A roofing contractor breaks down the math on hiring a site supervisor. Cold leads cost $1,000 to acquire; referrals from a supervisor cost $375. If the supervisor generates one referral every two days, the $625 savings per referral covers their $350 wage and leaves $275 daily profit.
This is the magic of the site supervisors. If we're getting $300 leads, closing at 30% is $1,000 cost of acquisition. 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. If you normally close at 30 and referrals and people from around your jobs close at 45%, that would be 15% better. Let's use the math of 40%, 10% better. So if you're paying a site supervisor 15 to $21, now let's use an average of 1750 an hour. So let's start here. $150 site referral, closing at 40%, then that's a $375 customer acquisition cost, right? Because if you go 150.0.4, you get 375, you subtract $375, you have $625 left over. If you're paying $17.50 an hour and you get one of these site supervisor referrals every two days, well, your cost of $17.50 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, you're usually making $275 a day profit. The savings over here pays for the site supervisor. So this costs nothing.
