Hook Agency’s founder Tim Brown recently sat down with Roofing Insights powerhouse Dmitry Lipinskiy to discuss the real cost of Angi Leads. Angi Leads, formally known as HomeAdvisor Pro, has been a resource for thousands of contractors across the country. But is signing your contracting business up for Angi Leads worth the price? Let’s take a look.
Table of Contents
Update – Here’s 3 quick (representative) Angi Leads reviews from around the web in 2023:
Alleged Conflict of Interest and Transparency Issues at Angi Roofing
Martech Zone’s blog post highlights concerns over Angi Roofing’s business practices, including perceived conflict of interest and lack of transparency. The post alleges that Angi, previously Angie’s List, has shifted its focus from consumer service to lead generation, leading to an increase in low-quality leads for clients. The author criticizes Angi for failing to disclose its acquisition of roofing companies and competing with their own clients for leads, and suggests that such practices warrant a closer look by authorities and the media1.
What Is Angi Leads?
Angi, previously known as Angie’s List, was started in 1995. The website was developed with the intention of helping homeowners find reliable construction contractors and sales rep in their area. Angie’s List was the beginning of crowd-sourced, online reviews of local businesses that consumers so readily rely on today. Angie’s List began as a subscription-only service, but now it offers free basic memberships for homeowners looking to hire contractors. In 2021, Angie’s List rebranded as “Angi.”
Homeowners aren’t the only people who utilize Angi. Contractors also have a stake in the game if they choose to join Angi from the other perspective. General contractors can sign up for Angi Pro Leads, which is meant to give small businesses access to (what Angi claims to be) “highly qualified customer leads.”
Angi advertises many potential benefits for contractors who utilize Angi Leads, including:
- A higher online reputation with positive reviews
- Zero transaction fees
- Industry updates and expert advice
Sounds great, right? Well, many contractors, including Dmitry Lipinskiy, have had a drastically different experience.
What is an Angi Lead?
According to Angi Leads, they claim to be able to find, match, qualify, and connect customers who have current service needs with local home service providers who are suitable for the job. Angi Leads asserts that their service can benefit customers in numerous ways, such as helping them locate service professionals for more than 450 types of work.
Does Angi Leads cost money?
While it is free to list a business on Angi, the platform charges a fee to receive leads or advertise services. The cost of these services is claimed to be variable, with the cost per lead ranging between $15 to $85+, but it is suggested that the actual cost may depend on how competitive the local market is for the particular service.
What is the difference between Angie’s List and Angi Leads?
While Angie’s List provides reviews and ratings of local service provider to consumers, Angi Leads provides a platform for service professionals to connect with potential customers who need their services.
How does Angi make money?
Angi generates revenue from two sources. The first source is through service professionals who pay to advertise their services and offer discounts on the platform. The second source is through paid memberships, which provide homeowners with discounted home services and other benefits for an annual fee.
What Is the True Cost of Angi Leads?
When contractors use a lead-generation site like Angi Leads, they have to pay to connect with potential clients. Prices for leads on Angi can cost anywhere from $15 to $85 per lead. In certain markets, the cost per lead can push $100. Keep in mind that these prices are for potential leads.
Dmitry Lipinskiy states that “It costs at least $100 to earn [a] review” on Angi. So keep in mind that if you are paying $100 to gain a review on Angi, you will lose the equivalent of hundreds or even thousands of dollars if you choose to cancel your account.
Perhaps these prices don’t sound too bad to you, but there’s another catch. With each potential lead, you are getting pitched to prospective clients alongside at least three other contractors. Because of this, you need to stand out against the competition in order to win the lead.
How will you do that? By lowering the cost of your service.
Hmm… So, not only are you paying for the lead in the first place, but if you want a slight chance of winning the bid, you will likely have to lower your prices to compete with other contractors on the app. When you look at it that way, utilizing Angi also costs you profit margins.
Dmitry also had words of warning about certain red flags of Angi Leads.
- Red Flag #1: Angi has been known not to conduct background checks on some contractors who use their site.
- Red Flag #2: Only people with Angi memberships can read your Angi reviews.
- Red Flag #3: Angi has faced several class-action lawsuits. Most lawsuits accuse Angi of manipulating reviews, false advertising, and selling fake leads.
- Red Flag #4: Many contractors who have used Angi Leads have left negative, one-star reviews.
- Red Flag #5: The reviews of paying members have a larger impact on your grade than non-members, meaning a single bad review from a paid member can drastically outweigh multiple great reviews from non-members.
- Red Flag #6: A 1-year contract is required, with a 35% early termination fee.
Do Any Contractors Love Angi Leads?
Even with all the potential red flags of Angi Leads, certain contractors around the country swear by it as a reliable lead source. Dmitry offered the anecdote that contractors in smaller, more rural areas likely have a better shot at finding success on Angi compared to contractors in more saturated cities like Chicago or Boston.
Some contractors have found success thanks to listing their business on Angi. They appreciate that leads get sent directly to them and that collecting payment through the site is simple. And like Dmitry mentioned, if there aren’t many other contractors in your area, you have a pretty good shot at finding success through Angi Leads. (However, if you already don’t have much competition, your marketing money is probably better spent elsewhere. More on that later.)
Real Reviews From Around the Internet
Some contractors love Angi Leads, while others hate it. Let’s take a look at reviews from different sources on the web to see what contractors are really saying about Homeadvisor Pro.
Reviews From Contractors
As you can see, many reviews are a mixed bag. Some contractors have fantastic experiences with Angi Leads, while others feel like the site is a scam that they regret using. While Angi, in general, has many four and five-star reviews from homeowners using the service, the Angi Pro Leads app mostly has negative reviews from contractors on the other end of the transactions.
BEHIND THE CURTAIN OF ANGI LEADS: IS IT ALL SMOKE AND MIRRORS?
Lead generation platforms have a certain allure, don’t they? They promise a steady stream of potential clients right at your fingertips. But as many contractors have discovered, things aren’t always as they seem, especially with Angi Leads.
So, let’s peel back the curtain on Angi’s so-called lead generation process. A homeowner types in a request, and like magic, it appears on your dashboard, but you’re not the only one seeing it. You’re now pitted against three other contractors in a high-stakes race to win the client. The difficult part of starting with Angi is that you won’t know how many leads it will generate, nor the lead quality.
Understanding this cutthroat environment isn’t just necessary—it’s essential for survival. Otherwise, you’re blindly throwing your hat into a ring dominated by fierce competition and unclear rules. Can you truly thrive in such conditions?
UNDERSTANDING THE CUSTOMER MINDSET ON ANGI LEADS: A COMPLICATED WEB
Knowing your customer is the crux of any successful business. On Angi Leads, it’s no different, albeit it is trickier. So, what does it take to stand out from the crowd on this platform?
- Ratings and reviews: Trust is a currency here, but with only paid members able to review, it’s a rigged game.
- Pricing strategy: Undercutting your prices might win you bids, but at what cost to your profits?
- Response time: Quick replies are important, but does it matter when the deck is already stacked against you?
- Profile visibility: Your profile is your chance to shine, but will it ever get the visibility it deserves?
Understanding these factors is key. It’s about more than just optimizing your Angi Leads strategy. It’s about seeing the platform for what it is—a battlefield where the rules are constantly changing.
MEASURING ROI ON ANGI LEADS: WHERE DOES THE BALANCE TIP?
Is Angi Leads really worth your investment? Sure, you’re paying for potential leads, but are they translating into concrete business gains? Or are you stuck in a continuous cycle of spending with no significant returns?
Costs with Angi Leads extend beyond the initial price per lead. The overlooked expenses can add up quickly:
- Time spent on managing your profile: Can you quantify the value of your time?
- Resources spent on prompt responses: Is this rapid-response approach eating into your productivity?
- Lowered service prices to win bids: Is devaluing your service worth the potential lead?
It’s high time to step back and reevaluate. Is your investment in Angi Leads truly an investment, or is it a drain on your resources? In this high-stakes game, it’s crucial to keep your eyes wide open.
If Not Angi Leads, How Is Contractors’ Marketing Money Best Spent?
Angi Leads is clearly contentious, with many contractors feeling cheated out of their hard-earned money. So, if Angi isn’t as reliable as it comes across, how is contractors’ money best spent to gain valuable leads? It is recommended that roofers and other contractors spend 5% of their total revenue on a marketing plan. We recommend spending 20% of that 5% on each of the most effective marketing methods: SEO and Google Ads.
Search Engine Optimization (SEO)
Why compete with multiple contractors for one potential lead on Angi when you can utilize what almost every homeowner uses when looking for a great contractor: Google. It is estimated that around 5.6 billion Google searches occur per day. With so much content available on Google business, you want your contracting business to show up on the first page of search results.
How is this accomplished? With Search Engine Optimization (SEO).
Simply put, SEO tells Google and other search engines that your website has high value and relevance. If you optimize the content on your website to Google’s standards, you are likely to rank pretty high in search results relevant to your business.
What details improve SEO?
- Faster site speed
- Webpage security
- Relevant keywords
- Punchy meta titles
- Interlinking & pertinent anchor text
- Alt text on images
- Organized page structure
- User-friendly URL titles
- Site indexing
- No duplicate content
Oof, that’s a lot. If SEO strategy sounds a little overwhelming, don’t worry. You don’t have to do it yourself. In fact, you can leave it to the pros who eat, sleep, and breathe SEO for contractors.
Pay-Per-Click (PPC) Google Ads
Another great way to make the most out of a marketing budget is to utilize Google Ads. PPC Google ads work when Google publishes an ad for your business based on relevant keywords in an internet search. You only pay Google when your ad is clicked. Google Ads for contractors is a great marketing tool for the following reasons:
- Gain more visibility for limited-time promos
- Maximize leads during slow seasons to attract customers
- Stand out from competitors in a saturated market
To get the most out of a Google Ads campaign, we highly recommend collaborating with a PPC specialist. Google Ads has a much higher reputation with contractors than Angi Ads.
What’s Your Experience With Angi Leads?
Overall, between our conversation with Dmitry Lipinskiy and reading reviews from around the web, the conclusion is that Angi Leads can be hit or miss for contractors, with a large majority of misses. Your money is best spent hooking better leads through SEO strategy and PPC Google Ads.
Have you ever listed your contracting business on Angi Leads? What was your experience? Let us know in the comments below!