What is pay-per-lead, and how does it work?

Key takeaways

  • Pay-per-lead means you only pay for the leads you receive - no retainers or setup fees.
  • It shifts marketing risk onto the agency, which only earns when it delivers.
  • You agree volume, price and area up front, then scale up or down freely.
  • Great for trades that want predictable customer-acquisition costs.

Marketing agencies usually want a monthly retainer whether they deliver or not. Pay-per-lead flips that on its head: you only pay for actual leads. Here's how the model works and why it suits UK home-improvement firms so well.

The basic idea

With pay-per-lead (PPL), an agency runs the marketing campaigns - search, social, native and display - and you pay an agreed price for each qualified lead delivered. No setup fee, no retainer, no long-term contract. If no leads come through, you pay nothing.

Why it works for trades

  • Predictable costs: you know your price per lead up front, so you can plan around a target cost per booked job.
  • Risk sits with the agency: they only earn when they deliver, so their incentives line up with yours.
  • No wasted ad spend: you're not paying for clicks, impressions or "brand awareness" - just leads.
  • Flexible volume: scale up before peak season, ease off when you're at capacity.

How delivery works

Once a prospect enquires, the lead is pushed to you in real time - via a shared Google Sheet or a direct API into your CRM. The faster you call, the better your conversion, so most firms set up an instant notification and aim to ring within minutes.

What to check before you buy

Ask three questions: Are the leads exclusive or shared? How are they qualified before delivery? And what's the replacement policy for obviously invalid leads? Clear answers to all three are the sign of a serious lead partner.

Is it right for you?

If you can handle and follow up leads quickly, pay-per-lead is one of the most efficient ways to grow. You turn marketing from a fixed cost into a predictable, scalable cost of sale - and you only ever pay for results.

Jerome Rappel
Founder, Leads Bank

Get exclusive leads, not shared lists

Tell us your trade and area and we'll send projected volume and cost per lead - no contracts, no setup fees.

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