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Pay Per Appointment vs. Pay Per Close: Which Lead Model Is Right for Your Remodeling Business?
If you run a kitchen or bath remodeling company, most marketing agencies want a monthly retainer whether they deliver or not. Two models flip that around: pay per appointment and pay per close. Here is how they compare and how to pick.
The short version
| Pay per appointment | Pay per close | |
|---|---|---|
| You pay for | Each qualified appointment booked on your calendar | Jobs you actually sell from those appointments |
| Cost predictability | High: a set price per appointment | Varies with how much you close |
| Your risk | You carry the closing risk | The agency shares the closing risk |
| Best for | Contractors with a strong close rate who want simple billing | Contractors who want to pay only when work is sold |
How pay per appointment works
You agree on a price per appointment up front. The agency runs the ads, calls the leads, qualifies them, and books in-home estimates on your calendar. You pay for the appointments that were delivered, usually on a weekly basis. At BuildSignals that means your card is charged once a week for that week's appointments. No retainer, no long-term contract.
The appeal is simplicity. One of our recent clients asked one question, "how much?", agreed to a per-appointment price, and that was the whole negotiation. If you know your close rate and average job size, you can work out in a minute whether a per-appointment price makes sense: divide what you make on an average job by how many appointments it takes you to close one.
How pay per close works
With pay per close, you pay an agreed percentage of the jobs you sell from appointments the agency booked. If an appointment doesn't turn into a signed job, you don't pay for it. The agency only does well if you do, so the incentives line up.
The trade-off is tracking. Both sides need an honest record of which appointments closed and for how much. At BuildSignals every lead, appointment, and closed job shows up in a shared live dashboard, so nobody has to argue about it.
Which one should you choose?
- Choose pay per appointment if you or your sales rep close a solid share of in-home estimates and you like knowing exactly what you'll pay each week.
- Choose pay per close if your close rate swings, you're testing a new market, or you simply prefer to pay only when money comes in.
- Not sure? Start with a trial, look at how the first appointments close, then decide. That's why BuildSignals offers a free 2-week trial before you pick a model.
Questions to ask any agency before you sign
- What exactly counts as an appointment? (Look for: homeowner, budget confirmed, decision-makers present, in-home.)
- How fast do you call new leads? Minutes, not hours, matters.
- Who owns the ad account? You should.
- Is there a long-term contract?
- Can I see real results from contractors like me?
Quick answers
Is pay per appointment or pay per close better for remodelers?
Neither is better for everyone. Pay per appointment suits contractors with a strong close rate who want simple, predictable weekly billing. Pay per close suits contractors who prefer to pay only when a job is sold.
Does BuildSignals offer both?
Yes. BuildSignals offers a free 2-week trial, then you choose to pay per appointment (billed weekly) or pay per close. There are no long-term contracts.
Try BuildSignals free for 2 weeks
Then pick how you pay: per appointment or per close. No long-term contracts. Book a 20-minute call and we'll check whether your area is open.
Book a 20-minute call →Or call Leo: (213) 449-7226