It is incorrect to classify the reason why home services don’t have a high number of leads coming in. The truth is that most home service companies have challenges with how leads come into their business and how those leads are converted.

Contractors who are purchasing shared demand from various home service lead generation companies without the internal process in place to route, qualify and close on those leads, much more quickly than the competition, will struggle with growing their businesses.

The guide below categorizes the leading suppliers in the market into their core operational model, identifying their main sources for creating demand, and the software tools that allow those suppliers to manage their operations.

Buying Models vs. Software Tools

To choose the right partner, operators should first determine what problem they are trying to solve. Are they looking for immediate job calls? Are they looking for higher-priced appointments? Are they looking for long-term brand authority? Are they looking for better tracking of the leads that they generate?

If an operator is purchasing leads on a shared network, they will be addressing the issue of immediate demand but they are going to face immense price competition as a result of all of the other operators in the same market doing the same thing. An operator who invests in a marketing agency has created an asset, but until that investment returns a profit, it will be an investment of time and money.

In many cases, industry lists are confused between the process of creating demand and the process of developing the infrastructure to convert customer leads into customers. Call tracking systems or scheduling systems don’t create customers by themselves; they track the calls or schedule appointments based upon the traffic generated by other systems.

Acquisition strategies allow operators to categorize their vendor relationships based upon their operational model. Companies that create and build brand equity through their owned-demand marketing strategy develop and own a specific asset. Companies that offer shared marketplaces provide immediate access to active homeowners. Exclusive lead providers offer more control over the qualification of leads, and tracking infrastructure allows operators to manage the flow of lead data.

The Top 15 Home Service Lead Generation Companies Evaluated

This section shares 15 different entities that operate commercial business models within the home services category. Pricing and performance claims for these services are based on publicly available information, published rates, and self-reported data about the services provided by each entity.

1. Hook Agency

Hook Agency operates as an all-inclusive marketing service that focuses on using owned demand for marketing purposes. They utilize search engine optimization, Google Ads, and websites designed with conversions in mind to create a permanent marketing asset for the contractor.

The agency is geared toward growth-oriented contractors (those who earn more than $2 million each year), and they do not allow pricing that is generic to all contractors, but rather they create custom retainers for monthly programs.

Through self-reported case studies, Hook Agency has successfully generated a wide variety of leads for specific trades. For instance, they helped a plumbing client generate 173 marketing-qualified leads in seven months with a budget of $10,500 per month, resulting in an average cost per MQL of $264.

2. WebFX

WebFX offers a variety of services related to digital marketing, including web design, paid search, lead generation strategy, and revenue attribution, all under one roof. They leverage their own software to combine lead source strategies with revenue attribution.

WebFX works with home-service contractors, which include local and multi-location services, that are pursuing managed digital marketing services. Pricing is unique to WebFX's clients, and WebFX does not display a blanket pricing package for contractors.

WebFX employs a team of 750 specialists and claims to have generated more than $10 billion in revenue and 24 million leads for their clients in the last five years. The $10 billion and 24 million leads represent the entire client base of WebFX and not solely home-service contractors.

3. Clicks Geek

Clicks Geek focuses on providing full-service managed paid search and conversion rate optimization for clients in the HVAC, plumbing, roofing, and related trades.

Clicks Geek focuses more on cost per acquisition and actual revenue rather than the click-through rates. The agency was designed to help contractors who want to outsource their advertising and not hire an in-house search team.

There is no standard pricing model for the services offered by Clicks Geek, as pricing is specific to the contractor, ad budget, and selection of services. Clicks Geek's primary difference from other home service lead generation companies is its singular focus on tracking the return on investment (ROI) from each individual campaign (or job) and tracking conversion rates from landing pages.

4. Angi Ads

Angi Ads is a very large home service marketplace that allows contractors to pay for leads and get a fast response from homeowners who want estimates for specific jobs.

The Angi Ads platform is mainly aimed at contractors who have established very strong reputations in their communities and who have the infrastructure to respond to inquiries in a timely manner. Angi has access to more than six million households and has received more than 10 million verified reviews from customers.

Contractors pay a wide range of prices based on trade and location. For example, the average price to respond to an HVAC inquiry ranges from $30 to $80, while the average price to respond to a roofing inquiry ranges from $50 to $150. Additionally, there is the risk that contractors will continuously be competing for the same leads from other contractors; plus, there are many different levels of quality when it comes to contacting leads.

5. HomeAdvisor

HomeAdvisor is a general home service marketplace that allows contractors to buy leads. HomeAdvisor sends a large number of leads to contractors across multiple service categories and geographical areas.

The HomeAdvisor marketplace is designed for local contractors that want to respond quickly to customers who want quotes on home services. HomeAdvisor has over 30 million registered users and has been in business for over 20 years.

Local contractors pay approximately $300 per year to be members of HomeAdvisor, in addition to $15 to $60 for each lead they receive. One major risk to contractors is that multiple contractors can buy the same leads and duplicate billing issues can occur.

6. Modernize

Modernize is a specialty service that generates leads for contractors specializing in more expensive home service categories, including roofing, windows, HVAC, solar, and renovation projects.

Dynamic pricing across the platform enables providers to select the highest cost acceptable to them to receive a contact; as leads are generated from ongoing estimates, the cost of those contacts will change in relation to their expected job value, homeowner demand, and the current number of leads available.

An example from the general security industry noted that verified inquiries were priced within $25 and up to $80 each; however, the larger trades have different standard rates associated to them.

An example of this is a published case study that showed a contractor who improved the speed-to-lead process for himself, and as a result, grew his monthly revenue by $50,000.

7. Service Direct

Service Direct provides exclusive leads to providers with flexible cost structures. The platform allows providers to specify their pay-per-lead rates and guarantee quality based upon the type of leads that are being generated for them.

Providers utilizing this service generally target established contractors. To be successful on the Service Direct platform, providers must also implement a highly organized internal intake process and sales process.

Pricing structures on the Service Direct platform are negotiable between the provider and client; the client and provider will keep exact rates private, thus providing a level of risk to contractors using this service; exclusive calls can be unprofitable to those contractors using sub-par appointment-setting processes.

8. Thumbtack

Thumbtack operates a local marketplace and allows contractors to provide quotes for specific projects and jobs that homeowners are looking to complete. It is a mobile-friendly way for smaller jobs and seasonal work to be found quickly.

Solo operators, newer contractors, and established contractors who are trying to fill in their schedule gaps utilize this system, and the Thumbtack platform reports more than 10 million users along with over 1,000 different types of services listed on the site.

The Thumbtack pricing system utilizes both a credit model and a pay-per-response model, which ranges from $10-$70 for qualified responses. Providers also face intense pricing competition as homeowners typically reach out to multiple contractors at the same time for estimations and responses.

9. Networx

Networx is an all-encompassing pay-per-lead marketplace that encompasses all types of home service categories and all types of contractors, providing all the tools and resources necessary to operate a successful trades-based business.

Contractors will have control over the lead types (shared vs exclusive), their daily budgets and which zip codes they target through this platform.

Contractors seeking additional daily inquiries via an easy-to-use supplemental lead source can utilize this online platform by selecting how contacts will be generated (for example: both shared and exclusive).

10. CraftJack

CraftJack is a contractor service that was designed to support real-time delivery of homeowner leads to mobile devices.

By providing contractor users with timely notifications, CraftJack limits the sharing of any particular lead to maximize the probability of converting each individual lead into a sale. CraftJack offers its users the ability to reward their contractors based on their response time; contractors can qualify for discounts simply by responding quickly to the lead notification.

CraftJack pricing is based on a pay-for-each-lead model, but it will vary depending on the contractor's trade and location. If a contractor does not have an effective lead qualification process and is unable to respond quickly, CraftJack cannot make up for the lost potential income.

11. PX

PX is an online platform that allows you to manage your entire customer acquisition process including third-party phone calls and data. PX contains a centralized vendor management system, a lead de-duplication system, a verified leads list and a controlled price for all leads.

PX is a tool that supports the home-services industry by helping home-service organizations manage contractors in different markets/sub-markets, with multiple service types, and serves to control purchased client acquisition; however, PX itself does not provide direct clients.

PX states they have successfully added over 200 lead sources to their database. Under defined quality control conditions, PX has reported that the average lead-to-meeting ratio of contractors from their integrated programs is 20%.

12. CallRail

CallRail is a complete call tracking system that allows you to build and install your own call tracking and customer service systems, as well as help you connect the conversations you have with your potential customers to the marketing/advertisement efforts you have in place (and pay for).

Most home-service companies rely on phone calls for conversions, so this is where their true value lies - in tracking the source of calls and recording them.

Pricing ranges between $45 and $195 monthly, based on annual billing tiers and usage levels. Tracking data is not useful to contractors unless they consistently enter booked jobs and revenue into their CRM.

13. ServiceTitan

ServiceTitan provides a comprehensive field-service management platform for larger, multi-truck and enterprise-level contractors, including HVAC, plumbing, electric, and roofing.

ServiceTitan enables complete visibility through every phase of service, from initial marketing click to final payment.

Prices for ServiceTitan are customized according to each client’s needs but will often start at $300 per month for installation. While it is an extremely powerful tool for contractors to manage their business, it does not create homeowner demand.

14. Jobber

Jobber offers field-service management capability, quoting and estimating, scheduling, and two-way texting with clients. This system is designed for smaller contractors and does not have the complexity of enterprise systems.

Jobber is primarily used by solo operators and small field teams. Jobber provides automated follow-ups for quotes sent to clients and allows for easy access to accounting software through simple integrations.

Starting at approximately $39 to $49 monthly, the highest tier is approximately $200. Jobber provides a significant boost in the contractor’s ability to convert a lead into a paying customer. However, it does not provide new inquiries.

15. Housecall Pro

As a cloud-based platform that provides field-service software solutions to contractors in the small and mid-size contractor space, Housecall Pro offers easy ways for contractors to manage their businesses through online booking (schedule), review requests (reviews), and manage their schedules (scheduling).

The primary purpose of Housecall Pro is to allow users to streamline their administrative processes so they can spend less time managing the administration of their business and more time serving their customers.

Housecall Pro's focus is on contractors who have a service team of approximately one to ten technicians. Housecall Pro automates most of the many administrative functions that contractors must perform to keep their businesses operational.

The typical monthly fees for Housecall Pro's basic service plans are estimated to be approximately $59. The pricing for other tiers of service varies and is between $199 and $349 per month. Although Housecall Pro has a fully automated review and booking process, the lack of capacity to provide quality services continues to hinder growth.

How to Calculate Your Maximum Lead Cost

When evaluating different home service lead generation companies, contractors generally evaluate their success by measuring the total cost of acquiring leads. However, the total cost of leads to contractors is not complete until it has been factored with the gross margin of each lead and the close rate of each lead.

A contractor who has an inexpensive inquiry that converts to a job just one out of ten times will lose more revenue than a contractor who has a more expensive inquiry that converts to a job.

The calculation of the maximum acceptable cost per lead is a straightforward process. Calculate the average revenue per job multiplied by the gross margin and then multiply the result by the closing rate of the lead to a job.

For example, with a $2,000 service job and a 40 percent gross margin and a 20 percent close rate, the maximum allowable lead cost would be $160. This cost is considered an operational limit for the business; the overhead costs, software costs, and cost of achieving the desired level of profit margin have not been included.

Summary: How to Control Your Leads

The most effective growth strategy separates demand creation from the conversion mechanics. A contractor may be able to pay for exclusive access to thousands of homeowners in their area, but if their internal team does not respond to the initial inquiry, the entire marketing investment will have been wasted.

Marketplaces provide immediate demand creation for a contractor, while specialized marketing agencies (those that offer leads created through paid listings) build long-term, inbound traffic to a contractor through time.

In addition to that, if a contractor is serious about generating leads and would like to know which of their lead sources are producing real profits, the contractor must integrate a tracking system into their business.

Common Questions About Getting More Leads Quickly

Why Do Exclusive Leads Sometimes Lose Money?

An exclusive inquiry refers to an inquiry that was not sold to a direct competitor. However, it is not an indication that the homeowner is financially qualified or ready to purchase. If the internal company response is slow or if there are weaknesses in the sales process, a contractor will quickly lose profit by the excessive amounts spent to acquire the lead.

How Do You Find the True Value of a Marketplace Lead Source?

Contractors must monitor the lead source from the moment it comes in until it appears on the contractor's final invoice. The total cost of all leads is not completely included in the initial price. The full value of the lead will be established by evaluating the total cost for each booked job by factoring in duplicate inquiries or invalid phone calls.

What Is the Biggest Problem When Scaling Campaigns with Home Service Lead Generation Companies?

Operational capacity will constrain the potential for media investment to create more demand. If a contractor is operating a high-volume service business, the demand will increase quickly once the lead-generating process begins operation. If your dispatch team cannot take calls after normal business hours, you're paying a lot for leads you can't convert.