Pay-per-call explained: how exclusive call leads work for local service businesses

What is pay-per-call?

Pay-per-call is a pricing model for generating customers by phone. You pay for phone calls that meet a standard you have agreed in advance. You do not pay for clicks, impressions or form fills.

Compare it with pay-per-click advertising. With pay-per-click, you pay each time someone clicks your ad, whether or not they ever call. With pay-per-call, the cost is tied to the call itself: a person phoned your business, and the call met the agreed standard.

What is a qualified call?

A qualified call is a call that meets the definition written down before you start. The definition is the most important part of any pay-per-call agreement, because it decides what you pay for.

A definition usually covers things like:

• the caller is a real customer, not a wrong number, a salesperson or a robot
• the caller is inside your service area
• the caller is asking about a service you actually offer
• in some agreements, the call lasts a minimum amount of time

Different providers define it differently, so ask to see the definition in writing. Also ask who decides when you and the provider disagree about a call.

What does exclusive mean, and why does it matter?

An exclusive lead is sent to one business only. A shared lead is sold to several businesses at once.

Shared leads create a race. The same customer may get several calls within minutes, and the business that calls first often wins. The customer may be annoyed, and you pay for a lead you might not win.

With exclusive leads, the call or lead comes to you alone. You are not competing with other buyers of the same lead, and the customer’s first conversation is with you.

How does the money work?

You agree a rate for each qualified call. The rate is not the same everywhere. It can depend on the service, the area and how much demand there is at the time.

Because the rate depends on those things, you should be wary of any provider who quotes a single price without asking about your service area and the services you want calls for.

How does a pay-per-call arrangement usually run?

The details vary, but most arrangements follow the same sequence:

1. You and the provider agree your service area, the services you want calls for, and the definition of a qualified call.
2. You tell the provider where calls should be sent and when you can take them.
3. Calls begin to reach you.
4. The provider reports the calls it counts as qualified.
5. You review the report, and raise anything you disagree with.
6. You are billed for the qualified calls, at the agreed rate.

A good arrangement lets you review the calls and adjust the definition as you learn what a good call looks like for your business.

How do you get more from the calls you pay for?

A paid call is only worth something if it is handled well. A few habits make a large difference:

• Answer fast. A caller who reaches voicemail often phones the next business.
• Be clear on your hours. Give the provider the times you can really take calls.
• Know what to say. Have a short, friendly way to ask what the caller needs and where they are.
• Follow up. If you miss a call, call back quickly.

What should you ask a provider?

Use these questions as a checklist:

1. How do you define a qualified call, and is that definition in writing?
2. Is every call exclusive to me, or are calls shared?
3. How are calls counted and verified, and can I see the reporting?
4. What happens with wrong numbers, spam, or calls outside my area?
5. Is there a long contract, a minimum spend or a lock-in period?
6. What happens if the volume is lower than expected?
7. Do you guarantee a number of calls? If so, what exactly is promised?

What are the risks?

• A vague definition. If “qualified” is not defined, you may pay for calls that were never going to become customers.
• Shared leads sold as exclusive. Ask directly, and ask how exclusivity is enforced.
• Long contracts. A long lock-in makes it hard to leave if the calls are poor.
• Promises of volume. Call volume depends on demand in your area. A guarantee of a specific number should make you ask what the catch is.

Is pay-per-call right for your business?

It tends to suit businesses that win work by phone, can answer calls quickly, and know roughly what a new customer is worth. If calls often go unanswered, the calls you pay for are wasted, so fix that first.

It is less suited to businesses that cannot take new customers, or that rarely use the phone to sell.

How does Bass Clef Media approach it?

Our lead generation service sends exclusive phone calls and leads to local service businesses, billed per qualified call. We agree the definition of a qualified call with you before we start, and we do not tie you into long lock-in contracts. We do not guarantee a number of calls, because volume depends on demand.

Good SEO is a useful companion. It helps customers find you directly, so you rely less on any single source of calls.