You can buy leads from four places: a shared-lead marketplace, a lead company that sells to a few businesses, an agency that runs ads for you, or your own ads. The right one depends on how many other businesses get the same homeowner, and what you pay when that homeowner never answers the phone.
This page covers the questions to ask before you pay. It does not quote average prices, because nearly every published price comes from someone selling leads. Work out your own ceiling first with what a lead is worth to your business.
Four places leads come from
- Shared-lead marketplaces. A homeowner posts a job and several businesses are told about it. You pay to see it, to contact the homeowner, or both.
- Lead companies. They run ads or sites, collect enquiries and sell them on. Some sell each enquiry to one business, some to several.
- Agencies. They run ads and a landing page for you, often for a monthly fee. The enquiries come straight to you with no middleman.
- Your own ads. You pay Google or Meta directly and build the follow up yourself. Slowest to start, and you keep everything you learn.
Our guide to the types of leads for contractors defines each term used below.
What you are actually paying for in each
The word “lead” hides what is being sold. Ask which of these it is.
- A name and number. Someone filled in a form. Nobody has spoken to them.
- A phone call. A homeowner rang a number and the call was passed to you.
- A booked visit. Someone has agreed to a time for you to turn up.
- A time period. A monthly fee for a share of whatever turns up, including nothing.
The cheaper the thing, the more of the checking is left to you. A form with a number on it can cost you an hour of ringing before you learn it was a dead end.
How many other businesses get the same homeowner
This is the question that changes everything. A homeowner who has asked for a quote usually wants a few. If four businesses ring within the hour, the first to answer wins more often than the best one. The rest of you paid to compete.
Ask the seller for the number in writing. “Exclusive” should mean one business. Some sellers use it to mean one business per trade, one per suburb or one at a time, so ask what it means in their terms.
Aged, resold and bought-list leads: how to spot them
Some enquiries are old by the time they reach you. Some have been sold more than once. Some were never an enquiry at all, just a list of names collected somewhere else.
Signs to look for when the first batch arrives:
- The homeowner does not remember asking, or says they already have a builder.
- Two sellers send you the same name and number.
- The job described is something you do not do, or in a suburb you do not cover.
- The enquiry has no date, or the date is weeks old.
There is also a rule to know. Cold-calling private numbers is regulated in Australia, and the ACMA manages the Do Not Call Register. A bought list of names is not the same as a homeowner who asked to hear from you. Check the ACMA’s rules for your situation before you ring a list. In New Zealand, the Department of Internal Affairs says purchased email and text lists need consent for each address. See the DIA’s three steps.
Five checks before you buy leads
- Ask how many businesses get each enquiry. Get the number, not the word “exclusive”.
- Ask what was checked before it reached you. A real phone call, or only a form? See what a verified lead should mean.
- Ask what happens when it is a dud. Disconnected number, wrong suburb, wrong job. Is there a replacement, and who decides?
- Ask for the start and stop terms. Can you stop this month without a fee or notice period?
- Ask for a small first order. Buy a few before you buy many. Ring every one the same day and keep a tally of what happened.
Keep a tally of the first order
Ring every lead in the first order on the day it arrives, and fill in one line for each. After ten or so, the pattern is usually plain.
| Lead | Answered | Remembered asking | Right job and area | Quoted | Won |
|---|---|---|---|---|---|
| 1 | Yes | Yes | Yes | Yes | Waiting |
| 2 | No, rang twice | ||||
| 3 | Yes | No |
If fewer than half answer or remember asking, raise it with the seller before the next order, with the tally in hand. A replacement rule is only worth something if you have kept the record.
What to ask for in writing
Get these in an email or a document before you pay:
- The price for each lead, call or appointment, and when you are charged.
- How many businesses can receive the same enquiry.
- What counts as a refund or replacement, and how long you have to claim.
- Where the enquiries come from and how recent they are.
- How to stop, and what you owe if you do.
If a seller will not put these in writing, that is your answer.
PreBuild Systems is one example of the one-business model. We run the ads, ring every homeowner who enquires, check six things and send each homeowner to one business only. You can read how it works at homeowners for builders and trades. Whoever you buy from, ask the same five questions.
Common questions
Is it worth buying leads for a trade business?
It can be, if what you can earn from a lead is more than what it costs you once you count the leads that go nowhere. Work that out from your own numbers first.
What is the difference between buying leads and running my own ads?
With bought leads someone else does the advertising and you pay for the result, which is quicker to start. With your own ads you pay the platform and carry the follow up, and you learn more about your own market.
How do I know if a lead has been sold to other businesses?
You usually cannot tell from the lead. Ask the seller in writing, and watch for homeowners who mention other businesses calling.
Can I ring a bought list of numbers?
Not freely: Australia has a Do Not Call Register run by the ACMA, and New Zealand requires consent for commercial texts and emails. Check the regulator’s pages for your situation.