Definition
Updated
Pay per lead is a pricing model where a business pays for each enquiry, such as a call or message, rather than for each ad click or for a fixed listing.
In Google's Local Services Ads you're charged for each valid lead. Google says lead prices vary with your location, the job type, the type of lead and your bidding mode, and that message leads are typically priced lower than phone leads, though not always.
A missed call during business hours counts as a lead if the caller stays on the line for more than 20 seconds, and repeat contact from the same number or email within 15 days isn't charged again.
Google re-checks charged leads and credits invalid ones automatically, but it no longer gives credit for leads in job types or areas you don't serve.
Lead marketplaces such as Angi and Thumbtack also charge per lead. Track what each lead turns into: a cheap lead that never books costs more than an expensive one that does.
Example: $600 spent on 20 leads is $30 a lead, but if only 3 of them book, each booked job cost $200.
Sources
- Local Services Help: How leads work, checked Nov 6, 2026
- Local Services Help: About automated lead credits, checked Nov 6, 2026