How to pay for marketing
Pay per lead marketing agency, pay per appointment, retainer, or revenue share. What each one really costs you.
A pay per lead marketing agency sells you names and numbers. The other three sell you something closer to a job. Every one of them can be a fair deal or a trap, and the difference is never the price: it's who does the work after the ad, and when you pay. Here's the honest version, from an agency in the United States that pays on results and doesn't sell leads.
Five ways to pay · the math on each · the eight questions to ask before you sign
The short version
Five ways to pay. One line each.
Lead aggregators
Angi, Thumbtack, HomeAdvisor, Houzz. They run the same Google and Meta ads you could run, then sell the lead to every contractor in your area at the same price, qualified the same way for all of you.
Pay per lead
You pay for a name and a phone number, $35 to $55 each. Everything after that is your job, and when the lead ghosts, the agency calls it qualified and calls you slow.
Pay per appointment
You pay when a homeowner is booked on your calendar. The agency is accountable for the thing closest to the sale. Two ways it's sold, and the math is very different.
Retainer
A flat fee every month. A full team of experts for the price of one salary, if the agency actually has that team and the case studies to prove it. Most don't.
Revenue share
The agency takes a cut of the jobs it brings in. Two ways again: they fund the ads and take 10 to 20 percent, or you fund the ads and they take a few percent on top of a retainer, or around 3 percent on its own.
“We have 10x'd our revenue since we started, we have had months over $1 million, and at minimum we have made 20x what we invested.”
| At a glance | Lead aggregators | Pay per lead | Pay per appointment | Retainer | Revenue share |
|---|---|---|---|---|---|
| You pay for | a shared name and number | a name and number, $35 to $55 | a booked homeowner, $150 to $300 fee or $300 to $600 with ads included | $3,000 to $5,000 a month, results or not | a few percent of closed jobs with a retainer, around 3% on its own, or 10 to 20% if they fund the ads |
| Who does the calling and qualifying | you, racing 3 to 5 others | you | the agency | depends on the agency | the agency |
| Who follows up when they are not ready | nobody | you | the agency | depends on the agency | the agency |
| Who carries the risk | you | you | split | you | the agency |
| Who owns the ad account | the platform | the agency | you, if you fund the ads | usually the agency | you, if you fund the ads |
| Right for | volume you can race for | a real in-house call center | a first agency, proof before trust | after a quarter of results, with case studies | a proven partner, on top of a retainer |
Model 1 of 5
Lead aggregators
Angi, Thumbtack, HomeAdvisor, Houzz: the same lead, sold to everyone
How do you think Angi gets homeowners onto its platform? It runs the same Google and Meta ads you could run, marks the lead up, and sells it to every contractor in your area. The sub who takes a $15,000 bathroom and the firm that starts at $30,000 buy the same lead at the same price, qualified the same way, then race each other to the phone. The chart below is the markup.
The same lead, at the source and resold
What one kitchen or bath lead costs, per lead.
Meta ads on your own account
$35 to $100
$35 to $55 on a short form, $80 to $100 when the form qualifies harder and books far more; $15 to $25 at scale
Angi and HomeAdvisor
$25 to $100
per shared lead, plus a yearly membership
Thumbtack
$50 to $150+
kitchen and bath, shared with 4 to 5 pros
| Source | Per lead | Shared with |
|---|---|---|
| Meta ads on your own account | $35 to $55 on a short form, $80 to $100 fully qualified ($15 to $25 at scale) | nobody, the lead is yours |
| Angi and HomeAdvisor | $25 to $100+, plus a yearly membership | 3 to 5 contractors |
| Thumbtack | $50 to $150+ for kitchen and bath | 4 to 5 pros |
| Houzz Pro | flat subscription, $99 to $399 a month, ads from $499 | depends on volume |
3 to 5
contractors sold the same lead
1
qualification process for all of them, not yours
0
of the system you own when you leave
If you have to pick one, pick Houzz: a homeowner has to enter real project detail to open an account, so its qualification is the best of the group. The leads can still go unresponsive.
Works when
- You need volume this week and can live with a race
- You have someone calling inside two minutes, every time
Walk away when
- You sell a $30,000 kitchen and the platform sends you $8,000 tile jobs
- You want a qualification process built for your minimum and your calendar
- You want to own the ad account and the homeowner list
Model 2 of 5
Pay per lead
What a pay per lead marketing agency actually sells you
A pay per lead marketing agency runs ads, puts a form in front of homeowners, and charges you for every form that gets filled, usually $35 to $55 each. The lead is a name and a phone number, sometimes with ten questions answered about the project. Whether that person picks up, owns the home, or ever meant to start is your problem to find out.
$35 to $55
a lead, usually a short form
1 in 5
become meetings when the leads sit until you call back that evening
50 to 70%
book on our accounts, with a form that qualifies and a 30-second reply
You know the guy. Sends you a screenshot of 40 leads at $12 each, and doesn't mention that 31 never answered a text and two were in another state. The real problem is accountability. A lead can answer ten questions about the project and still ghost you, and the agency calls it qualified, sends the invoice, and blames you for calling back too slow. Some leads ghost everyone, including us; the question is who's on the hook when they do.
Works when
- You have a full-time person whose only job is calling leads inside five minutes
- You want to own the whole process and treat the agency as an ad vendor
Walk away when
- You or your estimator are the ones calling leads between jobs
- The agency can't tell you what share of its leads turn into meetings
- "Qualified" means the form was filled, not that anyone answered
Model 3 of 5
Pay per appointment
The agency is accountable for the thing closest to the sale
You're charged when a homeowner picks a time on your calendar, not when a form is filled. The agency now owns the reply, the qualifying and the confirmation, because an appointment that doesn't happen is one it doesn't get paid for. It takes the chasing off your plate and it's accountable for the result, and it gets sold two ways that are not the same deal.
They fund the ads
The agency covers the ad spend and charges $300 to $600 per appointment. Run the numbers at 15 to 20 appointments a month and you're paying the same as an expensive retainer, or more, with no say over the ads.
You fund the ads
You pay the ad spend on your own account and the agency charges a performance fee per appointment: $150 is ours, others run up to $300. You own the account, you see every dollar, and the fee only lands when a homeowner is booked.
$150
our fee per qualified, booked appointment
1 in 4
appointments that close with real qualifying; a strong closer does 40 to 50%
$600 to $1,000
in ad spend per signed job, against a $58,000 average project
Works when
- You want proof before you commit real money
- You can fund the ad spend for 90 days out of money you already have
- Your calendar has room for 10 to 20 more appointments a month
Walk away when
- "Appointment" means a form fill with a time guessed on it
- The ad account and the homeowner list belong to the agency
- The price is cheap because nobody qualified them
Model 4 of 5
Retainer
A full team for the price of one salary. If the team is real.
A retainer is $3,000 to $5,000 a month, paid on the first, whether you closed six jobs or none. The agency is safe no matter what, so the only question is whether you get what you pay for. A U.S. team with people who used to run accounts at Meta or Google is expensive talent, and a whole team of it for the price of one salary is a score.
$3,000 to $5,000
a month, on top of ad spend
1 salary
what a full expert team costs you, when the agency has one
Case studies
the only thing that makes it worth paying before results
Most agencies charging a retainer don't have that team. You pay it on top of ad spend with no guarantee and land back at square one, inconsistent leads and an expensive month. A retainer is worth it exactly when the agency has the case studies to back it, and not a day before.
Works when
- The agency can show named clients and their numbers, not first-name testimonials
- The team is real: U.S.-based, experienced, and you can meet them
- You want them owning more than ads: the funnel, the follow-up, the reporting
Walk away when
- It's the only option on the table in month one
- Nobody can name a client who got results for the same fee
- The work is outsourced and the person on the call never touches your account
“I especially like that they focus not only on generating leads, but also on the follow-up and appointment-setting side, which makes a big difference.”
Not sure which model fits you?
Answer five questions and I'll tell you straight, including if we're not the right fit.
How we do it
Three models. Never pay per lead.
We offer pay per qualified appointment ($150, with the ads on your own account), a retainer, and a share of the jobs we bring in, and we match the model to you on the call. Most remodelers start on pay per appointment, because the first thing you should get from us is proof, not an invoice. Instead of asking for your trust, we prove it.
We don't sell leads, and we never will. Selling a lead leaves you with all the work, keeps us outside your business, and makes for short relationships. We deliver as close to the sale as we can get, which in this industry is the appointment: a homeowner with a project, a budget above your minimum, a timeline and an address, confirmed twice, sitting on your calendar under your brand, on an ad account you own.
You fund the ads, always. An agency that funds your ads for a cut of revenue is telling you it's fine that you won't invest in your own company, and we're not. You invest in your marketing and an expert runs it. From there, most clients land on a retainer plus a performance share, or on a performance share alone at a higher percentage, around 3 percent. It depends on the industry and the relationship. Running a different deal for everyone doesn't scale, but being honest and straightforward with the right people matters more to us than that.
| Model | You pay | Ads | Pick it when |
|---|---|---|---|
| Pay per qualified appointment | $150 per booked, confirmed appointment | your own account | it's your first time with an agency and you want proof before trust |
| Retainer | a flat fee every month, for the team | your own account | we've filled your calendar for a quarter |
| Share of the jobs we bring in | a few percent of closed jobs with a retainer, or around 3 percent on its own | your own account | once the relationship is proven; it depends on the industry and the fit |
| Pay per lead | not offered | not offered | never, we don't sell leads |
King Remodeling · San Diego, CA
From about $80K a month to a $1.2M month in eight months.
A good contractor with months he could not predict, then the whole system plugged in. $432,000 closed in the first three months, four sales reps hired, a design center opened, well over $7 million through the system in 2026.
Read the case study →In their words
Two remodelers who had been sold the other way first.
“I've worked with several other agencies in the past and constantly felt like I was being promised the world, only to end up disappointed. From day one, he was extremely realistic about what it would take to reach our goals. Since working together, I've been able to almost triple my appointment count every month.”
“As he tested new ads and perfected our market, we watched our price per lead drop significantly week by week. Now we have a trusted system in place that keeps clients calling.”
“He's not carrying every lead and every job on his own anymore, because the systems are there to handle it. We have been able to nearly 10x the business.”
Before you sign with anyone
Eight questions that tell you which model you're really being sold.
Ask these on the call, including ours. If an agency gets vague on number six, you have your answer. The answers tell you who does the work and who carries the risk, which is the whole decision.
- 1
What exactly am I paying for: a form fill, a booked time, or a homeowner who showed up?
- 2
Who replies to the lead, and how fast? Minutes matter more than the ad.
- 3
Who qualifies the homeowner, and on what: project, budget against my minimum, timeline, address?
- 4
Who confirms the appointment, and who rebooks it when the homeowner cancels?
- 5
What happens to the leads who don't book this week? Who follows up, for how long?
- 6
Whose name is on the ad account, and who keeps the homeowner list if we part ways?
- 7
Is this exclusive to me in my market, or is my competitor on the same system?
- 8
Show me one client's numbers from their own reports, not a testimonial with a first name.
Run your numbers
Would this actually work for your business?
Drag the two sliders. We assume only 1 in 4 appointments becomes a job, on purpose.
20
appts / mo
5
closed jobs
$2.7M
yearly pace
Your monthly potential
$225,000
in new projects every month, from 5 closed jobs, closing just 1 in 4 appointments.
Straight answers
The questions remodelers ask us about paying for marketing.
What is a pay per lead marketing agency?
An agency that runs ads and charges you for every lead it generates, usually a form fill with a name, a phone number and a project type, at $35 to $55 each. You pay whether that person answers the phone or not. Calling, qualifying, booking and following up are your job.
Is pay per lead worth it for a remodeler?
Only if someone calls every lead within minutes, every day, including weekends. With a form that qualifies and a 30-second reply, 50 to 70 percent of leads become qualified meetings on our accounts. Left until the evening, about one in five. The lead is cheap; the conversation you never had is not.
Pay per lead vs pay per appointment: what's the real difference?
Accountability. Pay per lead hands you a phone number and the work, and when the lead ghosts, the agency still gets paid. Pay per appointment pays the agency only when a homeowner is booked on your calendar, so the agency owns the reply, the qualifying, the booking and the confirmation.
How much does pay per appointment cost?
Two prices, depending on who funds the ads. If you pay the ad spend on your own account, the agency's fee runs $150 to $300 per booked appointment; ours is $150. If the agency funds the ads, expect $300 to $600 per appointment, which at 15 to 20 a month costs about what a retainer would. Add the ad spend, about $150 to $250 per appointment on our accounts, and with one in four closing, a signed job takes around $600 to $1,000 in ad spend, plus our fee on the four appointments behind it.
How is an agency different from Angi, Thumbtack or Houzz?
The platforms run their own ads on Google and Meta, mark the lead up, and sell it to every contractor in your area with one standard qualification for all of them. An agency on your own account builds the ads, the questions and the follow-up for your minimum and your calendar, and the homeowner is yours alone. Of the platforms, Houzz qualifies best because homeowners enter real project detail to open an account.
Is a retainer worth it?
Yes, when the agency has a real expert team and named case studies: $3,000 to $5,000 a month for a U.S.-based team that used to run accounts at Meta or Google is a full team for one salary. No, when it's the only option in month one and nobody can show you a client's numbers. Then it's a fee on top of ad spend with no guarantee.
What is a performance based marketing agency?
An agency paid on a result: per booked appointment, per closed job, or a share of revenue. Pay per lead is sometimes called performance based too, but a lead is an input, not a result. Ask what the performance is measured on.
Which models does Smarter Contractor offer?
Three: pay per qualified appointment at $150 with the ads on your own account, a retainer, and a share of the jobs we bring in, either a few percent on top of a retainer or around 3 percent on its own. Most clients start on pay per appointment to see results first. Which shape comes next depends on the industry and the relationship, and we stay flexible for the right people. We don't sell leads, and we don't take clients who want us to fund their ads.
Which model should I pick?
First time with an agency: pay per appointment, funding your own ads, with "appointment" defined in writing. Once they've filled your calendar for a quarter, move to a retainer or a retainer plus a share, so they're invested in your growth. Pay per lead only if you run a real call center, lead aggregators only for volume you can race for, and never a revenue share where the agency funds everything.
See the results first
Pick the model after you've seen it work.
Answer a few quick questions and I'll show you what a full calendar of qualified homeowners looks like for your business, and which way of paying fits. No setup fees, and you test the system before you pay for anything.
Itai Benisty, Founder, Smarter Contractor