Shared Lead
A lead that gets sent to multiple contractors at the same time, meaning you're competing with 2-4 other businesses for the same customer.
Full Definition
Most lead generation companies like HomeAdvisor, Thumbtack, and Angie's List sell shared leads to maximize their revenue. When a homeowner requests quotes for a concrete driveway, that same lead information gets sold to 3-4 concrete contractors in the area who then race to contact the customer first.
For Contractors
Why It Matters
Shared leads typically cost 30-50% less than exclusive leads but have much lower close rates because you're competing against multiple contractors. For concrete work averaging $8,000 per job, understanding this trade-off is crucial — paying $42 for a shared lead that closes 1 in 8 times is worse than paying $65 for an exclusive lead that closes 1 in 4 times.
Real-World Example
A concrete contractor in Phoenix buys 20 shared leads per month from HomeAdvisor at $35 each, spending $700 monthly. With 4 contractors competing for each lead, his close rate drops to 12% instead of his normal 25%. He closes 2.4 jobs monthly ($19,200 revenue) versus the 5 jobs he'd close with exclusive leads. The 'cheaper' leads actually cost him $21,600 in lost revenue annually.
Common Mistakes
- -Thinking shared leads are a good deal just because they cost less per lead
- -Not tracking which leads are shared versus exclusive when calculating ROI
- -Competing on price instead of speed and professionalism when multiple contractors are involved
- -Not following up aggressively enough — with shared leads, the first contractor to respond often wins
What to Do
Start tracking your close rate separately for shared versus exclusive leads this week. Create a simple spreadsheet with columns for lead source, shared/exclusive status, and outcome. After 30 days, calculate the true cost per closed job for each type to see which actually generates more profit.
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