The lead-gen model, explained
Platforms like hipages, ServiceSeeking, and Oneflare work on a simple model: homeowners post jobs, tradies pay to see the lead. Prices range from $15 for a small job to $100+ for larger projects.
The platform makes money every time a tradie buys a lead — regardless of whether they win the job. This creates some perverse incentives:
- Tradies compete on price, not quality (because the homeowner sees multiple quotes)
- The platform benefits from more competition, so they sell each lead to multiple tradies
- Tradies pay for tyre-kickers — leads that were never going to convert
- The homeowner sees the platform brand, not the individual tradie
Why AI search changes everything
When someone asks ChatGPT for a tradie recommendation, the dynamics are completely different:
No lead fees. AI recommends based on quality and relevance, not who paid the most.
Direct recommendations. Instead of "here are 5 plumbers, pick one," AI says "I'd recommend this plumber because..." — it's closer to a friend's recommendation.
The tradie gets the credit. AI recommends *you*, not the platform. Your name, your reviews, your credentials.
Quality beats quantity. Five detailed reviews from real clients are worth more than 500 anonymous star ratings.
The numbers tell the story
Consider a typical tradie on a lead-gen platform:
- Pays $50/lead average
- Buys 20 leads/month = $1,000/month
- Wins maybe 5 of those jobs (25% conversion)
- Cost per acquired client: $200
Now consider a tradie with a strong Quoteable profile:
- AI recommends them to relevant homeowners
- Homeowner contacts them directly (no lead fee)
- Higher conversion rate because the recommendation was personalised
- Cost per acquired client: $0
This doesn't mean lead-gen dies overnight
hipages is a publicly traded company with millions of users. They're not going anywhere tomorrow. But the trend is clear: the share of people who start their search with AI is growing every quarter, and every one of those searches is a lead that doesn't flow through the traditional platforms.
What to do about it
You don't have to choose one or the other. But you should be hedging:
- Build your AI presence now — create a Quoteable profile, update your Google Business Profile, get detailed reviews
- Track where your leads actually come from — you might be surprised how many are already AI-referred
- Reduce your lead-gen dependency gradually — as AI-sourced work grows, you can spend less on paid leads
- Invest in your reputation, not your ad budget — the assets that AI values (reviews, credentials, project photos) are the same assets that build genuine word-of-mouth
The tradies who will thrive are the ones who build a reputation that AI can find and recommend. That's not a technology play — it's just good business.