In 2021, can I buy or generate my own residential solar panel installation leads?
We all know that in order to sell solar work, we need leads. Many solar business owners, on the other hand, are unsure of the best way to go about doing so. Will we buy leads from a solar lead generation company or should you do your own solar marketing? Both methods are compared in this article.
In 2021, how difficult will it be for solar panel installation companies to produce their own leads?
It's really difficult......
As compared to related home improvement sectors or foreign comparisons, the profit margin in the residential solar industry in the United States is phenomenal. Built residential solar systems in Australia, for example, cost about $1.20 per watt. To put it another way, you'll be paid $16,000 more than a business in Australia that installs the same 8kW system.
With this profit margin, it's no surprise that so many companies are pouring money into attracting solar leads. After being bombarded with solar ads, consumers are less receptive to outbound mass marketing, such as telemarketing, television advertisement, radio, or door knocking. Every homeowner in 2021 is aware that there are numerous zero-down solar offers available. It is no longer a book or novel idea, as it was between 2013 and 2015. When it comes to working with a solar firm, the buyer now has more options. When they make the decision, they normally begin by conducting a web search. As a result, web-generated solar leads have become the most reliable source of solar leads.
It is, however, difficult to generate your own web leads. They spend millions of dollars per year on content creation but only produce a few hundred leads each day across the country. A small installer would find it difficult to spend the same amount on content or internet marketing because more of the money will be spent on leads outside of their service area. Even the largest solar installers are unable to match this investment and must rely on solar lead generation companies to generate leads.
It takes 2-3 years of consistent new content publishing for a website to gain sufficient domain authority so that any content you write can rank highly in searches. A nicer website might help convert prospects from current marketing activities to clients, but it won't produce a large number of new leads in the near future.
If you take a long-term view of return, however, it might be worthwhile to invest in your own content marketing because organic search positioning will offer a small amount of leads at no marginal cost in the long run. These leads may be exclusive to you, giving you a better chance of closing sales.
Yes, but this normally entails paying more per eligible lead than if you simply purchased them from a reputable solar lead generation firm.
The problem with Adwords is that new accounts prefer to buy clicks that seasoned marketers don't want because they don't turn to leads or sales. It's probably still worthwhile to set up your own Google Adwords account and compare the cost of acquisition to purchasing leads from a lead generation firm. However, if you do, I recommend hiring a competent adwords manager to better monitor your spend and return, as most people have bad results.
In 2021, who will produce the most genuine residential solar leads?
The solar industry has had a busy start to the year in 2021, with solar leads up 25% over 2018.
However, much of the status quo in relation to solar leads that has been in place for the past 2-3 years remains in place, namely:
Nobody else has a large supply of organic solar leads. I know you still get calls every week from a new solar lead generation company pretending to have leads to offer, but the vast majority of these companies are scams (they mainly have databases of aged leads and no way of generating new leads).
Given this, it's critical that you also comprehend each of these companies' business models and lead generation processes, as well as consider ways to produce your own leads.
Our solar lead returns calculator can be found below. You will see that even though just one out of every 20 leads you buy converts to a sale, you can get a 100 percent return on your investment.
I strongly advise you to use this calculator because it will show you how much money you are losing by not learning about solar leads and establishing partnerships with the best solar lead vendors.
While I believe that certified solar leads would have the lowest acquisition cost, I recognize that these leads are often the most costly, so you might want to try a few different lead vendors. For what it's worth, here are my thoughts on the advantages and disadvantages of each of the major solar lead vendors, as well as my best estimate of communication and conversion rates for the other lead sources based on what I know about how they generate leads.
To be competitive with lead purchasing, solar companies must calculate cost of acquisition.
You should definitely test all three of the above lead sources because, though they are all different, I believe they are the three that are least likely to contain fraud. The key is to monitor your progress. No one will defraud you if you keep track of your monthly performance and acquisition costs. Each month, our best clients share their acquisition cost data with us.