Frequently Asked Questions
If you’re a custom home builder looking to generate more leads, increase your margins and/or revenue, you’re in the right place. We actively manage over $2m ad spend annually for our builders and have trained thousands of builders on our systems. However, you may have a few questions…
To determine how much you should spend on advertising your building company you will need to assess the specific goals and objectives of your business.
As a guide for custom home building companies, you will need to invest between 1% – 3% of your revenue back into your business in advertising spend.
The exact percentage largely depends on your current business setup, your revenue, margins, average contract value and the goals you’ve set for the business for the next 12 months. If you’re happy with your margins and the size of your business your advertising spend will differ compared to a building company looking to increase margins and/or grow revenue.
Click on this link to use our marketing spend calculator to determine how much you should be spending on advertising your building company based on your situation.
It has never been easier for a business to get in front of so many consumers, as it is now. So if you are not using the opportunity that exists right now on Google, YouTube, Facebook and Instagram to generate more demand for your building company then you
are leaving money on the table. And you need to start advertising now… actually, yesterday.
If you are currently relying solely on referrals to generate revenue you have no control over your business, instead you are at the mercy of if and when the next referral will arrive. And what happens when those referrals dry up?
Custom home building has a long sales cycle so you need to be generating a consistent flow of leads all year round, even when you’re booked out and busy for the next 9 months.
If you start advertising when you need leads, it’s already too late.
When demand (leads) exceeds supply (the amount of homes you can comfortably build each year), margins go up and you have a queue of people eager to build with you.
Remember – “If you’re unable to spend money to acquire a client, then you don’t have a business.”
Online advertising is the most cost effective channel to generate leads bar none.
Thanks to the internet, advertising a building company has completely changed over the past 10 years. The way consumers look for and respond to marketing has changed. If you are not online… you’re invisible.
Site signs and vehicle advertising (done the right way!) are still an important element for building companies and can generate many leads and potential contracts. However, online advertising gives you the ability to get in front of the right people at the right time, which is marketing 101.
Online advertising platforms like Facebook, Instagram and Google are the most cost effective channels for your building company to generate leads.
It is important to have a method to track and analyse the results of your advertising spend and employ a systematic approach to interpreting and acting on the data – this will ensure you avoid throwing money blindly at strategies that don’t produce results.
We provide our clients with a customised KPI spreadsheet for total transparency and thorough reports that detail key metrics. We report on specifics such as the number of leads generated, the number of people who progressed to phone conversations, the conversion rate on adverts, costs per lead/call/click and more. However, we also walk you through how to interpret this data so we can ensure the results are inline with your 12 month objectives so you are thoroughly informed.
Builders Marketing Assistant works as a marketing solution for your building company. We provide paid advertising management services, marketing funnel building and more. We work as a contractor for your building company rather than a direct employee.
Facebook and Google are responsible for over half of all online advertising. Which is why you need to be advertising on Facebook and Instagram as a priority and then Google Ads (formerly known as AdWords) and SEO (Search Engine Optimisation) to rank in Google.
Online advertising is the most cost effective way to invest in advertising bar none.
As you know, the sales cycle for custom home building companies is long. From the initial enquiry of someone thinking of building to design & planning, to pre-lims and through to contract can take months.
If you’ve never advertised online before, have no online presence and are only beginning to implement systems into the sales side of your business, then the timeline for generating leads from online advertising that go through your entire sales process and result in a signed construction contract can take closer to 12 months. Which is why you can’t afford to wait.
Online advertising is a long-term strategy, not a quick-fix short-term solution. Online advertising done right builds up trust in the marketplace, positions your building company as the leader, the authority and the only logical option.
Old school builders and agencies continue to waste money on advertising strategies like branding and name recognition… but this method is old and out-dated.
Consumers don’t care about you or your brand until they know you can help them with a problem they have (i.e. how to design and build a luxury new home on time and on budget).
Instead of trying to ‘get your name out there’, a far more lucrative strategy involves focusing on how you can solve a specific problem for your ideal client. Shift your energy into educating and helping the pool of ideal clients out there. This approach is called ‘inbound marketing’ and attracts better leads that are more likely to progress through your sales process and into a building contract.
The types of building companies we work with are exclusively custom home builders or major remodeling specialists. Click here to learn if we’re the right fit for your company.
A lead magnet is a free guide or checklist that appeals to your ideal client and is offered in exchange for their email address.
The most effective lead magnets for custom builders and renovation specialists provide valuable information such as consumer guides, checklists, price lists and floor plans. The perfect lead magnet should offer tremendous value within 5 minutes of the lead requesting it.
When you use a strategy of promoting a lead magnet in an advertising campaign it literally allows you to ‘buy’ as many leads as you need. And the more perceived value your lead magnet offers to a consumer, the cheaper your advertising costs become!
- 14 January, 2020Do you have a system for generating quality leads that you can turn on and off like a tap? If you don’t, then you are probably like a lot of custom home builders who rely on referrals in order to sustain their business. Which can be a real problem if you want to grow your company, or if the referrals you are currently relying on start to dry up.