Exclusive vs Shared Leads: Which Is Better for Your Business?
When it comes to buying leads for your home service business, you have two main options: exclusive leads and shared leads. Understanding the difference can mean the difference between profitable growth and wasted marketing dollars.
What Are Shared Leads?
Shared leads are sold to multiple businesses—typically 3-5 companies receive the same lead. Common shared lead providers include:
- HomeAdvisor
- Thumbtack
- Angi (formerly Angie’s List)
- Porch
When a homeowner requests quotes through these platforms, their information is sent to several contractors simultaneously.
The Problems with Shared Leads
- Race to the Bottom: When 5 companies contact the same customer, price often becomes the deciding factor
- Wasted Time: You spend time calling leads who’ve already hired someone else
- Customer Fatigue: Homeowners get overwhelmed with calls and stop responding
- Lower Close Rates: Industry average for shared leads is just 5-10%
- Frustration: Nothing is worse than a great sales call only to learn they already booked
What Are Exclusive Leads?
Exclusive leads go to only one business—you. Pay-per-call leads are inherently exclusive because:
- The customer calls YOU directly
- No one else receives the call
- You’re the only company they’re talking to
- The conversation is real and immediate
The Benefits of Exclusive Leads
- Higher Close Rates: Average 25-40% compared to 5-10% for shared
- Better Customer Experience: No competing calls or pressure
- Premium Positioning: You’re not competing on price alone
- Time Savings: Focus on customers who want to work with you
- Better ROI: Higher cost per lead, but much higher conversion
The Math: Exclusive vs Shared Leads
Let’s compare with real numbers:
Shared Lead Scenario
- Cost per lead: $30
- Leads purchased: 100
- Close rate: 8%
- Jobs booked: 8
- Average job value: $500
- Revenue: $4,000
- Lead cost: $3,000
- Profit: $1,000
Exclusive Lead Scenario
- Cost per lead: $75
- Leads purchased: 100
- Close rate: 30%
- Jobs booked: 30
- Average job value: $500
- Revenue: $15,000
- Lead cost: $7,500
- Profit: $7,500
The exclusive leads cost 2.5x more but generated 7.5x more profit.
Why Pay-Per-Call Delivers the Best Exclusive Leads
Pay-per-call isn’t just exclusive—it’s a fundamentally different (and better) type of lead:
Inbound vs Outbound
With pay-per-call, the customer initiates contact. They’re not waiting for someone to call them—they picked up the phone because they need help NOW.
Real-Time Conversations
No forms, no emails, no waiting. The customer is on the line ready to discuss their needs and potentially book service.
High Intent
Someone who takes the action to call is further along in the buying journey than someone who fills out a form requesting multiple quotes.
Natural Selection
Customers who call have typically done some research and chosen to contact you specifically, rather than submitting to a quote comparison site.
When Shared Leads Might Make Sense
To be fair, shared leads aren’t always wrong. They might work if:
- You’re just starting and need any leads to build reviews
- You have excess capacity and very low overhead
- Your close rate is abnormally high (and you’re honest about it)
- The leads are very inexpensive (under $10)
But for most established home service businesses, exclusive leads deliver better results.
Making the Switch to Exclusive Leads
If you’re currently using shared leads, here’s how to transition:
- Track your current metrics: Know your close rate and cost per acquisition
- Start small with exclusive: Test with a portion of your budget
- Compare results: Give it 60-90 days to evaluate fairly
- Adjust your sales approach: Exclusive leads require less aggressive sales tactics
- Scale what works: Shift budget to what delivers better ROI
How C4 Agency Delivers Exclusive Pay-Per-Call Leads
At C4 Agency, every call we deliver is 100% exclusive:
- Customers call from our advertising directly to your phone
- No sharing, no reselling, no competitors
- Real-time call forwarding means you answer live
- Pay only for valid calls in your service area
Ready to see the difference exclusive leads can make? Contact us today to get started.