Angie’s List and Home Advisor are popular online platforms that connect homeowners with home service providers and contractors. Although they might seem like a great way for contractors to find new clients, there are several reasons why these services are not beneficial for contractors and home service providers. In this article, we will explore five reasons why Angie’s List and Home Advisor are bad for contractors and home service providers.
Reasons Why You Should Consider Using Home Advisor or Angie’s List Advertising
#1 Access to a Large Pool of Potential Customers
Both Angie’s List and Home Advisor have a large pool of potential customers who are actively seeking services. By listing your business on these platforms, you have the opportunity to reach a wider audience of potential customers.
#2 Qualified Leads
Both platforms offer qualified leads that have already expressed interest in your service. This means that you are more likely to convert these leads into paying customers, as they have already shown a level of intent.
#3 High Online Visibility
By listing your business on Angie’s List or Home Advisor, you increase your visibility to potential customers who are actively searching for services like yours. This can help to increase brand awareness and recognition, which can ultimately lead to more business.
#4 Reputation Management
Both platforms allow customers to leave reviews of your services, which can help to build your reputation and credibility in the industry. Positive reviews can be used as social proof to attract new customers.
#5 Lower Cost per Lead
Both platforms offer cost-effective marketing options for businesses of all sizes. By using these platforms, you can reach a large audience without having to invest longer term advertising campaigns, such as search engine optimization. This can be particularly beneficial for small businesses that have limited marketing budgets.
Reasons Why You Should Avoid Home Advisor & Angi’s List
#1 High Cost of Leads the Actually Convert
One of the primary issues with Angie’s List and Home Advisor is the high cost of leads. Contractors must pay a significant fee for every lead that they receive through the platform, regardless of whether they win the project or not. This means that contractors may end up spending a significant amount of money on leads that don’t convert into paying clients. This can be especially problematic for small businesses or contractors who are just starting out and have limited resources to invest in advertising.
#2 Low-Quality Leads
In addition to the high cost of leads, Angie’s List and Home Advisor are known for providing low-quality leads. Many homeowners who use these platforms are simply looking for the cheapest service provider and are not necessarily interested in quality workmanship. As a result, contractors may end up spending a lot of time and money pursuing leads that are unlikely to result in a profitable job.
#3 Lack of Control over Reviews
Another issue with Angie’s List and Home Advisor is that contractors have little control over the reviews that are posted about them on the platform. Even if a contractor provides excellent service, they may receive negative reviews from clients who are unhappy about something outside of the contractor’s control, such as the weather or unforeseen construction delays. This can be detrimental to a contractor’s reputation and make it difficult to attract new clients in the future.
#4 Unfair Competition
Angie’s List and Home Advisor are known for promoting the contractors who pay the highest fees for leads, rather than those who provide the best quality workmanship. This can create unfair competition, where larger companies with more resources are able to dominate the platform, while smaller contractors with less financial backing are left struggling to attract new clients.
#5 Limited Access to Customer Data
Finally, Angie’s List and Home Advisor provide limited access to customer data, making it difficult for contractors to build lasting relationships with their clients. Contractors may not have access to client contact information, which makes it difficult to follow up with clients after a job is complete or offer additional services in the future. This limits the potential for repeat business, which is essential for the long-term success of any home service provider or contractor.
#6 Overselling of Leads
Another issue that contractors face when using Angie’s List and Home Advisor is the overselling of leads. Both platforms sell leads to multiple contractors, which means that contractors may end up competing with several other companies for the same job. This can create a bidding war, where contractors may be forced to lower their prices just to win the project. In some cases, contractors may end up spending more on leads than they can realistically earn from the job, which can be a financial burden for their business.
#7 Reports of Fake Leads and Overcharging
Finally, there have been reports of fake leads and overcharging on both Angie’s List and Home Advisor. Some contractors have reported receiving leads that turn out to be fake or that do not result in a paying job. In fact, over a decade ago Consumer Reports stated that consumers can’t trust Angie’s List. In addition, there have been reports of contractors being overcharged for leads or receiving inaccurate billing statements. These issues can be frustrating for contractors and can erode trust in the platforms, making it more difficult for them to attract new clients in the future.
#8 Aggressive Sales Tactics
Contractors have reported that both Angie’s List and Home Advisor use aggressive sales tactics to persuade them to sign up for their services. This can include repeated phone calls, emails, and even in-person visits from sales representatives. Contractors may feel pressured to sign up for these services, even if they are not a good fit for their business. This can be a waste of time and money for contractors, who may end up paying for services that do not generate new business. Additionally, the use of aggressive sales tactics can create a negative perception of these platforms among contractors and home service providers.
Conclusion: Angi & Home Advisor Are Great for Starters and for the Bottom End of the Market
In conclusion, Angie’s List and Home Advisor can be useful lead generation platforms for very small and lean companies that prefer to compete on price or content being the low cost provider. However, for growing companies looking to get higher quality and more profitable jobs, relying solely on these platforms may not be sustainable in the long run. While they can help businesses establish a presence and generate leads, companies must also focus on building their reputation, improving their services, and developing other marketing strategies to sustain growth and profitability. Ultimately, Angie’s List and Home Advisor can be a necessary evil for new companies to start out, but should not be relied upon as the sole source of leads for sustainable business growth.