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Contractor leads: what they cost by trade, and the alternative

Contractor leads are customer contacts that a contractor pays for, through a lead platform or through advertising. LocaliQ puts the median cost of a home services lead from search ads at $90.92, and at $228.15 for roofing. The alternative is referral partners: local businesses that already have the customer and send leads for contractors with no fee per lead.

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Last updated 8 October 2026

What a lead costs, trade by trade

LocaliQ measured 3,211 search advertising campaigns run by US home services businesses between April 2024 and March 2025. These are its median costs per lead. They are what you pay to produce a lead with your own ads, before you have spoken to anyone.

LocaliQ category Median cost per lead
Roofing & Gutters $228.15
Doors & Windows Sales $200.34
Construction & Contractors (General) $165.67
Paint & Painting $138.38
Heating & Furnaces $129.02
Plumbing $129.02
Air Conditioning Installation & Repair $127.74
Landscaping $117.92
Electricians & Electrical Contractors $93.69
Handyman Services $54.05
All home services $90.92

LocaliQ has no category for siding, decking, fencing, flooring, concrete, tree service, restoration or drywall. We have not found a public figure we can check for those trades, so we do not print one.

Lead platforms do not publish one price. Hook Agency, a contractor marketing agency, reports $15 to $85 for an Angi lead, each pitched alongside at least three other contractors. Angi now includes HomeAdvisor. Thumbtack says it charges no subscription and that pros set their own lead prices.

The price of a lead is the wrong number to watch. Your close rate matters more: how many leads become a booked estimate, and how many estimates become a job.

A month of tire kickers and price shoppers costs the same as a month of buyers. And the bigger your ticket size, the more quotes a homeowner collects before choosing.

So divide everything you spent by the jobs you won. The lead cost calculator does it for you.

Five ways contractors get leads

Most online lead generation for contractors comes down to these five. Four charge you for the lead or the click, and one does not. Each has a place, and nothing stops you using more than one.

Source How it works What to watch
Shared leads A pay per lead platform sells one homeowner request to several contractors. Each pays, and one wins. You race the others to the phone, and the homeowner compares every quote.
Exclusive leads A vendor sells the request to one contractor only. You still pay for every lead, whether or not it becomes a job. Lead quality is still a guess until you call.
Google Local Services Ads Google lists verified local providers and charges for each valid lead, not for clicks. The price per lead changes with your location and the job type.
Your own search ads You pay for clicks to your own site, and some visitors call or fill in a form. You pay for the click even when nobody calls.
Referral partners A local business that already has the customer gives them your name, or hires you on its project. Slower to start. There is no charge per lead, but the relationship has to be built and kept.

For the platforms, see Angi Leads reviews, Thumbtack reviews from pros, what Thumbtack charges for leads and Angi vs Thumbtack for pros. For the whole field, see the lead generation companies we compared.

The alternative to buying leads

If you are asking how to get clients for a construction business without a lead bill, this is the answer.

A referral partner is a local business that already has your customer and does not do your trade. A custom home builder for an electrician.

An interior designer for a painter. A property manager for a plumber.

This is word of mouth with a system behind it. Do the first job well and you become their preferred vendor. That is repeat work, where a bought lead is one job at most.

Speed to lead still counts. A partner who sends you a customer expects them to get a fast call back.

You do not pay a partner per lead, and a partner is not used up after one job. Here is the full definition, and here is how we build the network for you.

If you would sooner do it yourself, the free blueprint has the outreach message and the follow-up schedule.

Questions about contractor leads

  1. How much do contractor leads cost?

    Contractor leads from search advertising cost a median of $90.92 across home services, according to LocaliQ's study of US campaigns from April 2024 to March 2025. The figure runs from about $54 for handyman services to $228 for roofing and gutters. Lead platforms such as Angi and Thumbtack do not publish one price.

  2. What are exclusive contractor leads?

    Exclusive contractor leads are homeowner requests sold to one contractor instead of several. They remove the race against other contractors for the same homeowner. The contractor still pays for each lead whether or not it becomes a job, so the number to track is cost per booked job, not cost per lead.

  3. How to get construction leads without paying per lead?

    Contractors get construction leads without paying per lead from referral partners: local businesses that already have the customer and do not offer the contractor's trade, such as builders, remodelers, designers and property managers. A contractor asks each one about a current project that needs a bid, wins the first job and stays in touch.

  4. Are home service leads worth buying?

    Home service leads can be worth buying for small, quick jobs where the homeowner hires the first company that calls back, and for a new business that needs volume and reviews. They suit larger jobs less well, because a homeowner planning a big project compares several contractors and the lead fee is charged whether or not the job is won.

Sources

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