Phil Risher shows how Google Local Service Ads work for service businesses. You pay only for actual leads, not clicks, and customers see a Google Guaranteed badge. High close rates make it profitable if you can handle the background check and call recording requirements.
Hey, this is Phil with Flash Consulting. Today we're going to look at Google search engine results page and how to get immediate leads. And this is a pay per lead model and it is one spoke in the wheel and the funnel that we use. I've created videos about the funnel before, but this is a paid ad model and this is called Google Local Service Ads. It's a new thing that Google rolled out probably about a year ago and they've really been pushing it. So let's just look at this search. Carpet Cleaning Chantilly, Virginia these are typical searches that you see for local service businesses, which are the companies that we typically work with. So traditionally before Google Local service ads, which are these, they had these search results here where you would pay for queries and you would, it was a bid model and so you would bid on this keyword and Google would put you here. So they're paying for this piece of real estate. If we click on it, then they get a click through rate and they get a cost per click numbers that are generated. Google has recently switched to also not necessarily switched, but added this model which is a pay per lead model. So these people are not paying to be in this real estate. If you were to click this button right here and call them, it would charge them a fee for that lead. But if you don't click them, then they won't be charged for that lead. So if I were just starting out and I was trying to get leads and get stuff going, I, I would set up Google local service ads and pay per lead and you have to have a Google my business for this. So if you see this company a carpet service and then you see here the a carpet service, they, you have to have a Google my business and then you have to apply to be in here. This Google guaranteed they run a background check on you and your employees to verify that you're a legit company so they can put their stamp on you. So what happens is you then put in a pot of money and they tell you how much it is per lead. So how much is it per lead in your area and how much does the lead cost? So this is free information. If you go to ads.google.com localserviceadscost right here, I'll put the link down below so you can check that out. Basically you put in your zip code, you put in how many leads you want. I usually put in 10 because that's easiest to do math. And then you can select the type of business that you are and specifically local service ads. We work with local service businesses. This is for local service ads. Then you can see if you run this carpet cleaning in this area, the monthly budget is 230 to 350. So per lead, you're spending 23 to $35 per lead. So let's say that your average ticket was $500 and you're spending $25. That's 5% what your revenue is. So you're spending 5% of your total cost on that lead. Let's say that you close at 50%. You know, you can figure out the numbers from there. And the nice thing is that all these calls are recorded, so you can actually go in. If you were to sign in, you can go in behind the scenes, track all the calls, you can pull all the phone numbers and follow up with all of them. It's a really great way to start getting leads in. And this really costs nothing to do aside from having a Google my business. And I created another video about setting up Google my business. But if you've tried this before, let me know what you think. Our clients have had really, really good success. They've seen a closing of about 50 to 75% of the leads that they're getting, which then it translates into a profitable ad channel. So let me know what you think. Be sure to hit that like and subscribe. We post videos about growing local service businesses, and I look forward to seeing you all in the next video.
