Is HomeAdvisor Pro Worth It For Contractors & Service Businesses? - Ippei Blog (2024)

Is HomeAdvisor Pro Worth It For Contractors & Service Businesses?

As a source of leads, HomeAdvisor Pro is worth using for contractors and service businesses. Industry professionals have shared how the paid lead generation tool has helped them grow their brand by reaching more of their target market. However, businesses should note that aside from the positive reviews, there are also some negative online feedbacks out there. So it’s still best to proceed with caution before signing up with them.

In this article, we’ll look at HomeAdvisor Pro’s legitimacy, costs, review system, and more. If you’re considering using their service, read on and find out if it’s worth your time and money.

Meanwhile, we also share about how organic ranking through local lead generation can deliver more traffic and leads for your business. Compared with HomeAdvisor Pro and other paid platforms, local lead generation pushes your website to the top and brings you organic traffic for free. This will make it possible for you to save money while growing your brand, establishing greater credibility, and earning more as a service professional.

Is HomeAdvisor Pro legit?

HomeAdvisor Pro is a legit digital marketplace service currently headquartered in Denver, Colorado. Now known as Angi Pro Leads, the platform “allows you to power your business on the go by instantly notifying you of customer leads.”

Is HomeAdvisor Pro Worth It For Contractors & Service Businesses? - Ippei Blog (1)

Company history

HomeAdvisor was founded in December 1998 by Rodney Rice and Michael Beaudoin. The company was initially known as Service Magic. In October 2012, it eventually rebranded as HomeAdvisor.

Eventually, Home Advisor parent company IAC successfully acquired Angie’s List in October 2017, merging the two brands as ANGI HomeServices.

Fast forward to March 2021, ANGI HomeServices announced the rebranding of Angie’s List as simply Angi.

According to their website, HomeAdvisor Angi Leads has served over “45 million annual users.” HomeAdvisor Angi Leads describes itself as “a cost-effective way” for businesses to promote their services to a wider market of local homeowners.

Currently, their network includes over 200,000 screened and approved home service professionals with members from “all major metropolitan areas in the U.S. and parts of Canada.”

Praises and criticisms for HomeAdvisor

Over the years, HomeAdvisor has attracted both positive and negative feedback online. For instance, the platform has an overall rating of 3.8 stars and over 1,700 reviews on Google.

Here are some examples of positive contractor and service professional reviews seen on Google:

A highly recommended lead generation service

“Thanks to Home Advisor, I have built a successful cleaning business through their lead generation service. They have been extremely helpful, fair and promptly address questions or concerns that arose. I highly recommend them.”

Not perfect, but it works

“HomeAdvisor works great as a contractor if you know how to sell your business, follow up promptly with the customers and know how to ACTUALLY calculate ROI (return on investment)... They are not perfect but I know I get a ton of business from customers simply because I have been pre screened by HomeAdvisor.”

Meanwhile, here are some reviews from unhappy business owners who used HomeAdvisor:

“If I could give no stars, I would.”

“If I could give no stars, I would. I don't understand how they have a 3.8 rating. They contacted my small construction company making everything seem like it was worth it.. (Eventually), they tried charging themselves almost 4k in fees. My bank alerted me and blocked my account for FRAUD not allowing them to charge themselves. Now, I am stuck speaking to everyone on the phone trying to dispute the charges.”

Fake leads

“As a contractor I found their service to be entirely a waste of money (approaching scam level.) Only about 20% of the supposed qualified leads ever actually answered the phone or called back. Many leads were bogus and the customers said they did not request an estimate and to stop calling. Save your money and look for better marketing methods.”

Legal controversy

In March 2022, the United States Federal Trade Commission (FTC) charged HomeAdvisor, Inc for deceptive business practices.

According to a press release issued by the agency:

“HomeAdvisor told service providers that its leads resulted in actual home improvement jobs at rates higher than HomeAdvisor’s own data supported. HomeAdvisor also misled service providers about the cost of an optional one-month subscription to a software platform that HomeAdvisor sold along with its leads.”

Come January 2023, FTC issued an order, requiring the company to pay up to $7.2 million. FTC Bureau of Consumer Protection Director Samel Levine said:

“Today’s order requires HomeAdvisor to refund home service providers millions of dollars and stop misleading them about the quality of its leads… The FTC will continue to combat dishonest commercial practices aimed at consumers, workers, and small businesses.”

How much do leads cost on HomeAdvisor?

HomeAdvisor leads cost about $15 to $100 each. The platform also charges business owners a membership fee of around $300 per year. Exact pricing details, however, are not indicated on their official website.

“What you'll pay for a lead varies by the type of work you do,” the company explains. “Regional costs can also impact price. When you call to join, we'll review the current price of leads for tasks in your area.”

The service likewise adds that HomeAdvisor “does not provide or guarantee jobs,” meaning businesses will be charged for every lead they get, regardless if they close the deal or not.

Different lead types

According to the Home Advisor Pro site, they provide businesses with various lead types. Aside from automated leads, they also send businesses with Instant Connect and Job Opportunities opportunity leads. We read:

“When you receive either type of opportunity lead, you’ll be able to review project details before you accept or decline the lead. While these leads are not guaranteed jobs, you’ll only pay for an opportunity lead if you choose to accept it.”

Spend target

Now here’s the tricky part: HomeAdvisor allows users to set a spend target - an estimated amount they want to spend for leads every month. Take note, however, that a spend target is not set in stone since HomeAdvisor will require payment for Instant Booking and Job Opportunity leads. So it’s best to review your invoices often to be aware of what and how much they’re charging you.

Are paid leads worth it?

Paid leads are worth it if you can find a lead generation provider that meets your requirements. Besides, researchers indicate that only 11% of marketers say most of their leads are from paid channels. Although statistics suggest it’s not the most efficient source for lead generation, paid leads, such as HomeAdvisor, can definitely work for some.

Pros and cons of using paid leads

There are certain advantages and drawbacks that come with using Home Advisor and other similar paid lead generation companies.

Here are some of them:

Pros

  • You will receive leads soon after signing up.
  • Detailed monthly reports from your chosen provider allow you to measure the campaign’s performance.
  • Increased visibility and brand awareness as more of your target market will hear about your services.
  • Minimize or eliminate the need to do cold calling, cold email, etc.
  • Coupled with your other marketing efforts, effective lead generation can bring greater ROI (return of investment) for your company.
  • You can devote more time and energy to your business.

Cons

  • Lead quality can be a problem since some providers focus on supplying quantity rather than quality.
  • Some leads you get may have already been contacted by other companies, especially if your provider sells the same leads to different contracts and service professionals.
  • Expect to pay for each lead, even for people who are simply inquiring and not ready to purchase your service.
  • Lead cost may vary, depending on quality, area, and industry.
  • The pay-per-lead pricing model can be costly overtime as fees accumulate. It can eat up a significant portion of your profit margin.
  • In the long run, you’ll have an inconsistent stream of leads if your business entirely depends on a paid lead generation company.

Can you trust reviews on HomeAdvisor?

HomeAdvisor has a reliable review system. The platform allows homeowners to post reviews of contractors and service businesses they’ve hired through the website. They can do this by writing their feedback and by leaving star ratings.

How HomeAdvisor Ratings & Reviews feature works

HomeAdvisor considers their Ratings & Reviews feature as “perhaps the most important service” they offer to users. Team members check the authenticity of every review, regardless if they are positive or negative. Professionals also have the option to respond to the reviews should they choose to do so.

As we also read in the HomeAdvisor website, Ratings & Reviews help guide homeowners as they try to make “educated hiring decisions.” At the same time, they allow contractors and service professionals to “communicate the quality of their work.”

As an example, here are a few reviews for NBJ Maintenance, a business based in Buffalo, New York. So far, the company has received an overall rating of 4.7 stars out of 7 customer reviews.

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In some instances, businesses can request HomeAdvisor administrators to remove a review if they file a dispute. If a business owner or professional can prove that a review contains false information, harassment of any form, or spamming.

Why are reviews important for contractors and service business?

Both positive and negative reviews can have “an enormous impact on customer perception,” a Forbes feature reminds business owners. The site further adds that companies should strive to respond to such reviews in a timely manner.

We read:

“Consumers often view businesses that take the time to address their concerns as being more trustworthy and reliable.”

Meanwhile, BrightLocal’s Local Consumer Review Survey found that around 98% of consumers read online reviews when searching for local businesses. Moreover, the site likewise shares that the top 3 industries where consumers “see business reviews as most important” are:

  • Healthcare
  • Automotive Services
  • Service Businesses/Tradespeople

8 other alternatives to HomeAdvisor Pro

Some of the top HomeAdvisor Pro alternatives to check out are:

  • 1-800-Remodel
  • Craigslist
  • Houzz Pro
  • Porch Pro
  • ServiceWhale
  • TaskRabbit
  • Thumbtack
  • Yelp

1-800-Remodel

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1-800-Remodel labels itself as a nationwide “home improvement concierge and marketing agency.” They match homeowners with their network of pre-screened home improvement experts based in the US. These professionals and companies then provide prospective clients with quotes for their home projects.

Like HomeAdvisor, homeowners can use the service for free while contractors and service businesses have to pay for the leads.

Pricing:

$25 for Wholesale Form Leads, $100 for Inbound Calls & Transfers

Contact number:

(800) 736-6335

Email address:

corporate@1800remodel.com

Craigslist

An international online classified ads site, Craigslist is also a good source of potential leads for contractors and service businesses. According to studies, the platform attracts over 250 million visits per month, with about 75.81% (190 million visitors) of the traffic coming from the United States.

Posting a free ad on Craigslist is possible but you may also choose paid advertising if you want to reach a wider market.

Pricing:

$3 to $10 for gigs in the US and selected CA areas, $5 for services in the US and CA

Contact number:

(415) 566-9844

Email address:

help@craigslist.org

Houzz Pro

Houzz Pro is an all-in-one solution that aims to help professionals “attract and win better clients, run profitable projects, and deliver a standout customer experience.” Their wide network of home improvement experts range include architects, builders, interior designers, remodelers, specialty contractors, and more. The platform offers a free 30-day trial for interested business owners who want to use their services before signing up for premium membership.

Pricing:

$65 per month (Starter), $99 per month (Essential), $149 per month (Pro), and $399 per month (Ultimate)

Contact number:

(888) 510-5923

Email address:

proinstagram@houzz.com

Porch Pro

Next, Porch Pro allows service businesses to be “in control of the opportunities (they) receive.” Among their features include profile customization, work preferences specification, payment method selection, and more. Professionals who also sign up for Vetted Pro membership may likewise enjoy more additional features (such as profile badges and 5% discount on leads).

Pricing:

$360 per year for Vetted Network membership

Contact number:

(855) 298-8374

Email address:

support@porch.com

ServiceWhale

ServiceWhale claims to be a “true ecommerce solution for shopping for home improvement.” Through their service, contractors can “preload their prices for the services they offer one time and then generate thousands of quotes.”

Pricing:

Starts at $300 per month

Contact number:

(800) 403-8686

Email address:

info@servicewhale.com

TaskRabbit

TaskRabbit’s online marketplace also matches homeowners with trusted professionals and gig workers in the home service industry. They have deep cleaners, electricians, furniture assemblers, interior designers, painters, plumbers, smart home system installers, window cleaners, and more.

The platform earns from commissions through bookings made. They also charge individuals and businesses a one time fee to register in their network.

Pricing:

$25 registration fee, 15% service fee for overall price, 7.5% Trust and Support fee for overall price

Contact number / email address:

Thumbtack

According to the Thumbtack website, “over 70 million projects have been started” on their platform. The service welcomes handymen, landscapers, and repairers, among many others. “We're proud to help pros grow their businesses, one job at a time,” their site reads.

Listing your service on the Thumbtack network is free, plus they don’t charge any annual fees or membership fees. Professionals, however, use credits to pay for leads and bookings.

Pricing:

$17.99 for 12 credits, $34.99 for 24 credits, $84.99 for 60 credits

Contact number:

(866) 501-5809

Email address:

support@thumbtack.com

Yelp

An online directory of local businesses, it’s also a good idea for contractors and service professionals to list their businesses with Yelp. Through the platform, you can “attract new customers and convert more leads.”

Signing up with Yelp is free but if you want to make the most of the platform, you can try their pay-per-click (PPC) advertising option.

Pricing:

$150 to $1,200 per month for advertising, $0.30 to $40 or more per click

Contact number:

(877) 767-9357

Email address:

bizoutreach@yelp.com, customersuccess@yelp.com

What is the best source of leads for small businesses?

The best source of leads is organic ranking through local lead generation. Paid lead generation and advertising only deliver temporary results. They’ll only help you as long as you’re paying for their services. When you rank your website and reach page 1 on Google, you get unlimited free traffic for a longer period.

As you learn proven local lead generation practices and implement SEO (search engine optimization) techniques, you can boost your online visibility. So when users need to look for a contractor in your area, they’ll likely see and click your link.

If you’re a plumber from Colorado, Arizona, targeting the keywords “plumber in Colorado Arizona,” for instance, can work for your advantage. With more search engine traffic, you get more exclusive leads and more converted clients - which can then lead to more profit on your end.

Conclusion

While HomeAdvisor Pro and other lead generation services can be helpful for contractors and service businesses, playing the long game is still the better strategy. Learning and working on ranking your site organically may take time but it can bring long-term results.

We can help you master the entire process. We have years of experience in the local lead generation industry and we’ve taught thousands of students - service professionals included - to achieve their site’s full potential. Our local lead generation coaching program is guaranteed to be effective, so don’t hesitate to contact us. Let’s take your business to the next level!

Is HomeAdvisor Pro Worth It For Contractors & Service Businesses? - Ippei Blog (2024)

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