The worksheet
Take the four figures from your own records and work down the list. Do it on paper; it takes ten minutes.
Step one — gross profit per job. Average job value multiplied by your gross margin. If your typical invoice is a few thousand dollars and roughly half of that survives wages, tipping, traffic control, fuel and machinery, gross profit per job is that half.
Step two — gross profit per lead. Multiply gross profit per job by your close rate on quoted enquiries. One in four means a quarter of the figure from step one.
Step three — adjust for contact rate. If you only reach three-quarters of the leads you receive, multiply again by that proportion. This step is the one most operators skip, and it is usually the difference between a model that works on paper and one that works in the bank.
Step four — choose your marketing share. Decide what proportion of that gross profit per lead you are prepared to spend acquiring it. That figure is your maximum sensible cost per lead.
Reading the result
The number you land on is a ceiling, not a target. Paying right at it means the campaign breaks even and you have worked for nothing. Sensible operators buy well below it.
It is also the most useful thing you can bring to a sales conversation. When a supplier quotes a price per lead, you can say exactly why it does or does not work against your job economics instead of negotiating on feel.
The reasoning behind each step, and the things that quietly move the number, are set out in what a tree service lead is worth.
Improving the inputs
If the ceiling comes out too low to buy leads at all, the inputs are the lever.
Contact rate is the fastest to fix and the cheapest — most tree businesses lose a meaningful share of enquiries to voicemail while the crew is on the tools, which is what the AI receptionist exists for. Close rate responds to faster quotes and actual follow-up. Average job value responds to your pricing and your job mix.
Fix those before spending, not after. The reasons are in when not to buy tree service leads.
Then compare suppliers properly
Once you have your ceiling, read buying tree service leads for the contract terms worth checking, look at our pricing and the terms on the lead generation page, and check whether your postcodes are open on the territories page.
If you want a hand running your figures, contact us or call 0468 062 773. We will tell you if the numbers say do not buy.
Frequently asked questions
What numbers do I need before I start?
Average invoice value across your last fifty jobs, your gross margin on a typical job after wages, tipping, fuel and machinery, the proportion of quoted enquiries you win, and the proportion of leads you actually manage to reach by phone. All four come out of your invoicing and your call log rather than an industry benchmark.
Why not just ask what other tree businesses pay per lead?
Because their job mix, margin and close rate are not yours. An operator doing large removals with a strong close rate can profitably pay several times what a maintenance-focused business can. Comparing sticker prices between businesses is how operators end up overpaying with complete confidence.
What if the number comes out lower than any supplier's price?
Then buying leads is not viable for you at current performance, and the honest response is to improve the inputs rather than rationalise the price. Faster call-backs and better follow-up lift your close rate quickly and cost nothing. Revisit the calculation in a quarter.