Lead services promise easy leads. But are they worth it? Here's an honest breakdown.
How They Work
Customer submits request. Service sells that lead to multiple contractors. You pay per lead. You compete with others for the same customer.
The Pros
Fast leads, no marketing skills needed, scales up and down easily, good for new businesses getting started.
The Cons
Shared leads (3-5 competitors), price shoppers, costs add up ($20-50+ per lead), no control, you don't own the relationship.
The Math
If leads cost $30 and you close 1 in 5, your acquisition cost is $150. Worth it for a $5,000 job. Not for a $500 job.
When They Make Sense
Starting out and need jobs. Have capacity to fill. Good close rate. Margins support the cost.
The Better Long-Term Strategy
Use lead services as training wheels. While they feed you leads, build your Google profile, collect reviews, build your website. Goal: generate your own leads.