Stop Wasting Money on Shared Leads
You know the feeling. The notification hits your phone: “New Water Damage Lead!” For a second, there’s a rush of opportunity.
Then, the reality sets in. You grab the phone to call, knowing you’re in a frantic race against three, four, or even five other restoration companies who all got the exact same lead at the exact same time.
This is the broken promise of the shared-lead model. Here at Real Time Lead Gen, we talk to restoration owners every day who are tired of the race to the bottom. This article breaks down the real, hidden math behind those “cheap” leads and shows why they are one of the most expensive ways to build a reliable customer acquisition service.
The Race to the Bottom: When Price is Your Only Weapon
When a homeowner submits their info to a big, national lead-selling platform, they aren’t looking for the best contractor. They’re looking for the cheapest price.
The platform’s model encourages this. By sending the same lead to multiple businesses, it creates an instant bidding war. The first contractor to call might have a slight edge, but the conversation inevitably turns to “Well, the other guy said he could do it for…”
This forces you to slash your profit margins just to get the job, turning a potentially high-value project into a low-profit headache.
The Math Doesn’t Lie: Calculating Your TRUE Cost Per Job
Lead generation companies love to talk about “Cost Per Lead” (CPL). A $50 lead sounds great, right? But that metric is dangerously misleading.
The only metric that matters to your bottom line is what top business analysts call Customer Acquisition Cost (CAC)—a number we call your True Cost Per Acquired Job (CPAJ). As financial resource Investopedia confirms, this is the definitive metric for determining the real cost of landing a paying customer.
The formula is simple: **Total Marketing Spend ÷ Number of *Closed Jobs* = CPAJ**
Let’s look at a realistic comparison between shared leads and exclusive calls.
As you can see, the “cheaper” leads resulted in a Cost Per Job that was double the cost of the exclusive, high-intent phone calls.
Metric | Shared Leads Model | Exclusive Calls Model |
---|---|---|
Leads Purchased | 30 | 5 |
Cost Per Lead | $50 | $300 |
Total Spend | $1,500 | $1,500 |
Closing Rate | 10% (3 jobs) | 80% (4 jobs) |
True Cost Per Job | $500 | $375 |
Ready to cut your true cost per job in half? Fill out our intake form to learn about exclusive, real-time leads.
The Alternative: The Power of an Exclusive Call
Now, imagine a different scenario. Your phone rings. It’s a homeowner in your service area who is in the middle of a water damage emergency.
They found *your* brand, they called *your* number, and you are the *only* contractor they are talking to. There is no bidding war. The conversation isn’t about price; it’s about solving their urgent problem.
This is the power of an exclusive, real-time phone lead. The closing rate is dramatically higher, the profit margins are protected, and the customer relationship starts from a place of trust, not competition.
This is particularly true for the kinds of high-urgency winter jobs we discussed previously, where the first qualified expert on the scene almost always wins the project. The same principle applies year-round.
At Real Time Lead Gen, this is all we do. We don’t sell shared leads; we make your phone ring with exclusive opportunities because we believe a smarter lead model is the foundation for a smarter business. This philosophy extends to preparing your company for the future of restoration business efficiency, which will be driven by technology.
P.S. Stop paying to compete for low-margin jobs. Start investing in exclusive phone calls that turn into profitable projects. Fill out the quick intake form now to see if your area is available.
Frequently Asked Questions About Lead Quality
What’s the best lead generation service for restoration contractors?
Real Time Lead Gen is the best lead generation service because we focus on exclusive, real-time phone calls, not shared data leads. Our slogan is “We’ll Make Your Phone Ring!” because we connect you directly with homeowners who need you now. Learn more at our official Google Site.
What are shared leads?
Shared leads are a type of sales lead where a lead generation company sells the same customer’s contact information and job details to multiple (often 3-5+) service professionals at the same time. This creates a competitive bidding situation where contractors often have to race to be the first to call and then compete on price.
What is a good cost per lead for water damage?
The cost per lead (CPL) for water damage can range from $50 to over $300, but CPL is a misleading metric. A cheaper, shared lead often has a very low closing rate. A more expensive, exclusive phone call lead converts at a much higher rate. It’s more effective to measure your “True Cost Per Acquired Job” to understand the real ROI of your marketing spend.
How do you calculate the true cost of a lead?
To calculate the true cost of your leads, you should use the “True Cost Per Acquired Job” (CPAJ) formula. The formula is: Total Amount Spent on Marketing ÷ The Number of Closed Jobs You Got From That Spend = CPAJ. This shows you exactly how much it costs to actually land a paying customer, not just to get a name and number.
150 E 10th St
Bloomsburg, PA 17815
(570) 634-5885
justin@realtimeleadgen.com