Why a $200 Roofing Lead Can Cost You $1,500

How does that happen?

It's not the lead price. The lead price is actually fine. It's everything that happens after the lead comes in that turns a $200 expense into a $1,500 loss.

Let's break down exactly how this happens—because if you don't see it, you're bleeding money every single month.

The Math Everyone Ignores

Here's what most roofing contractors think happens:

• Lead comes in: $228
• You call them back
• They say yes
• You show up and close the job

Cost per job: $228

That's the fantasy.

Here's what actually happens in most roofing companies:

What Actually Happens After You Buy a Lead

Step 1: You Miss the First Call (40% of the Time)

The lead comes in at 2:47 PM. Your phone rings. You're on a roof. You're in a meeting with a supplier. You're driving between jobs.

You miss it.

The homeowner doesn't leave a voicemail. Why would they? They've got three other tabs open with roofing companies who answered on the first ring.

By the time you call them back 90 minutes later, they've already scheduled two inspections.

You just paid $228 for a lead that's now worth $50—because you're not first anymore, you're fourth.

Step 2: You Call Them Back Once (Maybe Twice)

You call the lead back. No answer.

You call again the next day. No answer.

Most roofing companies give up here. They mark it "unresponsive" and move on.

But here's the thing: 85% of people who request a roofing quote won't call you back if you go to voicemail. They're not being rude. They're busy. They've got other options. And they assume if you really wanted the job, you'd keep trying.

So now you've spent $228 on a lead you called twice and gave up on.

That lead didn't cost you $228. It cost you infinity—because you got zero return.

Step 3: You Actually Talk to Them (Finally)

Let's say you do everything right. You call within 5 minutes. They pick up. You're polite, professional, and you schedule an inspection for Thursday at 3 PM.

Great. You're in the game.

Except now this happens:

• They no-show (20% of scheduled inspections)
• They ghost you after the inspection (30% of inspections don't turn into quotes)
• They get three other quotes and go with someone $1,200 cheaper (another 25%)

Even when you do connect with the lead, your close rate is somewhere between 15% and 30% depending on how tight your sales process is.

The Real Math of a $200 Lead

Let's do the actual calculation using real numbers from a competitive metro market:

You just paid $2,280 to close a $15,000 roof.

And if your close rate drops to 15% because your sales process is weak? That same lead flow now costs you $3,040 per signed contract.

Why This Feels Like You're Getting Ripped Off

When you look at your credit card statement and see Google charged you $4,500 last month, your brain does this:

"I paid $228 per lead. I should have closed 20 roofs."

But you didn't close 20 roofs. You closed 2. Maybe 3 if it was a good month.

The lead price wasn't the problem. The lead price was never the problem.

The problem is:

• You're not calling leads back fast enough
• You're not following up enough times
• You're not showing up to inspections you scheduled
• You're not closing at a high enough rate

Every breakdown in that chain turns a $228 lead into a $1,500–$2,000 loss.

The One Number That Matters

Stop tracking cost per lead. It's a vanity metric that makes you feel good and tells you nothing.

Start tracking cost per acquisition (CPA)—what it actually costs you to get a signed contract.

Here's the formula:

If you spent $10,000 on marketing last month and closed 8 jobs, your CPA is $1,250.

If you spent $10,000 and closed 4 jobs, your CPA is $2,500.

Same marketing spend. Completely different economics.

The difference isn't the leads. It's what you did with them.

Where the Money Gets Wasted

Let's be specific about where roofing companies lose money after they buy a lead:

1. Slow Response Time

The stat: 40% of leads go to whoever responds first.

What this means: If you respond in 2 hours instead of 2 minutes, you've already lost half your leads—not because they're bad leads, but because someone faster picked up the phone.

The cost: If you paid $228 per lead and half of them go to your competitor because you were slow, you just doubled your effective CPL to $456.

2. Weak Follow-Up

The stat: Contact rates drop by 900% if you don't call within 5 minutes.

What this means: That lead you called back 6 hours later? It's not worth $228 anymore. It's worth $20. Maybe.

The cost: You're spending full price for half-engaged prospects.

3. Bad Sales Process

The stat: Average close rates in roofing are 15%–30%.

What this means: If your close rate is 15% and your competitor's is 30%, they're converting twice as many jobs from the same lead source. Their CPA is half of yours.

The cost: A 10-point drop in close rate can add $500–$1,000 to your cost per job.

How to Stop Burning Money on Leads

The fix isn't cheaper leads. Cheaper leads are usually worse leads—shared between 5 contractors, low intent, tire-kickers who aren't ready to buy.

The fix is tightening every step between "lead comes in" and "contract signed."

Fix #1: Answer the Phone Every Time

If you can't answer, get someone who can. A VA. A call service. Your spouse. It doesn't matter who picks up—what matters is that someone picks up within 60 seconds.

Fix #2: Follow Up at Least 6 Times

Most roofing companies call once, maybe twice, and give up.

The homeowner isn't ignoring you. They're overwhelmed. They've got 4 other contractors calling them, a roof that's leaking, and a full-time job.

If you stop at two calls, you're leaving money on the table.

Fix #3: Track Your Close Rate by Lead Source

Not all leads are created equal. A Google Search lead closes at 30%. A shared lead from HomeAdvisor closes at 8%.

If you're spending the same amount of time on both, you're wasting money.

Know which sources convert. Double down on those. Cut the rest.

Fix #4: Show Up When You Say You Will

20% of roofing inspections result in a no-show—and half the time, it's the contractor who doesn't show.

If you schedule an inspection and don't show up, you didn't just waste the lead. You burned your reputation in that neighborhood.

Every no-show costs you the lead + the three referrals that homeowner would have sent you.

The Bottom Line

A $200 lead doesn't cost you $200.

It costs you what your systems make it cost.

If you've got tight follow-up, fast response times, and a strong close rate, that $200 lead might actually cost you $150 when you factor in the jobs you close.

If you've got slow follow-up, missed calls, and weak sales, that same $200 lead is costing you $1,500–$2,500 per signed contract.

The lead isn't expensive. Your process is.

And until you fix the process, spending more on marketing is just pouring water into a leaky bucket.