Leads for contractors are homeowners, or people acting for them, who have asked about a job. The types differ in two ways: how many businesses get that homeowner, and what the seller has checked before passing them on. This page defines each type in plain words.
Nothing here is a price list. Before you pay for any type, read what to ask before you buy leads and work out what a lead is worth to you.
Types of leads for contractors at a glance
| Type | What it is | Who else gets it | Main catch |
|---|---|---|---|
| Shared lead | One enquiry sent to several businesses | Two or more others | You race the others to the phone |
| Exclusive lead | One enquiry sent to one business | Nobody, if the word means what it says | The word is used loosely |
| Pay per lead | A fee when an enquiry arrives | Depends on the seller | You pay even if the number is dead |
| Pay per call | A fee when a homeowner rings you | Depends on the seller | Short calls and wrong-job calls still cost |
| Pay per appointment | A fee when a visit is booked | Depends on the seller | Booked is not the same as turns up |
| Inbound lead | The homeowner came to you | Whoever else they asked | You still need to answer fast |
| Verified lead | Someone checked it before it reached you | Depends on the seller | “Checked” can mean very little |
| Aged or resold lead | An old enquiry, sometimes sold more than once | Often several others | The homeowner may have moved on |
Shared leads
A shared lead is one homeowner enquiry sent to more than one business. Shared-lead marketplaces and job boards usually work this way. The homeowner often expects several quotes, so you are one of a group from the first phone call.
Exclusive leads
An exclusive lead goes to one business only. That is the plain meaning. Some sellers use it to mean exclusive for a week, exclusive in one suburb, or exclusive to one business per trade. Ask them to write down how many businesses can receive the same enquiry.
Pay per lead, pay per call and pay per appointment
These three describe when you are charged, not the quality of what you get.
- Pay per lead: you pay when an enquiry is delivered.
- Pay per call: you pay when a call connects, sometimes only if it lasts a set time.
- Pay per appointment: you pay when a visit or meeting is booked.
Each can be shared or exclusive. Each can be checked or unchecked. Ask what triggers the charge, and what happens when the homeowner turns out to be the wrong fit.
Inbound leads
An inbound lead is a homeowner who got in touch with you, by phone, form or message, because of something you or a seller put in front of them. This is the opposite of outbound, where a business cold-calls or messages people who never asked. Inbound enquiries are what most trades want. They are also where speed matters most, as covered in how fast to respond to building enquiries.
Cold-list leads
A list of names and numbers of people who never asked about a job is sometimes sold as leads. It is not an enquiry. Ringing or texting people on a list has rules in Australia and New Zealand, and most of the people on it will not need your trade this year. Check the rules before you use one, as set out in what to ask before you buy leads.
Aged and resold leads
Aged leads are enquiries that have sat for days or weeks before being sold. Resold leads have been sold to another business first. In both cases the homeowner may already have a builder. Ask the seller for the date of the enquiry and whether it has been sold before.
Marketplace leads
A marketplace is a site where homeowners post jobs and businesses pay to respond. Most sell shared leads, some charge a membership, some charge for each enquiry you open. The downside is the same: you compete with the other businesses who paid to see the job.
Referral leads
A referral lead comes from a past customer, another trade or a designer who sent the homeowner to you by name. Nobody sold it, and often nobody else is quoting. It is usually the best lead you get, and the one you cannot order more of.
Which type suits which job
- Urgent, smaller jobs such as a failed air conditioner or a broken fence: calls and fast replies matter most, because the homeowner keeps ringing until someone answers.
- Considered jobs such as a kitchen, an extension or a battery: a checked enquiry that goes to you alone gives you time to do a proper quote.
- Large, slow jobs such as a new home: referrals and designers do most of the work, and any paid source should be judged over months, not weeks.
Whichever type you buy, the test is the same: what it cost you per signed job.
Checked leads and what makes them different
A checked, or verified, lead has had something confirmed before it reaches you. That might be only that the email is real, or it might be a phone call to the homeowner. The gap between those is large. See what a verified lead should mean.
PreBuild Systems sends each homeowner to one business after ringing them and checking six things. The detail is on our homeowners page. Judge any seller by what they will put in writing.
Common questions
What are the main types of leads for contractors?
Shared, exclusive, call, appointment, aged and resold, and checked. They answer two questions: how many businesses get it, and what was checked.
What is an exclusive contractor lead?
An enquiry sent to one business only. Confirm in writing what the seller means by the word.
Is a shared lead always bad?
No, but you compete from the first call. It can work if the price is low enough and you answer faster than the others.
What is the difference between pay per lead and pay per call?
Pay per lead charges when an enquiry arrives. Pay per call charges when a phone call connects to you.