How to choose a lead generation company for your service business

Keyword tools estimate thousands of US searches a month for "lead generation agency", and the companies behind those results sell very different things. Some sell leads they generated for no one in particular. Some run ads in your name. Some build the forms, tracking and follow-up you keep. The price and the risk differ a lot between them.

Three kinds of lead generation company

Lead sellers. They generate leads through their own websites and ads, and sell them to businesses, often to several at once. Quick to start. You own nothing when you stop.

Advertising agencies. They run Google, Meta and other ads for your business, in your name. Leads come directly to you. Quality depends on the agency's skill and your follow-up.

Systems builders. They set up the landing pages, tracking, CRM, automation and follow-up that turn leads into customers. Often combined with ad management.

Many companies combine these. The questions below help you understand what you would actually be buying.

Questions to ask

Ownership

1. Who owns the ad accounts? You should, or at least have admin access.
2. Who owns the landing pages and domain?
3. Who owns the lead data and call recordings?
4. What happens to all of this if we part ways?

Leads

5. Are leads exclusive to me?
6. Which platforms and ads generate them? Can I see them?
7. What counts as a lead, and can I dispute invalid ones?

Tracking and reporting

8. How do you track calls, forms and booked jobs?
9. Will I see cost per lead and cost per booked job?
10. Can I see the raw data, not just a summary?

Commercial terms

11. How are you paid: per lead, a flat fee, a percentage of ad spend, or a mix?
12. What is the contract length and notice period?
13. Who pays the ad spend, and is it billed directly by Google and Meta?

For more on agencies, see twelve questions to ask before hiring a PPC agency.

Red flags

• Guaranteed lead numbers without knowing your market or budget.
• Refusal to give you access to ad accounts.
• Reports that show clicks and leads but never jobs.
• Long contracts with no performance review.
• Vague answers about where leads come from.

Compare on booked jobs

Different pricing models make companies hard to compare. Convert everything to cost per booked job: total monthly cost, including fees and ad spend, divided by jobs won from the leads. See cost per lead vs cost per customer.

Where to start

Write down what you want: more leads, better leads, or a system you own. Then ask each company the questions above and compare answers side by side.

Our done-for-you lead generation service runs campaigns in your name, with exclusive leads and reporting down to booked jobs. See also exclusive vs shared leads. If you would like to see how we would approach your business, request a free audit.

Questions owners ask

What does a lead generation company do?

It finds potential customers for your business. Depending on the company, that means selling leads, running ads for you, or building the systems that capture and follow up on leads.

How much does a lead generation company cost?

It depends on the model: per lead, a monthly fee plus ad spend, or a percentage of spend. Compare total cost per booked job.

Should I own my ad accounts?

Yes. Owning your accounts keeps your data and history if you change providers.