Blog | magicplan

Best Ways to Get Water Damage Leads Without Wasting Money

Written by Zuzanna Geib | May 14, 2025

When the phone stops ringing, it doesn’t matter how good you are. If the leads dry up, your business slows down—and that’s when folks start looking for real answers. Here’s a no-fluff breakdown of what works (and what doesn’t) when it comes to getting new jobs in the property restoration world.

Understand This First: You're Always Paying for Leads (One Way or Another)

Whether it's cash, time, or favors, every lead costs something. You’re either buying leads with money (PPC, Google LSA, lead services), or you’re earning them through relationships and reputation. There’s no free ride. But there is smart spending—and that starts with knowing your customer acquisition cost (CAC).

Track what you spend on marketing, referral fees, or program memberships, then divide that by the jobs closed. If you’re paying $500 per lead and pulling $5,000 in revenue, that’s a 10% CAC. That’s not bad—especially if the margins hold up.

Learn more: How to Grow a Restoration Business Without Costly Ads or TPA Programs

Referral Fees: Everyone's Doing It (Just Don’t Lead With It)

Referral fees are baked into this business. Plumbers, HVAC techs, property managers—they’re all sources. But tossing out a dollar figure up front isn’t the move. First, ask what they hate about the last guy they referred. Solve that problem, and you may not even need to offer money right away.

That said, small plumbing shops often expect a referral bonus. A few hundred bucks per job is common. Bigger outfits care more about liability and professionalism. So, adjust your pitch based on who you’re dealing with.

Diversify Your Lead Streams

Don’t put all your eggs in one basket. If Google PPC dries up or LSA gets competitive, you’ll want backups. Here are the channels pros swear by:

  • Google LSA and SEO – LSA is quick, SEO is slow and steady. Reviews matter big here.
  • Plumber & HVAC referrals – Great when relationships are strong and you’re solving their pain points.
  • Property managers – Reliable but high-maintenance.
  • Program work (TPAs) – High volume, low margin. Worth it if you need volume.
  • Facebook & local groups – Low cost, high reward if you’re active and known.
  • Networking – BNI, local business chambers, even public adjusters.
  • Self-generated leads – Think door hangers, mailers, or owning a plumbing website and feeding your own funnel.

Learn more: How to Optimize Your Google Maps Profile to Get Water Damage Leads

Relationship Beats Referral Fees Every Time

A plumber will forget the $300 if your team shows up late, leaves a mess, or screws up communication. But if you solve their problems—help them avoid claims, support their techs, and make them look good—you’ll stay top of mind. Some of the best partnerships come from quarterly lunches, training their staff, and simply being dependable.

Managing Insurance Caps and Tight Markets

If you’re stuck with $3K water mitigation caps, like in parts of Florida, you’ve got to get creative:

  • Know your policy language – Demo and rebuild might fall under Coverage A, not the cap.
  • Educate the client – Let them know upfront what’s covered and what’s not. Make it normal to expect out-of-pocket bills—just like a co-pay at the doctor.
  • Package services right – Don’t dump mold-related items under water mitigation if the policy won’t cover it.

This is part communication, part strategy. Do it right, and you’ll still come out ahead.

Word of Mouth Isn’t Dead—It’s Evolved

Yes, great work still spreads by word of mouth, but now that includes Google reviews, Facebook tags, and group referrals. Make it easy for happy customers to talk about you. Ask for reviews. Ask for photos. Share them.

People want to feel like they’re helping their friends avoid a bad contractor. Give them something to share.

Final Word: Figure Out What Works in Your Area

Every market’s different. What kills it in Oklahoma might flop in South Florida. Try stuff. Track the results. Repeat what works.

Make lead generation something you control—not something you cross your fingers for. And always keep one eye on cost, the other on relationships. That combo will feed you longer than any paid lead service ever will.

 

WATCH NOW: Why Traditional Marketing Fails Restorers and What Works Instead ⬇️