Lead economics

The channel that closes highest and costs least.

Referral and organic enquiries close at 50 to 70 percent. Your site decides whether they convert.

The cheapest channel

Highest close rate, lowest cost, least managed.

Referral enquiries behave like organic ones commercially, and cost almost nothing to generate.

01
50 – 70%

Close rate

The same band as organic, and for the same reason: the buyer already chose you.

02
Near zero

Cost per lead

No platform fee, no click cost. The cost is doing the work well and asking.

03
$200 – $300

Shared lead comparison

What the same enquiry costs when a platform sells it to four contractors.

SOURCES: GHOSTREP, GETBIDDABLE, WEBSITE AND SEO AGENCY. RANGES AS PUBLISHED SEPT 2026.

Why it closes

A referred homeowner has already been told you are competent by someone they trust. They are not comparing four contractors, they are confirming one. That is why referral and organic enquiries sit in the same 50 to 70 percent band while cold paid sits at 8 to 15. The trust was supplied before the enquiry, which is the expensive part of every other channel.

Where it leaks

The referral gets checked online before the call, usually on a phone, usually within a minute. If the site does not confirm the story, no licence detail, no real project photographs, no answer to the question they were about to ask, the recommendation loses force. That is the single most common way roofing companies lose free leads, and it is invisible because the enquiry never arrives to be counted.

How to ask without being awkward

Five habits that produce referrals reliably.

01
Ask at completion, on site, while the roof is visibly new and the crew is still there.
02
Ask for something specific: a neighbour, a colleague, or a review, rather than general goodwill.
03
Make it one step.

A card with a short link beats a promise to email later.

04
Follow up once, in writing, a week after the job closes.
05
Thank people who refer, visibly.

Referrers who are acknowledged refer again.

Reviews are the public version of a referral

They do the same job at scale, and they pay twice: review volume and recency influence map-pack visibility and Local Services Ads ranking as well as convincing the reader. Respond to every one, including the bad ones, with specifics rather than templates. A well-answered complaint reads better to a homeowner than an unbroken run of five stars.

What the site has to do

Four things, on the pages a referral will actually land on.

01
State licence and insurance details as facts, with numbers, not implications.
02
Show real project photographs from your own jobs, with the suburb and roof type named.
03
Publish the answers to the questions people ask on the phone, so the referral can self-serve at 9pm.
04
Make contact one tap, with hours or an after-hours message beside it.

Why this is not a soft channel

It is the highest-closing and cheapest source in the published data, and the only one that improves with the quality of your work rather than the size of your budget. Treating it as a nice-to-have while paying $1,786 per shared-lead job is the most expensive habit in this trade.

Where referrals come from beyond customers

Five sources most contractors underuse.

01
Real estate agents and property managers, who need a roofer on call and refer repeatedly
02
Insurance adjusters and public adjusters, within the bounds of your state's rules
03
General contractors and builders who do not roof themselves
04
Suppliers and manufacturer representatives, who know who is buying quality material
05
Other roofers who do not do your specialty, particularly commercial against residential

Making the referral easy to act on

A referrer sends someone to a name, and that person searches it. What they find decides whether the referral survives. A site that states the licence, shows work in that suburb, and answers the obvious question converts the recommendation. One that shows stock photography and a contact form does not. This is the cheapest conversion work available and it is why this guide sits in the lead economics cluster rather than the branding conversation.

Track it or it disappears

Referrals arrive as direct traffic, phone calls, and walk-ups, which means they vanish from any last-click report and get credited to nothing. Ask every enquiry how they heard about you and write the answer down. Companies that start doing this routinely discover referrals are their largest channel and had been invisible in every report they were paying for.

Run the numbers on your market.

$2,500, and you see cost per booked job for every channel you use.