Understanding the true cost of appliance repair leads is crucial for making smart marketing investments and maximizing your return on investment. Lead costs vary dramatically based on source, quality, and market competition.

This guide breaks down lead costs across all major channels and helps you calculate which sources deliver the best ROI for your specific business.

Average Lead Costs by Channel

Based on data from over 500 appliance repair businesses, here are typical lead costs across different marketing channels:

Paid Lead Generation Services

• Exclusive Leads: $40-80 per lead
• Shared Leads: $15-35 per lead (sold to 3-5 competitors)
• Real-Time Leads: $50-90 per lead
• Aged Leads: $5-15 per lead (lower conversion rates)

Google Ads (Pay-Per-Click)

• Average Cost Per Click: $8-25
• Conversion Rate: 5-12%
• Cost Per Lead: $65-150
• Emergency Keywords: $15-40 per click

Facebook & Social Media Advertising

• Average Cost Per Click: $2-8
• Conversion Rate: 2-6%
• Cost Per Lead: $35-85
• Best for: Brand awareness and retargeting

Organic SEO (Long-term)

• Monthly Investment: $500-2,000
• Cost Per Lead: $15-40 (after 6 months)
• Best ROI: Long-term sustainable growth

Factors That Affect Lead Pricing

Several factors influence how much you'll pay for appliance repair leads:

Market Competition

Major metropolitan areas with many competitors typically have higher lead costs. Rural markets may have lower costs but fewer available leads.

Lead Quality and Exclusivity

Exclusive leads cost 2-3x more than shared leads but convert at 60% higher rates, making them more profitable overall.

Service Type and Urgency

Emergency repair leads command premium pricing but also have the highest conversion rates and average job values.

Calculating True Lead ROI

To determine if lead costs are profitable, calculate your return on investment using this formula:

ROI = (Revenue from Leads - Cost of Leads) / Cost of Leads × 100

Example Calculation:

• Lead Cost: $60 per lead
• Conversion Rate: 25% (1 in 4 leads becomes a customer)
• Average Job Value: $450
• Cost per customer: $240 ($60 ÷ 0.25)
• Profit per customer: $210 ($450 - $240)
• ROI: 87.5%

Strategies to Reduce Lead Costs

Smart appliance repair businesses use these strategies to lower their cost per lead:

• Focus on exclusive leads with higher conversion rates
• Optimize Google Ads campaigns for better Quality Scores
• Improve website conversion rates to get more value from traffic
• Implement lead nurturing to convert more prospects
• Track and optimize for customer lifetime value

Red Flags: When Lead Costs Are Too High

Be cautious of lead sources with these warning signs:

• Cost per lead exceeds 20% of average job value
• Conversion rates below 15% consistently
• Leads lack complete contact information
• No guarantee or replacement policy
• Shared leads without disclosure

Building a Diversified Lead Generation Strategy

The most successful appliance repair businesses don't rely on a single lead source. A balanced approach might include:

• 40% - Organic SEO and GMB optimization
• 30% - Paid lead generation services
• 20% - Google Ads and paid advertising
• 10% - Referrals and repeat customers

This diversified approach reduces risk and ensures consistent lead flow even if one channel experiences issues.