Local business owners hunting for new customers face a fundamental choice: purchase leads from marketplaces like HomeAdvisor and Angie’s List, or partner with companies like Hibu that create integrated marketing systems designed to generate qualified prospects. The difference between these approaches extends far beyond cost—it determines whether businesses receive genuine opportunities or share watered-down leads with multiple competitors.
Recent data reveals the stark contrast in outcomes. Hibu achieved record-breaking lead generation results for its clients in 2024, with Chief Product Officer Nick Hopkins reporting that January 2025 marked an all-time high for monthly lead totals. Hopkins said, “Client for client, we’re delivering higher results while reducing their cost per lead.”
This performance stands in sharp contrast to the troubled lead buying industry. The Federal Trade Commission ordered HomeAdvisor to pay up to $7.2 million in 2023 for deceptive marketing practices, including misrepresenting lead quality and sharing leads among multiple service providers when contractors believed they were purchasing exclusive opportunities. Service providers who join HomeAdvisor’s network generally pay an annual membership fee of $287.99, in addition to separate fees for each lead they receive.
The structural problems with lead buying platforms create inherent disadvantages for participating businesses. Leads are typically sent to multiple contractors, with industry sources indicating that HomeAdvisor sends leads to five contractors. This sharing model creates immediate competition that drives down profit margins and forces contractors to respond within minutes to maintain competitiveness.
Meanwhile, companies working with Hibu benefit from what Chief Commercial Officer Brad Wegmann describes as a fundamentally different philosophy: “The No. 1 way we support our clients is by providing measurable and positive ROI results for our clients while saving time and money.” Rather than competing for shared leads, Hibu clients receive prospects generated specifically for their businesses through integrated marketing campaigns.
Hibu’s Integrated Lead Generation Advantage
Unlike lead buying platforms that redistribute the same prospects to multiple buyers, Hibu creates customized marketing systems that generate exclusive leads for individual businesses. This integrated approach addresses the fundamental problems plaguing the shared lead model by ensuring each client receives prospects specifically attracted to their unique business offerings.
The results demonstrate the effectiveness of this methodology. Hopkins reported that Hibu achieved record-setting lead generation performance in 2024, stating, “We’re seeing strong year-over-year growth every single month – and fully expect that to continue through 2025.” More significantly, the company simultaneously reduced cost per lead while increasing lead volume—a combination difficult to achieve through traditional lead buying platforms.
Wegmann explained the company’s comprehensive approach: “We have been doing digital marketing campaigns since 2006. In that time, we launched hundreds of thousands of campaigns that allowed us to amass an immense amount of data that we can use within our platform to provide the best outcomes for small businesses.”
The integrated approach delivers measurable advantages over fragmented marketing tactics. According to Hibu’s performance data, businesses using integrated digital marketing solutions experience on average 15% lower cost per lead when their search campaigns are run with Hibu’s online presence solutions. Additionally, clients see on average 21 more calls from their Google Business Profile per month when adding display or social advertising to their foundation solution.
Client testimonials reinforce these metrics with concrete examples. According to Hibu reviews, one business owner noted substantial profit increases due to high-quality leads generated through the integrated system, reporting increased bookings months in advance. Another company documented significant sales increases within their first year working with Hibu.
Quality Over Quantity: The Results Speak
The distinction between purchasing leads and generating them through integrated marketing becomes most apparent when examining conversion outcomes and long-term business growth. While lead buying platforms focus on volume metrics—promising specific numbers of prospects per month—Hibu emphasizes lead quality and conversion effectiveness.
Data from across industries reveals the stark reality of lead conversion challenges. Studies consistently show that 79% of all generated leads never convert to sales, with 61% of marketers identifying quality lead generation as their primary challenge. These statistics help explain why businesses purchasing shared leads from marketplaces often experience disappointing returns despite receiving numerous prospects.
The integrated marketing model creates multiple touchpoints that build trust and familiarity before prospects contact businesses. Unlike shared leads from marketplaces, where homeowners often submit requests to gather price comparisons, prospects generated through integrated campaigns typically arrive with greater purchase intent and brand awareness. According to client feedback, businesses report that lead quality becomes better tailored to the customers they seek, resulting in significantly increased close rates.
Microsoft’s recognition of Hibu as its 2024 Channel Partner of the Year validates this approach on an industry level. Katherine Eills, Global Partner Marketing Director and Awards Lead at Microsoft Advertising, stated: “Microsoft Advertising is honored to present Hibu with the 2024 Channel Partner of the Year Award. The high caliber of nominations from our partners truly inspired us this year, showcasing both their collaborative nature and dedication to clients. We are excited to celebrate our winners for their outstanding and transformative work.”
For businesses choosing between purchasing leads from marketplaces and investing in integrated marketing systems, the evidence strongly favors the latter approach. Quality leads generated through coordinated marketing efforts consistently outperform shared prospects in conversion rates, customer lifetime value, and overall return on investment.
Also Read: Hibu Success Stories: How Three Small Contractors Built Million-Dollar Companies