Lead Generation for Contractors: Buying Leads vs. Generating Them

Shared lead platforms like Angi and HomeAdvisor charge $60-$150 per lead — and that lead goes to 3-5 other contractors. Your close rate on shared leads is typically 8-15%. That’s an effective cost per booked job of $600-$2,000 before you’ve even paid your sales rep.

The alternative — building your own lead generation system — costs $1,500-$5,000/month upfront but produces exclusive leads at $30-$80 each with close rates of 25-40%. Effective cost per booked job: $120-$320.

The math is not close.

Own-funnel lead generation for contractors requires four pieces: a fast conversion-optimized website, at least one paid channel (Google or Facebook), a follow-up system (SMS + email automation), and reputation infrastructure (reviews, social proof, trust signals).

Start with one channel. Prove it works. Scale it. Then add the next. Contractors who try to run everything at once end up running nothing well.