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Are Lead Machines like HomeAdvisor and Angie's List Worth It for Contractors?

Richard Fagan • Dec 11, 2019

I usually don’t tell personal stories, but my wife and I recently moved and bought a house with lots of crazy colors on 2 story walls. Not the type of project we wanted to undertaker ourselves. Being new to the area, we started online searches for painters. Most didn’t have websites, so we had to make lots of phone calls without being able to do any type of due diligence.

During our search, my wife happened upon HomeAdvisor and found a painter with good testimonials and recommendation, who was willing to give us a bid and work within our budget. We hired him and now have newly painted walls. As we were wrapping up our transaction, I asked him how HomeAdvisor was working for him. As it turns out he, he was considering a website because he’s not that happy with the service. Which got me to thinking about how these services compare and why so many small business owners who don’t have websites are on multiple services such as Angie's List, Yelp, Thumbtack, Houzz, etc. Is it more cost effective?  

After a little research I found the cost of these services astonishing. A recent article on LinkedIn by Michele Deane does the math for you: “$300 per year for the basic service. Each of the leads sent … generate a variable fee, usually between $15 and $60+ per contractor and per lead. If you use an average rate of $30 per lead and … If a typical contractor receives 12 leads per month, they could conceptually pay $360 for these leads plus $25 of the prorated annual fee. That adds up to $4,620 per year.” She also goes on to say that since it’s a free service for the consumer, they have no vested interest, they aren’t pre-qualified, and they may just be shopping for prices. You are still required to pay for that lead. Y Eugene Aquino with Small Business also wrote an article outlining several more cons: “Compared to the searcher traffic on Google, the number of paid members who visit Angie’s List is miniscule. It likely won’t be your main source of leads … They also have very self-serving interests. For example, they offer an icon for your website that says, “read my reviews here” ... However, instead of showing your reviews … it links back to a sales page to sell their membership. You can’t see the reviews unless you join. They also show the website visitor a list of your competitors instead of your reviews.”

My prices are advertised on my website , so I don’t need to give you the lowdown on what your initial investment would be, or your annual hosting cost. Stand out from the rest with your own website. 

Still not willing to invest in a website?   At least let me offer a free recommendation:

If you’ve ever wondered why your business doesn’t show up in Google maps when you search for your industry in your area, it’s likely because you’ve never set up your Google My Business account. It’s free to set up your listing, so you’ll want to make certain you fill it out completely and accurately and add a bunch of high quality images of your work to show off exactly how good you and your team are. Google averages about 6.5 billion visits per month. Also consider Facebook. It is worth setting up and maintaining an account just due to its sheer popularity. Plus, with an account you can encourage customers to share your work with their friends to create greater online word of mouth for your services. You should be posting something at least once a week. Just setting up a page, posting once or twice and then letting it sit dormant doesn’t encourage potential customers. They’ll only wonder if you’re still in business. As for numbers, Facebook averages about 2.9 billion visits per month.

Interested in spending your money a little more wisely and increasing your visibility? Give me a call. I offer a one-hour free consultation.

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