Finding the Right Lead Sources for Your Business
Home service businesses have more options than ever for generating leads. But not all lead sources are created equal — and the best choice depends on your trade, location, and growth goals.
This guide breaks down the most popular lead sources for home service businesses, comparing costs, lead quality, and what it takes to succeed on each platform.
The Major Lead Sources Compared
Angi (formerly Angie's List)
Best for: Established businesses ready to pay for qualified leads
Angi connects homeowners with service providers across hundreds of categories. Leads come through their marketplace, and you pay per lead or through advertising packages.
Pros:
- High-intent leads (homeowners actively searching)
- Detailed project descriptions
- Review system builds credibility
Cons:
- Lead costs can be high ($15–$100+ depending on category)
- Competitive — multiple businesses receive the same lead
- Requires fast response to win jobs
Typical lead cost: $20–$75 per lead
Thumbtack
Best for: Newer businesses building their client base
Thumbtack operates similarly to Angi but tends to have lower lead costs. Homeowners submit project requests and receive quotes from multiple pros.
Pros:
- Lower cost per lead than Angi in many categories
- Good for newer businesses building reviews
- Mobile-friendly platform
Cons:
- Lead quality can be inconsistent
- Price-sensitive customers
- You compete on price with other pros
Typical lead cost: $10–$50 per lead
Yelp & Yelp Advertising
Best for: Businesses with strong review profiles
Yelp leads come from homeowners searching for local services. Organic visibility requires reviews; paid advertising boosts your placement.
Pros:
- High-intent local search traffic
- Reviews carry significant weight
- Brand awareness beyond direct leads
Cons:
- Advertising costs can escalate quickly
- Review management is critical
- Some categories are highly competitive
Typical lead cost: $20–$100+ per lead (advertising)
Google Local Services Ads (LSA)
Best for: Businesses wanting top Google placement
Google LSA puts your business at the very top of Google search results with a "Google Guaranteed" badge. You pay per lead, not per click.
Pros:
- Prime Google real estate
- Pay per lead, not per click
- Google Guaranteed badge builds trust
- High-intent searchers
Cons:
- Requires background checks and licensing verification
- Limited ad customization
- Lead costs vary significantly by market
Typical lead cost: $25–$150 per lead (varies by trade and location)
Website & SEO
Best for: Long-term growth and brand building
Your own website with strong local SEO generates leads you own — no per-lead fees, no sharing with competitors.
Pros:
- No per-lead costs once established
- Leads come directly to you
- Full control over messaging and conversion
- Builds long-term business value
Cons:
- Takes time to rank in search results
- Requires ongoing content and optimization
- Competitive markets need significant investment
Typical lead cost: Varies (primarily time and SEO investment)
Meta Ads (Facebook & Instagram)
Best for: Building awareness and targeting specific demographics
Meta ads let you target homeowners by location, interests, and behaviors. Great for awareness and generating leads at scale.
Pros:
- Precise targeting options
- Visual ad formats
- Good for promotions and seasonal pushes
- Scalable spend
Cons:
- Leads may be lower intent than search-based sources
- Requires creative and testing
- Ad costs fluctuate
Typical lead cost: $10–$50 per lead (varies by targeting and creative)
Which Lead Source Has the Best ROI?
There's no universal answer — ROI depends on:
-
Your response speed — Studies show 78% of customers buy from the first responder. A $50 lead is worthless if you respond slowly.
-
Your close rate — Track how many leads you convert from each source, not just cost per lead.
-
Job value — A $100 lead that converts to a $5,000 job has better ROI than a $20 lead for a $200 job.
-
Competition — Some markets are saturated on certain platforms. Test before committing budget.
The Response Speed Factor
Across all lead sources, response time is often the biggest factor in ROI. Research from MIT and Harvard Business Review confirms that response speed is the single biggest ROI lever:
- Responding in 5 minutes vs. 30 minutes = 100x higher contact rate
- 78% of customers choose the first business to respond
- Lead quality drops 80% after the first 5 minutes
The best lead source is the one you can respond to fastest.
How to Choose Your Lead Mix
Most successful home service businesses use 2-3 lead sources rather than relying on one. A balanced approach might include:
- One paid lead platform (Angi, Thumbtack, or Google LSA)
- Your own website for organic leads and credibility
- Review management on Yelp and Google
Start with one paid source, master it, then expand. Spreading too thin hurts performance everywhere.
Making Leads Work Harder
Regardless of source, these practices improve ROI:
-
Respond instantly — Use automation or AI to respond within seconds, not minutes
-
Track everything — Know your cost per lead AND cost per booked job for each source
-
Follow up persistently — 80% of sales require 5+ follow-ups, but most businesses give up after 1-2
-
Ask for reviews — Strong reviews improve performance on every platform
The Bottom Line
The "best" lead source is the one that generates profitable jobs for your specific business. Start by understanding your numbers:
- What's your average job value?
- What close rate do you need to be profitable at different lead costs?
- How fast can you realistically respond?
Test, measure, and double down on what works. And remember: the fastest responder usually wins, regardless of which platform the lead came from.