"Is $40 a lead good or bad?"
It's the first question most contractors ask me. And the honest answer is: it depends on your trade, your area and what happens after the lead comes in.
But you still deserve real numbers. So here's what I see in the contractor ad accounts I run right now.
Real cost per lead by trade
These are quality leads from Facebook and Instagram ads: real homeowners who filled in their details, not just clicks.
Your numbers can land higher or lower. Location, competition, your creatives and your offer all move it.
One example: with a price-first funnel, one of my roofing clients got leads at $25–50, after the old setup spent $100+ for zero leads. Here's that story.
Why the cheapest lead isn't the goal
A $15 lead sounds great. Until none of them pick up the phone.
The number that pays your bills is cost per customer, not cost per lead.
In my landscaping case study, leads cost about $26 each. But what mattered was this: 16 paying customers from $10,500, about $656 per customer, and $78,000 in revenue.
How much can you afford per lead?
Most contractors can pay far more per lead than they think. Here's a quick way to work it out:
If your break-even is $375 and you're paying $45, every lead has plenty of room to make money. The real risk isn't the cost per lead. It's leads you never follow up on.
What pushes your cost per lead up or down
- Location: big, busy metros cost more than smaller towns.
- Competition: when every roofer in town is running ads, prices rise.
- Creatives: tired ads that people have seen 10 times stop working. Fresh videos and images bring costs down.
- Your offer: "Get a free quote" is weak. Giving homeowners something useful first, like a price estimate, gets more of them to respond.
- The page after the click: if lots of people click but few fill in the form, the problem is your landing page, not your ad.
Common questions
What is a good cost per lead for roofing Facebook ads?
In the roofing accounts I manage, quality leads typically cost about $45–47. With a price-first funnel, one roofing client got leads at $25–50. Your area, competition, creatives and offer all move the number.
What is a good cost per lead for plumbing?
Around $30–35 per quality lead in the plumbing accounts I run. Emergency plumbing and big cities usually cost more.
Is a cheap cost per lead always better?
No. A cheap lead that never answers costs you more than a $40 lead that books a job. Track cost per paying customer, not just cost per lead.
Why is my cost per lead going up?
The most common reasons are tired creatives, more competition in your area, a weak offer, or a landing page that loses people after they click.
Want me to look at your ads?
Send me your ad account or website. I'll review it personally and tell you the first 3 things I'd fix. Free, no strings attached.