A fair contractor leads service tells you, before you pay, how its leads are made, how many other contractors get each one, what happens to a bad lead and how to cancel. Once you start, it should deliver what it described: leads that arrive within minutes of the homeowner asking, with the details you were shown, and a straight answer when one is bad.
The checklist for choosing a provider is in how to choose a lead generation company. This page covers what to expect once you sign up, and what a contractor leads service should never ask of you. A note for US readers: this site is written from Australia, where the same business is called a builder or tradie. PreBuild Systems is opening in the US and is not running there yet. Where the law matters, we say which country and link the source.
Before you pay: four answers in writing
- How leads are made. Which ads, pages or call lines, and what the homeowner was asked.
- Who else gets each one. A number, not the word “exclusive”. Shared leads: how many businesses is too many shows how to test it.
- What counts as a bad lead, and what you get back for one.
- How you stop. Notice, fees and what you keep.
Ask for a sample lead too, showing every field you would receive. That sample is the standard you hold the service to from the first week.
What a contractor leads service should deliver in the first week
The first week tells you most of what you need to know. Watch for these:
- Speed. A lead should reach your phone within minutes of the homeowner asking, not in a batch at the end of the day. Ask what time the homeowner enquired and compare it with when you got it.
- The same fields as the sample. Name, a working phone number, the suburb, the job in the homeowner’s words and when they want it done. If the sample had notes from a call and the real leads do not, ask why.
- Your area and your work. Every lead inside the service area you agreed, for a job you told them you do.
- The volume you agreed. Not a flood in week one and nothing after.
Ring each lead as it lands and log what happens. What a lead should contain is set out in homeowner leads: what one should contain.
How leads are made, and why it matters to you
Common sources are search ads, social ads, the service’s own website, call centres and purchased lists. Each behaves differently. A homeowner who asked for a contractor is a lead. A name from a list, or someone who entered a competition, is a contact who has not asked you for anything.
In the US, calling people from a list brings its own rules. The Federal Trade Commission says that, with some exceptions, any business or individual involved in telemarketing must follow its Telemarketing Sales Rule, whether they make the calls or take them. It also says a third party who gives substantial help to a seller or telemarketer while knowing, or deliberately avoiding knowing, of a violation can be liable. Read the FTC guide and check how it applies to you. If a service is cold calling on your behalf, ask how. Australia and New Zealand have their own rules, covered in the provider checklist linked above.
Bad lead handling you should expect
You will get some bad leads from any source. A fair service has a written rule for them:
- A set number of days to report a bad lead
- Reasons that count: disconnected number, wrong trade, outside your area, homeowner says they never asked
- Money back or a replacement lead
- Who decides, and a reason you can read when a claim is refused
Report with your log: the lead, the reason in one line, and the times you rang. Fake and duplicate leads has a simple log and what to send. A service that accepts clear claims without a fight is behaving as it should. One that refuses everything has told you what its rule is worth.
Reports worth asking for
Once a month, a fair service can show you, per lead: when the homeowner enquired, when it reached you, the source, and whether it was replaced. Put that next to your own record of who you reached, quoted and signed. Divide what you paid by signed jobs. That is the only number that tells you whether the service is worth keeping.
What a contractor leads service should never ask
| The ask | Why it is a problem |
|---|---|
| Sign today for the price | A deadline is a pressure tactic. A fair offer holds for a week. |
| A long term that renews on its own | You can be tied in by missing a date. |
| A minimum spend whether leads are good or not | You carry all the risk of poor leads. |
| Accept that the service alone decides what a bad lead is | It marks its own homework. |
| Run your ads from its account, not yours | You cannot leave without starting again. |
| Ring a list of names it supplies | Those people did not ask, and the calling rules may fall on you. |
| Trust a promised number of jobs | No service can promise jobs. |
Cancelling
Know how you stop before you start. Read the minimum term, whether it renews on its own and how much notice you must give, any exit fee or minimum spend owed after you cancel, and whether you keep the ad account, phone numbers and data. A good service lets you end it on short notice without a fee for leaving.
Where we fit
PreBuild Systems finds homeowners for builders, trades and home services. We ring every homeowner who enquires, check six things and send each one to one business only. We work in Australia and New Zealand, and the United States is opening. The homeowners page has the detail.
Common questions
What should a contractor leads service show me first?
A sample lead, the definition of a billable lead, the price in writing, how many others get each lead and the contract.
How fast should leads arrive?
Within minutes of the homeowner asking. Compare the enquiry time with the time the lead reached you, and raise any gap.
Can I cancel a lead generation service for contractors at any time?
Only if the contract says so. Read the term, renewal and exit fee before you sign.
Are lead generation platforms for contractors worth it?
Your close rate and what each lead costs decide it. Track cost per signed job by source.