Shared Leads: Definition for Contractors

How does the shared lead model work?

Lead marketplaces aggregate homeowner demand by running ads that drive traffic to comparison-site forms. When a homeowner fills out the form asking for an HVAC contractor, the marketplace sells that contact to multiple contractors in the area. Each contractor pays for the lead. The first contractor to call the homeowner has the best chance of booking the job.

What is the real cost of shared leads?

The stated cost ($25–$90 per lead) understates the real cost. When you factor in leads that never answer, leads already booked by a competitor, and the discounting pressure from competing with 4 other bidders, the effective cost per booked job from shared leads averages $360–$720+ depending on trade.

Are shared leads ever worth buying?

Shared leads can work for new contractors with no marketing infrastructure who need lead volume immediately. For established contractors above $1M/yr, shared leads typically cost 2–3x more per booked job than exclusive systems. The decision depends on your average job value, margin, and capacity to handle a high volume of low-close-rate contacts.

Frequently asked questions

What is a shared lead?

A shared lead is a homeowner contact sold to multiple contractors simultaneously by a lead marketplace. The same phone number and project details go to 3–8 contractors who compete to call first.

How many contractors receive the same shared lead?

Typically 3–8 contractors depending on the platform and trade. Angi and HomeAdvisor have documented sharing leads with up to 8 contractors in dense markets. Thumbtack uses a credit system that effectively allows 3–5 contractors to quote the same request.

What close rate can I expect on shared leads?

Industry average close rate on shared leads is 10–18%. This varies by trade, response speed, and market competition. Contractors who call back within 5 minutes close at the higher end of that range.