Adam Sand breaks down why a roofing site supervisor pays for themselves through referrals. Cold leads cost $1,000 per customer, but a supervisor generating referrals cuts that to $375. At $350 per day in wages, that's a $275 daily profit if they close one referral every two days.
Most roofers think a site supervisor is an added expense. I'm going to show you why that's wrong and how when you do the math, a site supervisor actually pays for themselves and makes you money. Let's break this down using real acquisition costs and real close rates.
A lot of times when we introduce this concept to people, they're like, well, site supervisors cost money. And it's like, you're right, they cost between 15 to 21 an hour plus $150 a lead. Here's how they don't cost money. What that means is that if we're getting 300 leads, closing at 30% is a thousand dollar cost of acquisition, right? $300. If you close percent, you're spending a thousand dollars in marketing costs to acquire a customer. But this is where it gets interesting. If you were to guess in a percentage, how much better is your close rate on referrals and people from around the jobs than it is from cold leads that just didn't estimate. So if you say 30% is your normal, if you normally close at 30 and referrals and people from around your jobs close at 45%, that would be 15% better. So let's use the math of 40%. So 10% better than the alternative. So if you're paying a site supervisor $15 an hour to $21 an hour, let's use an average of 1750 an hour. So let's start here. $150. Site referral closing at 40%. So just 10% better than usual. 30 to 40%. Then that's a $375 customer acquisition cost, right? Because if you go 150 divided by 0.4, you get 375. So if your usual cost of customer acquisition is $1,000, you subtract $375 your customer acquisition cost on site referrals. That means you have $625 left over. Well, if you're paying $17.50 an hour and you get one of these site supervisor referrals every two days, which is below trend, we have some people who get one or two per job. That's where all of a sudden all of this starts to make sense and pay for itself. And you get one every two days, well, your cost is 1750 an hour. Let's say times 10 hours is $175 a day, every two days, that's $350. So when you go $625 savings minus $350 in input cost, this number could be higher. Could be in overtime, but you're usually making $275 a day profit by just instead of spending $1,000 per customer like you over here and your top of funnel marketing, whether it's Facebook or canvassing or Google or carrier pigeons or billboards, you're usually spending $1,000 on customer acquisition. The savings over here pays for the site supervisor, so this costs nothing. When we add the site supervisor referrals, this becomes a cash cow. But like anything, it has to be executed well and they don't need to be roofing experts.
