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Have you ever been frustrated by the fact that your competitors, who build substandard homes, have a more successful business than you?
It’s not their skill or competency.
It's their ability to get attention and interest.
And in the 21st century, the best way to get your ideal customer’s attention is by creating an online presence.
Prospective clients now vet their choices online long before a phone call or in-person meeting, and even the best builders are now finding themselves invisible amidst a sea of competitors.
The data speaks for itself: according to the State of Residential Construction Industry Annual Report 2024, 45.9 percent of builders identify generating quality leads as their primary challenge.
Yet despite this, 65.6 percent dedicate less than 1% of their revenue to marketing leaving them…
This report reveals how to get more high-margin building contracts by putting equal importance on transforming your online presence, as on the quality of your builds.
Let’s dive in…
With 48.4 percent of builders primarily leaning on referrals, and 61.5 percent securing deals with just 1-3 referrals, it appears as if referrals are a steady path to contract signings.
Yet, they lack predictability and are tough to scale.
Plus, when they dry up, so does your pipeline - meaning you’re often forced to accept contracts at lower margins in order to keep the wheel moving.
What’s more, this “referral addiction” creates a comfort zone that discourages exploration into other avenues that could unlock new streams of high-quality leads - capping your potential and sidelining you in the race for market dominance.
As the director of the Association of Professional Builders, Russ Stephens recommends builders allocate 1 to 3 percent of their revenue to marketing.
Ryan Stannard from Stannard Family Homes in Adelaide has followed Russ’s advice for over 6 years and achieved a 33 percent markup - a number considered ‘impossible’ by most builders.
It is one of the top reasons he’s achieved level 10 of APB’s professional builder levels, and become their first officially certified professional builder.
Think of the opportunity here: 65.6 percent of builders dedicated less than 1 percent of their revenue to marketing in 2023.
They’re trying to save money, but end up shooting themselves in the foot.
The key to setting yourself apart and emulating Ryan’s results is zigging while everyone else is zagging, looking beyond the immediate costs and thinking long-term.
In 2021 when COVID hit, most builders slashed their marketing budget, what did Ryan do?
Ryan increased his budget! He now enjoys the fruit of that decision, he ‘owns’ the online space in his area left void by other builders who are now struggling to regain their position in the search results.
Ryan’s story is proof it’s one of the best ways to attract quality leads, establish authority, and (most importantly) open the doors to high-margin building contracts.
According to the Content Marketing Institute, content marketing generates three times as many leads as traditional outbound marketing at 62% less cost.
Likewise, HubSpot’s research reveals that businesses engaging in blogging see a 165% increase in lead growth.
Yet despite this, The State of Residential Construction Industry Annual Report 2024 reveals some startling truths:
Bottom line: there is a huge opportunity for builders willing to grab the bull by the horns and embrace these platforms via authentic engagement and value-driven content.
By sharing insights into the construction process, offering tips on home maintenance, and showcasing completed projects, builders can engage audiences, build trust, and establish their brand as an authority in the industry.
This approach not only attracts quality leads but also fosters a sense of community and loyalty among potential clients.
What’s more, social media platforms offer the unique advantage of direct engagement with your target market, allowing for real-time feedback and interaction.
For centuries, content has been the foundation upon which authority is built.
Yet today, you don’t need to invest hundreds of hours sweating over a book.
By providing value that resonates with your target audience, you’ll form a bond with your future customers that sets you apart from your competition.
Here's how to get started:
The evidence is undeniable: builders who engage with their audience via meaningful, value-driven content generate more:
Quite frankly, there’s no more proven way to attract high-quality leads and set yourself apart as the leading builder in your area.
Now the balls in your court…
Will you continue to rely on referrals and traditional marketing?
Or will you seize the opportunity to redefine your business and establish yourself as the builder of choice in your region?
For a deeper dive into this strategy, access the report “Set Yourself Up as an Authority: Close High Margin Building Contracts”. This comprehensive guide, created by digital expert Peter Butler and world class copywriter, Scott Bywater, is an essential read for builders aiming to elevate their business in the competitive landscape of 2024.
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