There are three primary channels that HVAC companies should be using to generate new leads for HVAC service and HVAC replacements. If you have decided that you want to generate more HVAC leads online, you should prioritize where you spend your money based on the average cost per lead.

Start with the channels that have the lowest cost per lead then work your way up to the more expensive channels. This will help you maximize your profitability. Here are the cheapest ways to get more calls for an HVAC Company.

Strategy	Estimated Cost Per Lead
1. Local SEO	$20/ lead
2. Google Local Service Ads	$40/ lead
3. Google Ads	$100+/ lead

Obviously there are some exceptions to this prioritization. For example, if you need leads as soon as possible, you would want to prioritize Google Local Service ads over starting a fresh Local SEO campaign. This is because there is a long ramp period for local SEO and the Local Service Ads will generate calls almost instantly.

What is the Cheapest Way to Get More Calls for an HVAC Company?

If your HVAC company is hungry for more replacement opportunities, here are the cheapest ways to generate more leads online.

1. Local SEO Cost Per Lead

The typical cost per lead for Local SEO services is right around $20/ lead when you consider the cost of Local SEO services versus the increase in calls that it can generate over time. While there is a ramp period where gained leads will be relatively expensive, once the ball gets rolling you will enjoy more calls and more leads without any ad spend.

Here is an example: Assume you are currently getting 50 calls per month from your Google Business Profile. If you pay for three months of SEO at $500/ month you have spent a total of $1,500. Let’s say phone calls from your GBP increase by 50% (25 calls/ month) That means that you will only be paying $20 per lead going forward after you make it through the growth period. (Typically the cost per lead will continue to decrease as your rankings for more keywords continue to improve.)

2. Google Local Service Ads Cost Per Lead

Google Local Service ads are one of the biggest channels that are missed by small to medium sized HVAC companies. The little secret that the big private equity backed HVAC companies don’t want you to know is that as much as 25% of their monthly revenue can be attributed to leads generated from Google Local Service Ads. In addition to being a huge source of leads, Google Local Service Ads are also much cheaper than traditional Google Ads.

The typical cost per lead generated from Google Local Service Ads is right around $40/ lead. Part of the reason that HVAC leads from Local Service Ads are so cheap is that you only pay for actual leads, not clicks. You can dispute any call or message that is not a lead and receive a refund. This helps you keep the average cost per lead down and maximize your ad spend.

In addition to being cheaper than traditional Google Ads, Local Service Ads are also a higher quality lead that results in more revenue. When people have a serious problem with their HVAC system, they will look for the fastest way to get in touch with help. Local Service Ads are the first option when they search, this means that people who are desperate for service will be calling a Local Service Ad before any other type of listing feature.

3. Google Ads Cost Per Lead

When it comes to search engine marketing for an HVAC company, Google Ads have the highest cost per lead. Google continues to increase the cost for their search ads which is causing the average cost per lead to rise as well. This means that businesses can expect to pay more to generate the same number of leads year over year.

This is why we urge business owners to steer toward Local Service Ads and Local SEO before they start dumping money into non-branded paid search campaigns. It is still recommended to bid on your brand as these clicks/ conversions will remain cheaper, but non-branded campaigns on Google Ads will continue to get more expensive.

In our strategy we recommend using non-branded Google ad campaigns as icing on the cake. These leads can help you fill up your schedule but they tend to be the most expensive and least profitable leads.

Have Questions?

If you have questions about how you can reduce your cost per lead and generate more leads from your website, Google Business Profile, Local Service Ads, and Google Search Ads, we are more than happy to help. Fill out our inquiry form and we will get in touch shortly.