ROAS Calculator for Service Companies:

Calculate the Return on Ad Spend (ROAS) for Lead Generation Campaigns

ROAS Calculator for Lead Generation


Please enter an estimate of your average-priced job over the last year. Make sure to include both small and large jobs. Don’t just enter your “typical” job. Add up all jobs and divide by the number of jobs. This will give you a more accurate estimate of ROAS.


Please enter an estimate of your cost per lead. In the markets we work with, good-quality flooring leads typically range from $35 to $200, depending on the job and keyword.


What is your sales closing rate? If you receive 100 qualified leads (people looking for floor installation in the next month), how many would convert to sales? A typical closing rate is around 20%, but owner-operators can often do better, with rates of 30%-40%. Tip: Sales training can dramatically improve this rate.


This is the average percentage of profit remaining from each job after the cost of goods and labor is removed. It doesn’t include fixed overheads like rent or utilities.


Results:


Gross Profit: $0

This is the profit generated before subtracting the cost of ads. Gross Profit = Average Gross Fee Per Job * Profit Margin.

Ad Cost Per Job: $0

This is the cost per job in advertising expenses, based on the inputs above. Ad Cost Per Job = Cost Per Lead / Closing Rate.

Net Profit: $0

This is the amount left over after subtracting the ad cost. Net Profit = Gross Profit - Ad Cost Per Job.

Return on Ad Spend (ROAS): 0

This is the amount you earned for each dollar spent on advertising. ROAS = Net Profit / Ad Cost Per Job.

What’s the Next Step?

The best way to help you understand how many leads you will be getting and the associated cost is to jump on a quick phone call. By doing this I can understand the size of your company and where you are at in the marketing process.

Then I can show you a couple different options and how much each option would cost. It shouldn’t take more than 15 minutes. Time is precious and we are both busy. There is no obligation to move forward if it’s not the right fit. If you don’t have the time, no sweat. Feel free to leave me your email and I’ll check in with you in a couple of weeks.

-Ahryn

Book a Quick Call With Me