Website Closers® presents an Online Lead-Generation Business focused on B2B Clients in the Appliance Repair Vertical. As technology marches on, creating more complicated appliances to suit the ever-growing needs of customers around the world, the demand for appliances repair – and, in turn, leads for businesses offering appliance repair services – will only continue to grow. The business model has seen impressive growth between 2021 and 2022 and is expected to see their greatest profits thus far in 2023, with a planned projection of 20-30% growth.
How it Works.
The business is very simple to operate now that the foundation is in place – they operate from a website that is dedicated to scheduling an appliance repair near a user’s specific location. No matter where you are searching from, the website dynamically picks up your location and gears the incoming traffic towards “local” appliance repair technicians. When leads come in, they send those leads to appliance repair companies who pay on a Cost per Lead basis.
The company has tailored its strategies into only those that produce wins. They use a variety of methods to customize their campaigns, with one such method, Search Engine Marketing, being used to drive paid traffic to a website by advertising for targeted keywords and phrases. Though this strategy takes some time to achieve its peak results, there is a vast amount of lead generation potential available that is tied to holding these positions. With clever advertising practices, the company can provide a consistent flow of leads by increasing traffic from consumers seeking out a client’s services.
Their process consists of the following steps:
- Appliance repair services are advertised on Google and Bing PPC
- A Consumer clicks the ad and visits the site
- The consumer calls the phone number listed on the site or in the ad
- They then enter their zip code via an IVR
- A live auction is hosted with downstream lead buyers
- The call is forwarded to the buyer that is willing to pay the most
The business earns revenue with buyers when a call lasts longer than the required duration, which is roughly 1 to 2 minutes after forwarding the call to the buyer. The brand typically generates anywhere between 300 and 500 inbound phone calls every day. Because downstream buyer calls are forwarded once the consumer goes through the IVR process, the company doesn’t need to provide customer support, saving resources that would otherwise be spent on hiring customer representatives.
The brand monitors clickthrough rates and similar important metrics through analytics software, and calls are monitored through routing and reporting software alongside a downstream partner reporting dashboard. Each billable call is considered a conversion, which means that the call met or exceeded the required duration. Their converted click rate can vary depending on several factors, however, such as by campaign, geography, device type, and buyer.
Their participating partners are invoiced every month for billable calls, with their SEM platforms charging the credit card that’s on file the same day or the next day for clicks generated. Their partners’ payment terms sit at a net 30 to 45 day basis. The company’s overheads are exceedingly low thanks to their structure and would require the buyer to only have one to two months of Ad Spend as working capital. Their average Ad Spend is also fairly reasonable given the quality of their marketing, coming in at about $30,000 every month.
There is a wealth of opportunities to rapidly scale this business, and the right buyer can make use of them to potentially see a quick return on investment. These opportunities include, but certainly aren’t limited to, continuing to expand on SEM, adding new buyers, and implementing new traffic sources such as social, display, email, and affiliate. An additional expansion opportunity would be to introduce a form lead channel to supplement their existing phone call channel, which could increase sales.
Another move that the company could make would be building into additional home improvement categories, as there is no shortage of possible clients to be found by doing so. Some of their existing partners already have coverage to purchase appliance repair form leads, along with calls and form leads in other home improvement categories, which makes this move a very promising one overall.
The current owner requires only a modest 1 to 2 hours every week to manage operations, with their primary tasks including:
- Analyze the profitability of the prior day, week, and rolling 30 days performance
- Make campaign bid adjustments based on performance and profitability
- Research new relevant keywords to add
- Negative any poor performing or irrelevant queries
The brand has been streamlined and highly optimized, which means that, despite the owner’s minimal workload, they require no additional employees or contractors to manage the business. The straightforward management structure makes it perfect for a first-time entrepreneur learning the ropes of the industry, or for a buyer interested in generating passive income with little work required of them to sustain it.
This deal is made even sweeter by the fact that few special skills are needed to take over as owner, outside of some basic knowledge of digital marketing and lead generation. The current owner is also willing to train the buyer post-acquisition for the role, making the transition process even smoother.
The company has already set up the structures that it needs for success. They have a thriving client base behind them, a glowing reputation, and a turn-key structure that will make it much easier for the new owner to take over and shape them as needed.
