What is a good adwords conversion rate for a tradesman such as a roofer or a plumber?

[Paul]

Believe it or not, the conversion rate doesn't matter at all.

Here's why. You just want to make sure you are making more than you are spending in advertising. Sounds simple, but a lot of people forget this basic fact. For example, if you have a high profit margin, you can afford a lower conversion rate.

Here's what you do. You figure out what a lead is worth to you. So if out of every 10 leads you get an average of 1 paying customer that profits you an average of $500. You then take 500/10 = $50. That's how much each lead is worth to you.

So in reality it's not conversion rate that you should be worried about. You should focus on CPA (cost per acquisition). Using the hypothetical numbers I used here, you must make sure you are spending on average less than $50 to get 1 conversion.

Obviously these numbers are made up, but you get the idea. Hope this helps!