July 18, 2019 | By RGR Marketing Blog

California Has the Most Expensive Solar Leads in the Country; Here’s Why

The price for solar leads changes, depending on where (in what state) you are looking to buy them. For instance, in the state of California, solar leads are at their most expensive – after all, business is booming in California, so doesn’t it make sense? On the other hand, in the state of North Dakota, you’ll find the cheapest solar leads of pretty much anywhere in the country.

So why exactly are leads so expensive in California? Here, we look at the few key reasons why California’s solar lead prices are higher than any other state, and how you can compete as a solar installation company.

Average Solar Lead Cost Per Sale in California

The cost of solar leads is different, depending on whether the leads are multi-installer organic leads from a defined organic source, or multi-installer leads where the origin of the lead is not visible. In California, as in all other states, the cost of solar leads is determined by how many of those leads convert into sales. Of course, the more sales you can covert from your purchased leads, the less the entire batch will ultimately cost you per lead.

Here’s an example: If a solar company purchases 135 organic leads from a defined organic source, and it’s able to convert 9 of those leads into sales (which is about the current conversion average in the state at 7%), then the company’s average lead cost-per-sale will be around $1,929.

On the other hand, if the same company purchases 95 leads from several sub-affiliates in which the leads are shared with four other installers, their likely conversion drops to 3% and their lead cost per sale increases to $3,167.

What Affects Cost Per Solar Lead

Lead cost varies per state, as you might have guessed. In fact, it can even vary based on where the lead is located in the state because product and demand also impact lead cost. As a result, solar leads can be as affordable as $5 per lead or as expensive as $300 per lead.

In a city like San Diego, where demand for solar is high and solar installers are numerous, for example, you can expect to pay at the higher end for solar leads.

Another factor that goes into how much a solar lead costs is whether the lead is exclusive or shared with other solar companies. For instance, if you are buying exclusive leads that aren’t shared with other solar companies, then you can expect to pay more for the lead compared to if it is shared with four other installers.

The fact that California has the most solar installers and the most solar prospects means that competition is higher here when compared with every other state. As a result, the cost per solar lead is also the highest in California.

Better Solar Leads Improve Your ROI

Buying solar leads does cost money, but the quality of the leads makes a tremendous difference in whether the money is well spent. At RGR Marketing, we provide you with high-quality, verified leads that are tailored to your unique customer demographics and requirements.

We can help you grow your solar business with leads that are easier to convert into sales. Give us a try today and strengthen your lead conversion results. With RGR Marketing, you’ll always have prospects and clients in your pipeline!

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