Lead Costs
The Break-Even Close Rate: How to Know if Leads Are Worth It
Your break-even close rate is your cost per lead divided by your average job value. Close more than that share of leads and the leads pay for themselves. For most coating contractors buying exclusive leads, it is under 3% on revenue.
What is the formula?
Break-even close rate = cost per lead / average job value
At $115 per lead and a $4,500 average garage floor: 115 / 4,500 = 2.6%. Close more than about 1 in 39 leads and you are ahead on revenue.
What does it look like at different job values?
| Average job | Break-even on revenue | Break-even on 50% gross profit |
|---|---|---|
| $3,000 | 3.8% | 7.7% |
| $4,500 | 2.6% | 5.1% |
| $7,500 | 1.5% | 3.1% |
At $115 per lead.
Why use gross profit instead of revenue?
Revenue is not profit. If your gross margin is 50%, use half the job value. The break-even rate doubles but is still far below the 30% to 45% our clients typically report.
What is the second number to track?
Cost per booked job: cost per lead / close rate. At $115 and 35%, about $329 to book a floor worth thousands. Run your own on the ROI calculator.
Frequently asked questions
What if my close rate is below break-even?
Look at speed to lead first, then your walkthrough and pricing. Most low close rates are slow callbacks.
Should I include my time in the math?
Yes, if you want the full picture. Add the hours spent calling and quoting at your hourly value.
Check your market for exclusive coating leads
We work with one coating contractor per territory. See if yours is open.
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