An honest comparison for contractors

Pay per lead, retainer, or pay per close?

Three ways to pay whoever brings you leads. Each one puts the risk in a different place. Here is where, what each does to your bill in a slow month, and who each one fits.

  • Downsides of every model, ours included
  • No prices, no made-up statistics
  • Written for owners, not marketers

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What do you want your marketing to do for you?

Pick the one that matters most right now. We start there.

Side by side

The three models, row by row.

Read across a row to see where the money and the risk sit in each one.

Monthly retainer

A fixed fee for the work

What you pay for
The work, whatever it produces
In a slow month
The same bill as a strong month
In a strong month
The same bill, so a strong month is cheap
Who carries the risk
You. The work gets paid for either way
What has to be in writing
What ships each month and how results are reported
The quiet downside
Nothing on the bill moves when results do

Pay per lead

A set price for each lead

What you pay for
Each lead that reaches you and meets the agreed definition
In a slow month
A smaller bill, because fewer leads arrived
In a strong month
A bigger bill, one lead at a time
Who carries the risk
Shared. They carry the cost of getting the lead, you carry whether it closes
What has to be in writing
What counts as a lead, and how a bad one is handled
The quiet downside
It rewards volume. Without a tight definition, you pay for tire-kickers

Pay per close

A share of each sold job

What you pay for
Each job that closes from a lead they sent
In a slow month
A smaller bill, because fewer jobs closed
In a strong month
A bigger bill, one sale at a time
Who carries the risk
Mostly them, until the job is sold
What has to be in writing
What counts as closed, where it is recorded, and for how long a lead counts
The quiet downside
Your partner has less reason to do slow-building work that pays off next year

Pros and cons

What each one does for you, and against you.

Every model has a real case for it. Every model also has a way to go wrong.

Monthly retainer

One fixed fee for the ongoing work.

Works for you

  • A predictable bill you can plan around
  • Pays for work that takes months to pay back, like SEO and a site that ranks
  • A strong month does not cost you more

Works against you

  • You pay the same when results stall
  • Easy for an agency to report activity instead of jobs
  • All of the risk sits on your side of the table

Fits best: Owners building a lead source for the long run, in a market where search takes months to move.

Pay per lead

A set price for each lead that reaches you.

Works for you

  • You pay when a lead arrives, not for clicks or impressions
  • Easy to compare against what a job is worth to you
  • A slow month costs less

Works against you

  • It rewards volume, so a loose definition means paying for junk
  • Leads bought from sellers may go to other contractors too
  • A strong month raises the bill, so plan your cash
  • It pays for the lead, not the sale, so your close rate still decides the math

Fits best: Owners with steady jobs of similar size, a tight written definition of a lead, and crews to work more of them.

Pay per close

A share of each job sold from their leads.

Works for you

  • You pay when you sell, the closest link between cost and revenue
  • Your partner cares about lead quality, not just count
  • A lead that never closes costs nothing on this line

Works against you

  • Needs a trusted record of which jobs closed
  • On a big job you share more of the upside
  • Slow-building work is harder to fund on sales alone
  • Long sales cycles mean agreeing how long a lead counts

Fits best: Owners with big tickets and longer decisions, like roof replacements, remodels and custom builds.

Why we mix them

Each model alone puts too much risk on one side.

A retainer alone leaves you carrying it. Per lead alone rewards volume over fit. Per close alone starves the slow work that pays off next year. So every plan we write uses all three.

The retainer covers the work that has to happen every month. The price per qualified lead ties part of the bill to leads that meet a definition written into your scope. The share of each closed job ties part of it to sales. How much sits in each part depends on your trade and market, and it is agreed in writing before work starts.

See how our plans work

One plan, three parts

  • Retainer

    Covers the site, SEO, campaigns and the Friday read. Carries the slow work.

  • Per qualified lead

    Moves with leads that meet your written definition. Keeps us honest on volume.

  • Per closed job

    Moves with sales. Keeps us honest on fit.

No setup fee. Prices quoted on a call.

Before you sign anything

Three questions to ask whoever is selling each model.

Ask us too. If the answers are vague, the deal will be.

Selling you a retainer

  1. 1What exactly ships each month?
  2. 2How do you report results: in leads and jobs, or in traffic?
  3. 3What do I keep if I leave: the site, the content, the accounts?

Selling you leads

  1. 1What counts as a lead, in writing?
  2. 2Does this lead go to me only, or to other contractors too?
  3. 3What happens when a lead is clearly not a fit?

Selling you pay per close

  1. 1How is a closed job recorded, and where?
  2. 2How long does a lead stay tied to a sale?
  3. 3How is a disagreement about a close settled?

Which way should your plan lean?

Tell us your trade, a typical ticket and how leads arrive today. We will tell you how we would size the mix.

Questions owners ask

About paying per lead, per month or per close.

Is pay per lead cheaper than a retainer?
Sometimes, sometimes not. In a slow month it usually costs less, because you pay for fewer leads. In a strong month it can cost more, because the bill rises with every lead. What matters is what each lead is worth to you once your close rate is counted.
What is the catch with pay per lead?
Three things to check. What counts as a lead, in writing. Whether the lead goes to you only or to other contractors too. And how a lead that is clearly not a fit gets handled. A seller who cannot answer all three clearly is selling volume, not jobs.
What is the catch with a retainer?
The bill is the same whether the month brought ten leads or none, so all of the risk sits with you. Ask what ships each month and how results are reported, in leads and jobs, not traffic.
What is the catch with pay per close?
It needs a record of which jobs closed that both sides trust, and on a big job you share more of the upside. Some jobs also close months after the first call, so how long a lead stays tied to a sale has to be agreed up front.
Which one does Frontend Horizon use?
All three, mixed. Every plan has a monthly retainer for the ongoing work, a price per qualified lead, and a share of each closed job. The mix is sized to your trade and market and agreed in writing before work starts.
Can I see what my mix would cost?
Yes, on a call. Prices depend on your trade and market, so we quote them there and put them in writing.

Frontend Horizon, Dallas, TX

Your site should be paying for itself. Let's find out together.

Take ten minutes with us. You will leave knowing where your site stands and what we would do first, whether or not you hire us.

  • Monthly retainer
  • Pay per lead
  • Pay per close
  • A written read every Friday
About a minute1 of 5

What do you want your marketing to do for you?

Pick the one that matters most right now. We start there.