Paying for leads
Pay per lead, per appointment, or a retainer: which is better for a tree company?
By Zachary Spencer, founder of Zenith Co.
Published
Each model pays for something different. A retainer pays for work done on your ads. Pay per lead pays for a name and a number. Pay per appointment pays for a booking. Pay per shown appointment pays for a homeowner standing in the yard when you arrive. The closer the fee sits to a job you can actually quote, the less risk you carry, and the higher the price per unit will be.
Most tree company owners compare marketing offers on price: $1,500 a month here, $40 a lead there. Those numbers can't be compared directly, because they buy different things. The useful question is what each model pays for, and what happens to your money when the leads are bad.
The four models side by side
| Model | You pay for | Who carries the risk | Where it goes wrong |
|---|---|---|---|
| Monthly retainer | The agency's time, every month | You | You pay the same whether your phone rings or not |
| Pay per lead | Each name and number | Mostly you | Junk, duplicate and shared leads, and arguments over which ones count |
| Pay per booked appointment | Each booking on your calendar | Shared | Weak bookings that never show still bill |
| Pay per shown appointment | Each estimate where the homeowner was there | Mostly the marketer | Higher price per unit, and it depends on honest marking |
Monthly retainer
You pay a fixed fee every month, usually on top of your ad spend, and the agency runs your ads. The agency gets paid for activity: building campaigns, writing ads, sending a report.
When it works: when you already have someone who answers and books every lead quickly, and you want an expert running the ads. Where it goes wrong: a slow month costs exactly as much as a good one, and the agency's income doesn't change either way. Long contracts make this worse.
Pay per lead
You pay a set price for every inquiry, whether it becomes a job or not. This is how most lead marketplaces work, and some agencies sell it too.
When it works: when the leads are exclusive to you, clearly in your area and for work you do, and you can reach them fast. Where it goes wrong: you pay for wrong numbers, out-of-area requests and people who were "just looking." On shared lead sites, the same request can go to several companies, so you're paying to race your competitors to the phone. And the follow-up is still on you. More on shared leads.
Pay per booked appointment
You pay for each estimate that gets put on your calendar. Someone else handles the follow-up and the booking, which takes the hardest part off your plate.
When it works: when bookings are firm, with a set time and a reminder. Where it goes wrong: a booking isn't a visit. If the marketer gets paid when the slot is filled, there's less reason to care whether the homeowner will actually be home. You pay for the drive to an empty driveway.
Pay per shown appointment
You pay only for estimates where you showed up at the booked time and the homeowner was there to walk the job. No-shows, out-of-area leads, work you don't do and duplicates don't bill.
When it works: when you want the marketer's income tied to the same thing your revenue depends on: a homeowner you can quote. Where it goes wrong: the price per shown estimate is higher than a price per lead, because the marketer is carrying the cost of every lead that didn't turn into a visit. And it depends on marking each estimate honestly and on time. A good setup spells out who marks, by when, and how disputes work.
This is the model we use. You mark each estimate shown or not shown within 3 business days, unmarked ones count as shown, and if a charge looks wrong you email us within 14 days and we check the records. The full terms.
How to compare offers fairly
Turn every offer into the same number: what it costs you per estimate where the homeowner was there. For each model, add up everything you'd pay in a month (ad spend included) and divide by the shown estimates you'd expect.
- Retainer: (retainer + ad spend) ÷ shown estimates.
- Pay per lead: (leads × price per lead) ÷ shown estimates. Count your own time for follow-up too.
- Pay per booked appointment: (bookings × price + ad spend if separate) ÷ the bookings that actually showed.
- Pay per shown appointment: the fee, plus your ad spend divided by shown estimates.
Then hold that number against what one shown estimate is worth to you: your average job value times your close rate. If you close a third of the estimates you walk and your average job is $1,000, a shown estimate brings in about $330 of work. Those are example numbers. Use your own.
Questions about paying for leads
What is pay per appointment marketing for tree service?
A model where you pay the marketer for each estimate booked onto your calendar instead of a monthly fee or a price per lead. The stricter version, pay per shown appointment, only bills when the homeowner was actually there for the estimate.
Is pay per lead or pay per appointment better?
Pay per appointment usually carries less risk for the tree company, because the marketer handles follow-up and booking and doesn't get paid for leads that go nowhere. The price per unit is higher than per lead because of that. Compare offers by total cost per shown estimate, not by unit price.
Why is a shown appointment more expensive than a lead?
Because the marketer pays for all the leads that never booked or never showed, and only gets paid for the ones that did. A price per lead leaves that cost with you. The fair comparison is what you pay in total for each estimate where a homeowner was there.
Are marketing retainers worth it for tree companies?
They can be if you have someone who answers and books every lead fast, and the contract lets you leave if results slip. Without fast follow-up, a retainer pays for ads whose leads go cold before anyone calls.
How does Zenith Co. charge?
Ad spend on your own card, a one-time setup fee, and a flat fee for each estimate where the homeowner showed up, billed weekly. No-shows, out-of-area leads, work you don't do, duplicates and estimates you cancel don't bill. Both fees are set on the call.