Getting more work
What should a contractor actually pay per lead?
There is no universal right price. There is a number specific to your business, and you can work it out in about five minutes.
5 min read · Updated August 8, 2026
The formula
Take your average job value, multiply by your gross margin, then multiply by the share of leads you actually convert. That is your break-even cost per lead. Anything below it makes money; anything above it does not, however good the leads look.
Work an example
A $400 average job at 50% margin is $200 of gross profit. Convert one lead in four and each lead is worth $50 to you at break-even. Paying $25 doubles your money on the marketing spend. Paying $60 quietly loses on every single lead while feeling busy.
Why prices differ so much between trades
Lead pricing tracks job value and lifetime value, not effort. A lawn mowing lead is cheap because the first job is small — but a mowing customer might stay for years, which changes the maths entirely. An emergency plumbing or roofing lead is expensive because one job can be four figures.
Conversion rate is the lever you actually control
You cannot negotiate lead prices much, but doubling your conversion rate doubles what you can afford to pay. Answering within five minutes, quoting on the call rather than promising to email, and following up twice will move that number further than any negotiation.
What to demand from any lead source
Insist on knowing the service and the ZIP before you are charged, a clear policy on bad-contact refunds, and no lock-in contract. A source confident in its quality has no reason to refuse any of those.
Licensing requirements change and vary by county. Always confirm current rules with the Florida Department of Agriculture and Consumer Services or the Department of Business and Professional Regulation before relying on anything here.