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Level10 Contractor Daily

The Lead Aggregation Controversy (Why Contractors Either Love It or Hate It)

πŸ“… July 15, 2025 ⏱️ 35:37 🎀 Rich Harshaw, Jason Schnelli

Chapters

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  • 0:00
    Intro: aggregated leads, a polarizing topic
  • 2:11
    What Networx does: 300 partners, 150 categories
  • 3:17
    How the optimization narrows down sources
  • 5:26
    The 90-day optimization arc
  • 7:38
    Best categories & lead volume by market
  • 9:50
    Exclusive vs shared lead pricing
  • 11:35
    Running the ROI math to a 10% cost of marketing
  • 17:38
    Enterprise vs small-business side
  • 21:36
    ActiveProspect de-duping & the 30-day window
  • 24:18
    Real-time bidding & the lead clearing house
  • 27:05
    Problems in the industry: overpromising
  • 29:20
    Set-rate expectations, automation & live transfers

Speakers

R
Rich Harshaw
Host, Level10 Contractor Daily
J
Jason Schnelli
Senior Business Development Manager, Networx Home Pro

Key Takeaways

✦

Networx casts a wide net across ~300 strategic partners (plus its own networx.com traffic) and 150+ categories, then optimizes down β€” going granular to sub-source level so it can cut what's not working without killing a whole partner.

✦

The optimization runs on a 90-day / $10K-a-month enterprise arc: month one collects data (no knee-jerk cuts), month two optimizes for set rate, month three tunes the back end off credit declines and disposition reports.

✦

Set realistic expectations: aggregated leads start around a 15% set rate and optimize into the low 20s (18% over a full year is very good) β€” nowhere near an organic lead's 60-80%, which is why undertrained small teams get frustrated.

✦

Lead economics: exclusive roofing leads run ~$151-167 (shared to no more than 4 contractors at $70-90); exclusive sets ~5 points higher, and the ROI math lands around $2,400 per closed sale at a 33% close rate.

✦

Reframe the cost objection with cost-of-marketing %: the goal is to drive clients under 15% (ideally 10-12%), at which point they're 'unloading budgets' and asking for more leads than can be supplied.

✦

Shared can beat exclusive: it's cheaper and the homeowner is less likely to keep shopping other sites, reducing the 'got called 30 times' horror story that comes from a homeowner filling out five exclusive forms.

✦

Networx integrates with ActiveProspect for de-duping (30-day reject window; a day-31 repeat signals the buyer re-entered the market) and is launching recorded 30-second live transfers β€” plumbing/electrical at $70-80, HVAC installs $80-95 in pilot.

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