How to Evaluate Contractor Lead Quality
Lead quality is a measure of how likely a contact is to convert into a paying customer. It's driven by intent (how actively was the homeowner searching?), exclusivity (are you competing for the same lead?), and fit (is this person in your service area, looking for your service, with a real project?). Most contractors track lead volume and cost per lead but not quality -- which is why poor lead sources survive longer than they should.
The clearest signal of lead quality is your close rate. Track jobs closed per lead source, not just leads received. A lead source with a 30% close rate at $70/call is categorically better than one with an 8% close rate at $25/form -- even though the second appears cheaper at first glance.
Ask lead providers: Where do calls originate? (Search intent is highest quality.) Are leads exclusive? What's the average call duration? Can you see call recordings? What's the dispute process for bad calls? Providers who can't answer these questions clearly are worth avoiding.
Frequently Asked Questions
What is lead quality for contractors?
Lead quality measures how likely a contact is to convert into a paying customer. It's determined by the homeowner's intent (actively searching vs. passively browsing), exclusivity (shared vs. exclusive), and fit (in your service area, needs your service).
How do I measure contractor lead quality?
Track close rate by lead source -- jobs closed divided by leads received from each source. This is more meaningful than cost per lead. A 30% close rate at $70 per call beats an 8% close rate at $25 per lead on cost-per-acquisition.
What questions should I ask a lead provider about quality?
Ask: Where do leads originate (search intent vs display ads)? Are leads exclusive? What is the minimum call duration threshold for billing? Can I dispute bad calls? Can I see call recordings?