What Is a Lead Generation Company?
A lead generation company finds people who need a service and connects them with contractors who provide it. The business model varies significantly across the industry -- and those variations have a major impact on lead quality and your return on investment.
The oldest model is the shared lead: a homeowner submits a request on a platform like HomeAdvisor or Angi, and that request gets sold to 3-4 contractors simultaneously. The homeowner gets multiple calls at once; you race to be first. Close rates in this model typically run 5-15%.
The exclusive lead model delivers a contact only to you -- no competing contractors. This is what pay-per-call delivers: a homeowner who searched for your service, found your number, and called. Close rates for exclusive inbound calls run 25-40%.
The math matters. A shared lead at $25 that closes at 8% costs $312 per acquired job. An exclusive call at $70 that closes at 30% costs $233 per acquired job. The cheaper lead was more expensive.
Frequently Asked Questions
What is a lead generation company?
A lead generation company connects homeowners with service contractors by generating inbound inquiries -- either calls, form fills, or appointment requests -- and delivering them to contractors.
What is the difference between shared and exclusive leads?
Shared leads are sold to 3-4 contractors simultaneously. Exclusive leads go only to you. Exclusive leads cost more per contact but close at 2-3x the rate, typically producing lower cost per acquired job.
How do pay-per-call lead generation companies work?
Pay-per-call companies generate inbound phone calls through search advertising and SEO. When a homeowner calls, the call is connected to the contractor. The contractor pays only for calls that meet minimum quality criteria (duration, location, etc.).