The Lead Generation Trap: Why You’re Working for the Middleman
If you’re a sparky in Chermside, a plumber in Coorparoo, or a landscaper in Logan, you know the drill. Your phone pings. It’s a notification from Hipages or ServiceSeeking. A homeowner needs a job done. You pay $20, $40, or even $60 just for the chance to talk to them.
You call immediately—sometimes while you’re halfway up a ladder or finishing your lunch—only to find out four other blokes have already called. Or worse, the customer was just 'price shopping' and has no intention of booking.
I’ve sat down with dozens of Brisbane business owners who are fed up. They feel like they’re on a treadmill, running faster and faster just to stay in the same place. They’re winning work, sure, but after you subtract the lead fees, the time spent quoting against five competitors, and the fact that these customers usually choose the cheapest price, there’s bugger all profit left.
Here’s the hard truth: when you rely on these lead sites, you aren't building a business. You’re buying a job. And you’re paying a massive 'success tax' to a tech company that doesn't care if you make a profit or not.
The Real Cost of 'Cheap' Leads
Most tradies look at the cost of a single lead and think, "It’s only 30 bucks, if I get the job it pays for itself."
But that’s not how the math works in the real world. To see the true cost, you have to look at your 'all-in' expense. Let’s say you buy 10 leads at $30 each. That’s $300. Out of those 10, you might get through to six people. Three might actually want a quote. You win one job.
That one job didn't cost you $30. It cost you $300 in fees, plus the three hours you spent driving around quoting the others, plus the fuel, plus the frustration.
If that job was a $1,000 repair, you’ve already lost 30% of your revenue before you’ve even bought materials or paid your apprentice. This is why so many local businesses struggle to grow. They are stuck chasing cheap jobs instead of building a brand that attracts high-value customers who are happy to pay for quality.
Mistake #1: Racing to the Bottom on Price
The biggest problem with lead-sharing sites is that they train customers to view you as a commodity. When a homeowner posts a job on these platforms, the system encourages them to get three quotes.
What happens next? You and two other local tradies get into a bidding war. Because the customer doesn't know you, hasn't seen your work, and hasn't been referred by a mate, they only have one metric to judge you on: the number at the bottom of the quote.
You didn't start your business to be the cheapest guy in Brisbane. You started it to provide a great service and build a life for your family. Competing on price is a losing game. There will always be someone hungrier, someone working out of the back of a 2005 Hilux with no overheads, who will underbid you.
Mistake #2: Not Owning the Relationship
When you get a lead from a third-party site, that customer belongs to the site, not you. If you want to talk to them again next year for a service or a follow-up, the platform often stands in the way.
Compare that to a customer who finds your website directly. They’ve read your 'About Us' page, they’ve seen photos of your team working on a house in Paddington, and they’ve decided you are the expert they want. When they call you, the sale is already half-done. They aren't looking for three quotes; they’re looking for a start date.
How to Break Free: The 3-Step Plan
If you want to stop wasting money on leads that go nowhere, you need to shift your focus. You need to stop renting your customers and start owning your local market. Here is how you do it.
1. Build a Digital Shopfront That Actually Works
Your website is your 24/7 salesman. If it looks like it was built in 2010, or if it doesn't work on phones, you are flushing money down the toilet.
I see this all the time: a plumber spends $1,000 a month on ads or leads, but sends them to a website that is broken, slow, or doesn't have a clear phone number. It’s like inviting someone to your showroom and then locking the front door.
If you’re wondering why your website isn't making the phone ring, it’s usually because you haven't given the customer a reason to trust you. You need clear photos of your work, local reviews, and a very obvious way for them to contact you immediately.
2. Focus on Your Local Backyard
Google loves local businesses. If someone in North Lakes searches for "electrician near me," Google wants to show them a great electrician in North Lakes—not a lead-sharing site that’s going to sell their data to five different people.
You can win this battle by showing Google you are the local authority. This doesn't require a degree in computer science. It requires: - Having a Google Business Profile that is fully filled out. - Asking every happy customer for a review (and responding to them). - Posting photos of your jobs in specific Brisbane suburbs.
When you show up in those top three 'Map' results on Google, you get the phone calls for free. No lead fees. No competition. Just a direct line from a local customer to your pocket.
3. Stop Chasing, Start Attracting
Instead of chasing $200 repair jobs on lead sites, you should be positioning your business to win the big stuff. Whether you are a builder, a renovator, or a high-end landscaper, your marketing should reflect the quality of work you do.
We’ve seen businesses transform by simply changing how they present themselves online. Instead of saying "We do everything," they say "We specialise in luxury bathroom renovations in Brisbane’s Western Suburbs." Suddenly, they aren't chasing work anymore; the right customers are seeking them out because they want the specialist, not the generalist.
The Reality of the Transition
I’m not going to tell you that you can flip a switch and cancel Hipages tomorrow. If that’s your only source of work, you’d be out of business by Friday.
But you should have a goal to reduce your reliance on them every single month.
Month 1-2: Fix your website and your Google profile. Start gathering reviews like your life depends on it. Month 3-4: Start running your own targeted local ads. These aren't lead fees; you are paying to show your brand to people searching for exactly what you do. Month 6: You’ll notice that the quality of your enquiries has changed. People will stop asking "How much?" and start asking "When can you come out?"
It takes a bit of time and an initial investment in your own brand, but the payoff is huge. You’ll save thousands in lead fees, and more importantly, you’ll have a business that you actually own.
What’s a Waste of Money?
While we’re on the subject of wasting money, let’s talk about what else doesn't work for tradies: - Yellow Pages: It’s a doorstop. If you’re still paying for a listing, cancel it today. - Generic Facebook 'Boosted' Posts: Unless you’re targeting a specific offer to a specific local audience, you’re just giving Mark Zuckerberg a donation. - Cheap Overseas SEO: If someone from overseas emails you promising the #1 spot on Google for $99, delete it. They will likely get your site banned or do nothing at all.
Your Next Step
Look at your bank statement from last month. Add up every dollar you spent on Hipages, ServiceSeeking, and other lead sites. Now, look at how many of those jobs actually turned into a decent profit after you factored in your time quoting.
If the math doesn't look good, it’s time to stop renting your leads and start building your own lead-generation machine.
At Local Marketing Group, we help Brisbane tradies and service businesses get off the lead-site treadmill. We build websites that work on phones, get you found on Google, and make sure when someone needs a pro, they call you first.
Ready to take control of your business? Contact us today and let’s talk about how to make your phone ring without paying for every single lead.