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16 lead sources for contractors, compared on cost, control and who owns the customer

16 lead sources for contractors compared: Business Profile, website, referrals, LSA, Yelp, Angi, Thumbtack, Bark, Networx and more, and how each charges.

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Short answer

The lead sources that build value over time are the ones you own: your Google Business Profile, your website, reviews, referrals, your past-customer list and local partners. Paid sources such as Google Local Services Ads, search ads, Yelp Ads, Angi, Thumbtack, Bark and Networx can fill a calendar quickly, but you pay per lead, click or credit, and the flow stops when the spending does. Track cost per booked job for each one.

Key takeaways

  • Owned sources (profile, website, referrals, customer list) keep working when you stop paying.
  • Rented sources charge per lead, click or credit, and each has its own refund or credit rules.
  • Per its own 10-K for 2025, Angi charges pros for consumer matches even when they are not hired.
  • Thumbtack limits a new search to five pro contacts during its first four hours.
  • Judge each source by what you spent per job you actually booked.

Every lead source either builds something you keep or rents you access to someone else's customer. Both kinds can make sense, and plenty of good companies use a marketplace to fill a slow month. The trouble starts when a rented source becomes the whole business, because then the platform sets your price per customer and you have nothing left when you stop paying. Below are sixteen sources, owned ones first, with how each one charges based on the platforms' own help pages and filings, and what each is good for.

What changed on October 31, 2026

We refreshed the Yelp, Angi and Thumbtack entries: Yelp's prices re-read that day and its new $30 Smart Lead Reply, Angi's five-pro limit and second-quarter 2026 results, and the account rules in Thumbtack's current terms, dated July 10, 2026. The other entries are as of our October 7 update.

1. Google Business Profile

This is the free listing that shows on Google Maps and in the local results with your reviews, hours and photos. For many trades it is a main owned source of calls, because people searching "furnace repair near me" often see the map results before any website. The reviews you earn there stay attached to your business, and the profile costs nothing to run. Do the boring parts well: correct categories, every service listed, real job photos posted weekly, and a reply to every review. Our Business Profile guide walks through setup. Cost: your time. Control: high, though Google sets the rules.

2. Your own website and search traffic

A quick-loading site with its own page for every service you sell and every main town you cover catches searches the profile misses, and it is the place your other marketing sends people to check you out. It can take months to build search traffic, which is why owners skip it, and it is also why it is hard for a competitor to take from you. Each page should answer the questions a homeowner asks before calling, show real job photos, and put the phone number in reach of a thumb. See how we build contractor websites and our local SEO guide.

3. Referrals from happy customers

A referred customer often arrives already trusting you, is less likely to shop the job around, and costs you only the thank-you. Most contractors get some referrals by accident. Getting them on purpose means asking at the moment the customer is happiest (the walk-through at the end of the job), making it easy (a text with a link they can forward), and thanking the referrer every time, with something simple you can afford on every job. Track who referred whom in your CRM so you can see your best sources of word of mouth. Our referral program guide has the details.

4. Your past-customer list

A repeat job from someone who already paid you is often the cheapest job to book. A list of past customers with emails, phone numbers, addresses and what you did for them is an asset no platform can switch off. Use it for seasonal reminders (gutters in fall, AC tune-ups in spring), maintenance plans, and a check-in a year after a big project. Get permission before marketing texts, keep email unsubscribe links working, and send only what is useful. Our guide to winning back past customers covers timing and wording.

5. Trucks, yard signs and the job site itself

A lettered truck parked in a driveway for two days is an ad that neighbors read up close. So is a clean yard sign with your phone number and a short service line. These work best in dense neighborhoods where houses were built at the same time and need the same work at the same time. Put a trackable phone number or a short web address on them so you can tell whether they produce calls. Ask the customer before placing a sign, and pick it up when the job ends, since a faded sign left for months says the opposite of what you want.

6. Local partners in neighboring trades

Real estate agents, property managers, home inspectors, insurance agents and contractors in adjacent trades all get asked "who do you use?" A painter hears about rotted trim; a roofer sees clogged gutters; an inspector writes up a failing water heater. Pick three or four businesses whose customers overlap with yours, meet them in person, and make referrals both ways. Follow up on every referral they send so they look good for recommending you. This source is slow to start and very durable once it runs.

7. Google Local Services Ads

These are the pay-per-lead ads that can appear at the top of some Google searches for local services. Google's help pages say you "pay for valid leads," which can include messages, answered calls, voicemails, missed calls you respond to, and booking requests, and that the price of a lead shifts with your area, the kind of job, the kind of lead and how you bid. Google's models recheck leads after you're charged and can issue credits on their own for poor ones, generally inside 30 days. Google says these ads began moving into Google Ads in August 2026 for select US home and storefront service advertisers, and that you still pay for valid leads rather than clicks. Our LSA versus SEO guide compares the two.

8. Google search ads

Standard search ads charge per click, and you control the keywords, the towns, the hours and the page the click lands on. That control is the upside. The downside is that you pay for every click whether the person calls or not, and a badly set up account can spend a month's budget on searches like "how to fix it myself." If you run them, send clicks to a page about the exact service searched, not your home page, and add the search terms that waste money as negative keywords each week. Measure booked jobs per dollar, not clicks.

9. Yelp Ads

Yelp's support pages describe a cost-per-click program: each time your ad is clicked, Yelp charges "according to your CPC price," with click prices that move with demand. Yelp also says your spend stays within the monthly cap you choose. Its pricing page lists Yelp Ads "From $150/month" (as listed on October 31, 2026), and self-serve ads have no term contract, though orders sold by a Yelp rep can carry a commitment period. A click is a visit to your Yelp page, not a call, so judge it by booked jobs. Yelp is also adding AI on the lead side: its October 2026 product release lists Smart Lead Reply, which answers Request a Quote leads inside Yelp, at $30 a month from November 2026. Your free Yelp listing and reviews are worth keeping accurate whether or not you advertise.

10. Angi

Angi's 10-K for 2025 says pros pay for consumer matches whether or not they get hired, and that one homeowner request may produce several leads. The help center now limits that to five pros for each request and says leads are charged even if you never open them. Since January 2025, under what Angi calls "homeowner choice," the homeowner picks which pros to connect with. Credits cover specific problems like invalid contact details or the wrong location, require a call attempt within 24 hours, exclude annual subscribers, and expire after six months. Its filing for April to June 2026 shows about 106,000 active pros a month on average, 17% fewer than a year before, and an AI follow-up agent in testing. The FTC alleged in 2022 that HomeAdvisor misled pros about its leads, and the 2023 settlement order called for up to $7.2 million. Read are Angi leads worth it before you sign up.

11. Thumbtack

Thumbtack bills per lead. Its help center says the price depends on the job's type and size, the supply of available pros and your market, and you pick your own lead prices with a slider. Under its quality commitment, a searcher can reach at most five pros in the opening four hours, and more after that. A lead is refunded automatically if the customer replies to no pro within 72 hours; other refunds are at its "sole discretion" and go to your Thumbtack balance by default. (Those help-center rules are from our October 7 read; the help center would not open for us on October 31.) Its Terms of Use, updated July 10, 2026, add that an account Thumbtack suspends or terminates loses the use of its prepaid packages and promo credits. Reply within minutes. See how Thumbtack leads work.

12. Bark

Bark runs on credits. Its help center lists a current credit price of $2.35 per credit (as listed in October 2026), with discounts in packs, and shows how many credits a lead costs before you respond. A "1st to respond" tag marks a lead no other professional has contacted yet, which also tells you that others can respond to the same customer. Credits bought since November 2025 expire three months after purchase, and unused credits can't be refunded. Bark's pricing page also promises to return your credits if your first pack wins no business. Buy small, respond fast, and track every credit spent against jobs won.

13. Networx

Networx sells pay-per-lead and exclusive lead plans. Its help center caps each shared pay-per-lead request at four contractors and, as read in October 2026, gives ranges of $10 to $100 or more per lead on that plan, and $15 to $120 or more on the exclusive plan. The exclusive plan's range starts and ends higher. If you test it, compare the two plans on booked jobs, not lead counts. Our guide on shared versus exclusive leads explains how competition for each lead changes what it is worth to you.

14. Neighborhood apps and local groups

Neighborhood apps and town social media groups are where residents ask each other for recommendations. You can't buy the most valuable part, which is a neighbor tagging your company, but you can earn it: do good work in that neighborhood, keep a business page with a real phone number, and answer questions about your trade helpfully without a sales pitch. Avoid posting ads in groups that ban them; it costs you the goodwill that makes the channel work. When someone recommends you publicly, thank them publicly.

15. Direct mail to chosen neighborhoods

The Postal Service's Every Door Direct Mail lets you pick carrier routes on a map and mail a flat piece to the addresses on those routes without buying a list. USPS lists EDDM Retail flats at $0.26 per piece and allows 200 to 5,000 pieces per day per ZIP Code at retail (as listed in October 2026). Mail works best for work tied to house age and season, such as roofs, siding, gutters or lawn programs, in neighborhoods where you already have a job. Put a dedicated phone number or web address on each mailing so you can measure it.

16. Recommendations from AI assistants

Some homeowners now type or speak questions into AI assistants instead of a search box. Those assistants build their answers from what they can find on the web about local businesses, which can include your website, your reviews and your listings elsewhere. No platform bills you when an assistant names you in an answer, so this works like an owned source. Keep your name, address, phone and services identical everywhere, and publish clear pages that answer real questions. Our guide on showing up in ChatGPT answers lists the steps.

Where to start

If you are relying on one rented source today, do three things first. Finish your Google Business Profile (item 1), because it is free and often the fastest owned win. Start asking every happy customer for a referral and a review (item 3), because it costs nothing. Then record the source of every lead in your CRM, so you can compare each one by cost per booked job using our lead cost calculator. Once you know your numbers, keep the paid sources that earn their spot and stop the ones that don't.

SourceHow it chargesWho keeps the customer
Business Profile, website, referrals, past customersYour time and build costsYou
Google LSAPer valid leadYou, after the first contact
Search ads, Yelp AdsPer clickYou, if they call
Angi, Thumbtack, NetworxPer lead or matchCan be shared with other pros (Networx also sells exclusive leads)
BarkCredits per leadCan be shared with other pros

Frequently asked questions

What is the cheapest lead source for a contractor?

Your Google Business Profile, referrals and past customers often cost the least per booked job, because there is no fee per lead. They take time to build, which is the real cost.

Does Angi still send one request to several pros?

Angi says that since January 2025 nearly all its experiences let the homeowner pick which pros to contact, and its help center sets a limit of five pros per request. Its 10-K still defines leads so that one request can produce more than one.

How do I compare lead sources fairly?

Record the source of every lead, then divide what you spent on each source by the number of jobs it booked. Cost per booked job is the number that matters.

Should a new company use lead marketplaces?

They can help fill a calendar while owned sources grow. Set a monthly cap, respond within minutes, and keep building your profile, website and customer list at the same time.

Sources

  1. Angi Inc. Form 10-K for fiscal 2025, SEC, 2026
  2. Angi Q1 2025 earnings release (homeowner choice), SEC, 2025
  3. Angi Q2 2026 earnings release (8-K, August 4, 2026), SEC, read October 2026
  4. Angi Help: Opportunities and leads frequently asked questions, Angi, read October 2026
  5. Angi Help: How to Request a Lead Credit, Angi, read October 2026
  6. FTC order requires HomeAdvisor to pay $7.2 million, FTC, 2023
  7. Thumbtack Help: Pay for leads, Thumbtack, read October 7, 2026 (not re-verified October 31, 2026)
  8. Thumbtack Help: Quality Commitment, Thumbtack, read October 7, 2026 (not re-verified October 31, 2026)
  9. Thumbtack Help: Refund policy, Thumbtack, read October 7, 2026 (not re-verified October 31, 2026)
  10. Thumbtack Terms of Use (last updated July 10, 2026), read October 2026
  11. Google Local Services Ads Help: How leads work, Google
  12. Google Local Services Ads Help: Lead credits, Google
  13. Google Ads Help: Local Services Ads migration, Google, 2026
  14. Yelp: How does Yelp's CPC advertising work, Yelp, read October 2026
  15. Yelp local business pricing, Yelp, read October 31, 2026
  16. Yelp Ads product page (no term contracts for self-serve), Yelp, read October 2026
  17. Yelp Master Advertising Terms (last updated May 11, 2026), read October 2026
  18. Yelp fall product release 2026 (Smart Lead Reply), Yelp blog, October 20, 2026, read October 2026
  19. Bark Help: What is a credit and how much does it cost, Bark
  20. Bark Help: Understanding lead pricing, Bark
  21. Bark seller pricing, Bark
  22. Networx Help: Pay per lead, Networx
  23. Networx Help: How much do leads cost, Networx
  24. USPS Every Door Direct Mail, USPS, read October 2026

General information for service-business owners, not legal, tax or financial advice. Rules vary by state; check with a qualified professional for your situation.

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