Published on 7/31/2025 Staff Pick

Solved: How to Generate Leads for Local Service Business?

Inside this article, you'll discover:

Hi, I need some advice on how leads for a local service business can be generated online. I know a painter, builder, or mobile car mechanic get most of their clients in person, but how can they get more online. Right now, 90% of my moving business comes from recommendations, but what about digital marketing?

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Hi there,

Thanks for reaching out! Happy to give you some initial thoughts and guidance on how a local service business can generate leads, especially considering you're coming from a word-of-mouth background with your moving company.

Understanding Your Current Situation

It's great that you're getting a lot of business from word of mouth. That suggests you're doing a good job and people are happy to recommend you. However, relying solely on word of mouth can limit your growth potential. Exploring digital avenues is a smart move to expand your reach and bring in a consistent flow of new leads.

Where to start?

The initial issue is whether to use digital marketing or not.

Here are some things to consider:

Cost and Time

  • Digital marketing requires an investment of both time and money to setup, run and measure
  • How much time do you want to invest?
  • How much money do you want to invest?

Return on Investment

  • For every £1 you spend, how much revenue will you make?
  • Calculate your potentialy ROI to make sure there is a case for doing any kind of marketing in the first place
  • If you make 10X what you spend then it's likely to be worth it

Focusing on Intent: Google Search Ads and Local Service Ads

For services, you'd usually want to reach people that are already looking for help. So in terms of online advertising, you'd want to focus on platforms where people are actively searching for solutions. This typically means Google Search Ads or Google Local Service Ads, rather than social media.

Think about it: someone needs a painter. They're likely to type "painter near me" into Google. That's where you want to be.


Let’s think about budget

You're probably looking at about $10-$50 per lead but it can be more expensive if you are in a competitive market or cheaper if you’re lucky and your services are in high demand. We're running a campaign for an HVAC company currently, they are in a bit of a competitive area, and they are seeing costs of around $60/lead. We’ve run ads for childcare services where the CPL was around $10 per signup. And our best consumer services campaign was for a home cleaning company which got a cost of £5/lead. I usually recommend a budget for ad spend of $1-$2k per month to start with - but this depends on how many leads you need (number of leads you need x cost per lead = ad spend).

This can work well depending on how many of these leads you can close and how large the contracts are - you likely won't get the biggest contracts this way, these are usually referrals.

Keywords and Ad Copy: Speaking Directly to Your Audience

Think about the keywords your potential customers might use. You can target keywords like: "Electrician near me", "Emergency electrician", "Electrical repair", "Electric service company". Then, craft ad copy that speaks directly to their needs and offers a solution.

I'd say you need to enable phone extension so people can call you. If you can't take calls during the day, you can schedule the ads to only run when you are available. You could also add a callback widget to your website so people can leave their number and you can call them back when you are available.


Website Experience: Converting Clicks into Customers

While Google Ads can drive traffic, your website needs to be up to the task of converting that traffic into leads. Is your website easy to navigate? Does it clearly explain your services and pricing? Is there a clear call to action (e.g., "Get a Free Quote," "Call Us Today")?

A clunky, outdated website will bleed money, no matter how good your ads are.


Don't forget to track

Google Ads and Google Analytics can help you track where you're getting your leads from.

Here are some benefits for using them:

  • Track performance
  • Identify trends
  • Refine marketing

Area Recommended Action
Ad Platform Focus on Google Search Ads and Local Service Ads to capture intent-driven searches.
Keywords Research relevant keywords (e.g., "moving company near me") and use them in your ad campaigns.
Ad Copy Write compelling ad copy that addresses customer pain points and offers a clear solution.
Website Ensure your website is user-friendly, mobile-responsive, and has a clear call to action.
Tracking Set up conversion tracking in Google Ads and Analytics to measure the success of your campaigns.

Why Consider Expert Help?

While the advice above should give you a solid starting point, paid advertising can be a complicated beast. It requires constant monitoring, testing, and optimization to achieve the best results.

Expertise and Experience: We've run countless campaigns for various service businesses, from HVAC companies to home cleaning services. We know what works and what doesn't.

Time Savings: Managing ad campaigns takes time – time you could be spending running your business. Let us handle the marketing so you can focus on what you do best.

Improved ROI: Our expertise can help you get more leads for your money, ultimately increasing your profitability.

If you'd like to explore how we can help you grow your business through paid advertising, we'd be happy to offer you a free consultation to discuss your specific needs and goals. It's a no-pressure chat to see if we're a good fit.

Regards,
Team @ Lukas Holschuh

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