Google Local Services Ads charge you for each valid lead, not for each click, and Google does not publish a price per lead. What you pay depends on your location, the job type, the type of lead and how you bid. In 2026 Google also started moving these ads into the main Google Ads platform as a Performance Max campaign with pay-per-lead goals, which changes how you set budgets and bids. This guide explains how the charges work and what the move changes, using Google's own help pages, read on October 31, 2026.
How you're charged
Google says you are "charged for each valid lead you receive through your Local Services ad" and that "lead prices may vary depending on your location, the job type, the type of lead, or your bidding mode" (Google: How leads work). There is no published rate card, so the only way to know your cost per lead is to run the ads and read your own reports.
Message leads, meaning texts and emails, are "typically priced lower than the corresponding phone lead price, although that's not always the case." Google prices a message lead on how likely that customer is to book you, including whether they have already contacted other advertisers (Google: How leads work).
What counts as a valid lead
Google lists these as valid leads (Google: How leads work):
- You answer a call, or call the customer back and speak with them.
- You miss a call during your business hours and the customer stays on the line for more than 20 seconds.
- You get a text, an email or a voicemail from the customer.
- You get a booking request (United States and Canada only).
A few details matter for a small crew:
- Missed calls cost money. A call you miss during business hours is charged if the caller waits more than 20 seconds. That includes a call that rolls to voicemail or a greeting, whether or not they leave a message.
- Phone menus change the timer. If your system asks callers to press a key, the 20 seconds start after the first key press. A caller who hangs up without pressing a key is not charged.
- Business hours are your Google Business Profile hours. If your ad schedule differs, a missed call is charged only when it falls inside both.
- Repeat contacts are free for 15 days. Once a lead is charged, follow-up calls or messages from the same phone number or email within 15 days are not charged again.
The 20-second rule is the one to plan around. A missed call you never return still costs you a lead. Answering every call, or having something that answers for you, turns those charges into jobs.
Credits for bad leads
Google filters spam and duplicates before charging, and then rechecks charged leads with its own models. If a charged lead is later judged low quality, it is credited automatically. Google says credits usually reach your account balance within 30 days, and the original charge still shows on your invoice (Google: automated lead credits).
Two limits are worth knowing:
- Google "no longer supports credits for 'job type not serviced' and 'geo not serviced' leads." If your job types or service area are set too wide, you pay for those calls. Keep both tight.
- You can rate each lead in a feedback survey. Google says it may occasionally credit leads you report as poor quality, but it does not promise to.
Budgets and bidding
You set an average weekly budget. Some weeks you spend more and some less, but Google says you will never pass your monthly max, which it calculates as your weekly budget times 30.4, divided by 7. When you hit the monthly max, your ad stops showing for the rest of the month unless you raise the budget (Google: How to edit your budget).
There are three bid modes in the Local Services dashboard (Google: How bidding works):
- Maximize leads. Google sets the bid to get the most leads for your budget. Google recommends a budget of at least 10 leads a week for this mode.
- Target cost per lead. Automated, with a target around the average you want to pay.
- Max per lead. A manual cap on the most you will pay for one lead.
Google says it takes about two weeks for results to settle after you change how you bid.
The 2026 move to Google Ads
Google is moving Local Services Ads into Google Ads as a Performance Max campaign with pay-per-lead goals (Google Ads Help: the transition). According to Google:
- What stays the same. You still pay per valid lead, not per click. Ads still show only on Google Search and Google Maps, in the same places, and there are still no keywords to manage.
- Timing. The first phase started in August 2026 for select US home and storefront service advertisers, including plumbing, HVAC, electrical, house cleaning, lawn care, roofing and pest control. Broader groups follow in late 2026, and remaining categories and non-US accounts in 2027.
- Notice. The account administrator gets an email 14 days before the migration date and a reminder 7 days later.
- Budgets become daily. Your weekly budget is divided by 7. Monthly spend is still capped at the daily average times 30.4.
- Manual bidding goes away. Max per lead is no longer supported after the move, and a single campaign-level target cost per lead replaces separate targets by trade. To keep separate targets for, say, plumbing and HVAC, you set up separate campaigns.
- Old reports do not move. Your past performance reports do not carry over, though your lead history and call recordings do. Google suggests saving your reports before your migration date.
- Verification carries over. If you are already verified, your status and the Google Verified badge transfer. Google says insurance and license reverification are no longer required.
If you use Max per lead today to hold your cost down, plan for the change before your migration email arrives. Decide what target cost per lead you can afford, from your own close rate and job value, so that the automated bidding works toward a number you chose.
Getting started
To advertise, a business needs a public, verified Google Business Profile and must pass Google's screening, which can include state business and owner licenses, background checks and insurance, depending on the trade and state. Google says the process takes 3 to 4 weeks on average after you submit your documents (Google: screening and verification).
Is it worth it?
Track three numbers for a month: what you paid in leads, how many leads became booked jobs, and what those jobs earned. Divide lead spend by jobs won to get your cost per job, and compare it with the job's profit, not its price. Our guide to what a service hour really costs helps with the profit side.
The same math applies to lead platforms. For how Thumbtack and Angi charge, read Thumbtack for pros, and how it compares with Angi. For the other side of that choice, read Angi leads or your own website.
Where Fasite fits
Paid leads work best when every call gets answered, because a missed call can still be a charged lead. Fasite is $199 a month, or $1,990 a year, for a done-for-you website, a 24/7 AI receptionist that books free visits, online booking, estimates, invoices and scheduling. The receptionist answers its own new number rather than your current one, so check how that fits with the number on your Google profile before you switch. The first subscription starts with a 30-day free trial, and no card is needed to start.
Frequently asked questions
How much does a Google Local Services lead cost?
Google does not publish a price. It says lead prices vary by location, job type, lead type and bidding mode (Google: How leads work). Your own reports show your average cost per lead after you start.
Do I pay for missed calls?
Yes, if the call comes during your business hours and the caller stays on the line for more than 20 seconds, including calls that go to voicemail.
Can I get money back for bad leads?
Google credits leads its models judge invalid or low quality, usually within 30 days. It no longer credits leads for a job type or area you do not serve.
What is Performance Max with pay-per-lead goals?
It is what Local Services Ads become inside Google Ads. You still pay per lead and still show on Search and Maps, but budgets are daily, manual max-per-lead bidding goes away, and you manage everything in Google Ads.
Can I still set a maximum price per lead?
In the Local Services dashboard, yes, with Max per lead. After your account moves to Google Ads, Google says manual bidding is no longer supported.