Building a Roofing Referral Flywheel That Runs Itself

Most roofers lose money on customer acquisition. Lead cost is $120 to $380 depending on channel, close rates are 15 to 28 percent, and the cost per acquired customer lands between $700 and $1,800 on paid channels. Referrals cost almost nothing, close at 55 to 72 percent, and the cost per acquired customer drops to $50 to $200 when the flywheel is running. This is the systematic referral program that turns every install into 2 more jobs.

Why referral flywheels fail without a system

Every roofer "asks for referrals." Most ask once, at the end of the job, when the customer is tired and the sales rep has already moved on. That single ask generates 0.2 referrals per customer on average.

A systematic flywheel generates 1.5 to 3 referrals per customer. The difference is timing, script, incentive, and follow-up.

The 6-touch referral sequence

Touch 1: Contract signing (Day 0)

Set the expectation upfront. Include this in the sales close:

"Our business runs on referrals. Most of our work comes from neighbors like you telling other homeowners about us. When the job is complete, I will ask you for 3 names. In the meantime, let us focus on getting your roof right."

This primes the ask. The customer knows it is coming and does not feel surprised when it happens.

Touch 2: Install day (Day 7 to 21)

During install, the crew foreman puts a yard sign at the curb with company branding. This is the passive referral generator. Neighbors walking by or driving past see it throughout the 1 to 2 day install.

Yard sign best practices:

• 24 by 36 inches, high-contrast colors, readable from 50 feet
• Company name, phone number, website in that order
• Specific message like "Insurance claim specialist" or "Storm damage expert"
• Stake deep enough to survive wind (18 inches minimum)
• Ask customer for permission, offer $50 credit for keeping sign up 14 days post-install

Touch 3: Completion walk-through (Day 10 to 21)

The project manager walks the finished roof with the customer and delivers the referral ask. Script:

"Before I go, I want to ask a favor. We talked about this at contract signing. I need 3 names of neighbors, friends, or family who might need a roof inspection. Not anyone in particular, just the first 3 names that come to mind. I will reach out to them, tell them you referred them, and offer a free inspection. You get a $150 gift card for each one that signs a contract."

Three elements make this work:

1. Specific number: "3 names" is concrete. "Anyone you know" is vague.
2. Script for the customer: you handle the reach-out, they just give names.
3. Clear incentive: $150 gift card is specific and motivating.

Touch 4: Neighborhood canvass (Day 14 to 30)

After install, canvass the 10 to 20 homes closest to your customer. Script:

"Hi, my name is [rep]. We just finished a new roof for your neighbor [customer name] at [address]. Since we are in the neighborhood, I wanted to offer free roof inspections to the other houses on the block. Would you like me to take a look at yours?"

This works because:

• Social proof: their neighbor just hired you
• Low commitment: free inspection, not a sales pitch
• Time-limited: "since we are in the neighborhood"

Neighborhood canvass post-install converts at 8 to 15 percent to an inspection, and 25 to 40 percent of inspections convert to a claim or contract.

Touch 5: Review request (Day 14 to 21)

Send a text or email asking for a Google review:

"Hi [customer], thanks again for letting us work on your roof. If you have a minute, would you leave us a quick Google review? It helps other homeowners find us. Here is the direct link: [link]."

Reviews and referrals are separate but related. A customer who leaves a 5-star review is 3x more likely to refer in the next 90 days.

Touch 6: Check-in at 6 months and 12 months

Text or email:

"Hi [customer], it is [company name]. We installed your roof 6 months ago. Everything holding up well? If any issues have come up, call me directly at [phone]. Also, if you have anyone else who needs a roof, our $150 referral bonus is still active."

6-month and 12-month check-ins generate 10 to 25 percent of total referrals. The original customer remembers you, knows the product is working, and is comfortable referring.

The referral incentive structure

Decide your incentive and stick to it. Common structures:

Cash or gift card

$100 to $250 per referred customer who signs a contract. Clean, simple, effective.

Credit toward future service

"$250 credit toward gutters, siding, or future roofing work." Works if you have multi-service offerings. Less effective if roofing is your only service.

Charity donation

"$250 donated to your choice of charity." Sometimes motivates higher-income customers who do not need the money.

Tiered structure

"$150 for one referral, $400 for three, $1,000 for five." Motivates multiple referrals from engaged customers.

Referral club

"After 5 referrals, you get a free roof cleaning every year for life." Long-term engagement.

Yard sign conversion rates

Yard signs convert at roughly 0.5 to 2 percent based on neighborhood traffic. A yard sign that sits for 14 days on a street with 200 car trips per day generates 14 to 56 impressions, of which maybe 1 to 3 will convert to a called inquiry.

To maximize yard sign conversion:

• Position at highest-traffic corner of the property
• Pay $50 to the homeowner for each day past 14 days the sign stays up
• Use a QR code that links to a landing page tracking source
• Rotate sign designs to avoid "sign blindness" in frequent-install neighborhoods

The review and referral tie-in

Reviews and referrals reinforce each other:

• A 5-star customer is 3x more likely to refer
• A referred prospect checks your reviews before calling
• A Google review mentioning "referral" ranks higher in local search

Ask for the review first, then follow up with the referral ask 3 to 7 days later. Do not ask for both in the same message because you get neither.

Tracking the flywheel

Every referral must be tracked to the original customer and paid out accurately. Without tracking:

• Customers stop referring when they do not see rewards
• Sales reps forget to credit the source
• You cannot measure which customers are "super referrers"
• You cannot measure cost per referral vs cost per paid lead

Track in your CRM:

1. Original customer name and job ID
2. Referred prospect name, address, phone
3. Date of referral
4. Date of contact
5. Contract signed (yes/no)
6. Reward paid (amount and date)

Super referrer strategy

Roughly 20 percent of customers generate 80 percent of referrals. These are your super referrers. Identify them and cultivate:

• Send personal thank-you notes
• Include them in a "VIP" communication list with special offers
• Invite to company events or customer appreciation nights
• Provide priority service on any future work
• Occasional gifts (holiday, birthday, install anniversary)

A super referrer sending 8 referrals per year at a 50 percent close rate is worth 4 contracts, or $80,000+ in gross revenue. Spending $500 per year cultivating that relationship is an obvious ROI.

For more on canvassing, see neighborhood canvassing strategy. For reviews, read post-install review collection playbook.

The tech stack

RoofKnockers Referral Manager tracks every referral from origin customer to contract signing, triggers automatic thank-you messages at each milestone, and pays out rewards via direct deposit or gift card on contract completion.

FAQ

How much should I spend on referral incentives?

Budget 5 to 10 percent of the contract value. On a $18,000 contract, a $150 to $500 referral payment is reasonable. Higher incentives work better in high-ticket markets.

Are referral incentives legal?

Yes in most states. A few (Florida, for example) have restrictions on how much a contractor can pay and whether it affects the insurance claim. Check your state and consult your attorney.

What if a customer refers but the referred prospect does not sign?

Most programs pay only on contract signing. Some pay a smaller "thank you" on inspection completion (typically $25 to $50). Decide your structure upfront and document it.