Pay-Per-Call vs Pay-Per-Lead: The Honest Comparison
Pay-per-lead and pay-per-call are the two dominant contractor lead pricing models, and they produce very different results. Understanding the difference is the most important factor in evaluating any lead generation company.
In the pay-per-lead model, you pay for a contact -- typically a form submission with a phone number and project description. That contact is usually shared with 3-4 other contractors. Your cost per lead is lower, but your close rate is also lower because you're competing for the same homeowner.
In the pay-per-call model, you pay for an inbound phone call -- a homeowner who searched for your service, found your number, and called. The call is exclusive: no competing contractors receive the same contact. Your cost per call is higher, but your close rate is significantly better.
The math: a shared form lead at $25 closing at 8% costs $312 per acquired job. An exclusive inbound call at $70 closing at 30% costs $233 per acquired job. Pay-per-call wins on cost-per-acquisition despite costing nearly 3x more per contact.
Frequently Asked Questions
What is the difference between pay-per-call and pay-per-lead?
Pay-per-lead delivers form-fill contacts, usually shared with 3-4 contractors. Pay-per-call delivers exclusive inbound phone calls from homeowners who called you directly. Close rates and exclusivity are the key differences.
Which model produces lower cost per acquired customer?
Pay-per-call typically produces lower cost per acquired job despite higher per-contact cost, because exclusive inbound calls close at 25-40% vs 5-15% for shared form leads.
When does pay-per-lead make sense?
Pay-per-lead can make sense for high-volume, lower-ticket services where you have excellent speed-to-call infrastructure. For most residential contractors, pay-per-call produces better unit economics.