What is pay-per-lead (performance-based) marketing for contractors?
Short answer
Performance-based marketing means you pay for results — leads, booked calls, or closed revenue — instead of a flat retainer whether or not it works. It shifts the risk to the agency: they only earn when you do. The trade-off to check is how 'a result' is defined. Paying per raw lead can reward volume over quality; paying on closed revenue aligns everyone on jobs won.
The three ways agencies charge
- Retainer — a fixed monthly fee regardless of outcome. Predictable for the agency, risky for you.
- Pay-per-lead — you pay for each lead delivered. Lower risk, but watch for junk leads padding the count.
- Pay-on-results — you pay a share of closed-deal revenue. Highest alignment: the agency is paid only when you get paid.
Sparked runs the third model: zero upfront, zero retainer, a percentage of the revenue we actually help you close. If it doesn't produce jobs, it costs you nothing.
UpdatedJul 14, 2026