Phil Risher ran a home-service company and found his marketing firm was optimizing for cheap leads that killed profitability. They delivered only dryer-vent cleanings at low ticket prices with no upsells. He learned to measure actual return on ad spend instead of just cost per lead.
A fully booked schedule can actually be unprofitable. When I was at my home service business, we did duct cleaning and dryer vent cleaning, and when we talked to the marketing company, they would say, oh, your schedules are booked full, we're getting you all these cheap leads and you're booking them. The problem is, is that they were all dryer vent cleanings. They weren't actual profitable jobs. We wanted duct cleanings plus dryer vent cleanings for a bigger average ticket, and they were focusing on the lowest cost per lead, and they were giving us bad leads that were not even profitable for our business. You don't care about that stuff. You want to grow your business, which is why you need to be looking at how much does it cost to get a quality lead But more importantly, does the return on ad spend make a lot of sense? I spent $100 and I made $1,000, or I spent $100 and I got a $200 job out of it and I didn't upsell anything after that.
