If you run a service business, you've probably seen platforms promising to send you customers. But the pricing models vary wildly - and the difference matters a lot to your bottom line.
Short Answer: Pay Per Booking Wins
Pay-per-booking means you only pay when someone actually schedules an appointment. With pay-per-lead, you pay just for contact info - whether they book or ghost you.
The Two Models Compared
Pay Per Lead
- How it works: Pay $15-50+ each time someone requests a quote
- Example: Thumbtack, Angi
- The catch: You pay even if they never respond, book elsewhere, or were just shopping around
- Conversion rate: Often 10-30% actually book
Pay Per Booking
- How it works: Pay $5 only when someone confirms an appointment
- Example: Lokali
- The benefit: Only pay for customers who actually commit
- Conversion rate: 100% - they already booked
Let's Do The Math
Scenario: You want 10 new customers this month
Pay Per Lead (Thumbtack):
10 customers ÷ 20% conversion = 50 leads needed
50 leads × $30/lead = $1,500
Cost: $1,500 for 10 customers ($150 each)
Same Scenario with Pay Per Booking
Pay Per Booking (Lokali):
10 customers × $5/booking = $50
Cost: $50 for 10 customers ($5 each)
Why Do Leads Ghost You?
When someone submits a lead request on Thumbtack or Angi, they often:
- Get overwhelmed by 5+ businesses contacting them
- Were just price shopping, not ready to book
- Already found someone else
- Entered the wrong phone number
- Changed their mind
You pay for all of these. With pay-per-booking, you skip this entirely because customers only show up after they've committed to an appointment time.
Which Platforms Use Which Model?
Pay Per Lead: Thumbtack ($15-50/lead), Angi ($30-100/lead), HomeAdvisor
Pay Per Booking: Lokali ($5/booking)
Monthly Subscription: Yelp ($300-500+/month regardless of results)
When Pay Per Lead Might Make Sense
Pay-per-lead can work for very high-ticket services (like $10,000+ home renovations) where even a 10% conversion rate is profitable. But for most service businesses - mechanics, salons, cleaners, trainers - pay-per-booking is far more cost-effective.