How Contractor Leads Work
Contractor leads start when a homeowner searches for a service on Google. That search triggers an ad, a map result, or an organic listing. When the homeowner clicks and calls, that's a lead. How that lead is handled -- who gets it, whether it's shared, and how you pay for it -- depends on the lead generation model being used.
Form-based leads: The homeowner fills out a quote request. You receive their contact info. You call them. In most cases, so do 3 other contractors. Your close rate depends heavily on speed-to-call.
Inbound call leads: The homeowner calls a tracking number connected to your line. You answer; you have them live. No competing calls happening simultaneously. Your close rate depends on how well you handle the call.
Pricing models also vary: pay-per-lead (you pay for the contact info), pay-per-call (you pay for the connected call), subscription (flat monthly fee for a volume of leads), and hybrid. Pay-per-call with no monthly minimum is the lowest-risk entry point for testing a new lead source.
Frequently Asked Questions
What is a contractor lead?
A contractor lead is a homeowner contact -- either a phone call, form fill, or message -- from someone actively looking for a home service. The quality varies based on whether the lead is exclusive or shared and how it was generated.
How are contractor leads priced?
Contractor leads are priced per lead (flat fee per contact), per call (pay only for phone calls), or by subscription (monthly fee for a volume of leads). Pay-per-call with no monthly minimum has the lowest risk for testing.
What is a good close rate for contractor leads?
Exclusive inbound calls close at 25-40%. Shared form-fill leads close at 5-15%. The difference in close rate is the key factor in calculating true cost per acquisition.