If you search for almost any home service on Google right now, the very top results are not traditional ads or organic listings. They are Local Services Ads (LSAs) with a green “Google Guaranteed” checkmark. These listings appear above everything else and they are generating an enormous share of leads. Here is everything contractors need to know about this channel.

What Are Local Services Ads

Local Services Ads are a pay-per-lead advertising product from Google specifically designed for local service businesses. Unlike regular Google Ads (pay per click), you only pay when someone actually contacts you through the ad — either by calling or sending a message.

Your LSA listing shows: your business name, review rating, years in business, operating hours, and the Google Guaranteed badge. The badge tells homeowners that Google has verified your business and will back jobs up to $2,000 if the customer is not satisfied.

How to Get Google Guaranteed

Getting Google Guaranteed requires passing Google’s screening process:

1. Background checks — Google runs background checks on the business owner and all field employees through a third party partner
2. License verification — your trade license is verified with the issuing authority
3. Insurance verification — general liability insurance must meet Google’s minimum requirements (varies by state and trade)
4. Business registration — your business entity is verified

The screening process typically takes 2 to 4 weeks. Some trades may require additional documentation. The screening is free. Google does not charge for the background check or verification.

LSA vs Regular Google Ads

For most contractors, the best strategy is running both. LSAs capture the top-of-page high-trust leads. Regular Google Ads capture the high-intent searchers who scroll past LSAs.

Maximizing Your LSA Performance

• Respond to every lead within 5 minutes — Google tracks your response time. Faster responses improve your ranking in LSA results
• Keep your review rating above 4.5 — LSA rankings are heavily influenced by review ratings. A business with 4.8 stars will rank above one with 4.2 stars almost every time
• Collect reviews consistently — Google shows your total review count in the LSA listing. More reviews = more clicks
• Dispute bad leads — if you receive a spam or irrelevant lead, dispute it in your LSA dashboard within 30 days. You get a credit for valid disputes
• Set your budget appropriately — start with a weekly budget that allows at least 10 to 15 leads per week. Too low and Google will not show your ad enough to generate results

Common LSA Mistakes

1. Not responding fast enough — a missed call or a 2-hour callback tanks your ranking
2. Not disputing bad leads — many contractors pay for every lead including wrong numbers, spam, and out-of-area requests. Dispute these to get your money back and improve your metrics
3. Setting budget too low — a $50/week budget tells Google you are not serious. Start at $100 to $200/week minimum
4. Only operating during business hours — LSAs favor businesses with extended availability. If you can handle after-hours calls (even using an answering service), it helps

More Resources for Home Service Businesses

• Professional Website Design
• SEO Services
• Google Ads Management
• Google Business Profile Optimization