Leads and what marketing costs

A kitchen fitter in Derby could, in one month, pay Checkatrade, buy leads from Bark, take a few from MyBuilder, and take a call from someone promising page one for £400. All four want money before a single job is booked. The useful question for each is what you get to keep afterwards.

The platforms you will be pitched

• Checkatrade is a membership with vetting and a review profile. We cover it in is Checkatrade worth it and what it costs per month.
• MyBuilder lets customers post a job and tradesmen pay to respond.
• Bark sells leads on a credit basis. See Bark reviews, and Bark and MyBuilder side by side.
• Rated People is a lead platform where tradesmen pay to respond to jobs.
• TrustATrader and Yell are directories with their own routes in.

For a three-way look at the big names, read Checkatrade vs MyBuilder vs TrustATrader. Pricing changes, so look at each company's current terms before signing anything.

Two ways of paying

A membership or subscription sits in your bank every month whether the phone rings or not. A per-lead fee goes out when a customer message arrives, and the same customer may be messaging four other firms. Neither is a bad deal for everyone. They suit a trade where the jobs are big, the margin is healthy and you are fast at quoting.

They suit a small repair far less. A £60 call-out that costs £25 in lead fees and a 40 minute drive to quote is hard to make work.

Do the sum on one platform

Pick last quarter. Add up what you paid, count the jobs you actually won and sum their profit, not their invoice. Then add the hours spent replying to leads, valued at what an hour on the tools earns you.

That is the number to compare with anything else. A sole trader and a Ltd firm with two vans will land on different answers, and both can be right.

What stays with you

When you stop paying, a lead platform stops sending work. Your own Google profile does not, and neither do the reviews on it. A firm with a big pile of Google reviews keeps showing up on the map in a quiet month without spending a penny that month. The case for building that is made in the pillar post, paying for leads vs owning your reputation.

It does not replace platforms for everyone. A new firm with no reviews may need the platform for a few months to get going. The aim is for it to be one source among several instead of the only one.

Where jobs really come from

Ask the customer. Many will say a friend or a neighbour, and a good share of those still looked you up before ringing. A recommendation backed by plenty of recent reviews is easier for a customer to trust than one backed by nothing.

Agencies and your own time

An agency charges a monthly fee, often with a minimum term, and the price depends on the work. What a marketing agency costs a trades business covers the typical ranges (around £500 to £1,500 a month for small local firms) and what to ask before signing. Doing it yourself looks free until you count the evenings; see the doing it yourself comparison. Side-by-side pages: paying for leads, hiring an agency and doing it yourself.

Questions for any platform or agency

1. What is the minimum term and how do I leave?
2. Do the reviews I earn belong to me, or stay with you?
3. Is VAT on top of the price?
4. Can I see how many members already work my trade in my town?
5. What happens to my listing if I stop paying?

If the answers are vague, treat that as an answer.