Most home service businesses hit a wall somewhere between $1.5 and $3 million. The phone isn't ringing enough. Growth has flatlined. You're working harder but not going anywhere.
I run two businesses — Lapeyre Roofing in Texas and Obieo, where I handle SEO for home service companies. Between my own roofing company and the clients I work with, I've spent years tracking exactly what drives profitable contractor lead generation in this industry.
Here's what I've learned: the problem isn't your sales team. It isn't your pricing. It isn't even the quality of your work.
The Contractor Lead Generation Hierarchy
After years of running Lapeyre Roofing and analyzing data from Obieo clients, I've mapped out exactly what different lead sources actually cost and how they perform. This isn't theory — it's real numbers from real home service businesses.
Lead Source Comparison
Aggregators
$20-40
5-10%
$200-800
Live Transfers
$100-200
15-25%
$400-750
PPC / Google Ads
$50-150
20-35%
$200-500
SEO (Organic)
$25-50
30-50%
$50-150
Aggregators: The Worst Way to Generate Leads
You know the names — HomeAdvisor, Angi, Thumbtack. They sell leads to multiple contractors, so you're competing before the customer even picks up the phone.
Close Rate
5-10%
You're one of 3-5 contractors
True Cost/Acquisition
$200-800
After accounting for close rate
Customer Intent
Low
Price-shopping by design
According to Angi's own investor reports, the average homeowner receives quotes from 3-5 contractors per project. You're fighting for attention before you even get a chance to prove your value.
Live Transfers: Better, But Still Expensive
Live transfer companies qualify leads before connecting them to you. At least you're not competing with four other contractors on the same call. But you're paying a premium for that convenience.
I used live transfers at Lapeyre Roofing during peak storm season when I needed volume fast. They worked for short-term lead generation — but they're a band-aid, not a strategy.
PPC: Solid Returns, Linear Growth
Google Ads and Local Services Ads are where things start to make sense. You're capturing intent — people actively searching for services in your area. No middlemen taking cuts.
PPC is linear. You spend $5,000, you get X leads. The moment you stop spending, the leads stop coming. There's no compounding.
SEO: The Compounding Asset
This is why I started Obieo and why I've invested heavily in SEO for my own roofing company. SEO is the only lead generation channel that actually compounds over time.
Cost/Lead (Once Ranking)
$25-50
Close Rate
30-50%
Highest intent — they found YOU
Cost/Acquisition
$50-150
The Compounding Effect
Let me show you what I mean with real numbers from SEO-based contractor lead generation.
$18-24K
Investment
50-100
Leads
$200-400
Cost/Lead
$18-24K
Investment
150-300
Leads
$60-160
Cost/Lead
$18-24K
Same Investment
300-500
3x the Leads
$36-80
Cost/Lead
Why Poor Lead Generation Keeps You Stuck
Here's the pattern I see constantly in businesses that plateau:
Start with aggregators and referrals
Works until about $500K. Then growth stalls because you're competing for shared leads.
Add PPC when growth slows
Pushes revenue to $1-2M. Better leads, higher intent, but costs are linear.
Try to scale PPC, hit diminishing returns
Stuck at $2-3M. Bidding wars with competitors. Margins getting squeezed.
Never build the organic foundation
Miss the compounding effect entirely. Stay stuck while competitors who invested early pull ahead.
The businesses that break through $3 million all have one thing in common: they invested in SEO early enough to let it compound.
The Math That Changes Everything
A typical roofing company at $2M revenue might be spending:
Before: Typical Mix
After: Optimized Mix
Breaking Through the Ceiling
If you're stuck between $1.5 and $3 million, you don't have a "business problem." You have a lead generation problem. Here's how to fix it:
Track your real cost per acquisition by channel
Most businesses have never done this. Use our ROI Calculator to start.
Reduce or eliminate aggregator spend
The math almost never works. Stop burning money on shared leads.
Keep PPC for immediate volume
It works. It's just not going to compound. Use it strategically.
Build your SEO foundation now
Every month you wait is a month of compounding you lose. Start today.
The businesses that dominate their markets five years from now are the ones investing in organic lead generation today. Everyone else will still be fighting over the same expensive, shared leads.
Hunter Lapeyre
Hunter owns Obieo (SEO for home service businesses) and Lapeyre Roofing. He writes about what actually works for contractor lead generation — tested on his own business first.