Contractor Lead Generation Glossary: 25 Terms Every Home Service Business Should Know
Lead generation has its own vocabulary. Understanding these terms helps you evaluate lead sources, read contracts accurately, and avoid common mistakes when comparing providers.
Core terms
Lead: A homeowner who has expressed interest in a home service by submitting a form, calling a number, or clicking a call-to-action. A lead is potential, not guaranteed work.
Exclusive lead: A lead delivered to one contractor only. No other contractor receives the same inquiry. The defining characteristic is structural — the lead cannot be resold. See exclusive lead generation explained.
Shared lead: A lead sold to multiple contractors simultaneously, typically 3–5. The homeowner gets called by everyone who purchased the lead. Close rates are low (3–8%) because of competition.
Pay-per-call: A lead generation model where you pay for each inbound phone call from a homeowner, not for form fills or impressions. Calls are typically exclusive and carry higher intent than form-based leads. See pay-per-call explained.
Appointment setting: A managed service that calls leads, qualifies them, and schedules confirmed appointments directly on your calendar. You receive ready-to-estimate prospects rather than raw leads. See appointment setting explained.
Cost per lead (CPL): Total marketing spend divided by total leads received. Important but not the primary metric for evaluating lead quality. See why CPL misleads contractors.
Cost per job: Total marketing spend divided by number of jobs won. The correct primary metric for evaluating any lead generation source.
Close rate: The percentage of leads that convert to a closed job. Shared leads: 3–8%. Exclusive calls: 20–40%. Booked appointments: 50–70%.
Billable call: A call that meets the criteria for charging under your pay-per-call agreement. Usually requires a minimum duration (60–90 seconds) and correct service category. Non-billable calls (wrong number, too short, out of area) should not be charged. See what is a billable call.
Lead quality: A subjective but important measure of how likely a lead is to become a job. High-quality leads: right service area, correct job type, homeowner not renter, immediate need. Low-quality leads: wrong area, vague request, outside your service category.
Technical terms
Call tracking: Phone numbers used to attribute calls to specific marketing sources. If someone calls a number from a specific campaign, you know which campaign generated that call. Essential for measuring ROI per channel.
Junk lead: A lead that does not meet your service criteria — wrong area, wrong service type, wrong homeowner type, or fraudulent. Most lead providers offer credits for confirmed junk leads.
Lead credit: A refund or billing adjustment for a lead that does not meet agreed quality standards. Policies vary significantly by provider. Get the credit policy in writing before signing.
Speed-to-lead: The time between a lead being delivered and your first contact attempt. Research shows leads contacted within 5 minutes convert at 5x the rate of leads contacted at 10 minutes. See speed-to-lead for contractors.
TCPA: Telephone Consumer Protection Act. Federal law governing consent requirements for calling consumers. Lead providers should obtain proper consent. Verify compliance with any lead source you use. See TCPA lead compliance.
Model-specific terms
Google Guaranteed: The badge earned by contractors who pass Google's verification process for Local Services Ads. Homeowners see the badge as a trust signal.
LSA (Local Services Ads): Google's pay-per-lead ad product for local service providers. Appears above standard search ads. See Google LSA for contractors.
Form fill: A lead generated when a homeowner submits an online form. Lower intent than a phone call. Almost always shared across multiple contractors in marketplace models.
Inbound vs. outbound: Inbound leads are homeowners who reached out to you (called your number, filled out your form). Outbound leads require you to initiate contact. Inbound closes at significantly higher rates.
Service area targeting: Restricting lead delivery to specific zip codes, cities, or counties where you operate. Critical for exclusive leads — receiving calls outside your area wastes budget and hurts close rate.
Vertical: A specific trade or service category (roofing, fencing, pest control, etc.). Lead providers often price and deliver by vertical because competition and demand vary significantly by trade.