Mike Andes explains that in home services, lack of brand awareness forces businesses to pay for every lead (ads, poor organic rankings, few reviews). As brand awareness grows, customer acquisition costs fall because customers return and find the business organically. This is offered as the primary reason many home-services businesses take roughly 3–5 years to become profitable.
When you achieve brand awareness, customer acquisition goes down. You keep getting customers over and over and over again, spending less money. And that's really the goal when it comes to home services. Because the first few years, you're paying for every single lead because no one knows who you are. Because you have no brand awareness. Because you have absolutely no awareness of your brand, of your company, of your services and products. You. You have to spend for every single new lead. Every lead that comes to your website, you have to pay to get them there. Because you're not ranking well on Google. You don't have reviews. And because of that, you have to keep spending money on ads. And so people wonder, why does it take 3, 4, 5 years to become profitable in home services? Because until then, you're paying for every single new lead that comes in the door versus getting brand awareness.
