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Two vendors can quote the same price and deliver completely different value, because they charge for different things. Before comparing numbers, understand what each pricing model actually buys you and who absorbs the risk when things go wrong.
The models at a glance
| Model | You pay for | Risk mostly on | Key question |
|---|---|---|---|
| Shared lead | A lead also sold to others | You | How many contractors get it? |
| Exclusive lead | A lead sold only to you | You | How is exclusivity enforced? |
| Pay per call | A phone call above a duration threshold | You | What makes a call billable? |
| Pay per appointment | A booked appointment | Mostly you | What if it doesn't sit? |
| Pay per sit | An appointment that happens | Shared | How is a sit confirmed? |
| Subscription / membership | Access to a platform or territory | You | What's guaranteed for the fee? |
| Retainer + ad spend | Agency work and media | You | Who owns the ad accounts and data? |
| Commission / revenue share | Closed jobs | The vendor | What counts as closed? |
Per lead (shared and exclusive)
The classic model. Shared leads are cheaper but sold to multiple contractors, which turns your follow-up into a race. Exclusive leads cost more per unit but put you alone in the conversation. Our legacy guide on exclusive vs. shared leads covers the math; what to verify with exclusive leads covers the fine print.
Pay per call
You pay when a homeowner calls and the call lasts longer than a set number of seconds. The phone call is real-time intent, which is valuable. The risks: calls that pass the threshold but aren't relevant (wrong service, outside area), and calls you miss. See pay-per-call vs. appointment setting.
Pay per appointment
The vendor books an appointment on your calendar. You skip the calling and booking, but you may still pay for appointments that cancel or no-show. Read the definition carefully.
Pay per sit
You pay only when the meeting actually happens. Unit prices are higher than per-appointment pricing, but your effective cost per sit is often comparable, and the vendor has a strong reason to confirm appointments.
Subscription or membership
Some platforms charge a recurring fee for profile placement, a territory, or lead access, sometimes plus per-lead charges. Know exactly what the fee guarantees — volume, exclusivity, placement — and how to cancel.
Retainer plus ad spend
Marketing agencies typically charge a monthly management fee and you pay the ad platforms directly. You get control and ownership of the campaigns, but all the conversion risk stays with you. Compare in marketing agency vs. appointment setting company.
Commission or revenue share
You pay a percentage or fee only on closed jobs. Risk shifts to the vendor, so terms like the definition of a close, the commission base, and the attribution window matter enormously. See commission-only lead generation.
How to compare across models
Convert every quote to the same units using your own conversion rates:
- Cost per sit — what each appointment that actually happens costs
- Cost per sale — what each closed job costs
- Revenue per sit — to account for different job sizes
The cost per appointment vs. cost per lead guide shows the conversions step by step.
Which model fits you
- Fast, staffed inside sales team: exclusive leads or pay per call can be efficient.
- Busy owner or reps doing their own calling: pay per appointment or per sit saves time.
- Testing a new market or tight cash flow: commission-only lowers up-front risk.
- Want full control and in-house marketing skill: agency or direct ad spend.
Many contractors mix models — for example, an appointment program for predictable volume plus exclusive leads for growth.
Frequently asked questions
What is the most common lead pricing model for contractors?
Per-lead pricing is the most common, in both shared and exclusive forms. Pay-per-call, per-appointment, and commission models are increasingly common for contractors who want to pay closer to results.
Is pay per appointment better than pay per lead?
It depends on your team. If your office can reach and book leads quickly, per-lead can be efficient. If not, paying per appointment — or per appointment that sits — often produces a lower cost per sale.
What is pay per sit?
It's a model where you pay only for appointments that actually take place, rather than for every appointment booked.
How do I compare lead vendors with different pricing models?
Convert each quote to cost per sit and cost per sale using your own conversion rates, then compare revenue per sit to account for job size differences.
RunsForYou Team
Written by the team that runs outbound calling, homeowner qualification, and appointment booking for home service contractors at RunsForYou (Runs For You LLC).
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