Professional Documents
Culture Documents
For Builders
The Ultimate Guide To Advertising
A Building Company
To your success
Association of Professional Builders
The most effective lead magnets for custom builders provide valuable
information that relates to where their prospective clients are in the sales
process.
How old are they? Do they have kids? Are they married?
The best lead magnets we’ve seen in the
residential construction industry are:
If you want to grow your building company beyond the current limitations So, although 1%-3% may sound like a lot to spend on advertising, when
that restrict a referral business, you need to stop relying on referrals you consider the benchmark for markup on new homes is 33% and the
and create more demand than supply in order to increase revenue or average for fixed expenses is around 15% (including advertising and
margins. And that means you need more leads. marketing), then you’re still left with over 10% net profit! In reality it’s a bit
like putting money into a machine that spits out 4-10 times the amount
Success, is all down to supply and demand.
you put in!
To create demand and acquire more leads you need to determine an
advertising budget based on your business goals and objectives.
As a guide for a new home builder, between 1% - 3% of revenue needs to be reinvested back
into your business in advertising spend.
If you’re happy with your If you are looking to increase or more - If you want to
Facebook and Google are responsible for over half of all online advertising. Which is why you need to
be advertising on Facebook, Instagram and Google Ads (formerly known as AdWords) and start Search
Engine Optimisation (SEO) to rank in Google.
Consumers want to buy from people they know, like and trust so an inbound strategy is about building
relationships with your prospects and changing the way you present your building company to
consumers who are considering building a new home.
By using an inbound approach you become a trusted advisor offering a valuable service rather than a
commodity business competing on price. Competing on price is how margins come under pressure.
As part of the marketing process you first need to gain the attention of your prospects through
channels such as Facebook and Instagram. It’s important to make your prospect aware of and address
their pain points and fears so you can then offer solutions to those problems through education, tips
and valuable information.
And when your prospect is ready to build their new home, you become their ‘go-to expert’. This not
only makes it much easier for you to convert the sale, but because your client sees you as an expert
providing professional services rather than ‘just another builder’, they will be less likely to expect you to
compete on price.
5 Results
If you have been used to relying on referrals you should be aware that an As long as your sales and marketing processes are up to scratch, 100
‘advertising model’ is very different to a ‘referral model’. leads generated should give you 1 highly profitable building contract.
The number of leads required may seem high, but when leads only cost
So expect the 100:1 ratio. $50 and can go on to become a $500,000 contract, the investment is well
From our experience this is generally what you can expect from worth it!
advertising:
The best advice is not to worry about the 99 that don’t sign a contract
and instead look after the one that does. A $5,000 investment for a
$500,000 contract is good business.
100 Leads
Let’s break it down further….
20 Conversations Say you’re earning 10% net profit per contract - that’s $50,000.
So if you are generating 100 leads to sign one contract, that’s equal to
$500 profit per lead.
10 Qualified Opportunities
So if each lead cost you $50 then you’re actually making 10x the money
you invest.
3 Concept Agreements
Advertising is an investment.
Like a pharmaceutical company investing in Research and Development,
2 Preliminary Building Agreements they invest millions first to get back billions later.
+1 Week
Goodwill Email 1
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Goodwill Email 2
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Goodwill Email 3
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Goodwill Email 4
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Goodwill Email 5
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Goodwill Email 6
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Goodwill Email 7
The lead magnet delivery email is the email responsible for delivering your lead magnet
(design range, free guide, etc) to the lead.
The email copy should affirm your prospect’s decision to give you their personal details by
outlining the benefits and value offered in your lead magnet. It must be delivered instantly
(within seconds) in order to represent the professionalism of your building company.
Indoctrination emails are a sequence of 4 emails that introduce your building company to the
brand new lead entering your database.
The first email should start with a short reminder of who you are and what they did to receive
this email. Next you want to thank them for getting in touch with you and reinforce that they
made the right decision by contacting you over a competitor and let them know what you will
be doing next (sending them another email).
It is important that at all stages your lead knows exactly what they can expect from you and
more importantly demonstrate that you will deliver on what you say.
Your first indoctrination email should also include a task for your lead to complete before the
next email arrives. It can be as short and straightforward as requesting a reply to a simple
question such as, “What type of project are you planning?” It doesn’t matter what you ask
them to do, the goal is to start building trust and get some interaction happening quickly.
The timing of the indoctrination sequence of emails is important with the first email being
sent immediately when your lead joins your database for the first time. The following 3 emails
that are sent 1 day apart are designed to over-deliver some valuable information and build
rapport quickly as you share your background and the story that lead you to become an
expert in your niche.
Goodwill emails are a series of helpful and valuable emails that contain
tips and advice for building a custom home (or whatever your niche is).
Each content email must be sent a maximum of 7 days apart (any longer
and the lead will forget who you are and simply unsubscribe).
Avoid talking about yourself in these emails. You don’t need to self
promote every week in order to demonstrate expertise, instead focus on
helping your leads solve their problems.
Lead Magnets
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