Lead generation

Exclusive vs shared leads: which one actually makes contractors money

By Scavi Company · · 3 min read
Exclusive vs shared leads: which one actually makes contractors money

Contractors who buy leads usually choose between two models. Shared leads are sold to several companies at once, often three or four, and cost less each. Exclusive leads go to one contractor only and cost more. The cheaper option on paper often turns into the more expensive one once you count how many jobs you actually close.

How the two models work

  • shared leads: the same homeowner request is sold to several contractors, and the first to call usually wins;
  • exclusive leads: one request, one contractor, often from campaigns run only for your company;
  • hybrid: some platforms sell a lead as exclusive for a time window and then share it.

Do the math on cost per job

Imagine shared leads at $45 and exclusive leads at $120. If you close 8% of shared leads, each job costs $562 in leads. If you close 30% of exclusive leads, each job costs $400. The more expensive lead produced the cheaper job, and your sales team spent less time chasing.

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Close rates are not the only difference

Shared leads push you into a price fight, because the homeowner has three quotes on the table within an hour. Exclusive leads give you time to visit, explain and sell on value. That shows up in average ticket, not only in close rate.

When shared leads make sense

  • small, fast jobs where the first to answer gets the work;
  • an office that calls back in under five minutes, every time;
  • a new company that needs volume to learn and fill the calendar.

How to evaluate a lead provider

  • ask where the leads come from and whether the homeowner knows a contractor will call;
  • ask how many companies receive each shared lead;
  • ask about credits for wrong numbers and out-of-area requests;
  • avoid long contracts before you test a few weeks of volume;
  • track every lead to a closed or lost job.

Speed still decides

Even exclusive leads go cold. A homeowner who requested a quote is still looking at other options. Call within five minutes, text if they do not answer and follow up for at least a week.

An example

A remodeling contractor in Georgia spent $4,000 a month on shared leads at $40 each and closed 7 jobs from 100 leads. It moved the same budget to exclusive leads at $110 each, got 36 leads and closed 12 jobs with a higher average ticket because fewer homeowners had competing quotes.

Common mistakes

Judging providers by cost per lead, slow callbacks, no tracking by source, signing a long contract on day one and blaming the leads when the follow-up process is the problem.

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Frequently asked questions

Are exclusive leads worth the extra cost?

Usually yes for high-ticket work such as roofing, remodeling, HVAC replacement and solar, where one job pays for many leads and a homeowner who talks to only you closes far more often. For small, fast jobs, shared leads can work if your office calls back within minutes. The answer is in your own numbers: compare cost per closed job, not cost per lead.