What is the difference between pay per lead and pay per call?
The difference is what the business pays for:
- Pay per lead charges for each customer inquiry that meets the seller's definition of a lead. Depending on the seller, that can include web forms, quote requests, text messages, booking requests, and phone calls.
- Pay per call charges only for inbound phone calls that meet the seller's rules. The most common rule is a minimum call length, so short calls and hang-ups aren't billed.
Under both, the business doesn't pay for clicks that never turn into contact. In both, the seller's written definition of a billable lead or call decides what the business pays.
How does pay per lead work?
The business sets a budget and pays a price for each lead it receives. Google Local Services Ads are a documented example. Google says "you pay for valid leads," and lists what counts, including a text message or email from the customer, a voicemail, a phone call you answer, a missed call you return, and a booking request.
Google also sets rules for leads it won't charge or will credit. It says leads "determined to be invalid or low quality are not charged," and that charged leads may be credited automatically if they're later judged low quality.
Billing rules can change. Google notified Local Services Ads advertisers in August 2026 that, starting October 1, 2026, missed calls during business hours are charged as valid leads when the caller stays on the line for more than 20 seconds, with some exceptions. See what are Local Services Ads.
How does pay per call work?
The business pays for phone calls that pass the seller's qualifying rules. Terms vary by seller, but the setup usually follows these steps:
- The seller runs ads or listings that show a phone number it controls.
- Calls to that number are forwarded to the business.
- The seller measures each call, usually by length.
- Calls that meet the threshold are billed.
The same measurement idea appears in Google Ads call reporting, which can count a call as a conversion when it lasts "longer than a minimum duration you set." In Google Ads that setting controls conversion counting, not billing, but it shows why call length is used: short calls rarely include a real conversation.
Which model is better for a moving company?
It depends on how customers contact the business and how it books jobs:
| Question | Points toward pay per lead | Points toward pay per call |
|---|---|---|
| How do most customers reach you? | Forms, quote requests, and texts | Phone calls |
| Can you respond to forms quickly? | Yes, with alerts and a callback process | No, phone is the main channel |
| What do you need to quote a move? | Details collected in a form | A conversation |
Neither model guarantees booked jobs. Under both, a lead or call that's billed may be a customer who is only comparing prices, is moving outside your area, or never answers a callback.
How should a business compare lead sources?
By cost per booked job, not cost per lead. For each source:
- Add up total spend for the period.
- Count the leads or calls it delivered.
- Count the jobs booked from those leads, using call tracking and the CRM.
- Divide spend by booked jobs.
A source with a higher price per lead can still cost less per booked move if its leads book more often. Response time also changes the result; see what is speed to lead.