Guides
What is a reasonable cost per lead for contractors?
Short answer: a reasonable cost per lead is what you can afford to pay and still make money when some of the inquiries turn into jobs. It varies between businesses, so calculate from your own numbers instead of comparing with others.
Work backwards from the job
Start with the average gross profit per job. Multiply by the share of inquiries that become jobs. That is the ceiling for what an inquiry can cost before you lose money.
Example calculation (not a benchmark): if a job brings in $1,000 in gross profit and one in five inquiries becomes a job, each inquiry is worth $200 to you. Anything below that is profitable.
Cheap leads are not always good leads
A low cost per lead means little if inquiries are for the wrong area, the wrong job type or never answer. Measure cost per booked job, not just per form.
Agree with your agency on what counts as a qualified lead, such as the right service and working contact details.
What lowers the cost most
Fast follow-up: whoever calls back first usually wins the job. Clear pages per service with photos of real work. Visible reviews. And tracking, so budget moves to the keywords and ads that bring booked jobs.
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