Picture this: It’s a Tuesday morning. You’ve just poured your first cup of coffee, ready to tackle a few service calls and then… DING. Your buddy from across town texts:
“Why aren’t you running those Google Guaranteed ads? They’re getting me calls every day!”
Cue the curiosity—and maybe a little FOMO. You start Googling. You dive into the forums. And suddenly, you’re knee-deep in blog posts and YouTube tutorials about Google Local Service Ads (LSAs).
Should you do it? Are they worth the money? Will it work for your service business? What do you need to know first?
If you’re reading this guide, you’re asking all the right questions. And because we’ve worked with dozens of contractors who’ve tried LSAs—some with great success, some not—we’re going to give it to you straight: no fluff, no sales pitch.
You’ll learn what LSAs are, what setup really involves (hint: background checks and paperwork), what they actually cost, and whether or not they make sense for your business. You’ll also learn the common pitfalls that drive some contractors nuts—and how to avoid them.
By the time you’re done, you’ll have a clear picture of whether Google LSAs belong in your marketing mix.
So what are Google Local Service Ads, anyway?
LSAs are pay-per-lead ads that show at the very top of Google when a customer searches for services you offer—above the map pack, above standard Google Ads.
You’ll typically see a little row of listings: a business name, star rating, phone number, and that coveted green badge that says “Google Guaranteed.”
That badge matters—it gives potential customers a sense of trust before they even call you. And unlike Google Ads where you pay for clicks, with LSAs you pay only when a lead actually calls or messages you through the ad.
Why contractors love them:
- They put you at the top of Google—instantly.
- They build trust with the “Google Guaranteed” badge.
- You pay per lead, not for impressions or clicks.
But there’s more to this story…
How do you get started?
Unlike regular Google Ads, you can’t just throw up a credit card and start running LSAs overnight. Google requires a full verification process to ensure that customers are getting qualified, safe, and legit businesses.
Here’s what that involves:
✅ Proof of business licensing
✅ Proof of liability insurance
✅ Verification of trade licenses (if required in your area)
✅ Background checks on business owners and key employees
This part can take a few weeks—and it’s critical to tell your team in advance, because those background checks will require their personal information. If your team ignores the emails or misses the deadlines, your whole setup can stall for weeks or months.
Once you’re approved, your LSA listing goes live. You can set your weekly budget, adjust service areas, and choose categories (like HVAC, plumbing, electrical, roofing, pest control—you name it).
But here’s where it gets real…
In Our Experience: What Contractors REALLY Need to Know About LSA Costs
On paper, LSAs sound amazing—pay per call, show up first, build trust.
But here’s what you need to know (and what Google doesn’t always tell you):
👉 These leads are expensive.
In our experience, contractors regularly pay $30–$60 per call—sometimes more for competitive categories. One of our HVAC clients recently paid $75 for a single lead in peak summer.
👉 You won’t win every dispute.
If you get charged for a bad lead—say, someone looking for a service you don’t offer—you can dispute it. But in reality? Google doesn’t always side with you. Some categories are vague. Sometimes a customer clicks the wrong service. And yes, you may get stuck paying for calls you didn’t want.
👉 Budget control isn’t perfect.
Even if you set a weekly budget, there are days when your spend can spike. You need to monitor this closely or you’ll end up with a surprise credit card bill.
👉 Not every lead turns into a job.
This sounds obvious, but many contractors forget: You might pay $50 for a call, but if the customer doesn’t book, you’re out that $50. If you don’t answer fast enough, or if your team misses calls, your money is going up in smoke.
So… do LSAs work?
They CAN work, absolutely.
We’ve seen contractors close big jobs from LSA leads—jobs worth thousands that easily cover the lead costs.
We’ve also seen contractors lose money because they didn’t have a good call-handling process or expected every lead to be golden.
If you’re disciplined—answer every call, follow up fast, and track results—LSAs can absolutely be part of a winning marketing strategy.
If you’re hoping it’s a set-it-and-forget-it system? You’ll be disappointed.
Can you run a service business without LSAs?
Yep! Many do—and successfully.
Some of our best clients dominate through:
- SEO (ranking organically in local search results)
- Google Ads (pay-per-click with more control)
- Social media marketing
- Referral programs and repeat customers
You don’t HAVE to run LSAs to grow—but if you’re in a highly competitive market, or trying to expand fast, LSAs can help you grab more leads… if you manage them carefully.
Tips for Success
- Train your team to answer LSA calls promptly. Google tracks responsiveness—slow responses can tank your rankings.
- Dispute wisely. Keep an eye on your billing, but understand you won’t win every bad lead dispute.
- Use call tracking tools or a CRM to measure how many calls turn into jobs. Don’t rely on guesswork.
- Mix your marketing. Don’t depend solely on LSAs. Balance them with SEO, PPC, social, and offline strategies.
Real-Life Example
One of our plumbing clients in a mid-sized market:
- Weekly budget: $1,000
- Average cost per lead: $40
- Leads per week: ~25
- Booked jobs: ~15
- Average ticket: $350 per job
Net? Roughly $5,250 in revenue for $1,000 in spend—a solid return. But it took three months of tweaking to get there.
Another HVAC client in a larger market struggled because their team wasn’t answering calls consistently—and burned $500 on junk leads in two weeks. Lesson learned: LSAs demand attention.
The Final Word
LSAs are not magic. They can absolutely drive leads—but you have to know what you’re getting into:
✔️ Expensive calls
✔️ Some wasted spend
✔️ Required team discipline
✔️ No guarantees on disputes
If you’re prepared for all that—and have a strong close rate—LSAs can be worth it. If you’re stretched thin or hate Google’s “system”? You may want to hold off and focus on organic and paid search instead.
Either way—don’t just jump in blind. Do your homework, test small, and monitor results like a hawk.
And if you want an extra set of eyes or a pro to help you set it up? We help contractors every week with this exact thing. Just reach out—we’re happy to chat.
