r/LeadGeneration
Is 6.5% of total job revenue fair for lead generation/customer acquisition for a concrete contractor, or should it be based on profit?
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I recently started doing lead generation/customer acquisition for a small residential concrete contractor, and this is my first time structuring this kind of compensation arrangement. I’m currently in month one, week two.My role is more than just passing along referrals. I’m handling the acquisition side, including tracking leads that come through the website form, following up with those leads, reaching out to homeowners on Nextdoor who are actively looking for concrete contractors, and building targeted neighborhood campaigns. I’m also developing prospecting campaigns based on specific property/homeowner criteria, where the outreach could be cold calling, door hangers, or direct mail. Starting next month, we’re planning to test paid acquisition through Google Ads and potentially Facebook or Nextdoor ads. So far, without paid ads, we’ve generated 3 jobs in the first two weeks, primarily through organic/local SEO efforts and the lead-gen system we’ve been building. Before starting, we agreed on a 6.5% commission for jobs that came from leads I generated. What we did not clearly define was whether that 6.5% would be calculated on the total contract value or on the contractor’s profit. That distinction just became very important.We are expecting to close a concrete driveway replacement/patio project for approximately $18,150. My understanding was that I would receive:6.5%...
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