What changed about LSA lead credits (and why most contractors are losing money on it)
Until mid-2024, Google Local Services Ads contractors could manually dispute bad leads through a form in the LSA dashboard. Submit a reason ("job type not serviced," "geographic mismatch," "not a real customer"), wait for review, often get the credit. It was tedious, but the policy was at least predictable.
That ended in July 2024. Google replaced manual disputes with an automated lead credit system that uses machine learning to review every charged lead within 72 hours. Credits, when granted, appear on the contractor's account within roughly 30 days. The contractor's only remaining lever is the "Rate this lead" feedback survey attached to each lead in the dashboard.
The change was not just a workflow change. Two categories that were previously creditable under manual disputes are now no longer creditable at all:
- Job type not serviced. A customer asks for a service the contractor does not offer. Previously: disputable. Now: not creditable. The fix is upstream, in the contractor's LSA service category settings.
- Geo not serviced. A customer is outside the contractor's stated service area. Previously: disputable. Now: not creditable. The fix is upstream, in the contractor's LSA service area settings.
If a contractor's categories or service area is set even slightly too wide, every resulting bad lead is now a charge with no recourse. That gap, between what Google bills and what is actually creditable, is what this tool measures.
What automated credits actually cover in 2026
Per Google's published policy, the automated system focuses on a narrower set of categories than the old manual process. Auto-credit eligibility roughly covers:
- Spam, bot, and fake calls. Google's machine learning is fairly aggressive on these. Most legitimate spam gets credited within the 72-hour review window without contractor action.
- Wrong-number calls and calls routed to the wrong business. Misdirected calls are handled by the system.
- Duplicate leads within 15 days. If the same customer calls about the same job twice and both calls are charged, the second charge is creditable. The 15-day window is hard. Calls outside it (an existing client returning months later) are not creditable.
The "Rate this lead" feedback survey is the contractor-facing input to this system. Marking a lead "Very dissatisfied" with a specific reason is a signal Google's automated reviewer weighs when deciding whether to credit. Industry reporting on the feedback-to-credit conversion rate (from sources including Ylopo and contractor community discussions) suggests roughly 15-25% of flagged bad leads result in a credit. Worth flagging every one even at that rate.
The 15-day duplicate window, explained in plain English
A duplicate-lead credit applies when:
- The same customer calls your business twice through LSA.
- Both calls are about the same job.
- Both calls are charged by Google.
- Both charged calls happened within 15 days of each other.
If all four conditions are met, the second charge is creditable. If the second call happens on day 16 or later, it is not. This is the rule that catches most existing-client scenarios: a homeowner who used you six months ago and called the LSA ad number again because they did not have your direct number. There is no credit available there. The fix is operational: route known customers off your LSA tracking number by giving them a direct office line, a cell number, or putting an alternate number on invoices and email signatures.
Verticals where lead credits do not apply
Google's LSA credit policy applies primarily to home services. Per the Google Local Services help center, lead credits are not currently available for healthcare verticals, tax specialists, or EMEA (Europe / Middle East / Africa) advertisers. If you run LSA for an excluded vertical, the verdicts this tool surfaces will not map cleanly to your account, and the dashboard math should be read as an upper bound on recoverable money.
What this tool measures, and why "true cost per lead" is the number that matters
The LSA dashboard inside Google's product shows your nominal cost per lead: total spend divided by total leads, including the trash. That number is misleading because it averages your booked-and-quoted leads with your spam, your wrong-service, your out-of-area, and your existing-client charges.
The number that actually decides if LSA is profitable for you is the cost per valid lead, which is what this tool calls "True CPL." A valid lead is anything you would actually try to sell (booked, quoted, lost to a competitor). Spam, wrong service, out of area, and non-recent existing clients are excluded because they are not real opportunities. The gap between the nominal CPL Google shows you and the True CPL the tool calculates is the wasted-lead tax. For most contractors we have seen, that gap is meaningful and the fix is upstream (service area, categories, customer routing).
From there, the cost per booked job is the metric that decides whether to scale spend. If your booked-job cost is below a comfortable fraction of your average ticket, LSA is profitable and you should spend more. If it is too high, the budget is buying activity that does not close.
What to do when you see a recommendation fire
The tool surfaces five recommendation patterns based on logged leads. Each recommendation cites the policy or signal behind it, and is phrased conservatively ("consider this, here is the tradeoff") rather than as a hard directive.
- 3+ out-of-area leads in a month. Service area is too wide. Open LSA settings, edit service area, tighten the radius or remove the outlying zip codes you do not want to serve. These leads are not creditable, so this is the only fix.
- 3+ wrong-service leads in a month. Service categories are too broad. Open LSA settings, edit services, uncheck categories you do not actually serve. Removing categories cuts total volume in those categories to zero, so only prune what you really cannot do at a profit.
- 2+ existing-client leads in a month. Repeat customers are reaching you through your paid LSA number. Operational fix: route known customers to a direct office line or your cell, and put that number on invoices and email signatures. Most of these charges are not creditable.
- Average phone-lead duration under two minutes. Short calls signal either voicemail rolls, long hold times, or scripts that lose people. Both hurt your LSA ranking (Google factors response quality into the auction) and your close rate.
- True CPL or cost-per-booked-job above conservative trade benchmarks. Surfaces the math so you can judge if LSA is profitable for your specific business. Benchmarks in the tool are intentionally rough and editable.
Related reading on LSA leads
If you want to go deeper on any of the topics this tool surfaces: