What Replaced Google Guaranteed for Contractors?

By Ryan Goering, founder and CEO of BaaDigi.

Last updated: September 2026.

Google’s rules are linked where we cite them; the cost figures are from Local Services Ads accounts BaaDigi manages.

What changed when Google Guaranteed was replaced?

Google’s current badge guidance describes a single Google Verified badge. Eligible existing advertisers that completed verification moved to the badge automatically. New advertisers must satisfy the applicable process. Google says the badge change itself does not affect Local Services Ads ranking.

Google’s notice says reimbursement requests under the old guarantee could be submitted before December 7, 2025, and had to be filed within 30 days of the initial service completion date. Do not advertise Google Verified as a new-work money-back guarantee or tell customers Google personally guarantees your workmanship.

What verification does a contractor need?

Google’s screening documentation says requirements vary by category and location. They may include background, registration, insurance, license and review checks. A universal checklist or insurance minimum would be misleading; follow the requirements shown for your business.

The documentation also describes risk-based verification for selected US advertisers, including possible accelerated verification and additional steps. Keep track of any deadlines in your account. Our recommendation is to prepare accurate business records before applying and respond promptly to requested corrections, without promising an approval date.

What should you have ready before applying?

Use the account’s requirements as the checklist. The preparation below helps your office find accurate records quickly; it does not mean every business must submit every item.

Save the request, submission date, and current status. If a task remains unresolved, ask support about that specific task instead of assuming the entire application needs restarting.

How much do Local Services Ads cost?

Your actual lead charges depend on the account and inquiry. Separate media charges, issued credits, and any agency fees in your records so you can see both advertising cost and full acquisition cost.

For scale, here is what four BaaDigi client accounts paid between 2026-06-11 and 2026-09-22: $32,835.46 for 900 leads, of which 716 (79.6%) were charged and the rest credited, disputed or declined. That is $45.86 per charged lead and $36.48 per delivered lead. One electrical account ran at $47.51 per charged lead over four months and one painting account at $40.12. Those are single accounts, not trade benchmarks, but they are real invoices rather than a forum guess. Of the 900 leads, 627 (69.7%) arrived as phone calls, and 474 of those calls (75.6%) lasted 30 seconds or more.

The budget is an average weekly budget, not a hard weekly cap. A week may cost more, subject to the monthly maximum. Google says the ad stops appearing after that monthly maximum is reached unless the budget changes. Check the displayed maximum before increasing spend.

Can you control the bid?

Google’s bidding guide lists Maximize leads, Target cost per lead and Max per lead. The target is an average-cost bidding setting; the manual maximum is a bid limit.

Choose the available setting that fits your test budget and review actual results after allowing the campaign time to run. Do not confuse a bid, an average target and the total budget.

Which spending control answers which question?

Write down the displayed limits before changing them. Assign someone to reconcile invoices with issued credits and customer outcomes. Our LSA operating and profitability guide covers that ongoing work.

What affects Local Services Ads ranking?

Google describes an auction involving the bid, likelihood of producing a lead and profile quality. Relevant factors include responsiveness, the search context, service relevance, ratings, review count, images and completed verification checks.

No official source reviewed here says that 50 reviews or a 4.5-star average guarantees a position. Our practical recommendation is to answer inquiries reliably, use accurate services and hours, and show real project and business images. Increase spend only when the economics support it.

How do lead credits work now?

Google’s automated-credit guidance explains that leads are assessed for quality and charged leads may later receive credits. It excludes credits for job types and areas not serviced. The lead-billing documentation limits automatic credits to the US and Canada; the credit policy also excludes health care, tax specialists and EMEA advertisers.

Use the lead-feedback survey and inspect credited charges in your reporting. A customer who does not buy is not automatically an invalid lead. Keep your service area and job types accurate instead of relying on credits to cover unsuitable inquiries.

How should you diagnose a weak campaign?

What does BaaDigi charge for management?

BaaDigi’s Stability Engine is $497 per month plus $995 setup, covers LSA and Google Ads management alongside the website and profile work, and manages up to $1,600 per month in ad spend paid directly to Google. It does not buy verification or guarantee approval.

Roofers can use our roofing PPC guide to compare paid search with LSA. Remodelers should also confirm that their kitchen lead qualification process matches the service being advertised.

Do you need LSAs, search ads and SEO together?

Not every business needs the same mix. Test the channels you can fund and manage, and compare their actual costs and outcomes. A badge does not make LSAs the highest-return channel for every small contractor, and a website does not guarantee free leads.

Our shared versus exclusive contractor leads guide explains the distribution questions to ask. For setup and ongoing help, see contractor paid advertising services.

If you are weighing LSA against a marketplace, the HomeAdvisor alternatives for contractors guide covers the other paid lead channels with the same cost math.