How Much Do HVAC Leads Cost?

Posted July 15

How much does an HVAC Lead Cost? In the world of HVAC services, securing a steady stream of leads is not just crucial but often the lifeblood of business growth. Yet, pinpointing the exact cost of acquiring these leads can be very difficult. Mastering lead generation is essential for HVAC professionals looking to thrive in a competitive market. By understanding cost-effective ways to get these leads, HVAC contractors can strategically attract new customers effectively and sustainably fuel business growth.

Angi's List, HomeAdvisor & Thumbtack

Platforms like Angi's List and Thumbtack play a pivotal role in HVAC lead generation, charging roughly $35 to $85 per lead plus annual fees. Angi, for example, operates on a review-driven system, meaning fewer reviews can significantly impact visibility. Without utilizing paid ads or paying for premium listing space, generating leads can be challenging. Moreover, Angi imposes early termination fees for those considering cancelling memberships, and some users have reported aggressive sales tactics from Angi’s team. Despite these challenges, HVAC businesses with limited budgets often turn to these platforms due to the allure of seemingly low-cost leads. This competitive environment emphasizes the importance of strategic pricing and differentiation to navigate profitability amid fierce competition for leads.

Contractors must contend with the annual fees and competitive bidding structure of these platforms, where success often hinges on being the lowest bidder rather than the most qualified service provider. Moreover, customers using these platforms are often focused on price comparisons, which can further squeeze margins. As a result, while Angi's List and Thumbtack provide exposure and potential leads, navigating these challenges requires careful strategy to ensure sustainable profitability and growth. It's not uncommon to see HVAC contractors pay hundreds of dollars to not get any jobs secured from these platforms.  

*Lead Vendor Results

Cost-per-Lead: ~ $35 - $85+ (not including yearly fees)

Conversion Rate: ~ 12% to 25%

Cost per Sale: ~ $140 - $708+ (not including yearly fees)

Local Service Ads

Local Service Ads (LSAs) represent another avenue for HVAC professionals to acquire leads. Using the Lead Cost Estimation tool from Google, we'll use Orlando, Florida as our example. Local Service Ads (LSAs) provide HVAC professionals with a targeted approach to lead generation, where costs typically range from $25 to $40 per lead. Managed through Google, LSAs prominently display at the top of search results, ensuring high visibility among local customers actively seeking HVAC services. Unlike conventional platforms, LSAs require contractors to maintain a stellar online reputation with numerous positive reviews to qualify for inclusion. While LSAs offer a lower financial risk by charging only for verified leads, achieving success hinges on consistently delivering exceptional service and maintaining a strong digital presence.

While Local Service Ads (LSAs) offer a promising avenue for HVAC businesses to attract leads, the competitive landscape can be daunting. Companies with extensive online presence and numerous positive reviews may dominate search results, potentially overshadowing newcomers. This competitive dynamic could result in periods with minimal or no lead inquiries for newer entrants. However, despite these challenges, the minimal financial risk associated with LSAs makes them a worthwhile investment. Getting started early allows businesses to build credibility over time, improve their online presence, and strategically position themselves for future success in local markets.

*LSA Results

Cost-per-Lead: ~ $25 - $40

Conversion Rate: ~ 30% to 45%

Cost per Sale: ~ $55 - $133+

Google Ads / PPC

Google Ads, also known as Pay-Per-Click (PPC) advertising, offers HVAC businesses a highly targeted method to generate leads online. Continuing with our example of Orlando, Florida, clicks can range from $25 to $50 or more per click, depending on competition and keyword competitiveness. This isn't the cost per lead, but per click (each person that clicks on your ad that lands on your website). This form of advertising allows you to directly target customers actively searching for HVAC services. Effective management of Google Ads campaigns can yield substantial returns on investment, making it a powerful tool for HVAC companies looking to attract motivated customers. However, without extensive knowledge of keyword targeting, bid management, and ad quality optimization, businesses may struggle to achieve a positive return on investment. You can waste lots of money on this platform without proper expertise. 

Choosing a marketing agency with extensive knowledge of the HVAC industry is crucial for maximizing the effectiveness of your advertising efforts. At New Heights , we understand the unique dynamics of the HVAC market, ensuring that our Google Ads campaigns are precisely targeted to attract qualified leads. With a proven track record of converting clicks into actionable leads at rates between 20% to 35%, we optimize every aspect of your campaign—from keyword strategy to landing page design—to deliver cost-effective results that drive growth and profitability for your business. Partnering with us means leveraging our expertise to navigate the competitive landscape of online advertising, ultimately maximizing your return on investment and securing a steady flow of high-quality leads.

*Do-it-Yourself Results

Cost-per-Lead: ~ $167 - $312

Conversion Rate: 30% to 45%

Cost per Sale: $371 - $1040

*New Heights Results

Cost-per-Lead: ~ $61 - $100

Conversion Rate: 30% to 45%

Cost per Sale: ~ $135 - $333

*All results are based on rough estimates from various data sources. Results vary heavily from geographical location, competition, and conversion rates.