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Should Contractors Pay for Leads?

So you've built the free stuff, and the calendar's still got holes in it. Now the apps come calling. Angi, Thumbtack, Google — pay us, we'll hand you customers. Should you do it? Honest answer — sometimes yes, sometimes it's a flat-out trap. The difference is knowing which is which, and by the end of this you'll be impossible to fool.

Lsa / Google Guaranteed

Start with the best of them — Google's Local Service Ads. The green guaranteed badge that sits at the very top. You pay per lead, not per click, and here's why it's strong — those people already searched for your trade and called. Highest intent there is. You only pay when a real customer reaches out. For most contractors, that's the first paid door worth opening.

Shared Leads

Then there's the shared-lead apps — Thumbtack, Angi, and the rest. Different animal. You don't buy a customer. You buy a lead that three, four, five other contractors bought at the exact same second. Now you're in a footrace. Whoever calls back first usually wins, and everybody else just paid for a dead end. It can work — but only if you're fast and you know your numbers.

The Golden Rule

Which brings back the only rule that matters, from Course two. Judge every lead source by cost per booked job. Never the sticker price on the lead. A fifteen-dollar lead five guys are fighting over can cost you more per job than a hundred-dollar lead that's all yours. Cheap is expensive. Say it in your sleep.

Run The Numbers

Watch. A shared lead costs you thirty-five bucks, and because you're racing four other guys, you close one in twenty. Do the math — that's seven hundred dollars per actual booked job. Now an exclusive lead costs a hundred and twenty, but it's only you, so you close one in three. That's three hundred forty a job. The "expensive" lead is less than half the price. The cheap one was the trap.

Worth It, Or A Trap?

So here's the honest scorecard. Paid leads are worth it when you answer in seconds, you close well, and you track the cost per booked job like a hawk. They're a trap when you let leads sit, you never track a thing, and you treat the app as your whole business. Same lead, same price — one guy prints money, the other lights it on fire. The difference is you.

Do This Now

Homework, for anybody already buying leads. Pull the last month. Add up every dollar you paid those apps. Count how many of those leads turned into real, paid jobs. Divide. That's your true cost per booked job, and I'll warn you — it's usually three to five times the lead price. If that number scares you, good. Now you can fix it.

Close / Bridge To Course 8

That's paid leads. A tool, not a savior. Gas in the tank, not the engine. Use them when the numbers work, drop them the second they don't, and never, ever let one app own you. Next, we spend your first real ad dollar — without lighting it on fire. That's Course eight. See you there.

Watch this lesson (free)

This article is the companion to Lesson 7 of the free Marketing 101 course for contractors — 10 short, plain-English videos. Watch the whole series free on YouTube →

Frequently asked questions

Are Google Local Service Ads worth it for contractors?

For most, yes — it's the first paid door worth opening. You pay per lead (not per click) and those people already searched for your trade, so intent is high.

Why are shared leads from apps risky?

Because 3–5 contractors buy the same lead. You're in a footrace, and if you don't answer first you paid for nothing. Only works if you're fast and track your numbers.

How do I know if buying leads is worth it?

Calculate your real cost per booked job from that source — usually 3–5× the lead price. If it profits after that, keep it. If not, kill it.