Pay per call means you are billed for phone calls that reach you. Pay per lead means you are billed for each enquiry, usually a form or message, and sometimes a call too. The difference that matters is the definition of a billable event, so read that before you read the price.
Much of what you will read about pay per call is written for United States home-services firms, HVAC contractors in particular. The same questions apply in Australia and New Zealand to any call you pay for.
What each model bills for
| Model | You pay when | Main risk to you |
|---|---|---|
| Pay per call | A call reaches your tracked number and meets the vendor’s rules | Short, wrong-number or out-of-area calls that still count |
| Pay per lead | Someone submits a form or sends a message | Fake or half-interested submissions; the same person sold to several firms |
| Pay per appointment | A visit or quote meeting is booked | Bookings that do not turn up, or were not ready to buy |
| Share of the job | A job is won and paid | Hard to audit; you hand over your margin |
Pay per call is a form of pay per lead where the lead is a phone call. The vendor sets up a tracking number, advertises it, and bills you when it rings through to your business. The other terms are defined in types of leads for contractors.
What counts as a billable call
There is no universal rule. Each vendor writes its own. Google’s Local Services Ads show what a written definition looks like: Google says you pay for each valid lead, and it does not charge for missed calls where the caller hangs up within 20 seconds, or for follow-up calls or messages from the same number or email within 15 days of a charged lead. It also does not charge for unanswered calls outside your business hours or ad schedule. Read the Google help page for the current wording.
Ask any call vendor for the same detail in writing:
- Minimum length. How many seconds before a call is billable?
- Who answers. If you miss the call, do you still pay?
- Repeat callers. Is a second call from the same person billed again?
- Hours and area. Are calls outside your hours or service area billable?
- Job type. If the caller wanted a job you do not do, do you still pay?
- Recordings. Are calls recorded, and can you listen to them? Recording rules differ by place, so check them where you operate.
Quality controls
A call that lasts two minutes can still be a wrong number, a supplier, or a person asking for a price they will never pay. Length is a filter, not proof.
Some call sellers let you return calls that miss their standards, but the rules differ: what qualifies, how long you have, and who decides. A short return window with no recordings is hard to use, so get both in writing.
Look for three controls:
- A clear way to dispute a call, with a deadline you can meet.
- Call recordings or at least a log with caller number, time and length.
- Exclusivity in writing: does the call go to you alone, or is the same caller sold to others?
When pay per call beats forms, and when it does not
Calls tend to suit urgent work, such as a failed air conditioner or a leaking system, where the person wants an answer now and will ring the first firm that picks up. For Australian installers, air conditioning leads sets out what a quotable enquiry looks like. They are weaker for big, slow decisions such as an extension or a new home, where the homeowner wants to compare and think, and often fills in a form or sends a message first.
Forms are easier to check afterwards because you have the details in writing. Calls are faster but harder to audit unless you have recordings. If you cannot answer the phone during work hours, you will pay for calls you miss under some terms, and lose jobs under all of them. Speed matters either way, as how fast to respond to building enquiries explains.
Where the United States differs
In the US, the Telemarketing Sales Rule bars sellers and telemarketers from calling numbers on the National Do Not Call Registry, and restricts outbound telemarketing calls to between 8 am and 9 pm local time. See the FTC’s guide. In Australia, the Do Not Call Register Act 2006 sets rules for unsolicited telemarketing calls and calling a registered number may be unlawful, and the business that commissions the calls must comply as well as the caller, including when the work is outsourced. See the Do Not Call Register industry page.
These rules matter for outbound calls. A homeowner who rings you after seeing an ad has started the contact. Check your own situation with the regulator before you start calling people.
What to put in writing
Before you pay for calls or leads, get these in the contract or order form:
- The exact definition of a billable call or lead.
- The dispute process and its deadline.
- Whether each call or lead goes to you alone.
- Your service area and hours, and that outside-area calls are not billed.
- How to stop: notice period, any minimum spend, any fee to leave.
- Who owns the phone number and the ad account if you leave.
Then work out the number that counts: cost per signed job. Divide what you pay per call by the share of calls that become a quote and the share of quotes you win. As an example only, if one call in four becomes a quote and you win one quote in three, you need twelve calls for one job. At a made-up $60 a call, that is $720 for the job. Use your own figures. A cheap call that never closes costs more than a dearer one that does.
PreBuild takes a different route: it rings every homeowner who enquires first, checks they are real and want the work, and sends each one to a single business. See how it finds homeowners. Whichever model you pick, the same written checks apply. How to choose a lead generation company covers them for any trade.
Common questions
Is pay per call the same as pay per lead?
Pay per call is one kind of pay per lead, where the lead is a phone call that meets the vendor’s rules. Pay per lead more often means a form or message.
How long must a call be to be billable?
Each vendor sets its own figure; Google’s Local Services Ads, for example, do not charge for missed calls where the caller hangs up within 20 seconds. Ask for the figure in writing.
Is pay per call common in Australia and New Zealand?
Most of what is written about it is aimed at the United States. The checks above apply to any call you pay for, wherever you work.
Is pay per call better than pay per appointment?
Neither is better in general: calls are billed at the start, appointments later and depend on the vendor’s booking quality. Judge both by cost per signed job.