The 3 Marketing Channels Bleeding Your Home Service Business Dry (And Where to Invest Instead)

Your marketing budget is being drained by vampires.

Not the Halloween kind—the business-killing kind that promise leads, deliver headaches, and leave you wondering why your bank account looks like a crime scene.

Here's what's happening: Home service businesses are throwing money at marketing channels that worked great five years ago but have turned into absolute budget black holes in 2024-2025.

Google Ads costs jumped 19% last year. Roofing contractors now pay an average of $186 per lead on PPC. Lead generation platforms like Angi and HomeAdvisor are selling the same lead to 3-4 contractors—and charging all of you. Facebook leads are cheap but convert at dismal rates because homeowners filled out a form while scrolling cat videos at 11 PM, not because they actually need your service right now.

Meanwhile, your competitors who figured this out are crushing it with completely different strategies.

At GlassHouse, we work with hundreds of home service businesses—pest control companies, roofers, HVAC contractors, power washers, and window cleaners. We've seen the data. We know what's working and what's just bleeding money.

Let's talk about the three biggest marketing vampires draining your budget, and then we'll show you exactly where the smart money is going instead.

Marketing Vampire #1: Google Pay-Per-Click Ads

The Lure

Google Ads promises high-intent leads. Someone searching "emergency plumber near me" is ready to buy, right? With Google dominating 91% of search market share, it feels like you have to be there or you'll miss out.

Why It's Draining Your Budget

The costs have exploded. In 2024, the average cost-per-conversion on Google Ads jumped 19% across home services. HVAC saw a 16% increase. Electrical contractors got hit with a 23% spike.

Let's put real numbers on this:

• Average cost per click for home services: $6.50

• Roofing companies: $11+ per click, with leads averaging $186 each

• HVAC, plumbing, construction: $70-90+ per lead

If your close rate is 20% (which is optimistic), you're spending $350-450 to acquire one customer from Google Ads. Can your margins handle that?

But it gets worse: Click fraud is stealing 22% of your budget.

Studies estimate that roughly one in every four clicks on your ads comes from bots, competitors, or fraudulent sources. You're literally paying for clicks that will never become customers. While Google refunds some invalid clicks, plenty slip through.

Half of all web traffic is non-human. Your competitors know that clicking your ads a few dozen times will drain your daily budget. And you're paying for every single click.

The conversion problem nobody talks about:

Here's the dirty secret: 75% of home service businesses saw their Google Ads cost-per-click increase recently, but conversion rates haven't improved to compensate. You're now paying 20% more to get the same number of contacts.

And here's the kicker—fewer than 4% of home services advertisers track beyond basic lead forms. That means 96% of businesses running Google Ads have no idea if those "leads" actually turned into paying customers or just vanished into thin air.

Most contractors focus on volume: "The phone is ringing! We got 50 leads this month!"

But when you actually track how many of those 50 leads became jobs, the math gets ugly fast.

Common pitfalls that make it worse:

• Broad keywords that attract tire-kickers ("plumber" gets clicks from DIYers watching YouTube tutorials)

• No geo-targeting, so you pay for clicks from three counties away

• Campaigns running 24/7, burning budget at 3 AM when your phone goes to voicemail

• Chasing the #1 ad spot, which costs 3x more but often produces worse cost-per-acquisition than position #2 or #3

The Bottom Line

Google Ads can work—but for many home service businesses in 2025, it's become an insatiable monster. You're paying significantly more year-over-year for leads, and a chunk of that spend evaporates to click fraud or low-intent searchers.

Unless you're tracking true ROI (actual jobs won and revenue generated) and have the margins to sustain $100+ per lead, PPC can turn into "Pay-Per-Chance."

Even Google's Local Services Ads—which charge per lead instead of per click—saw costs jump from $50 to over $60 per lead in the past year. The platform knows you need them, and they're pricing accordingly.

Marketing Vampire #2: Facebook & Instagram Ads

The Lure

Facebook and Instagram promise easy leads at bargain prices. With 3 billion users and the ability to target local homeowners by demographics, it seems perfect for small businesses.

The numbers look great on paper:

• Facebook's cost-per-click is often 50-60% lower than Google's

• Average cost per lead: $22 vs. Google's $66

• You could theoretically get 3 Facebook leads for the cost of 1 Google lead

Who wouldn't want that deal?

Why It's Draining Your Budget

The brutal truth: cheap leads that don't convert are expensive.

Homeowners scrolling Instagram aren't actively looking for a contractor—you're interrupting them. Many will tap a lead form out of curiosity or because they saw a coupon, but they have nowhere near the intent of someone searching "AC repair near me now."

Contractors consistently report that Facebook leads ghost them. People don't answer calls. They forgot they filled out the form. They were "just looking" and won't be ready for months.

Here's the math that kills you:

If 1 in 5 Facebook leads turns into a customer versus 1 in 2 Google leads, suddenly that $22 Facebook lead isn't cheaper than the $66 Google lead. You need to generate way more Facebook leads to get the same number of actual jobs—and that volume requirement erases any cost advantage.

The targeting disaster nobody talks about:

Apple's iOS 14.5 privacy update in 2021 devastated Facebook's targeting capabilities. The platform lost the ability to track user activity across apps and websites, which means it can't identify potential customers as accurately.

Custom audiences shrank. Retargeting became less effective. Facebook's algorithm lost visibility into who actually became a customer, so it got worse at finding similar people.

The result? A 2023 study found that 57% of Facebook advertisers experienced lower ad performance due to iOS privacy changes. You're casting a wider, less precise net—spending more money on unqualified people.

Lead fatigue is real:

Unlike Google search where new people search every day, Facebook shows your ads to the same local audience repeatedly. After a while, people get ad fatigue. If they've seen your ad three times without clicking, the fourth impression is just burning money.

And if they did click once but didn't hire you, showing them more ads might just be annoying them.

The nurturing problem:

Facebook leads need hand-holding. That person who inquired about house painting at 10 PM isn't scheduling an estimate tomorrow. They're in research mode, maybe considering "someday," or just price shopping.

Without a robust follow-up system—multiple calls, texts, emails over weeks—those leads go cold. Most contractors don't have the time or systems for that level of nurturing, so the leads "die on the vine" and the ad money is wasted.

The Bottom Line

Facebook and Instagram ads can deliver volume, but the conversion funnel is where budgets quietly bleed out.

If 100 social leads at $20 each ($2,000 spend) only yields 2-3 closed jobs, your true cost-per-acquisition is $667-1,000. That's not sustainable for most businesses.

The vampire here is the illusion of success. You get excited about "50 leads from Facebook this month!" without realizing that only a handful turned into actual revenue.

Social ads work—but only if you have intensive nurturing systems, quick response times, trust-building content, and patience. Without those, your Facebook ad budget is basically buying a list of names that never become paying customers.

Marketing Vampire #3: Lead Generation Platforms (Angi, HomeAdvisor, Thumbtack)

The Lure

Third-party lead generation services promise to do the heavy lifting for you. "We find customers, you just pay for the leads."

For busy contractors without marketing expertise, it sounds perfect. No need to build a website or run ads—just buy leads that match your trade in your area.

Why It's Draining Your Budget

This might be the worst vampire of all three.

The cost problem:

Angi/HomeAdvisor leads typically cost $15-85+ each depending on job type and market. Specialized leads (remodeling, roofing) can exceed $100.

But here's the killer: you're often competing with 3-4+ other contractors for the same lead.

The moment a homeowner submits a request, it's broadcast to multiple companies. Only one of you can win the job, but all of you paid for the lead.

Let's say you spend $500 for 10 leads at $50 each. You're able to contact 2 people (the rest don't answer). You close 1 job. Your effective cost-per-acquisition is $500 for that single customer.

Can your business survive that math?

The quality nightmare:

Beyond the competition, the quality of leads is often abysmal. Contractors report:

• Tire-kickers who are "just getting quotes" with no intention of hiring soon

• Wrong service requests (you're a plumber, they sent you a carpentry lead)

• Fake leads—spam entries or duplicate submissions

• People outside your service area

• Dead phone numbers

One cleaning business owner said he "grew tired of calling and requesting a refund every other day" for bogus Angi leads and eventually quit the platform entirely.

You still get charged for junk leads.

Sure, you can request refunds—but there's a short window, the platform might deny your claim, and it's extra admin work that costs you time. Many contractors just eat the cost of bad leads because fighting for refunds is exhausting.

The shady practices:

Angi/HomeAdvisor have faced multiple lawsuits alleging deceptive practices:

• Creating fake contractor profiles on other sites to funnel leads back to HomeAdvisor (which they then charge you for)

• Misrepresenting lead validity

• Difficult cancellation policies and auto-renewals

• Early termination fees on year-long contracts

When a platform is more invested in selling leads than in your success, you feel it in wasted dollars.

The race to the bottom:

Because homeowners get multiple quotes from lead platforms, they often expect rock-bottom prices. Contractors become interchangeable commodities competing purely on price.

This erodes your margins further. You're not just paying high acquisition costs—you're also accepting lower job values because customers see you as one of four identical options.

The Bottom Line

Third-party lead marketplaces drain budgets under the guise of "pay for performance."

The consensus among experienced contractors? Use these platforms only as a short-term supplement when work is slow, not as a main channel. The moment you stop paying, the leads vanish—leaving you with nothing lasting. No brand presence. No organic pipeline. No customer relationships.

That's a truly vampiric arrangement.

Where The Smart Money Is Going: 5 High-ROI Alternatives

Enough doom and gloom. Let's talk about what's actually working.

The best home service businesses have reallocated their marketing dollars away from these vampires and into channels that consistently deliver stronger ROI.

1. Local SEO & Google Business Profile Optimization

The opportunity: Free, high-intent leads from Google.

Instead of paying per click, invest in ranking organically. When homeowners search "your service near me," a well-optimized Google Business Profile (GBP) and strong local SEO strategy put you in the Map Pack and organic results—where clicks cost $0.

The data backs this up:

• 96% of consumers use online search to find local businesses

• 78% of local mobile searches result in a purchase within 24 hours

• Complete Google Business Profiles get 4x more views and 12% more calls than incomplete ones

Unlike ads where costs inflate every year, ranking higher is the "gift that keeps on giving." Once you're at the top, you stay there with modest ongoing effort.

What to do:

• Claim and fully complete your Google Business Profile

• Add photos weekly

• Post updates regularly

• Respond to every review

• Build citations across local directories

• Create localized content on your website

Many contractors report that the majority of their best leads now come via organic Google searches and referrals—not paid ads.

2. Referrals & Repeat Business

The opportunity: Your existing customers become your sales force.

The cheapest lead is the one you don't have to pay for. Over 52% of small businesses cite referrals as their #1 source of new customers—and referrals convert to sales 5x more often than other leads.

Why? Because referred customers come in pre-sold on trust.

The math is incredible:

A past customer who had a great experience refers their neighbor. That neighbor calls you already trusting you'll do good work. Your close rate is 60-70% instead of 20-30%.

Plus, 61% of SMBs report that more than half their revenue comes from repeat customers. If you're not marketing to your existing client list, you're forcing yourself to chase expensive new leads constantly.

What to do:

• Create a formal referral program: "$50 off for you and your friend"

• Ask for referrals at project completion

• Send follow-up emails asking satisfied customers to refer neighbors

• Stay in touch with past clients through newsletters

• Offer maintenance plans and seasonal reminders

One simple email to 500 past customers promoting a seasonal special can generate dozens of bookings at virtually zero acquisition cost.

3. Hyper-Local Community Marketing

The opportunity: Be the hometown hero.

Rather than blasting generic ads, focus on highly localized platforms where your marketing gets amplified by trust.

Nextdoor is a goldmine. It's a neighborhood social network where residents ask for and recommend local services. A Nextdoor Business page lets you interact authentically with locals, and leads from there often come pre-warmed: "John down the street said you did a great job on his siding."

Other tactics:

• Engage in community Facebook groups

• Sponsor local events (little league, school fairs, charity drives)

• Host free workshops at local hardware stores

• Partner with realtors, property managers, and HOA boards

These efforts build your brand locally and cost mostly your time. When one connection turns into a $10,000 contract at zero acquisition cost, the ROI is infinite.

4. Email & SMS Marketing to Your Customer List

The opportunity: High ROI, low-cost follow-ups.

Sending an email or text blast to 500 past customers costs virtually $0 and can generate a rush of repeat jobs immediately.

Compare that to spending $500 on ads for a handful of leads.

The stats:

• Email yields an average $36 ROI for every $1 spent

• Text message open rates are 90%+ within minutes

A lawn care company texts all customers from last year offering an early-bird discount to renew service—instantly filling their spring schedule without a single ad.

What to do:

• Build and maintain your customer email list

• Send seasonal promotions and maintenance reminders

• Automate follow-ups to new leads

• Share helpful content (not just sales pitches)

• Use your CRM's built-in email/SMS tools

This is about cultivating leads and repeat sales from your own ecosystem—not paying Angi for leads that don't know you.

5. Targeted Outbound Sales (Digital Door Knocking)

The opportunity: Proactive outreach in neighborhoods you're already serving.

Here's what most contractors are completely missing: When you finish a job in a neighborhood, you have instant credibility with every house on that street.

You've got social proof. You've got proximity. You've got relevance.

The problem? Most contractors pack up and leave without capitalizing on that advantage.

This is where digital door knocking comes in—targeted, personalized outreach to homeowners in neighborhoods where you just completed work.

Instead of hoping homeowners call you, you're calling them first. Instead of fighting over expensive leads with competitors, you're building relationships before anyone else knows there's opportunity.

Think about it:

• Traditional lead gen: Pay $100 for a shared lead, compete with 3 others, close rate 20%

• Digital door knocking: Reach out to 50 homes near your last job, target high-value prospects, close rate 40%+

This is exactly what we built GlassHouse to do: Help home service businesses identify ideal customers in target neighborhoods and reach out with messages that convert.

The businesses crushing it right now aren't waiting for the phone to ring. They're proactively building pipeline through strategic outbound sales.

The Bottom Line: Stop Feeding the Vampires

Here's what you need to do right now:

1. Audit your marketing ROI ruthlessly.

Calculate your cost per booked job for every channel. If Google Ads, Facebook, or Angi is costing you $500+ per customer and you can't sustain that, pause it immediately. Reallocate that budget to channels that actually work.

2. Build your organic foundation.

Invest in your Google Business Profile and local SEO. These efforts compound over time and deliver free leads for years.

3. Activate your customer base.

Implement a referral program this month. Send an email to past customers with a seasonal offer. The revenue hiding in your existing relationships is massive.

4. Get serious about outbound sales.

Stop waiting for homeowners to find you. Start reaching out to them proactively in neighborhoods where you're already working. This is how you control your pipeline instead of hoping Angi sends you something decent.

5. Track real metrics, not vanity metrics.

Clicks and impressions don't pay your bills. Track cost per booked job, customer lifetime value, and return on ad spend. Make decisions based on actual ROI.

The home service businesses winning right now aren't spending more on marketing—they're spending smarter.

They've stopped renting exposure at inflated prices and started building assets they control: their organic presence, their reputation, their customer relationships, their neighborhood dominance.

Your competitors are already doing this. They're already doing digital door knocking. They're already calling your customers' neighbors.

The question is: Are you going to keep feeding the vampires? Or are you ready to take control of your marketing and actually win?

At GlassHouse, we're on a mission to help home service businesses win more. Not just survive—actually dominate their markets through smart, targeted outbound sales.

Because the best lead isn't on Google, Facebook, or Angi.

The best lead is living next door to your last customer.

Ready to stop wasting money on marketing vampires? Learn how GlassHouse helps home service businesses turn one job into many through targeted digital door knocking. Book more jobs without bleeding your budget dry.