How to Make $80,000 a month Selling Leads to Plumbers (full tutorial)

Name: How to Make $80,000 a month Selling Leads to Plumbers (full tutorial)
Uploaded: 2021-10-30T17:00:35.000Z
Duration: 1 h 4 min 11 s

Introduction to Lead Generation for Plumbers

Overview of the Channel and Purpose

Eric Beer welcomes viewers and introduces the channel focused on lead generation and building a lead generation business.

The previous week's training covered lead arbitrage, explaining how to convert sales into leads for marketing purposes.

Starting a Lead Generation Business

Eric outlines his plan to demonstrate how to create a lead generation business targeting plumbers, emphasizing that this process can be applied to any vertical.

He mentions using a whiteboard for visual aid during the explanation, aiming for clarity in presenting steps involved in the process.

Engagement and Community Building

Encouraging Subscriptions and Interaction

Eric invites viewers to subscribe to his YouTube channel, expressing gratitude for their support and interest in learning about leads.

He shares information about his text community where subscribers can ask questions directly via text message at 917-636-1998.

Contest Ideas for Engagement

Discussion of "com contests" as a way to increase viewer engagement through comments; he plans giveaways such as books or merchandise based on participation levels.

Eric asks viewers what they would like as prizes if he were to conduct these contests, encouraging them to comment with suggestions.

Understanding the Plumbing Market

Generating Leads for Plumbers

The focus shifts back to creating leads specifically for plumbers by generating traffic from potential customers seeking plumbing services.

Emphasizes understanding customer value: estimating that each plumber visit is worth $1,000, leading to an average lifetime value (LTV) of $3,000 per customer based on three visits per sale.

Data Collection Importance

Discusses essential data collection from leads: name, email, phone number, address—highlighting that more detailed information increases lead value while less information should lower costs accordingly.

Understanding Lead Generation for Plumbers

Importance of Geo-Location in Lead Generation

Understanding the target market is crucial; a plumber in Atlanta should not receive leads from New York or California.

The effectiveness of lead generation depends on the backend buy side, which will be discussed further.

Types of Services and Information Collection

Various services need to be considered when collecting leads, such as HVAC, leak detection, and drain services. Each plumber may offer different services.

It's essential to identify common service requests since certain issues (like HVAC problems) will generate more calls than others.

Hosting Forms and Data Collection

The lead generation business model involves hosting forms to collect data directly rather than directing traffic to an advertiser's site. This allows for better control over data collection.

If leads are generated through another company's form, it operates more like affiliate marketing rather than building a standalone business.

Sales Cycle and Closing Leads

Understanding the sales cycle is vital; knowing how plumbers convert leads into sales helps refine the lead generation process. Are they booking meetings online or scheduling calls? These details impact lead value significantly.

The ultimate goal is to enable plumbers to provide quotes based on homeowner needs, leading to successful conversions from leads to sales.

National vs Local Lead Generation Strategies

Deciding whether to generate leads nationally or locally affects strategy; national strategies allow targeting multiple states while local focuses on specific areas like New Jersey only.

Building relationships with aggregators can help sell excess leads if there’s no local buyer available, creating a sustainable business model over time.

Lead Generation Models for Plumbers

Key Factors in Lead Generation

The two most critical factors in lead generation are time and exclusivity. Time refers to how quickly a lead is delivered to a plumber, with faster delivery typically resulting in higher costs.

Exclusivity means whether a lead is sold exclusively to one plumber or shared among multiple plumbers. Exclusive leads tend to be more valuable but may limit the number of potential buyers.

Understanding Lead Delivery

It's essential to know your buyers' budgets and any daily caps on leads they can handle. This affects how leads are generated and delivered, especially since plumbers often have limited time while working on-site.

Standardizing quotes for common services (like inspections or installations) can streamline the booking process for plumbers, making it easier to convert leads into business.

Methods of Lead Delivery

Different methods exist for delivering leads: via email, text message, or live call transfers. Each method has its own value and implications for cost.

The choice of delivery method impacts the overall pricing model; understanding these processes is crucial for optimizing revenue from lead sales.

Pricing Models: Exclusive vs Non-exclusive Leads

An exclusive lead might be priced at $50 per lead, whereas non-exclusive leads can be sold multiple times at a lower price point (e.g., $20), potentially increasing total revenue through volume sales.

Selling non-exclusive leads allows competition among plumbers which could lower quotes from their perspective but increase overall earnings if managed correctly.

Hybrid Model Strategy

A hybrid model combines exclusive and non-exclusive strategies by allowing an initial period where only one plumber can purchase the lead before reselling it after some time has passed.

For example, selling a lead initially at $50 then reducing the price over time (e.g., $35 on day two, down to $5 by day 30), maximizes potential earnings while providing options based on urgency and demand.

This structured approach helps clarify the complexities involved in generating and selling plumbing leads effectively.

Understanding the Four Key Players in Lead Generation

The Essential Players for Business Success

In any lead generation business, four key players must be satisfied: the consumer, the buyer (e.g., plumber), the business owner, and the media publisher.

Each player has specific needs; consumers require good service, buyers need to close sales profitably, businesses must ensure profitability, and publishers aim to sell traffic effectively.

Profitability and Traffic Acquisition

To achieve profitability, businesses must buy traffic from publishers at an affordable rate. This was discussed in a recent training session on lead arbitrage.

The success of this model hinges on all four players benefiting: consumers receive services they want, buyers convert leads into sales profitably, and publishers earn revenue from their traffic.

Calculating Revenue Models in Lead Generation

Generating Leads and Revenue Estimates

When generating leads, it's crucial to understand both conversion rates into customers and customer lifetime value.

For example, generating 1,000 leads per month at $50 per lead results in $50,000 monthly revenue or $600,000 annually when sold to one buyer.

Non-Exclusive Leads Model

If selling non-exclusive leads at $80 each requires more buyers since each lead is sold multiple times. This could yield up to $960,000 annually with 33 leads daily.

Understanding Margins and Lead Costs

Revenue Per Lead (RPL)

Understanding RPL is essential; if selling at $80 or $50 per lead determines how much can be spent on acquiring those leads while maintaining desired profit margins.

For instance, with a 50% margin goal on an $80 sale price means spending between $25-$40 per lead for profitable acquisition.

Conversion Rates and Customer Value

Closing Rates Impacting Profitability

A low closing rate of less than 1% implies that only a small fraction of generated leads will convert into paying customers.

With a 5% conversion rate from 1,000 leads monthly resulting in approximately 50 new customers each month.

Lifetime Value Considerations

The average lifetime value (LTV) of a customer is critical; if plumbers charge around $1,000 per visit and acquire 50 new customers monthly, they can expect significant returns based on LTV calculations.

Understanding the Value of Leads for Plumbers

The Financial Impact of Lead Generation

A scenario is presented where plumbers can sell leads for $50,000, emphasizing that they quickly recoup this investment through repeat business from new customers.

On average, a plumber gains three visits per new customer, with each visit valued at $1,000. This results in a lifetime value of $3,000 per customer.

The potential earnings from these three visits could total $150,000 over time, showcasing the profitability of investing in lead generation.

The importance of consistent lead flow is highlighted; it allows plumbers to scale their businesses without relying solely on referrals or personal networks.

The discussion transitions to how this model applies universally across various industries like auto insurance and mortgage leads.

Scaling Lead Generation Efforts

Instead of generating 1,000 leads monthly, the focus shifts to producing 250 leads daily—totaling 7,500 leads per month.

Selling exclusive leads at $50 each could yield revenue between $375,000 and $600,000 monthly depending on whether they are sold exclusively or non-exclusively.

This revenue translates into annual figures ranging from approximately $4.5 million to $7.2 million based on the sales model employed.

With a net margin estimated at 25%, potential profits could reach up to $1.125 million annually for lower revenue estimates and up to $1.8 million for higher estimates.

Conclusion and Call to Action

The speaker emphasizes that this training provides valuable insights into building a successful lead generation business model with significant profit potential.

Encouragement is given for viewers to revisit the material as they start their own ventures; understanding this framework is crucial for success in lead generation.

Viewers are invited to engage further by asking questions or requesting additional content related to selling leads effectively.

A personal touch is added as the speaker expresses gratitude towards viewers and hopes that sharing this knowledge will positively impact their businesses.