How much do leads cost? A guide by trade
Owners often ask what a roofing or solar lead should cost. The useful answer depends on the job value, the lead source and how many leads you close.
Keyword tools show steady searches for "how much do roofing leads cost" and "how much do solar leads cost". Owners want a benchmark. The problem is that a roofing lead from a shared marketplace and one from a well-run search campaign are different products, and a lead in a large metro costs more than one in a small town.
What drives lead costs
- Job value. Trades with larger jobs attract more competition for each lead. Roofing, solar and HVAC replacement leads cost more than cleaning or lawn care leads.
- Competition in your market. More businesses bidding in the same area push costs up.
- Lead source. Search leads usually cost more than social leads and close better. Shared leads cost less than exclusive ones.
- Qualification. Forms with qualifying questions produce fewer leads at a higher cost each, and usually better customers.
- Seasonality. Costs often rise during peak demand.
Click costs as a guide
Keyword tools give a sense of relative costs. These are estimated average US costs per click for common homeowner searches:
| Search | Estimated average CPC |
|---|---|
| emergency plumber | about $75 |
| ac repair | about $44 |
| water heater replacement | about $33 |
| electrician near me | about $27 |
| roof replacement | about $26 |
| solar panel installation | about $26 |
| furnace repair | about $23 |
| lawn care service | about $15 |
| kitchen remodel | about $13 |
| house cleaning services | about $12 |
Cost per lead depends on how many clicks become leads. If one in ten clicks becomes a lead, cost per lead is roughly ten times cost per click.
Work out your affordable cost per lead
- Average job value. For example, $12,000 for a roof replacement.
- Gross margin. For example, 35%, or $4,200 per job.
- Maximum you will spend to win a job. For example, 20% of margin, or $840.
- Close rate from leads. For example, one in five, or 20%.
- Affordable cost per lead: $840 × 20% = $168.
If your leads cost less than $168, the channel is profitable at that close rate. If they cost more, improve the close rate, the qualification or the source.
Illustrative example
These numbers are invented to show why cheap is not always better.
A solar installer compares two sources. Source A charges $30 per lead with a 2% close rate: $1,500 per sale. Source B charges $90 per lead with an 8% close rate: $1,125 per sale. The lead that costs three times as much produces cheaper customers.
By trade
- Roofing: high job values, high competition. See how to get roofing leads.
- Solar: high job values, many lead sellers, wide quality differences. See how to get solar leads.
- HVAC: costs swing with the season. See Google Ads for HVAC companies.
- Plumbing: high click costs for emergencies. See Google Ads for plumbers.
- Cleaning and landscaping: lower lead costs, and recurring customers raise the value of each lead. See how to get house cleaning clients.
Where to start
Calculate your affordable cost per lead for your main service. Then compare it with your actual cost per lead from each source.
Our done-for-you lead generation service works from this number, so campaigns are built around what you can afford to pay. For more on the math, see cost per lead vs cost per customer. If you would like us to calculate yours, request a free audit.
Questions owners ask
How much do roofing leads cost?
It depends on your market and source. Exclusive search leads in competitive metros can cost well over $100 each; shared marketplace leads usually cost less and close less often.
How much do solar leads cost?
Solar lead prices vary widely by source and qualification. Compare cost per signed contract rather than cost per lead.
What is a good cost per lead?
One that is below your affordable cost per lead, based on your job value, margin and close rate.
Want us to look at your own numbers?
Get a free lead generation audit. We will review your ads, landing pages and tracking, and show you where enquiries are slipping away. If nothing is broken, we will tell you that too.
LeadWise MarketingAn owner-operated lead generation agency based in Cape Town, South Africa, working with service businesses across the United States and Europe. More about LeadWise.
