Category: Advertising

They are worth it when the leads you pay for turn into profitable jobs, and not otherwise. The same marketplace can pay off for one contractor and lose money for another. Track spend, leads reached, estimates and jobs won for 30 days, then compare cost per booked job to the profit on those jobs.

Whether these leads pay off is a math question, not a loyalty question. Lead marketplaces are the sites that put homeowner requests in front of contractors, usually for a fee. That includes the big home-services directories and the smaller shared-lead sites. Some contractors build real books of work that way. Others feel they paid for a lot of phone tag. Both happen, and your own numbers will show which one you are.

This post gives you a fair way to judge any of them without taking anyone’s word, including ours. We do not quote any marketplace’s prices, because they vary and change. Check each site’s current terms yourself.

What are you actually buying?

You are buying a homeowner’s request, or access to one. What the platform charges, how many contractors see the request, and what happens when a lead is bad differ by site and by product. Some charge per lead, some per contact or job match, some use subscriptions. Read the current terms before you commit.

Whatever the model, the question is the same: after you pay, how many of these people become customers, and at what profit?

How do you judge whether they are worth it?

Use one number: cost per booked job.

Cost per booked job = total spend / jobs won

Then compare it to what a job earns you after your costs. Cost per lead alone can mislead you, because a low price for a lead you never reach is still money gone.

Track four steps for every lead:

1. Reached. Did you actually speak to or text the person?
2. Estimate booked. Did they agree to a visit or a quote?
3. Job won. Did they hire you?
4. Profit. What did the job earn after materials, labor and overhead?

A worked example (made-up numbers)

Imagine a fence installer who spends $1,500 in a month on a lead site. These numbers are invented to show the math.

Step	Count	Result
Leads received	25	$1,500 / 25 = $60 per lead
Leads reached	15	10 never picked up or replied
Estimates booked	6
Jobs won	2	$1,500 / 2 = $750 per job
Average job	$4,000	$8,000 revenue

Now the question is whether $750 to win a $4,000 job leaves enough profit. If the fence job earns, say, $1,000 after costs, the month lost money on those two jobs before counting the repeat and referral work they might bring. If it earns $2,000, it made money. Only your real costs decide.

Questions to ask before you sign up

Copy these into an email to the sales rep and keep the answers:

• How am I charged, and when? Per lead, per contact, subscription, or another way?
• Can more than one contractor receive the same request? How many?
• What counts as an invalid lead, and how do I dispute one?
• How are credits handled when a dispute succeeds?
• Can I set a monthly cap, and can I pause or cancel easily?
• Can I choose the jobs, sizes and areas I receive?
• What do I own if I stop, including customer contacts and reviews?

When do lead sites tend to make sense?

• You are starting out and need estimates now, before reviews or a site exist.
• You have empty calendar time and can respond to leads within minutes.
• Your job value is high enough that one win covers many leads.
• You have a capped test budget and a clear scorecard.

When do they tend to disappoint?

• You can’t respond quickly. If a lead sits for hours, the homeowner has often moved on.
• Your jobs are small or margins are thin. A high cost per job eats profit fast.
• You never track results. Without a lead log, you can’t tell a good month from a bad one.
• You rely on one source. If the terms change or the leads dry up, you have nothing behind it.

What should you do about response speed?

Speed does the most work here. A homeowner who submits a request may be doing the same on more than one site. The contractor who replies first has a better shot at the estimate.

Have a first reply ready:

Hi [Name], this is [Your Name] with [Business]. I saw your request about [job]. I can come look at it [day/time options]. What is the best number to reach you?

Send it within minutes. If you’re on a roof and can’t answer, missed-call text back can send the first reply for you.

How does this compare to other paid options?

Lead sites are one option among several. Google’s Local Services Ads charge for valid leads instead of clicks. Search ads charge for clicks. Facebook ads buy attention. Each has strengths and costs, and our contractor advertising guide compares all of them side by side. For the tradeoff between buying leads and building your own, see buying leads vs. building your own lead flow.

A simple 30-day test

1. Set a monthly cap you could lose.
2. Set up a lead log: date, source, reached (yes/no), estimate (yes/no), job won (yes/no), revenue.
3. Reply to every lead within minutes.
4. Ask every new customer how they found you, and log it.
5. At day 30, calculate cost per booked job and compare to the profit on those jobs.
6. Keep, cut or change. Do not decide from a few days.

Then compare the result to what you’d get from asking past customers for Google reviews and repeat work, which may cost less per job to win. Our post on cost per lead vs. cost per job shows how to measure every source the same way.

Common questions

Do lead sites send the same lead to more than one contractor?

Some lead models share a homeowner’s request with several contractors, and some do not. It depends on the site, the product and the current terms, and those change. Before you pay, ask the sales rep in writing how many contractors can receive the same request, then check that against the leads you actually get.

Can I get a refund for a bad lead?

Policies differ by platform and by lead type, and they change over time. Ask up front what counts as a bad lead, such as a wrong number, out-of-area address or a request that was never real, how you report it, and how credits work. Keep screenshots and call logs so you can back up any claim.

Are lead sites better for new contractors?

They can help a new business get requests before it has reviews, a site or a referral base. The catch is that early cash still has to cover the cost of the leads. If you try one, set a monthly cap, log every result, and build your own Google reviews and site in parallel so you are not dependent on one source.

Cost per lead is what you spend divided by leads received. Cost per job is what you spend divided by jobs won. Cost per job is the number that decides whether marketing pays, because a cheap lead that never books costs more than a pricier lead that does.

Every marketing vendor can show you a cost per lead. It’s a clean number and it looks like proof. It only tells you what you paid for a name and a phone number, not what you got for it.

Contractors get paid for finished jobs. So measure the job.

What is the difference?

Metric	Formula	What it tells you
Cost per lead	Spend / leads	What you pay for an inquiry
Cost per estimate	Spend / estimates booked	What you pay to get in front of a customer
Cost per job	Spend / jobs won	What you pay for real work
Return on spend	Profit from jobs / spend	Whether it made money

A lead is someone who contacted you. A job is someone who paid you. The gap between them is where marketing money goes to die, or to pay off.

How can a cheap lead cost more?

Imagine a plumber who tests two sources for a month. These numbers are invented to show the method.

	Source A	Source B
Spend	$1,200	$1,000
Leads	40	8
Cost per lead	$30	$125
Leads reached	22	8
Estimates booked	10	5
Jobs won	2	3
Cost per job	$600	about $333

Source A looks four times cheaper per lead. Source B wins jobs for about half the price. Fewer, better leads beat more, weaker ones. The lead price hid the truth.

What are the steps between spend and a job?

Every source runs the same chain:

1. Leads: people who contacted you.
2. Reached: the ones you actually spoke to.
3. Estimates: the ones who agreed to a visit or quote.
4. Jobs: the ones who hired you.
5. Profit: what the job earned after costs.

Each step drops some people. Your job is to find which step drops the most. If leads are fine but few are reached, your problem is answering. If estimates happen but jobs don’t, your problem is pricing or follow-up. Marketing can only fix the first step.

What does it cost you to lose a lead?

Your own cost of a lost lead is at least what you paid for it. Say a source costs you $50 per lead and you miss 1 in 4 calls. Out of 20 leads, 5 wasted $250. That is a hypothetical, but the shape is real: paid leads you don’t reach are the cheapest money to save. Our post on what a missed call really costs has more on the math.

A lead log to copy

Keep one row per lead. A spreadsheet is enough.

Date	Source	Name	Reached?	Estimate?	Job won?	Revenue	Profit
			Y/N	Y/N	Y/N

Add a second tab for monthly spend by source. At month end, you can compute all four metrics in a minute.

How do you know where a lead came from?

• Ask. “How did you hear about us?” on every call, written down the same day.
• Use separate numbers. A different tracking number for each ad or source shows you the calls without asking. A local business phone line can serve as your main number, and your own tracking can sit on top of it.
• Read the forms. Some forms let you add a “how did you find us” field.
• Check invoices. When the job is done, note the source next to the revenue.

Customers can misremember, so treat the data as a good estimate, not a lab result.

How long before you can judge a source?

Wait for a fair window. Decide the budget cap and the length before you start, and don’t change either mid-test. For many contractors 30 days is a floor, and if you book only a few jobs a month you need longer.

Small numbers can mislead. Two jobs from one source and three from another is a weak signal. Treat early results as a direction, and let the count grow before making a big move.

What should you do with the results?

Use the numbers to make a simple call:

• Cost per job is well below profit per job: keep it, and try a small step up.
• Cost per job is close to profit per job: fix the weak step (answering, quoting) and retest.
• Cost per job is above profit per job: cut it, unless you have real evidence of repeat work that makes up the gap.

Compare sources on the same yardstick. Lead sites, search ads, Local Services Ads and Facebook all fit into the same log. See our contractor advertising guide for each channel, and are lead-marketplace leads worth it for one applied example.

What about unpaid sources?

Referrals, repeat customers and Google reviews cost you time, not ad spend. They often carry the best jobs. Log them the same way, so you can see their share. If you want a structured plan that starts with those, read our simple marketing plan for a small contracting business.

Common questions

What is a good cost per lead for a contractor?

There is no universal good number, because it depends on your trade, market and job size. A lead price that works for a $15,000 remodel would sink a $150 repair. Instead of chasing a low lead price, work backward: decide the most you can pay per booked job, then see whether your lead source can hit it.

How do I track where my leads come from?

Ask every caller how they found you and write it down the same day. Use a separate tracking phone number for each channel if you can. Keep a simple sheet with the date, source, whether you reached them, whether an estimate happened and whether you won the job. Consistency matters more than the tool.

How long should I test a marketing channel?

Long enough to collect a meaningful count of leads and jobs. For many contractors that means at least 30 days, and longer if you book few jobs a month. A slow week is not a result. Decide the window and the budget cap before you start, then judge at the end, not during.

Should I count repeat customers in cost per job?

Track first-job cost and repeat value separately. A customer who calls you back for years is worth more than one job, but do not assume that in advance. Log repeat work when it happens, and use it as a bonus when comparing channels, not as a way to justify a losing one.

Contractor yard signs, truck lettering and door hangers work by repeating your name and phone number where you already work. Keep each one simple: trade, business name and a phone number big enough to read from a moving car. Then ask every caller how they found you so you know which one paid.

Offline marketing is unglamorous and cheap, and it does one thing well: it puts your name in front of the same neighborhood, over and over, right where you are already doing work. Nobody has to search for you. They just see you.

What makes offline marketing work for a contractor?

Three things. It has to be readable, it has to be where people actually go, and you have to be able to tell whether it worked. A pretty sign nobody can read from the street does nothing. A clear one at every job site quietly does a lot.

Yard signs: the job-site sign

A job in progress or just finished is the best time to advertise, because the neighbors can see the work.

A good sign has:

• Your business name, the same as everywhere else you use it
• What you do, in two or three words (“Roofing and Gutters”)
• A phone number in large type
• Nothing else, or at most a short web address

Checklist before you print:

1. Stand 30 feet away. Can you read the phone number?
2. Is the background high contrast with the letters?
3. Does it use the same name and phone as your Google profile?
4. Did you ask the homeowner’s permission?
5. Did you check for local sign rules or HOA restrictions?

Take signs down when the job is done, or when the homeowner asks. Leaving them up for months past the job looks sloppy.

Truck lettering and wraps: a moving billboard

Your truck is parked in front of customers’ houses all day. Make it work.

• Phone number first. People see a truck for a few seconds. Big number, clean font.
• One line about what you do. Not a list of ten services.
• Match your Google profile name. If someone searches your name after seeing the truck, they should find the same business.
• Keep the truck clean. A messy truck tells people how you work.

A full wrap and simple lettering are different price points, and prices vary by shop, vehicle size and design. Get a few current quotes before you decide. Lettering that is clear and readable often does the job.

Door hangers: the neighbor hangers

The best door hanger goes on the houses around a job you are doing or just finished. It answers the question “who is that truck for?” before the neighbor asks.

Template:

We’re finishing a [job type] at [street name] this week. If you’ve been meaning to get [related work] done, we’d be glad to give you a free estimate. [Your Name], [Business], [phone]. Ask about scheduling for the coming weeks.

A few rules:

• Keep it under 30 words.
• Put the phone number where it can’t be missed.
• Don’t put hangers on mailboxes. Hanging them on doors is the normal approach, and mailbox rules vary. If you are unsure, ask your local post office.
• Only hang them where you have a reason to be, like around an active job.

Which one should you do?

Tool	Best for	Weak spot
Yard signs	Trades with visible, exterior work (roofing, fencing, landscaping, painting, decks)	Depends on homeowner permission and local rules
Truck lettering or wrap	Any trade with a service vehicle	Hard to trace a call back to the truck
Door hangers	Dense neighborhoods, repeat visits	Time to hang; some households throw them out
Magnets and business cards	Handing out at the end of a job	Easy to lose. Better as a reminder than a lead source

If you do only one, do signs at job sites. If you do two, add truck lettering.

How do you know if it worked?

This is where offline marketing usually fails. You can’t click-track a sign, so you have to ask. Every caller gets the same question: “How did you hear about us?” Write the answer on the same sheet every time. If you use a separate number for door hangers, you can count those calls with no asking. A local business number that rings your cell, like the business phone line, makes that easy to set up.

Here is a hypothetical, with made-up numbers. You spend $150 on 200 door hangers. You get 2 calls, and 1 books at $1,200. Your cost per call is $75 and your cost per booked job is $150. Whether that beats your other channels depends on what a job leaves you after materials and labor. Run your own numbers, and repeat the test in a second neighborhood before you decide.

What do you do when the phone rings?

Offline marketing only pays if you answer. A caller who saw your sign and reached voicemail may call the next number they find. Have a plan for calls you can’t take on the job. Our phone script for booking more estimates helps with what to say when you do pick up.

Where does this fit?

Offline is the cheap layer under everything else. It builds the name recognition that makes people click your Google listing over a stranger’s. For the full menu of options, see the contractor lead generation guide. And when a happy customer sees your sign on their lawn and mentions it to a friend, that is a referral. Contractor referral program ideas shows how to make that happen on purpose.

Common questions

Do I need permission to put a yard sign at a customer’s house?

Yes, ask the homeowner first, and ask kindly. Some towns and HOAs restrict signs, so check local rules before you place one. If the customer says no, don’t push it. A polite ask also opens the door to a referral or a photo of the finished work.

Is a full truck wrap worth it?

It depends on the cost, how much you drive, and how long you keep the truck. Lettering and door decals cost less and carry the same key details. Get current quotes from a few shops and compare. A clean, readable truck helps you either way. A dirty or cluttered one hurts.

What should be on a door hanger?

One offer, one photo or line about work you just did nearby, your name, and a phone number. Keep it short enough to read in five seconds. A hanger that says “We just finished a project on your street” gives a neighbor a reason to call now.

Nextdoor can be worth about an hour a week for a contractor who works in tight neighborhoods, because neighbors ask each other for recommendations there. It backfires when you post ads or argue in threads. Show up as a helpful local business, ask happy customers to recommend you, and cap your time.

Nextdoor is a network of neighbors. People use it to ask things like “Anyone know a good fence guy?” and other neighbors answer. That is a lead source that runs on trust, which is why it can help a contractor and why it punishes anyone who treats it like a billboard.

How does Nextdoor work for a contractor?

Two things happen there that matter to you.

• Neighbors ask for recommendations. A homeowner posts a request, and neighbors reply with names. If your name comes up from someone who hired you, that carries more weight than any ad.
• Businesses can have a presence. Nextdoor offers business pages and other ways for local businesses to show up, and paid options exist. What is offered, and what it costs, changes and varies by area. Check what you see in the app today instead of relying on what someone told you last year.

That is the honest shape of it: a place where local word of mouth happens out loud.

Is it worth your time?

It depends on how you work. Use this as a rough guide.

Your situation	Likely fit
Work in dense neighborhoods, many homes near each job (painting, landscaping, gutters, pressure washing, handyman)	Good fit. Neighbors see your work and ask about it
Emergency-driven trades (plumbing, HVAC repair)	Some fit. Recommendation threads happen, but urgent callers usually search Google
Big projects with long sales cycles (roofing, remodeling)	Modest fit. Useful for trust, less so for volume
You are already stretched thin	Skip it, or cap it at 15 minutes a day

The real cost is your attention. Fifteen minutes a day, five days a week, is about five hours a month. Here is a hypothetical: say one recommendation thread out of those five hours turns into a $1,800 job. That could be a fair trade, or it could not be, depending on what your hour is worth and what the job leaves you after materials. Decide up front what you are willing to spend and check it after 60 days.

What works on Nextdoor?

• Being useful first. Answer a question about a leaky faucet or a fence permit with a real answer, and mention you do this work only if it fits.
• Recommendations from real customers. Neighbors who hired you are your best marketing there. Ask every customer the same way, and make it easy.
• Finished-work photos with a neighborhood tie. “Finished a deck on the east side of town this week” beats a stock photo.
• A complete profile. Business name as you use it everywhere else, service area, phone number, and a short description of what you do.
• Quick, calm replies. People check whether you answer.

What backfires?

• Posting the same ad in every neighborhood you can reach.
• Jumping into threads where a neighbor is already recommending someone else, just to pitch.
• Arguing with critics.
• Making claims you can’t back up, like “cheapest in town.”
• Ignoring the community’s rules. Read them. They can change what you are allowed to post.

Be upfront that you are a business. Neighbors can tell, and they will trust you more for saying it.

How do you ask for a Nextdoor recommendation?

Ask the same way with every customer, in a text after the job. Don’t ask only the ones you think are happy, and don’t offer anything in return for a recommendation or review.

Text template:

Hi [Name], it’s [Your Name] from [Business]. Thanks again for having us out. If you were happy with the work and you’re on Nextdoor, a short recommendation for your neighbors would mean a lot. Here’s where to find our page: [link or short instructions]. No pressure either way.

Keep it short and optional. Your Google reviews matter as well, so use the same routine for both. Our Google review text templates cover that side.

A reply template for “looking for a contractor” threads

Hi [Name], I’m a [trade] in [area]. Happy to take a look if it’s useful. Two quick questions that will help: [one question about the job] and [one about timing]? If someone else on here is a better fit, no worries. Either way, [one useful tip]. You can reach me at [phone].

The useful tip is the point. It should help them even if they never call.

A one-hour weekly routine

1. 10 minutes: Check your business page and reply to any messages or comments.
2. 20 minutes: Scan for recommendation requests in your service area. Reply only where you fit.
3. 15 minutes: Post one photo of a finished job with a sentence about it.
4. 15 minutes: Send the recommendation text to customers whose jobs finished this week.

When a lead comes in, write down that it came from Nextdoor. In two months you will know if the hour was worth it.

Where does Nextdoor fit with everything else?

It is one channel among several. It won’t replace search, reviews or referrals. If you’re still deciding where to put your effort, the contractor lead generation guide lays out each option and what it takes. And for turning happy customers into introductions, see how to ask customers for referrals.

If you’d rather have review requests go out automatically after each job, automatic Google review requests are part of the Builders Presence plan.

Common questions

Do I have to pay to be on Nextdoor as a contractor?

Nextdoor has offered free and paid ways for local businesses to appear, and its features and pricing change. Check what is available for your area inside the app before you spend anything. Start with the free routine here, and only pay if you can tie it to booked jobs.

Should I reply to every “looking for a plumber” thread?

No. Reply where you fit: your trade, your area, and you can take the job. A short honest answer beats a pitch. If someone else is already recommended and you are not needed, skip it. Ten thoughtful replies in the right threads do more than fifty copy-paste ones.

What if a neighbor posts a bad comment about my work?

Reply once, publicly, in a calm tone, and offer to make it right by phone. Do not argue, name the person or explain their mistakes. Other neighbors are reading how you handle it. If the comment breaks Nextdoor’s rules, use its report option and follow its process. Results vary.

Sometimes. Facebook ads can work for contractors when the job is visual, the offer is specific and someone replies to each lead within minutes. They reach people who weren’t searching, so expect fewer ready-to-book leads than search ads. Test with a capped budget and judge by booked jobs.

Facebook and Instagram ads sit in a different place from search. Nobody types “deck builder” into Facebook while they scroll. You are showing up in front of someone who has a life, a feed and no plan to hire you today.

That does not make Facebook a bad channel. It makes it a different one. This post explains where it fits, what to advertise, and how to test it without wasting money. We quote no Meta prices, and its options and rules change, so check its current information.

Why is Facebook different from Google?

	Google search	Facebook and Instagram
Customer mindset	Looking for a fix now	Scrolling, not shopping
What you buy	A spot in front of a search	Attention from a local audience
Lead quality	Often closer to ready	May need more nurturing
Best jobs	Urgent repairs	Visual and seasonal work
Response window	Minutes	Minutes, and it cools quickly

If someone needs a plumber tonight, they search. If someone might want a new patio in spring, a good photo might plant the idea. Facebook works on the second kind of customer.

What should a contractor advertise on Facebook?

Make the ad about one job, one place and one next step.

Good candidates:

• Before and after photos of a finished project, with the town named.
• A seasonal offer, such as spring cleanup slots, fall gutter cleaning or pre-winter furnace checks.
• A limited-slot offer, if it’s true, such as “Booking estimates for June installs.”
• A clear next step: call, text, or fill in a short form.

Weak candidates:

• A logo and “Call us for all your needs.”
• Stock photos.
• Vague claims you cannot back up.

Use your own photos of your own work. Our post on job-site videos that bring in calls shows how to capture usable footage on the job.

Ad copy template

Copy, fill in and adjust:

Headline: [Job type] in [Town] Text: We just finished this [job] for a homeowner in [Town]. We are booking [job type] estimates for [month or season]. Tell us what you are planning and we will get back to you today. Button: Call now, or Send message

Check every claim. Only say “licensed” or “insured” if it’s true where you work, and do not promise a price or a result you can’t deliver.

How fast do you need to respond?

Faster than feels natural. Facebook leads come from people who tapped during a spare minute. If your reply lands the next day, they may have moved on.

Have a first message ready:

Hi [Name], it’s [Your Name] at [Business]. Thanks for your interest in [job]. I can come out [day/time options]. What is the best number to reach you?

If you can’t answer from a roof or a crawlspace, missed-call text back can send an immediate reply for you.

A note on texting: rules for business texting change and depend on your setup, so confirm current requirements. Then use plain controls. Get the person’s consent before texting them, honor STOP right away, register your number where carriers require it, and keep messages useful.

A simple test plan

1. Pick one job you want more of.
2. Set a hard cap and a 30-day window. Do not raise it mid-test.
3. Set your area to the places you actually serve.
4. Run two or three ads with different photos, one offer.
5. Reply within minutes, every time.
6. Log every lead: source, reached, estimate booked, job won, revenue.
7. Score at day 30: cost per booked job, and profit on those jobs.

A worked example (made-up numbers)

Imagine a deck builder who spends $500 on a 30-day test. These numbers are invented to show the method.

Step	Count	Math
Leads	18	$500 / 18 = about $28 per lead
Leads replied to you	7	The rest never answered
Estimates booked	3
Jobs won	1	$500 / 1 = $500 per job
Job size	$9,000	one booked deck covers the test

A cheap lead price looked good, but the number that matters is $500 per booked job against the profit on that deck. Ten more leads at the same rate might book one more job, or none. One test is a start, not a verdict. Our post on cost per lead vs. cost per job shows how to compare sources fairly.

What mistakes waste the most money?

• Boosting posts without a goal. Attention isn’t a booked estimate.
• Targeting too wide. Ads shown outside your service area waste budget.
• Slow follow-up. A cold lead costs the same as a warm one.
• No tracking. If you can’t tie a job to an ad, you cannot judge it.
• Expecting Facebook to replace a website. Your page shows you are real, but a site with a call button and clear services closes the loop. See contractor website vs. Facebook page.

Should you skip it?

Skip it for now if you can’t answer leads quickly, if your work is mostly urgent repairs, or if you have no photos of finished jobs. Fix those first. If you’re deciding where paid money should go overall, our contractor advertising guide compares every paid channel.

Common questions

How much should a contractor spend on Facebook ads to test?

Pick an amount you can lose without stress and set it as a hard cap for a 30-day window. Meta’s pricing and options change, so check its current information. Do not raise the budget mid-test. At the end, compare what you spent to the jobs booked and the profit on them.

Do I need a Facebook business page to run ads?

Ads typically run from a business page with an ad account, so plan on setting both up. Make the page real: your business name, phone number, service area and photos of your work. It is also where people look to see if you are legitimate. Keep it current, but you do not have to post daily to run a test.

What kind of contractor gets the best results from Facebook ads?

Trades with visual work and planned projects tend to have the most to show: decks, painting, landscaping, remodels and fencing. Urgent repairs are a harder fit, because those customers search instead of scroll. Any trade can test it, but the offer and photos need to make sense to someone not yet shopping.

Should I use Facebook’s lead form or send people to my website?

Lead forms are quick for people to submit but the leads may be less committed. Sending people to your site takes more effort from them but can filter for interest. You can test both in separate ads. Whichever you use, reply fast and log every lead so you can compare results by booked job.

Google Ads and Local Services Ads are paid and stop when you stop paying. Search ads typically charge per click, Local Services Ads charge per valid lead, and SEO builds free visibility over months without a guarantee. Most contractors get the fastest calls from paid, and the longest-lasting from a strong Google profile and website.

These three get lumped together because they all live on Google. They work differently, cost differently, and pay off on different timelines. The right start depends on how fast you need calls and how much time you can give.

Google’s exact rankings and pricing change, and we quote no prices here. Use this as a map, then check Google’s current information for your trade and city.

What is the difference at a glance?

	Google Ads (search)	Local Services Ads	SEO (local)
How you pay	Typically per click	Per valid lead, not per click (per Google)	No per-click or per-lead fee; costs time or a provider
Speed	Can start soon after setup	Can start after Google’s screening and verification	Takes months, no guarantee
Stops when you stop paying?	Yes	Yes	No, but results can slip if you stop
Where it shows	Search results and ads	Local results, for supported categories	Google Maps and organic results
Best at	Targeted searches you choose	Calls and messages from local searchers	Long-term visibility and trust
Watch for	Clicks that don’t call	Requirements and prices vary by category and location	Slow start, no control over ranking

How does Google Ads work for a contractor?

You pick searches, write ads, and set a budget. Google shows your ad when someone searches. You typically pay when someone clicks. The visitor lands on your site, and if the page makes it easy, they call.

You control the message and the areas. You also carry the work: keywords, ad text, blocking wrong searches, checking that clicks turn into calls. Google Ads punishes neglect. A campaign nobody watches can burn budget on searches that never lead to a job.

How do Local Services Ads work?

Local Services Ads are pay-per-lead. Per Google, you pay for valid leads, prices vary by location, job type, lead type and bidding mode, and Google screens and verifies businesses. You can dispute a lead you believe is invalid.

Requirements vary by category and location, so check Google’s current requirements. Our post on how Local Services Ads work covers the checklist.

The tradeoff is less control over the message and more dependence on Google’s process.

How does local SEO work?

SEO is the work of making your business easier for Google to find, understand and trust. For a contractor that means a complete Google Business Profile, real reviews, a site that clearly says what you do and where, and consistent business details.

Google doesn’t publish the full recipe, but it says it looks at relevance, distance and prominence. So SEO is a set of habits, not a switch. Our local SEO guide for contractors lays out the few things that matter.

No one can promise a ranking. Anyone who does is guessing.

Which should a contractor start with?

Match it to your situation:

Your situation	Start with	Why
Need calls in weeks, urgent trade, able to answer fast	Local Services Ads or search ads	Paid can start sooner
Have time, low cash, planned work	Google profile, reviews, site	No per-lead or per-click fee, but slower
Brand-new, no reviews or site	Basics first, small paid test alongside	Ads send people to a thin presence otherwise
Already busy, want steadier flow	Profile and reviews, then a capped ad test	Build the base before adding spend

For most contractors the honest answer is both: build the free base, and use paid to fill gaps.

A worked example (no numbers to trust)

Imagine a new painting company with no reviews. Here is a sensible 90-day order, with no promises:

1. Weeks 1 to 2: Complete the Google profile, and put a phone number and photos on a simple site.
2. Weeks 2 to 6: Ask every finished customer for a review, the same way every time.
3. Weeks 4 to 8: Run one capped paid test, either search ads or Local Services Ads if the category and area qualify.
4. Weeks 8 to 12: Log calls and jobs by source, and score cost per booked job. Keep what earned, cut what didn’t.

The sequence matters more than the exact channel. Paid clicks from a thin profile do less than paid clicks from a profile with real reviews.

What about doing all three?

Yes, over time, in that order: base first, then one paid channel, then a second. The failure case is turning on three things at once and not measuring any of them.

Use a simple lead log with source, reached, estimate, job won and revenue. Then compare the channels with the same yardstick: cost per booked job. Our contractor advertising guide shows how, and the profile routine covers the weekly habit that feeds SEO.

What mistakes cost the most?

• Paying before answering. Ads bring calls. Missed calls waste them.
• Ignoring Google’s requirements. Check Local Services Ads rules for your category and area before you plan on them.
• Judging SEO in two weeks. It moves slowly, and a short window shows nothing.
• Never measuring. Without a log, you can’t tell what worked.
• Keyword-stuffing your business name or categories. Google’s guidelines say the name should match your real-world name and categories should be specific and representative. Breaking them risks suspension.

Common questions

Can I run Google Ads and Local Services Ads at the same time?

You can use both, but test them one at a time first so you know which one produces booked jobs. Running both from day one makes it hard to tell which is paying off. Once each has a clear cost per booked job, you can decide whether to keep both, drop one, or shift budget.

How long does local SEO take to work?

Nobody can promise a timeline. Google does not publish its full recipe, and results depend on your market, competition and how complete your profile and site are. Plan on months, not days, and track calls and jobs rather than rankings. Paid ads are the faster option if you need calls sooner.

Do I still need SEO if I run ads?

Ads and SEO do different jobs. Ads bring calls while you pay. A complete Google profile, real reviews and a clear website keep bringing visibility without a per-lead or per-click fee, and they also make your ads work better. Most contractors do best when they build the base and add ads on top.

Which is cheapest for a contractor?

Cost depends on your trade, city and competition, so no channel is cheapest for everyone. SEO has no per-click or per-lead fee but takes time and effort. Paid channels cost money for each click or lead. Compare them using cost per booked job over the same window, not the sticker price of a click.

Google Local Services Ads are a pay-per-lead ad format for local service businesses. Per Google, you pay for valid leads, not clicks, and lead prices vary by location, job type, lead type and bidding mode. Requirements vary by category and location, so check Google’s current information for your trade before you apply.

Local Services Ads are Google’s ad format for local service businesses, and many home service trades fall in its supported categories. The big difference from regular Google ads is how you pay. Google’s own materials describe it as pay per lead, not per click.

This post explains how they work using what Google publishes, and where to look for the details that vary. Google’s Local Services Ads overview and its Local Services Ads help pages are the sources for the facts below. Rules change, so check them yourself before you commit.

What is a lead in Local Services Ads?

Google describes a lead as a customer contacting your business through the ad, for example by phone or message. Google charges for valid leads. What counts as valid is defined by Google, and the definition can differ by category. Read the current definition for your trade.

That is what “pay per lead” means: you are not paying for someone looking at your ad or clicking it.

How much do Local Services Ads cost?

Google says lead prices vary by location, job type, lead type and bidding mode. That means the same ad can cost different amounts in different cities, for different jobs, and depending on how you set your bidding.

We won’t quote a number, because any number we gave would be wrong for someone. To see what you would pay, use the pricing and budget information Google shows in your account setup for your category and area. Treat it as an estimate until you have a month of real data.

What do you need to check before applying?

Google says it screens and verifies businesses. What that involves, and which trades qualify, varies by category and location. Look up the current requirements for your specific trade and city on Google’s support pages.

Use this checklist and confirm each item against Google’s current information:

• Is my trade (category) supported in my area?
• What licensing or registration does Google require for my category and location?
• What insurance does Google require, if any?
• What checks apply to my business and to the people who do the work?
• What is my service area, and is it accurate and precise?
• Do I have current documents ready to upload?
• Can I keep my business information consistent with my Google Business Profile?

Do not assume the answers based on another trade or another state.

What do you do when a lead comes in?

Speed and clarity decide whether a paid lead becomes a job. A person who contacted several businesses may well go with the one that answers first.

Phone leads. Answer in person if you can. If you can’t, call back within minutes. A missed call is money already spent. A local business phone line that rings your cell helps you catch calls while you are out.

Message leads. Reply fast, ask one question, and offer times.

Try this first reply:

Hi [Name], this is [Your Name] at [Business]. Thanks for reaching out about [service]. I can stop by [day] or [day]. Which works better?

For the phone side, our post on a phone script that books more estimates gives you words to use.

How do you dispute a lead you think is invalid?

Google says advertisers can dispute a lead they believe is invalid, and that successful disputes are credited in the U.S. and Canada. Whether a specific dispute succeeds is Google’s call.

Make a habit of documenting leads as they arrive:

1. Note the date, time and how the lead arrived.
2. Write down what was wrong: a wrong number, a service you don’t offer, an area you don’t cover, a request that was never real.
3. Keep call notes or recordings where the law and your setup allow it. Confirm your local rules first.
4. Submit the dispute through your account, using Google’s current process.
5. Log the outcome so you can see the real cost after credits.

Do not dispute leads just because they didn’t book. A lead that was valid and did not become a job is part of normal cost per booked job.

A worked example (made-up numbers)

Imagine a garage door repair company that spends $1,000 in a month. These numbers are invented, including the lead price, to show the math. They are not Google prices.

Step	Count	Math
Valid leads charged	25	$1,000 / 25 = $40 per lead
Leads reached	20	5 were missed or never answered
Estimates or visits booked	12
Jobs won	9	$1,000 / 9 = about $111 per job
Average job	$350	about $3,150 revenue

The math shows two levers. Reach more of the leads you pay for, and close more of the visits. Five leads went unanswered here, and those were paid for. Fixing that is worth more than tweaking the budget.

When might Local Services Ads not fit?

• Your category or area isn’t supported, or you can’t meet Google’s requirements.
• You can’t answer quickly. Paid leads you miss cost the same as the ones you win.
• Your jobs are large and rare. A few leads a month may still work, but watch cost per booked job over a longer window.
• You don’t track results. You need a log to know what you got for the money.

If you’re weighing this against other channels, see Google Ads vs. Local Services Ads vs. SEO, or our contractor advertising guide for every paid option side by side.

A simple way to start

1. Confirm your category, area and requirements on Google’s current pages.
2. Pick a monthly budget you could lose.
3. Set up a lead log with source, reached, booked and won.
4. Answer fast for 30 days.
5. Dispute clearly invalid leads.
6. Score cost per booked job, then decide.

Common questions

Do I pay when someone clicks my Local Services Ad?

Per Google, Local Services Ads charge for valid leads instead of clicks. A lead is typically a customer contacting your business, such as by phone call or message. Google decides what counts as valid, so read its current lead definitions for your category. If you think a lead was not valid, you can dispute it.

What if I get a lead I think is invalid?

Google lets advertisers dispute a lead they believe is invalid, and says successful disputes are credited in the U.S. and Canada. Write down what was wrong when it happens, such as the wrong service or an area you do not cover, and submit the dispute through your account. Results depend on Google’s review.

Do I need a license and insurance for Local Services Ads?

Requirements vary by category and location, and Google screens and verifies businesses. Some trades and places have stricter checks than others. Look up the current requirements for your specific category and city on Google’s support pages before you plan around the ads, and keep your documents ready.

Are Local Services Ads better than Google search ads?

They work differently. Local Services Ads charge per valid lead. Search ads typically charge per click and send people to your website. Which fits better depends on your trade, market and how you follow up, so test one at a time and compare cost per booked job.