The Story
John owns a roofing company in Tulsa, Oklahoma. In 2022, he was doing 5-8 roofs/month, mostly from referrals and his website. Today, he's doing 45-55 roofs/month. 80% of his business comes from bought leads.
Where He Started
John's initial situation:
- Revenue: $150K-250K/month
- Lead Sources: Referrals (60%), Website (30%), Angi (10%)
- Close Rate: 18%
- Marketing Spend: $2K/month (mostly SEO)
The Turning Point
After a major hail storm in spring 2023, John's referral pipeline dried up. He needed leads fast. He started buying exclusive leads from a local lead gen company at $175/lead.
First month: Bought 20 leads, closed 3 roofs ($75K revenue). Spent $3,500 on leads. ROI: 2,000%.
The Scaling Process
John didn't just buy more leads. He built a system:
Month 1-2: Testing
- Bought 20-30 leads/month from 3 different sellers
- Tracked close rate by source
- Identified best performer (18% close rate)
Month 3-4: Doubling Down
- Increased to 50 leads/month from best seller
- Hired dedicated inside sales rep ($4K/month)
- Implemented 7-touch follow-up sequence
- Close rate improved to 22%
Month 5-6: Systematizing
- Increased to 100 leads/month
- Hired 2nd sales rep for field appointments
- Built custom CRM with automated follow-up
- Close rate stabilized at 20%
Month 7-12: Scaling
- 200-250 leads/month
- Team of 4 inside sales, 3 outside sales
- Expanded to adjacent verticals (gutters, siding)
- Revenue: $1.2M-1.5M/month
John's Key Insights
1. Speed to lead is everything: His team contacts leads within 90 seconds. Close rate on <5min contact: 28%. Close rate on >30min contact: 6%.
2. Lead quality varies wildly: He tested 7 lead sellers. Best had 22% close rate. Worst had 4%. He now only buys from top 2.
3. Follow-up makes or breaks ROI: 60% of his closes happen on touch 3-7. Most competitors give up after 1-2 touches.
4. Exclusive > Shared: He tested shared leads at $75/lead. Close rate was 8%. Exclusive at $175/lead close at 20%. Exclusive prints money.
The Numbers Today
- Leads Purchased: 250/month
- Average Cost: $165/lead
- Monthly Lead Spend: $41,250
- Close Rate: 20%
- Closed Jobs: 50/month
- Average Job: $28,000
- Monthly Revenue: $1.4M
- Lead Cost as % of Revenue: 3%
John's advice: 'Start small. Track everything. Double down on what works. And never, ever compromise on follow-up.'