Lead Generation vs a Contractor Network: What’s the Difference?
A lead generation company sells you access to an enquiry and steps back. A contractor network brings you into an arrangement where work is allocated and, depending on the network, more of the job is handled.
The short answer
Lead generation sells you an enquiry. A contractor network brings you into an arrangement around the work.
A lead generation company charges you for access to a customer enquiry, per lead or by subscription, and what happens next is up to you. A contractor network allocates work to contractors it has brought in, and depending on the network it may also handle some or all of the process around the job. Networks vary widely in how they charge and how much they do, so the useful comparison is always the specific terms.
This page covers the general difference, the questions worth asking either one, and when each tends to suit.
Side by side
How the two models usually work
Lead generation
- Sells access to an enquiry
- Charged per lead or by subscription, usually before any work is won
- On some platforms the same enquiry commonly goes to several trades
- You qualify, visit, quote, chase and collect payment
- Open to most trades that sign up and pay
Contractor network
- Allocates work to contractors it has brought in
- Charging varies: some take a membership, others earn a fee on work that goes ahead
- Work may be allocated to one contractor rather than shared
- May handle quotation, communication or payments, depending on the network
- Usually has entry checks and standards to meet
The real difference
Where the money is made changes the incentives
A business paid per lead or per subscription earns when you pay for access, whether the job happens or not. That isn't wrong, and many contractors use lead generation profitably. It does mean the job of turning an enquiry into work sits entirely with you: qualifying the customer, booking the visit, writing the quote, chasing a decision and collecting payment. The admin cost of winning work is often larger than the lead fee.
A network that earns only when work goes ahead has a reason to care whether the enquiry converts. That tends to push it towards qualifying customers properly and helping with the process. It also means the network will expect things of you, because its reputation rests on the contractors it allocates work to.
Neither model is automatically better. Shared enquiries are a known feature of some lead platforms, explained in why shared leads don't convert, and single-contractor allocation is explained in what are exclusive leads?
Before you sign up
Six questions to ask either one
How do you charge, and when?
Per lead, subscription, membership or a fee on completed work. Ask whether anything is payable before a job is won, and whether there's a minimum term.
Is the enquiry shared?
Ask how many other contractors receive the same enquiry. The answer changes your chance of winning it.
Who qualifies the customer?
Has anyone spoken to them before it reaches you, or is it a form submission you'll be the first to call?
Who handles the quotation?
Do you write, send and chase it yourself, or is any of that done for you?
How do payments work?
Who collects the deposit and balance, and how quickly does the money reach you?
What do you expect of me?
Response times, standards and checks. A network with no expectations of its contractors is unlikely to have much to offer its customers either.
Who each suits
Choosing between them
Lead generation tends to suit firms that already have a sales process: someone to answer the phone, write quotes promptly and chase them. It also suits contractors who want to own every customer relationship and market to them afterwards. Comparing the charging models is covered in pay per lead vs subscription.
A network tends to suit contractors who are good at the work and stretched by everything around it, who are happy to meet agreed standards in return for less selling and admin. The different kinds of network are explained in what is a contractor network?
Some contractors are wary of networks because they expect to lose control of their price. That depends entirely on the network. Some set rates for you; others ask you to price the work yourself and add their fee on top. Ask to see how a quotation is built before you join, and who the customer's contract is with. If the answers are vague, treat that as the answer.
Equally, some contractors are wary of lead generation because of past experience. A lead service with clear terms, fair pricing and enquiries that suit your work can be a sound source. The model matters less than the terms and whether the numbers work for you. For the full range of options, see the getting more work as a contractor hub.
One example
How the Mortaro network does it
In our network there is no joining fee, subscription or per-lead charge. We generate the enquiries ourselves, appoint one contractor to each, book the site visit, present your trade-rate price as a professional quotation with our fee added on top, follow it up, keep the customer informed and administer the payments. The full picture is in how contractor networks work and what Mortaro handles for contractors.
In return we expect same-day responses, prompt quotes and professional conduct with customers. We don't promise volume.
Straight answers
Leads or a network
Can I use lead generation and a network at the same time?
Usually, yes. Many contractors use several sources. Check each agreement's terms before you commit.
Is a contractor network just a lead company with another name?
Some may be. The test is what you pay, when you pay it, whether enquiries are shared and how much of the job the network actually handles. Ask the six questions above.
For contractors
Tell us about your business
Your trade, the areas you cover and the size of work you take on. A person reads every enquiry, and if it looks like a fit we will send you the full application.