Phil Risher explains why home service businesses plateau at 1-2 million dollars: they've delegated admin and delivery but haven't built repeatable marketing or a sales team. To reach 5-10 million, you need to track metrics like ROAS and cost per lead, then delegate sales and management.
I mean I do digital marketing consulting for home service businesses and usually it's in that marketing phase. So Dan Martell, he has this great book called buy back your time and he has these five rungs of replacement. So the first rung is your admin stuff, like someone answering your phone, CSR type role. Then your second rung is actually delivery, like doing the work. Usually to get to that million dollar mark, you have those two phases fixed. The third rung is marketing, the fourth rung is sales, and the fifth rung is management. So usually when you get to that million dollar mark, that marketing piece, maybe you know, spent money and prayed to the Google gods that you're going to get leads, you may have got referrals and you got some good reviews because you do a great job and you kind of have referrals and marketing coming in, but you don't have that step dialed in specifically like your return on ad spend, your cost per lead, your new customers like those types of numbers. You need to know those from a marketing perspective. That's what's going to scale you to the next level. And then on top of that, the sales, which is the next one, which is you might still be the guy that's selling all the jobs and that part to get to 5 to 10 million, you can't really be that guy unless it's only the big jobs that you're selling. So those are really the two things. It's like you got to get your marketing dialed in where you have a team that you trust or you have people in place that are giving you reports, giving you data, that's feeding the beast. So that way you can scale.
