Paid Media

Pay-Per-Lead (PPL)

Also known as: PPL, cost per lead pricing, purchased leads

• Solar
• Home Services

Definition

Pay-per-lead (PPL) is a pricing model where a business pays a fixed price for each lead delivered by a vendor or ad platform, rather than paying for clicks or a flat retainer. It makes spending predictable, but the price per lead says little about how many leads turn into customers, so PPL sources should be judged on cost per sale.

For home services

Home service companies meet pay-per-lead pricing through lead marketplaces and through Google Local Services Ads, which charge per lead rather than per click. The model works well when leads are exclusive and well matched to your services and area, and poorly when the same lead is sold to several competitors.

For solar

Pay-per-lead vendors are common in solar, selling homeowner leads at a set price that varies with exclusivity and how much qualification has been done. The headline price can look attractive next to running your own ads, but solar leads vary widely in quality. Installers should ask how each lead was generated, whether it is shared, what qualification was done, and what the vendor's return policy is for bad leads.

How to measure and improve it

1. Ask how leads are generated and whether they are exclusive or shared.
2. Know the return policy for invalid or out-of-area leads, and use it.
3. Tag every PPL lead by vendor in your CRM.
4. Track each vendor through to signed and completed jobs.
5. Compare cost per sale across vendors and against your own channels.

Frequently asked questions

What is the difference between pay-per-lead and pay-per-click?

Pay-per-click charges for each click on an ad, whether or not the visitor contacts you. Pay-per-lead charges only when a lead is delivered, such as a form, call, or message. PPL is more predictable, but the lead price does not tell you how many leads become customers.

Are pay-per-lead solar leads worth it?

They can be, when the leads are exclusive, reasonably qualified, and handled quickly. Judge each vendor on cost per installed system rather than price per lead, since a cheap lead that rarely closes is the most expensive kind.

Is Google Local Services Ads pay-per-lead?

Yes. Local Services Ads charge per lead, such as a call or message through the ad, instead of per click.

Reviewed by Diamond Digital · Last reviewed November 5, 2026