Resource

Contractor Acquisition Glossary

Clear financial language keeps the team from comparing different numbers under one label.

The operating reality

Clear financial language keeps the team from comparing different numbers under one label.

Customer acquisition cost and cost per close both require a defined cost pool and paying-customer denominator. Cost per lead uses leads; close rate uses closes divided by leads; contribution subtracts direct and acquisition costs from revenue.

An operator already spending $5,000 for 50 leads and 10 customers has a $100 CPL, a 20% close rate, and a hidden $500 cost per close. CloseDay makes that baseline visible so the operator can lower it; if each job contributes $1,500 before acquisition, $1,000 remains after acquisition.

The lesson

Start with a defined operating question

Customer acquisition cost and cost per close both require a defined cost pool and paying-customer denominator. Cost per lead uses leads; close rate uses closes divided by leads; contribution subtracts direct and acquisition costs from revenue.

Worked example

Put the idea in dollars

An operator already spending $5,000 for 50 leads and 10 customers has a $100 CPL, a 20% close rate, and a hidden $500 cost per close. CloseDay makes that baseline visible so the operator can lower it; if each job contributes $1,500 before acquisition, $1,000 remains after acquisition.

Operator checklist

Take the next action

Use actual business inputs and document assumptions.

  • Write the numerator and denominator beside every KPI.
  • Use the same time period.
  • Separate revenue, gross margin, contribution, and net profit.
  • Do not treat benchmarks as your unit economics.

Related principle

The operating rule behind the resource

Read the belief that keeps the number connected to the workflow.

Simple dollar example

Make the economics visible.

An operator already spending $5,000 for 50 leads and 10 customers has a $100 CPL, a 20% close rate, and a hidden $500 cost per close. CloseDay makes that baseline visible so the operator can lower it; if each job contributes $1,500 before acquisition, $1,000 remains after acquisition.

Illustrative only. Use your own numbers and assumptions; this is not financial advice or a guaranteed forecast.

Run your numbers

Close Rate vs. Cost per Close Calculator

Apply the lesson with your own numbers.

Open the calculator

What changes

One clear rule. One accountable next action.

01

Measure the current state

Customer acquisition cost and cost per close both require a defined cost pool and paying-customer denominator. Cost per lead uses leads; close rate uses closes divided by leads; contribution subtracts direct and acquisition costs from revenue.

02

Keep the workflow accountable

An operator already spending $5,000 for 50 leads and 10 customers has a $100 CPL, a 20% close rate, and a hidden $500 cost per close. CloseDay makes that baseline visible so the operator can lower it; if each job contributes $1,500 before acquisition, $1,000 remains after acquisition.

Frequently asked questions

Practical buying questions

What should I do after reading Contractor Acquisition Glossary?

Use Close Rate vs. Cost per Close Calculator with one consistent period, document the assumptions, and assign the next operating action.

Are the examples benchmarks?

No. They illustrate the math. Your trade, market, labor, materials, and close outcomes determine the actual result.

Do I need to submit a form to use the resource?

No. Foundational education and calculators are open. Saving a personalized result is optional.

Want these numbers connected from lead to paying customer?

See how CloseDay would apply the workflow to your trade and market.

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