, HomeAdvisor), direct mail, vehicle wraps/signage, and networking. The rule: track what works and double down.
Advanced / Pro-Level
Spending on leads wisely:
- Google Local Services Ads are pay-per-lead with the "Google Guaranteed" badge — strong local intent.
- Lead aggregators are fast but sell shared leads at a cost — watch conversion.
- Measure cost-per-lead and ROI by channel, and respond fast (first to call usually wins).
- Nurture and follow up every lead.
- Balance paid leads with owned channels (referrals, reviews, your list) so you're not renting your entire pipeline — paid fills gaps; reputation is the durable engine.
Practice Challenge
A contractor relies 100% on a paid lead-aggregator and profits shrink as lead costs rise. What's the strategic fix? (Answer: build owned channels — referrals, reviews, GBP, a client list — so he's not renting his whole pipeline; paid leads should supplement a durable reputation engine, and he should track ROI to cut underperforming spend.)
In Practice
A contractor pays for a lead service but never asks 'how did you hear about us?' — so they keep funding what doesn't work. Track every lead and double down on what brings profitable jobs.
Common Mistakes to Avoid
- Not tracking lead sources
- Spending on what doesn't convert
- Falling back on low-bid work
Takeaway: Generate leads from referrals, repeat clients, and targeted local ads — and track what actually brings profitable work.
Educational content — not legal, insurance, or financial advice. Work with a licensed insurance agent and attorney for your specific situation.