A lead is not a customer. Know what yours is actually worth.
Most home service businesses overpay for leads because they price them like customers. Plug in four numbers and we will send you your lead value and the maximum you can afford to pay per lead.
Your numbers
Estimates are fine. You can refine them later — the point is to get the order of magnitude right.
Revenue on a typical first job.
What percent of that revenue you keep after direct costs.
Average number of additional jobs the same customer books.
Share of leads that become paying customers.
Optional: your current lead spend
Optional — what you pay today for one lead.
Optional — how many leads you generate in a typical month.
Your lead value is ready
We calculate your report privately and email it to you. Nothing is shown on screen.
- Customer lifetime margin
- Value of a single lead
- Break-even cost per lead
- Recommended max cost per lead
How the math works
A customer is worth their lifetime margin. A lead is worth only a fraction of that, because most leads never become customers. The bridge between the two is your closing rate.
Customer lifetime margin = AOV × Margin × (1 + Repeat orders)
Lead value = Customer lifetime margin × Closing rate
Max cost per lead = Lead value (break-even)
- AOV — average revenue on the first order
- Margin — gross margin as a percentage
- Repeat orders — additional jobs after the first
- Closing rate — share of leads that become customers
Want the full walkthrough with a worked example? Read Lead vs Customer: What a Lead Is Actually Worth.
Common questions
What is a lead worth?
A lead is worth the lifetime margin of a customer multiplied by your closing rate. If a customer is worth $1,020 in lifetime margin and you close 25% of leads, each lead is worth $255.
How much should I pay per lead?
Break-even is your lead value. A healthy target is roughly 30% of lead value, which leaves margin for overhead and profit while still letting you buy volume.
Why do you email the results instead of showing them?
The report includes your lifetime margin, lead value, break-even cost per lead, and recommended maximum bid, along with context on how to use each number. We send it to your inbox so you have it on hand when you review your marketing spend.
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