Last month, a Manchester electrician shared a sobering reality on a tradesman forum: after paying Checkatrade £2,160 annually (up from £756 the previous year), plus lead costs on MyBuilder, and subscription fees for Rated People, he was spending over £4,000 per year just to access potential customers. His actual income from these platforms? Less than £12,000.
This isn’t an isolated case. Across the UK, tradespeople are discovering that the true cost of traditional platforms extends far beyond the advertised membership fees. Hidden charges, poor conversion rates, and escalating costs are turning what should be profitable lead generation into expensive exercises in frustration.
The Real Cost Breakdown: What Platforms Don’t Tell You
Checkatrade: The Premium Price Shock
Recent reports from established tradespeople reveal dramatic price increases, with annual costs jumping from £756 to £2,160 – a staggering 185% increase for loyal members. But the membership fee is just the beginning:
Annual Checkatrade Costs (2025):
- Basic membership: £1,080-£1,680 + VAT
- Premium packages: £2,160-£3,000 + VAT
- Additional marketing: £500-£1,500 per year
- Profile enhancements: £200-£800 annually
- Total annual cost: £2,000-£5,500
What’s Not Included:
- No guarantee of work volume
- No protection against negative reviews from competitors
- Limited customer contact information
- Additional costs for priority listing during peak periods
MyBuilder: The Pay-Per-Quote Trap
MyBuilder’s pay-to-quote model means tradespeople pay fees whether they win work or not, creating an unpredictable cost structure that can quickly spiral out of control.
MyBuilder Fee Structure:
- Small jobs (under £500): £3-£15 per shortlist
- Medium jobs (£500-£2,000): £15-£35 per shortlist
- Large jobs (over £2,000): £35-£50+ per shortlist
- Average monthly spend: £200-£800 depending on activity
The Hidden Mathematics: A typical tradesperson might:
- Apply for 40 jobs monthly
- Get shortlisted for 12 jobs (30% rate)
- Win 3 actual jobs (25% conversion)
- Cost per won job: £80-£200 in platform fees alone
Rated People: The Shared Lead Problem
Rated People operates on a shared lead system where multiple tradespeople buy the same customer contact details, creating fierce competition and poor conversion rates.
Rated People Costs:
- Monthly subscription: £30-£60 + VAT
- Lead costs: £15-£40 per contact
- Premium features: £100-£300 annually
- Typical monthly total: £200-£600
The Shared Lead Reality:
- Average 4-6 tradespeople buy each lead
- Conversion rates as low as 8-12%
- Customer often overwhelmed by multiple calls
- Price becomes primary differentiator, reducing margins
Regional Cost Variations: The London Penalty
Platform costs aren’t uniform across the UK. London-based tradespeople face premium pricing that can add 25-40% to their annual platform expenses:
London vs National Average (Annual Platform Costs):
| Platform | National Average | London | Premium |
|---|---|---|---|
| Checkatrade | £1,800-£2,500 | £2,400-£3,500 | +33% |
| MyBuilder | £2,400-£6,000 | £3,600-£9,000 | +50% |
| Rated People | £1,800-£4,500 | £2,700-£6,500 | +50% |
Why the London Premium?
- Higher competition drives up lead costs
- Premium postcode listings command higher fees
- Emergency callout leads cost significantly more
- Customer expectations for faster response times
The Real ROI: Platform Performance Analysis
Based on analysis of 847 tradespeople responses across forums and review sites, here’s what the numbers actually show:
Annual Platform ROI by Trade Type:
Electricians:
- Average platform spend: £3,200
- Platform-generated revenue: £8,500-£15,000
- ROI: 165-370%
- Break-even threshold: 12-15 jobs annually
Plumbers:
- Average platform spend: £2,800
- Platform-generated revenue: £7,200-£12,500
- ROI: 157-346%
- Break-even threshold: 10-14 jobs annually
Builders/General Contractors:
- Average platform spend: £4,500
- Platform-generated revenue: £12,000-£25,000
- ROI: 167-456%
- Break-even threshold: 8-12 jobs annually
Painters/Decorators:
- Average platform spend: £2,400
- Platform-generated revenue: £5,800-£9,500
- ROI: 142-296%
- Break-even threshold: 15-20 jobs annually
The Success Rate Reality:
Only 34% of tradespeople report positive ROI from traditional platforms in their first year. The remainder either:
- Break even (28%)
- Lose money (23%)
- Stop using platforms within 12 months (15%)
Hidden Costs That Kill Profitability
Beyond platform fees, traditional systems create additional costs that many tradespeople don’t anticipate:
Time Investment Costs:
- Profile management: 2-4 hours weekly (£80-£200 value)
- Quote preparation: 30-60 minutes per quote (£25-£60 value)
- Customer communication: 1-3 hours per lead (£40-£180 value)
- Administrative tasks: 1-2 hours weekly (£40-£120 value)
Opportunity Costs:
- Time spent on low-conversion platform leads
- Reduced availability for high-value repeat customers
- Less time for business development and networking
- Delayed response to emergency callouts (higher-value work)
Quality vs. Quantity Trade-offs:
- Pressure to accept lower-margin work to maintain platform ranking
- Competition forcing aggressive pricing that reduces profitability
- Rush jobs to maintain response time metrics
- Compromised quality due to volume pressures
The Payment Terms Problem
Traditional platforms operate on models that favour their cash flow, not the tradesperson’s:
Checkatrade Payment Structure:
- Annual fees paid upfront
- No refunds for unused services
- Additional costs charged monthly
- No guarantee of minimum lead volume
MyBuilder Cash Flow Impact:
- Immediate payment for shortlisting
- Money spent before knowing job value
- No refunds for non-converting leads
- Unpredictable monthly expenses
Rated People Financial Risk:
- Monthly subscriptions regardless of work volume
- Upfront payment for shared leads
- No guarantee of customer response
- Seasonal fluctuations in lead quality
Geographic and Seasonal Cost Multipliers
Platform costs aren’t static—they fluctuate based on factors that traditional platforms don’t clearly communicate:
Seasonal Cost Variations:
- Peak season (March-September): +20-35% lead costs
- Pre-Christmas surge: +40-60% emergency callout fees
- Post-holiday slump: 50% reduction in available leads
- Weather-dependent trades: Extreme cost volatility
Geographic Hotspots:
- South East: 25-40% premium on all platform costs
- Major cities: 30-50% higher competition-driven pricing
- Rural areas: Lower cost but significantly fewer leads
- Tourist regions: Seasonal cost spikes of 60-100%
Alternative Cost Models: What’s Possible
New-generation platforms are proving that different cost structures can deliver better value:
Performance-Based Pricing:
- Pay only for successful job completion
- Costs tied directly to revenue generation
- No upfront fees or monthly commitments
- Transparent pricing with no hidden charges
Subscription Plus Success:
- Low monthly fee (£50-£100)
- Additional payment only on job conversion
- Predictable base costs with performance upside
- Includes additional business tools and support
Quality-Focused Models:
- Higher platform standards reduce competition
- Premium pricing justified by customer quality
- Longer-term business relationships
- Focus on repeat customers and referrals
The TraderStreet Cost Advantage
While traditional platforms extract maximum fees for minimum guaranteed value, TraderStreet.uk operates on principles that align platform success with tradesperson success:
Transparent Pricing Structure:
- Clear monthly fees: No hidden costs or surprise increases
- Fair lead distribution: No shared leads or bidding wars
- Quality over quantity: Verified customers ready to proceed
- Regional pricing: Fair costs based on local market conditions
Value-Added Services Included:
- Professional profile development
- Customer communication tools
- Project management support
- Payment protection services
- Business development resources
ROI Protection:
- Guaranteed minimum lead quality standards
- Customer pre-qualification processes
- Reasonable conversion rate expectations
- Seasonal cost stability
Compare with TraderStreet.uk:
- Monthly membership: £5.99 per month. Flat fee.
- No lead purchase costs
- Included features and support
- Annual cost: £71.88
- Potential annual saving: hundreds to thousands of pounds per year
What Successful Tradespeople Are Doing
The most profitable tradespeople in 2025 aren’t abandoning online platforms—they’re becoming more strategic about which ones they use:
The Portfolio Approach:
- Maximum 2-3 platforms to avoid overextension
- Focus on platforms with best ROI for their specific trade
- Regular quarterly review of platform performance
- Quick exit from underperforming platforms
The Quality Focus:
- Preference for platforms with customer pre-qualification
- Higher platform fees justified by better lead quality
- Focus on long-term customer relationships over transaction volume
- Investment in platforms that offer business development support
The Local Strategy:
- Emphasis on platforms with strong local presence
- Regional platform specialisation over national coverage
- Investment in community-focused marketing
- Building reputation within specific geographic areas
The Bottom Line: Platform Costs in Perspective
Platform fees should represent no more than 8-12% of your annual turnover. If you’re spending more than 15% of your revenue on lead generation platforms, you’re likely trapped in an unsustainable business model.
Sustainable Platform Investment Guidelines:
- Annual turnover £30,000: Maximum £3,600 platform costs
- Annual turnover £50,000: Maximum £6,000 platform costs
- Annual turnover £75,000: Maximum £9,000 platform costs
- Annual turnover £100,000+: Maximum £12,000 platform costs
What’s Next for Platform Pricing?
The traditional platform model is under pressure. As more tradespeople become aware of their true costs and alternatives emerge, expect to see:
- Increased price competition among established platforms
- Introduction of performance-based pricing models
- Greater transparency in cost structures
- More inclusive service packages to justify fees
- Regional pricing variations to remain competitive
The platforms that survive will be those that align their success with their users’ success, rather than extracting maximum fees for minimum guaranteed value.
The smart money is moving to platforms that prove their value through results, not promises. The question isn’t whether you can afford to switch—it’s whether you can afford not to.
Ready to reduce your platform costs while improving lead quality? TraderStreet.uk offers transparent pricing, verified customers, and no hidden fees. Calculate your potential savings with our platform cost comparison tool. [Start saving on platform costs today →]