For businesses that provide home services, like remodeling, renovations, and disaster restoration, generating quality leads is important.  Businesses of this nature depend on incoming leads to close sales and improve revenue so they can grow their business.  If a business is not getting enough leads through their own marketing efforts, they can work with a professional that provides lead generation services.

Lead generation businesses are dedicated to generating quality leads within a particular industry that are offered to businesses interested in getting more leads.  They typically do this through well optimized, geo-based websites that pull relevant search traffic in targeted local areas.  These leads are then provided to businesses to be converted into sales.

There are two main ways that a business may work with a lead generation service, either with a monthly subscription or with the pay-per-lead model.  There are benefits and drawbacks for both lead generation strategies, and choosing which one is best for your business depends on your budget and marketing goals.  In this guide, we will discuss both lead generation models as well as the pros and cons of each to help you decide which model will maximize the return on investment (ROI) for your business.

Lead Generation with Monthly Subscription Contract

Many businesses work with lead generation providers with a contract for a monthly subscription.  With this model, the business signs a contract with the lead generation service that outlines the work the service will do for the business and a minimum amount of leads a business can expect per month.  The business pays the same fee each month, regardless of the results.

With this model, businesses can often expect the service provider to put forth certain marketing efforts to help increase the number and quality of leads generated.  The lead generation service provider will be invested in getting quality leads for their monthly subscription clients to keep them happy so they will continue making monthly payments.  A monthly subscription contract can also include long-term plans with the service provider to help increase relevant traffic and quality leads over time.

The following are the benefits of the monthly subscription contract model:

• Easy to budget: With a monthly lead generation subscription, you will pay the same fee every month regardless of the work done. This makes it easy to budget for the cost of this service as there will be no surprises from month to month.
• Better ROI: Paying the same fee every month means that you can get an excellent ROI for months in which you get a large number of quality leads and conversions.
• More complete marketing: When you sign a monthly subscription contract for lead generation, the contract can include much more than simply acquiring leads. The lead generation service may provide additional marketing such as creating web pages, running paid ad campaigns, and doing keyword research to help increase relevant search traffic within your service area.  You can also create long-term plans to improve the quality of the traffic to generate more leads.
• Build brand awareness: The additional marketing services provided with a monthly subscription contract not only help increase relevant traffic, but also build brand awareness with improved online visibility. The increased familiarity with your brand builds trust which can turn first time customers that you get through lead generation into recurring customers.

The following are the main disadvantages of the monthly subscription contract model:

• Cost: The monthly subscription model typically has a bigger upfront cost than the pay-per-lead model. If the service provider is not generating good leads for the client, paying the monthly fee is not cost-effective and businesses will get a poor ROI.
• Lower incentive from lead generation provider: In most cases, businesses sign with a lead generation service provider for 6 or 12 months instead of paying month to month. If a lead generation provider has your business locked into a 6- or 12-month contract, they may not have a big incentive to get a good amount of leads for you knowing that you will pay the fee each month over that period.  As discussed in the section above, a reputable lead generation service will have an incentive to deliver quality leads so that you stick with their services.  This makes it important to find a lead generation service you can trust.

Pay-per-lead Model

As the name suggests, businesses that sign up with a lead generation provider for the pay-per-lead model will only pay the service provider for the leads generated.  With this service, the business and lead generation provider agree on a sum that will be paid for each lead.

Pay-per-lead models are a less expensive way for businesses to get leads than with a monthly subscription contract.  However, there are also limits to the pay-per-lead model as the lead generation provider will not invest as much time into building your brand awareness, improving the quality of traffic, or long-term planning.

The following are the advantages of the pay-per-lead model:

• Cost: The cost for pay-per-lead models is often lower than other models because businesses only pay for the leads they receive. Therefore, if there is a particular month in which they receive less leads, they will pay less that month for the service.
• Higher incentive from lead generation provider: The pay-per-lead model gives the lead generation provider an incentive to find you more quality leads because more leads mean more money for them.
• Less risk: Unlike with a monthly subscription contract which may lock you in for a 6- or 12-month period, you can stop a pay-per-lead service any time. This is less risky for businesses that may not have the budget to invest in a monthly subscription contract, especially if these services do not deliver a good ROI.

The following are the disadvantages of the pay-per-lead model:

• Difficult to budget: With the pay-per-lead model, it can be difficult to predict what you will pay each month. Some months may go beyond the allotted budget if the lead generation provider sends a high number of leads.  It is easier to budget with a monthly subscription contract that includes a set fee.
• Limited marketing: The only job of a lead generation provider with the pay-per-lead model is to send leads to their clients. Unlike with the monthly subscription model, service providers will not provide additional marketing to increase brand awareness or improve the quality of the traffic which could help build leads over time.  These services also do not include long-term planning.
• Lower quality leads: Putting less effort into marketing your brand and improving the quality of traffic will lead to lower quality leads. Lead generation providers may prioritize the number of leads over the quality of leads as more leads brings them more revenue.  This makes it difficult for businesses to improve the quality of leads over time.

Which Lead Generation Model is Best for My Business?

There are advantages and disadvantages to both the monthly contract subscription model and pay-per-lead model when it comes to lead generation services.  Businesses that need help generating leads should consider both models and choose the one that works best for their needs and budget.

The monthly subscription contract model is the best option for businesses that want to generate quality leads and also improve their brand awareness and the quality of their traffic over time to increase the quality and quantity of their leads.  A successful lead generation campaign with this model can bring an excellent ROI and help you grow your business.

The pay-per-lead model may be a better option for newer businesses that want to attract new customers but have less time and money to invest in lead building than more established businesses.  This can also be a great option for businesses that want to supplement the leads they already generate on their own with minimal investment.

Lead Generation Services from RestorationMaster

RestorationMaster is a lead generation service provider that offers monthly subscription contracts as well as pay-per-lead generation services.  Through our website restorationmasterfinder.com, we generate high quality leads for the disaster restoration industry.

When you sign up for a monthly subscription, we will help market your business with targeted website pages to improve brand awareness and traffic quality, so you can expect quality leads in your main service areas.  You will pay a flat fee each month and the leads you receive are exclusive, which means that you will not be competing with other businesses for the same leads.  You can expect our professionals to put forth a continuous effort for consistent quality leads and a good monthly ROI.

When you sign up for our pay-per-lead services, you can also expect quality, cost-effective leads generated by our highly optimized website.

If you are interested in generating quality leads for your disaster restoration business, including water damage leads and mold removal leads, call us at (888) 846-1992 for more information about our lead generation services.