Exclusive vs. Shared Leads: The Real Cost Difference for Contractors

If you've been in the contracting business for more than a few months, you've probably tried at least one lead generation service. Maybe Angi (formerly HomeAdvisor). Maybe Thumbtack. Maybe some local agency that promised you "high-quality leads."

And if you're like most contractors, you've probably had this experience: You pay for a lead, call them within 5 minutes, and they say "Oh, I already talked to someone else" or "I went with another company."

That's the shared lead problem. And it's costing you way more than you think.

The Shared Lead Math Nobody Talks About

Let's break down the real numbers. This isn't hypothetical—this is what we see consistently across roofing, windows, HVAC, and other home service industries.

See that? The "$100 shared lead" actually costs you $1,700+ per closed job. The "$70 exclusive lead" costs you $280 per closed job.

That's an 80%+ savings on your customer acquisition cost. On 100 jobs per year, that's $140,000+ back in your pocket.

Why Shared Leads Have Such Low Close Rates

When a homeowner fills out a form on Angi or HomeAdvisor, here's what happens:

1. Their phone rings 4-5 times within minutes. Different contractors, all calling at once. It's overwhelming and annoying.
2. They often go with whoever answers first—not who's best for the job.
3. By the time you call, they're already in "defense mode"—tired of sales pitches, skeptical of everyone.
4. Many have already scheduled with someone else. You're now competing on price alone.

The lead isn't bad. The system is. You're set up to fail from the start.

Why Angi Can Charge $100+ for a Shared Lead

Here's the uncomfortable truth: a huge chunk of what you pay Angi goes straight to their overhead—not toward finding you better leads.

They've got corporate offices, executives, national TV ads, and thousands of employees. That $100+ you're paying per lead? A significant portion is funding their Super Bowl commercials and shareholder returns.

So why do contractors keep paying it? Two reasons:

1. Most contractors have been burned by agencies. They hired some "marketing guy" who promised the world, delivered nothing, and disappeared with their money. After a few of those experiences, paying per lead—even overpriced shared leads—feels safer than risking another retainer.
2. Contractors underestimate how much a lead is actually worth. When you understand the real math, you realize there's a massive arbitrage opportunity that Angi is exploiting.

The True Value of a Lead (And Why This Matters)

Most contractors think about lead cost wrong. They focus on the price tag—"$100 per lead"—without calculating what that lead is actually worth to their business.

Here's the formula:

Let's run the numbers for a few trades:

Look at those numbers. A single roofing lead is worth $3,000 to your business. A kitchen remodel lead? Over $5,000.

When you understand this, you realize two things:

1. Even "expensive" leads are cheap. Paying $100 for something worth $3,000 is a 30x return. That's incredible.
2. Angi knows this—and they're exploiting it. They know a roofing lead is worth $3,000, so they charge $150 and pocket the difference. You're paying their overhead while competing with 4 other contractors for the same job.

The real opportunity? Find a lead source that charges you closer to fair value—and gives you the lead exclusively. That's where the math gets really interesting.

What Makes Exclusive Leads Different

With exclusive lead generation, the homeowner's information goes to you and only you. No competition. No race to call first. No price wars with contractors who undercut to "win" the job.

Here's what changes with exclusive leads:

• Higher contact rates. Homeowners aren't overwhelmed with calls, so they actually answer.
• Better conversations. You're not competing on price—you're consulting on their project.
• Higher close rates. When they trust you from the first call, they're more likely to sign.
• Bigger ticket sizes. You can sell the right solution, not the cheapest one.

But Exclusive Leads Cost More... Right?

Yes, the sticker price is higher. And that's exactly where most contractors get tripped up.

They see "$30 per lead" vs "$70 per lead" and think they're saving money. But they're not comparing the right numbers.

The only number that matters is cost per closed job.

Think about it this way: Would you rather pay $1,700+ to close a kitchen remodel or $280? Would you rather chase 17 leads to get one job, or close 1 in 4?

Your time has value. Every hour spent chasing dead-end shared leads is an hour you could spend on actual work—or with your family.

The Hidden Cost: Your Reputation

Here's something rarely discussed: shared leads can actually hurt your brand.

When you're one of 5 contractors calling a homeowner, you're not building a relationship—you're part of the noise. The homeowner doesn't remember your company. They remember "that service that sent me a bunch of calls."

With exclusive leads through a brand-building approach, homeowners see YOUR brand from the start. They click on YOUR ad, land on YOUR landing page, and submit a form with YOUR company name on it.

When you call, they say: "Oh, you're from [Your Company Name]! Thanks for calling back."

That recognition translates to trust. Trust translates to closed jobs. Closed jobs translate to referrals.

How to Spot Truly Exclusive Leads

Some lead services claim "exclusivity" but don't deliver. Here's how to verify:

1. Ask where the leads come from. If it's a marketplace or directory site, it's likely shared—even if they call it "exclusive."
2. Check if the lead mentions YOUR company. True exclusive leads know who they're contacting before you call.
3. Monitor your contact rate. If you're below 60% contact rate, the leads are probably going elsewhere too.
4. Ask about the ad account. The best setup uses YOUR ad account, so the leads are tied to your brand—not a generic lead seller's.

The Bottom Line

Shared leads aren't cheap—they just look cheap. When you factor in the time wasted, the low close rates, and the race-to-the-bottom pricing, they're actually expensive.

Exclusive leads cost more upfront but deliver dramatically better ROI. You close more jobs, spend less time chasing dead leads, and build a brand that generates referrals.

The math doesn't lie. Exclusive leads win.