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How Trade Directories Are Funded, and What It Changes

Trade platforms are funded in one of three shapes — a recurring membership fee, a fee charged for each enquiry passed on, or a commission taken from the job — and each shape puts a different cost inside the price you are quoted: membership spreads a fixed cost across all the member’s work, a per-lead fee makes the member pay for attempts and recover it from successes, and a commission scales with the job itself.

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An emergency leak visit to a London home

What this page does and does not do

It describes three funding models structurally, and it does not tell you which model any named platform uses or what it charges. That is deliberate. Every platform publishes its own current fee terms on its own site, those terms change, and we were not able to read those pages directly, so we are not going to describe them from memory or from search results. Go and read the fee page of whichever platform you are considering. It is the single most informative page on any of these sites and it is usually two clicks from the "join as a trade" link.

What we can do is the arithmetic, because arithmetic does not need a source.

The three shapes

ModelWhat the trade pays forWhat the trade is buyingWhat it does to your quote
Membership subscriptionA recurring fee to be listed, usually annual or monthlyPresence. The cost is the same whether the member wins one job or fiftyA fixed overhead spread across all of that member's work, so the per-job effect falls as the member gets busier
Fee per leadA charge each time an enquiry is passed to themAttempts. The fee is charged on the introduction, not on the outcomeThe member has to recover the cost of the leads it lost as well as the one it won, out of the jobs it wins
Commission on the jobA percentage or margin taken from the workOutcomes. Nothing is paid until something happensScales with the job, so the larger the work the larger the amount sitting inside the price

Most real platforms are a blend. A subscription with paid promotion on top, or a lead fee that varies with the size of the job, or a commission model with a membership floor. The shapes are a way of reading a fee page, not a taxonomy anyone has to fit.

The arithmetic that matters, which is the second row

The per-lead model is the one worth thinking about, because it behaves the least like people expect.

Suppose an enquiry is distributed to four member firms, and each pays for it. Four fees are charged. One firm can win the job. That firm's price has to carry the fee it paid for the introduction it won, and across the year, the fees it paid for the introductions it lost. If a firm converts one lead in four, its advertising cost per job is four lead fees, not one. If it converts one in eight, it is eight.

That is the identical shape to paid search, which we have already set out with measured London numbers in what the sponsored result costs you. You pay for attempts and you recover from successes. The only difference is the unit: a click there, an introduction here.

It has one visible consequence for you, and it is not a price. It is how many people ring back. If you fill in one form and four firms call within twenty minutes, the model is working exactly as designed. That is a genuine advantage if you want competing quotes on a kitchen refit. It is a genuine nuisance if there is water coming through a ceiling and you want one van.

The subscription model runs the opposite way and is easier to live with. A fixed annual fee divided across sixty jobs is a small number per job; divided across six it is a large one. So the cost per job falls as the member gets busier, which means an established subscriber carries less of it in each price than a new one does. Nothing about that is visible from the outside, which is why a subscription-funded listing tells you very little about the price you will be quoted.

A commission model is the most transparent of the three in one respect and the least in another. Nothing is charged until work happens, so nobody is recovering the cost of failed attempts from you. But the amount scales with the job, so the larger the work, the larger the sum sitting inside the figure, and on a job that turns into detection plus repair plus reinstatement that can compound in a way a flat lead fee does not.

Where the money comes from decides who the platform answers to

This is the structural point, and it is arithmetic rather than motive. A platform funded by the trades it lists has its revenue relationship with the trades. A platform funded by the consumers who read it has its revenue relationship with the consumers. Neither arrangement makes anyone dishonest, and plenty of trade-funded platforms run serious complaints processes and remove members. But the two arrangements point different ways when a decision is finely balanced, and knowing which one you are standing in front of costs nothing.

Consumer-funded bodies exist in this country and work differently for that reason. So do government-endorsed and Trading-Standards-approved schemes, which are funded by members but must meet externally set criteria to keep the badge. We have set out what each of those badges actually requires separately.

The one thing the law now forbids all three models from doing

Since 6 April 2025, publishing consumer review information in a misleading way has been a banned practice under Schedule 20 of the Digital Markets, Competition and Consumers Act 2024. The CMA's guidance gives, as an express example, a trader who "allows consumer review information to be determined or influenced by accepting commissions from the trader who is being reviewed in return for greater prominence in rankings".

Read that carefully, because it draws a real line. Selling advertising is not the issue. A labelled sponsored slot is ordinary and lawful, and a directory is entitled to sell one. What the guidance targets is a ranking that presents itself as derived from reviews when it has in fact been influenced by payment. The rule exists precisely because funding models and ratings can touch, and it is the reason a fee page and a ranking methodology page are worth reading together.

What to ask before you use any of them

  • Is the listing I am looking at paid placement? If it is, it should be labelled. If it is not labelled and it is paid, that is the problem the rules address.
  • Will my details go to one firm or several? This is the single question that predicts your next hour.
  • Is there a fee to me? On most platforms there is not, which is the point: the trade pays, so the cost reaches you through the price rather than through a bill.
  • What happens if it goes wrong? Whether there is a complaints route, whether it is free, and whether the platform can actually remove a member.
  • Who am I contracting with? The platform, or the firm that attends. This decides whose insurance responds and who you have rights against under the Consumer Rights Act 2015.

We have set out how each intermediary model behaves once you are past the form in lead generation sites versus calling the firm direct, which is the practical companion to this page.

Our own position, stated plainly

We are a London leak detection and repair firm. We are not listed on a trade directory and we are not buying leads, which means we do not carry an introduction cost and you are not paying one. It also means nobody has vetted us on your behalf, which is a real disadvantage of dealing with us and the reason we published the questions to ask and the free checks, both of which work perfectly well pointed at us.

We could join any of these platforms and may one day. If we do, the cost will go into our prices, because there is nowhere else for it to go. That is the whole argument on this page, applied to ourselves.

For now: £150 per hour, agreed before we attend, the rate fixed although the total depends on the hours, and no fee for the search if we do not find the leak. Pricing has the detail.

Frequently asked

Do homeowners pay to use a trade directory?
On the common models, no. The listed trades pay, through a membership fee, a fee for each enquiry passed to them, or a commission on the work. The cost still reaches you, but through the price you are quoted rather than through a bill from the platform.
What is the difference between a lead fee and a subscription?
A subscription is a fixed recurring cost for being listed, so its per-job effect falls the busier the member is. A lead fee is charged each time an enquiry is passed on, whether or not it becomes work, so the member has to recover the cost of the leads it lost as well as the one it won.
Why did several firms contact me after one enquiry?
Because the platform distributes enquiries to multiple members, each of whom is charged for it. That is the pay-per-lead model working as designed rather than a misuse of your details. It is useful for competing quotes and unhelpful in an emergency.
Can a trade pay a directory for a better position?
A platform can sell advertising, and labelled paid placement is ordinary. What the CMA’s guidance identifies as misleading is allowing review-derived information such as rankings to be determined or influenced by commissions paid by the trader being reviewed in return for greater prominence.
Does using a directory make a job more expensive?
Not automatically. It puts a cost of introduction inside the member’s cost base, and cost base constrains a price rather than dictating one. Some firms absorb it out of margin, some cross-subsidise from other work. What changes reliably is the chain of contract and who you deal with, not the number.

Sources

No find, no fee · £150 per hour. The rate is fixed before we attend and does not rise for a difficult property, an awkward access or an evening visit. The total depends on how long the job takes; the rate cannot change.