Pay per lead
Pay per lead vs pay per call, per appointment, commission and monthly rent, with a formula for pricing a lead from the job and the lead definition that prevents disputes.
Quick answer
SEO pay per lead means you rank a website on Google and get paid a fixed price for each qualified lead it sends a business, instead of a monthly SEO retainer. Price a lead from the job: typical job value × the contractor’s close rate × the share you would accept as commission. For a $12,153 bathroom remodel where 1 in 5 leads closes, 10% works out to about $243 a lead. Write down what counts as a lead before the first one goes out, and track every form and call.
Who wrote this: I’m Adi Attias. My first sites were paid by commission on closed jobs and my newer home-services sites by a flat monthly fee, not per lead, and I sell kits built around those models, so judge my bias accordingly. Price ranges are sourced and linked; examples are labelled as examples.
On this page
| Model | The contractor pays | You need | Best when |
|---|---|---|---|
| Pay per lead | A fixed price per qualified form or call | A written lead definition and a log of every lead | Leads are steady and the contractor wants a predictable cost |
| Pay per call | A price per call longer than an agreed minimum | A call-tracking number with recordings | Urgent trades where people phone (roofing leaks, plumbing) |
| Pay per appointment | A price per booked estimate visit | A booking step and a way to confirm the visit happened | High-ticket jobs where the in-home estimate is the real sale |
| Commission on closed jobs | A percentage of each job that closes (my first sites used 10%) | A lead tracker and an honest contractor | Starting out, nothing to sell, the contractor risks nothing |
| Monthly rent | A flat monthly fee for all the site’s leads | A pitch before they’ve seen results | Sites with a proven lead history |
Lead prices vary enormously: one pay-per-lead guide puts them anywhere from about $30 to $40 up to $1,000 per lead depending on niche, quality and location (LeadsHook). Instead of copying someone else’s number, work it out from the job:
Price per lead ≈ typical job value × the contractor’s close rate × the share you’d accept as commission.
| Trade | Typical job | Example close rate | 10% of the job, per lead |
|---|---|---|---|
| Bathroom remodel | $12,153 | 1 in 5 leads | about $243 |
| Kitchen remodel | $26,990 | 1 in 6 leads | about $450 |
| Concrete driveway | $6,400 | 1 in 4 leads | about $160 |
Typical jobs are Angi 2026 national averages (checked Oct 2026); the close rates are examples, ask the contractor what share of quotes they win and use their number. Start below the math (contractors discount for unknown lead quality), and raise the price once they’ve closed a few of your leads.
Most pay-per-lead fights are about this, so write it down before the first lead goes out:
Choose pay per lead when the site already produces steady leads, the contractor is organized, and you want income that doesn’t depend on how well they sell. Choose commission when you’re starting: you have no lead history to price from, and a contractor will say yes to “you pay nothing unless the job closes” without a sales call. Many sites start on commission and move to per-lead or rent after a few months of proof.
My first sites started on 10% of closed jobs, each with a free first lead posted in a contractor Facebook group (here’s that method). My newer home-services sites use a flat monthly fee. Whichever you choose, put it in a written agreement. When a contractor has had your leads for a while, the Contractor Deal Vault has pay-per-lead and monthly-rent agreements and a deal calculator for switching models.
Agencies use “pay per lead SEO” to mean doing SEO on the client’s own website and billing per lead. The catch: you do all the work on an asset the client owns, and attribution gets messy when the client also runs ads. With your own local lead generation site, you own the asset and every lead is clearly yours. How local lead generation works.
SEO is slow at the start. On my sites that worked, the first lead took about 1 to 3 months after launch, some sites take longer, and one of my three sites never ranked. That is why per-lead pricing works better once a site has a lead history: until then, neither side knows what a lead is worth. Nobody can honestly guarantee a #1 ranking, so be wary of any pay-per-lead offer that promises one.
A model where you rank a website and get paid a fixed price for each qualified lead it sends a business, instead of a monthly SEO retainer.
Work it out from the job: typical job value × the contractor’s close rate × the share you’d accept as commission. For a $12,153 bathroom remodel with 1 in 5 leads closing, 10% works out to about $243 per lead.
The business pays for each phone call from your site that lasts longer than an agreed minimum. It needs a call-tracking number with recordings.
The business pays for each booked estimate or consultation rather than each inquiry. It suits high-ticket trades where the in-home visit is the real sale.
Pay per lead gives steadier income once a site produces steady leads. Commission on closed jobs is easier to start because the contractor pays nothing unless the work closes.
It should not. Spam, job seekers, vendors, duplicates and people outside the service area are not leads. Put that in writing, and give the contractor a set number of days to flag a bad lead before it counts.
They should be. A lead from your own site goes to one contractor only. Shared leads sold to several companies at once are a different, cheaper product, and contractors know it.
On my sites that worked, the first lead took about 1 to 3 months after launch. Some sites take longer and some never rank, so start new sites on commission until there is a lead history to price from.
No. Google does not sell rankings, so a guaranteed #1 position is a red flag. The point of pay per lead is that the business pays only for results that actually arrive.
Start on commission, switch when it pays
Rank and Rent Starter Kit: the commission agreement, Money Tracker and no-cold-calling close, $37. Contractor Deal Vault: pay-per-lead and monthly-rent agreements, $47.
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