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Exclusive vs shared leads: what contractors are really paying for

Shared leads go to several contractors at once; exclusive leads come only to you. How each one affects your close rate, your price and your real cost per job.

By David Sierra, founder Published 5 min read
Roofer carrying a bundle of shingles across a residential roof

Roofer carrying a bundle of shingles across a residential roof. Illustrative photo: Zohair Mirza / Unsplash

An exclusive lead is a homeowner request that only your company receives. A shared lead is the same request sold to several companies, often three or four, at the same time. Shared leads cost less per lead, but you compete with everyone who bought it, so the real cost per signed job is usually much higher.

How shared leads work

On many lead marketplaces a homeowner fills out one form (“I need a roof estimate in Plano”) and that request is sent to several local contractors. Each one pays for it. Then the race starts:

  1. Everyone calls within minutes.
  2. The homeowner answers the first one or two calls and ignores the rest.
  3. The companies that do get through compete on price because the homeowner knows they have options.

That is why owners describe shared leads with the same words over and over: price shoppers, tire kickers, “nobody answers”.

How exclusive leads work

Exclusive leads come from channels where the homeowner reaches out to you and only you: your website, your Google Business Profile, your own ads, referrals. The homeowner is not comparing four quotes that arrived in the same ten minutes.

You still have to call fast. An exclusive lead that waits until tomorrow morning goes cold, or the homeowner fills out a second form somewhere else. Exclusive is not the same as patient.

Side by side

Shared leadExclusive lead
Who gets itSeveral contractorsOnly you
Price per leadLowerHigher
Pressure on your priceHighLower
Speed neededSeconds (you are racing)Minutes (you are first)
Your real cost per jobOften higherOften lower

The math that matters

Price per lead is the wrong number to compare. Compare cost per sit-down and cost per signed job:

  • Cost per sit-down = what you spent ÷ homeowners who actually met your team.
  • Cost per signed job = what you spent ÷ jobs signed.

A shared lead that costs a little but rarely turns into a sit-down can easily cost more per job than an exclusive one. Run your own numbers with the 5x rule calculator.

Exclusive leads vs exclusive appointments

There is one more step up. An exclusive appointment is a homeowner who was contacted, qualified and booked on your calendar before your team does anything. That is what we do at Booked Contractor: one company per trade in each city, and you pay only when the homeowner sits down with you.

How to tell if a lead is really exclusive

Ask any provider these questions:

  1. Is this homeowner’s request sent to anyone else? Ever?
  2. Do you work with other companies in my trade in my city?
  3. Do I pay for leads with wrong numbers or that never answer?
  4. Can I see the original form the homeowner filled out?

If the answers are vague, assume the lead is shared.

Bottom line

Shared leads can fill a schedule, but you pay for the race. Exclusive leads, and better yet exclusive appointments, let you compete on trust instead of price. Whatever you buy, answer in minutes: here is why speed decides the job.

Related: Angi alternatives for contractors · Pay per lead vs pay per appointment

David Sierra, founder of Booked Contractor
About the author

David Sierra is the founder of Booked Contractor. In 10+ years of digital marketing and lead generation he has worked with 300+ clients, generated thousands of qualified sales calls and invested more than US$30M in ads.

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