Direct Answer (Quick Summary)
Contractors get leads from eleven main channels: referrals, Google Business Profile, Local Services Ads, Google Search Ads, SEO, Facebook and Instagram ads, lead marketplaces such as Angi and Thumbtack, door knocking and yard signs, partnerships with realtors and suppliers, email and SMS to past customers, and reviews. Referrals and Google Business Profile are the cheapest; Local Services Ads and paid search are the fastest; SEO and reviews compound the longest. Agencies that sell to contractors should pitch the channel the contractor is visibly missing, which is why Contractor Leads scores every business on website, SEO, PPC and marketing gaps before you call.
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How we ranked the channels
Every channel below is scored on three things: cost per lead, time to first lead, and lead quality (how often a lead turns into a booked, profitable job). Ranges are typical for US home-service trades in 2026 and will move with your market, trade and season. Use them to pick a mix, not as a guarantee.
| Channel | Typical cost per lead | Time to first lead | Quality | What agencies sell here |
|---|---|---|---|---|
| Referrals and word of mouth | $0 to $20 | Weeks to months | Very high | Referral systems, review automation |
| Google Business Profile | $0 to $30 | 2 to 8 weeks | High | GBP optimization, review velocity |
| Local Services Ads | $35 to $250 | Days | High | LSA setup, dispute management |
| Google Search Ads | $40 to $300 | Days | Medium to high | PPC management, landing pages |
| SEO and content | $10 to $60 at scale | 3 to 9 months | High | Local SEO retainers |
| Facebook and Instagram ads | $15 to $120 | Days | Medium | Paid social, creative, lead follow-up |
| Lead marketplaces (Angi, Thumbtack) | $20 to $150, shared | Hours | Low to medium | Rarely; replace them |
| Door knocking and yard signs | $10 to $60 in labor | Same day | Medium | Storm-season canvassing systems |
| Realtor and supplier partnerships | $0 to $50 | Weeks | High | Partner programs, co-marketing |
| Email and SMS to past customers | $1 to $10 | Days | High | CRM setup, nurture sequences |
| Reviews and reputation | $0 to $15 | Weeks | Multiplier | Review requests, response management |
1. Referrals: the channel every other channel feeds
Most established contractors still get the majority of their work from referrals, and nothing beats the close rate. The weakness is that referrals are passive. The fix is a system: ask at job completion, offer a small thank-you, and follow up with a review request. Agencies package this as a referral and review program that sits on top of whatever CRM the contractor already uses.
2. Google Business Profile: free, local and under-used
The map pack appears on almost every 'near me' search and the profile costs nothing. Yet in a typical Contractor Leads search, a large share of contractors have incomplete profiles, few photos, slow review growth or no website link at all. Complete the categories, add service areas, publish weekly photos and answer every review. For agencies this is the easiest first retainer because the before-and-after is visible inside a month.
- Pick the most specific primary category (Roofing contractor, not General contractor)
- Add every service as a separate line item with a short description
- Reply to every review within 48 hours, including the bad ones
- Link the profile to a page that loads in under three seconds on mobile
3. Local Services Ads: pay per lead at the top of Google
LSAs sit above the regular ads with a Google Guaranteed badge and charge per valid call or message instead of per click. For licensed trades such as plumbing, HVAC, electrical and roofing they are usually the fastest route to booked jobs. The catch is setup: licence, insurance and background checks must clear before the ad goes live, and invalid leads must be disputed each month. Our Local Service Ads guide covers the full agency workflow.
4. Google Search Ads: fast, flexible, expensive if neglected
Search ads capture emergency and high-intent searches that LSAs do not cover, and they let you control the landing page. Costs per click in home services are among the highest on Google, so a campaign without negative keywords, call tracking and a fast landing page burns budget quickly. Contractors with a PPC score under 40 in Contractor Leads are usually either not running search ads or running them badly, which is a clear agency opening.
5. SEO and content: slow to start, cheapest at scale
A contractor site that ranks for its city plus trade and the top ten service terms produces leads for years at a falling cost per lead. It takes three to nine months and consistent work on service pages, location pages and reviews. Agencies should sell SEO to contractors who already have a working paid channel, so the retainer is funded while rankings build. See our roofing SEO guide for a worked example.
6. Facebook and Instagram ads: volume with a follow-up problem
Meta ads can produce cheap leads for remodeling, solar, roofing inspections and seasonal HVAC offers, but lead quality depends almost entirely on speed to call. A lead that waits 24 hours is already talking to someone else. Agencies that pair Meta ads with an instant SMS and call sequence keep clients; agencies that hand over a spreadsheet of names do not. Contractor Leads shows whether a business already runs Meta ads so you know which pitch to open with.
7. Lead marketplaces: fast, shared and price-driven
Angi, Thumbtack, HomeAdvisor and similar marketplaces sell homeowner requests to several contractors at once. They are useful for a brand-new business and painful for everyone else: low close rates, fee disputes and homeowners trained to pick the lowest bid. Agencies rarely sell marketplace management. Instead, the pitch is to replace marketplace spend with owned channels over six months.
8. Door knocking, yard signs and canvassing
Still the backbone of storm-season roofing and a steady source for exterior trades. Costs are labor, not media. A yard sign on every active job and a short canvass of the surrounding streets reliably produces neighbors. Agencies can productize this with territory maps, door-hanger design and a simple canvassing CRM.
9. Realtor, property manager and supplier partnerships
A realtor who recommends one roofer or one HVAC company to every buyer is worth more than most ad campaigns. Property managers send repeat work. Supply houses know which contractors are growing. Partnerships take months to build and almost no money, so they suit established contractors with capacity to spare.
10. Email and SMS to past customers
The cheapest leads a contractor will ever get are from people who already paid them. Seasonal maintenance reminders, filter-change offers, roof inspections after a storm and anniversary check-ins all produce bookings for the cost of a CRM. Most contractors do none of this, which makes CRM setup and nurture sequences an easy add-on for agencies.
11. Reviews: the multiplier on every other channel
Reviews are not a lead source on their own, but they change the conversion rate of every other channel. A contractor with 4.8 stars and 200 reviews wins the same LSA call that a 4.2-star, 15-review competitor loses. Review velocity is one of the reputation signals Contractor Leads pulls on each lead, so you can pitch review automation to the businesses that need it most.
Picking the right mix by stage
A sensible progression for most contractors, and therefore for the agencies advising them:
- Year one: Google Business Profile, reviews, referrals, one marketplace, yard signs
- Growing: add Local Services Ads or search ads, build a fast website, start email to past customers
- Established: SEO retainer, Meta ads with instant follow-up, partnerships, drop marketplaces
- Scaling: multi-location SEO, call tracking, CRM automation, dedicated inside sales
For agencies: find the contractors missing a channel
The pitch writes itself when you can see the gap. Contractor Leads searches live Google Places data for any trade and market, scores every business on website, SEO, PPC and overall marketing opportunity, checks Meta Ads Library status, finds the owner's name from the business website and drafts the first email. Start with 10 free leads and sort by the channel you sell.
Opening line formula
[Owner first name], [Business] has [strong signal: 4.8 stars / 160 reviews] but [gap: no website / no Local Services Ads / no Meta ads] in [City]. [Competitor] is picking up those calls. Worth a 10-minute look at what that is costing you?
Frequently Asked Questions
What is the cheapest way to get contractor leads?
Referrals, a complete Google Business Profile and a steady flow of Google reviews cost almost nothing but time. They also compound: a profile with 150 reviews keeps producing calls for years. The trade-off is speed, which is why most growing contractors pair them with Local Services Ads or paid search.
Are shared leads from Angi or Thumbtack worth it?
Sometimes, for a new contractor with no pipeline. The same homeowner request is usually sold to three to five contractors, so close rates are low and price competition is high. Once a contractor has reviews and a working website, exclusive channels such as LSAs, search ads and their own site usually win on cost per booked job.
How do agencies get contractor leads for themselves?
Agencies prospect contractors directly. The fastest approach is a scored list: pull every roofer or HVAC company in a metro from live Google data, rank them by the marketing gap you fix, confirm the owner name, and send a first email that names the gap. Contractor Leads automates that workflow and gives 10 free leads to start.
What is a good cost per lead for contractors?
It depends on job value. Plumbers often target $30 to $90 per lead, HVAC $50 to $150, roofing $80 to $250 and solar $150 to $400. A channel is worth keeping when cost per booked job stays below roughly 10 percent of the average ticket.
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Vaishali Kapoor
Founder, Contractor Leads
Vaishali leads product and growth at Contractor Leads, helping marketing agencies prospect, score, and close high-ticket home-service contractors.

