Buying Contractor Leads: What to Evaluate Before Signing Up
Buying contractor leads is a major operational decision that has a significant impact on your customer acquisition cost. Done well, it fills your schedule with profitable jobs. Done poorly, it burns budget on contacts that don't convert. Here's what to evaluate before committing to any lead source.
Exclusivity: Is the lead exclusive to you or shared? This is the single most important question. Shared leads close at 5-15%; exclusive leads close at 25-40%. Source of traffic: Are leads coming from search intent (high quality) or display ads (lower intent)? Billing model: When are you charged? Per lead? Per call? Is there a minimum? Dispute process: How do you challenge a bad lead? Can you get credit for wrong numbers, out-of-area calls, or disconnects? Contract terms: Is there a monthly minimum, a long-term commitment, or a lock-in period? Avoid providers who require 3-6 month commitments before you can test their quality.
Frequently Asked Questions
What should I look for when buying contractor leads?
Exclusivity (shared vs exclusive), traffic source (search intent vs display), billing model (per lead vs per call), dispute process (can you credit bad leads), and contract terms (no long-term commitment before testing).
What contract terms should contractors avoid with lead providers?
Avoid long-term commitments (3-6 months) before you can evaluate quality. Month-to-month or per-call billing lets you exit if the leads don't perform. Monthly minimums should be low enough to test without overcommitting.
How do I evaluate a new lead source before buying?
Ask for references from contractors in your trade. Ask about average call duration and close rates. Ask about the dispute process. Start with a small test budget and track cost-per-acquired-job before scaling.