Where Most General Contractor Leads Go to Die

The Problem: Dying Leads

Ever wondered where your leads vanish? We tracked 500 leads for general contractors and discovered a troubling pattern. Leads are slipping through the cracks, and it's costing you big time. No judgement here, but if you've ever been too busy to follow up right away, you're not alone.

Let's unpack why this happens. When a new lead comes in—maybe it's a homeowner looking for a kitchen remodel—how long does it take before they hear back from you? If it's more than 30 minutes, your chances of turning that lead into a paying customer drop by a staggering 80%.

I know, you're juggling a million things. But that delay is a silent killer of potential jobs.

Crunching the Numbers

Okay, let's get our hands dirty with some math. Say you receive 20 leads a week, each with an average job value of $24,000. If you lose 80% of those because of slow follow-up, that's 16 leads slipping away.

Now, multiply that by your average ticket price. We're talking about $384,000 in potential revenue lost each week. No small chunk of change.

Even if your business converts at a conservative rate of 20%, that's still $76,800 lost weekly. Over a year, we're looking at almost $4 million in missed opportunities. Anyone else feeling a little queasy?

Beyond the Obvious Costs

Sure, the lost revenue is a big deal. But let's talk about the hidden costs. Every lead that slips away isn't just lost money—it's lost time, effort, and credibility.

If a lead doesn't convert, consider the resources spent getting it in the first place. Marketing efforts, advertising dollars, and even the time spent reaching out initially—all wasted.

And look, I get it. Miss enough leads, and your reputation takes a hit too. Prospective clients talk, and word spreads that you're the business that doesn't call back.

• Wasted marketing spend
• Lost time on non-converting leads
• Damaged reputation

Insights from the Data

The data paints a pretty stark picture. A study shows the average service business takes 3 hours and 47 minutes to return a lead inquiry. That's nearly 4 hours of silence from when your potential client reached out.

Inconsistent follow-up is costing mid-sized service companies an average of $38,000 annually. And this doesn't even touch on the fact that you're fighting an uphill battle to acquire new customers—5-7 times more expensive than retaining existing ones.

Your business relies on steady work, and these stats are a wake-up call. It's time to rethink how you handle leads.

A Real-World Scenario

Picture this: Jane runs a small contracting business focused on bathroom renovations. She averages about 10 leads a week, each worth around $18,000. She thinks she's doing okay without fancy systems.

But Jane's team is swamped, and they often don't respond to inquiries for hours, sometimes days. Of the 10 leads, she typically closes 2. That's $36,000 of the $180,000 potential revenue captured.

By tightening her follow-up, she could increase her closing rate by just 20%, adding roughly $36,000 in revenue weekly. That's a game-changer for her business.

The Snowball Effect

Lost leads don’t just impact your business immediately—they snowball. When you consistently miss out, you struggle to build a pipeline. That pipeline is what keeps your business afloat when times get tough.

As loss compounds, so does the stress. You're constantly hustling for leads that don't convert, chasing after clients who have already moved on. It's exhausting.

And it doesn't just affect your bottom line; it impacts your team's morale and your ability to plan for the future. Consistently losing leads makes it hard to scale, no matter how skilled your team is.

Fixing the Problem

Turning this around isn't just about working harder. You need systems—automations that keep you in touch with leads without you lifting a finger.

Here's what an effective follow-up process looks like. It's not rocket science, but it does require commitment to change how things are done.

Automating your lead response can reduce that 3 hour and 47 minute response time to just minutes.

1. 1Set up an automated lead capture system
2. 2Implement a CRM to track and nurture leads
3. 3Automate follow-up emails and messages
4. 4Assign specific team members to manage rapid responses

The ROI Breakdown

Let's talk return on investment. Implementing a CRM and automation tools might cost upwards of $500 a month, sure. But compare that to the $384,000 you're losing weekly.

Automated scheduling alone eliminates 23 back-and-forth messages per booking—saving hours of your team's time. That's invaluable for freeing up resources and focusing on what really matters.

Action Items for This Week

Curious About Your Numbers?

Want to crunch these numbers for your own business? It's one thing to read about it, but another to see it reflected in your bottom line. Let's hop on a call and figure out if this makes sense for your business.

Visit [https://cal.com/jon-dipilato/30min](https://cal.com/jon-dipilato/30min) to schedule a 30-minute strategy call. No pressure, just a conversation to see how we can stop those leads from dying.