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Last updated: July 20, 2021

HomeAdvisor PRO (now called Angi Leads) is a fast and easy way to get customers and grow your business. In fact, it's where I found some of my best clients for my handyman business.

However, it's a controversial subject for contractors. Some businesses are experiencing massive success with the service, while others trash talk and describe it as a scam.

So who's right? And most importantly, should you use them to generate leads? That is the ultimate question I'll answer in this article.

Here's what I cover in this HomeAdvisor Pro (aka Angi Leads) review:

• Controversial issues to be aware of with HomeAdvisor
• Quick Facts and Stats
• The pros and cons of using HomeAdvisor
• Should you use HomeAdvisor to grow your business?
• Tip for getting better (and cheaper) leads while using HomeAdvisor

Why the Controversy?

Issue #1: Lots of complaints from other businesses

HomeAdvisor has had over 1,900 customer complaints with the Better Business Bureau in the last three years. Even though they have an A rating, that's still a lot of complaints.

(Side note: This article alone has received over 280 comments from local businesses about HA – 90% of which are negative reviews. Feel free to scroll down and read them.)

This doesn't necessarily bother me, though, because they deal with tens of millions of projects every year and have over 100,000 small businesses using their platform. When you deal with that many people, complaints are inevitable.

The real problem is with what those complaints are about.

Issue #2: Fake leads

Many of the complaints in the comments on this page and on BBB are about HomeAdvisor "scamming" contractors with low-quality or fake leads.

I've personally dealt with dozens of bad leads. Some of them are "dead leads" who don't even answer the phone or respond when you follow up with them. Some of the bad leads are homeowners who are price shopping and don't realize their curiosity costs contractors real money. And some of the bad leads are from competing businesses that are doing market research.

Low-quality leads are a real issue, but I wouldn't call it a scam.

When you pay $15 per lead, these bad leads get annoying. But when you are paying $150 for a lead (which is the case for some services), it can be downright painful.

However, I think that a big source of these complaints is business owners who can't close the sale. They are unable to turn leads into customers and end up blaming HomeAdvisor.

It's important to know that HomeAdvisor provides leads, not customers, and if a business doesn't follow best practices for turning leads into customers, they'll likely waste a lot of money with little results.

A tool is only as good as the hand that's using it, after all.

Issue #3: Deceptive marketing practices (This is a BIG one)

If you decide to sign up for HA, be sure to read the fine print because by signing up, you give them the right to use your business name, logo, and images for marketing purposes, such as directing links back to their own site.

That means they can go out, create a bunch of profiles on other online business directories in your business name using your logo and pictures, and then point those directories back to HA, where they can then sell the leads to other contractors (or to you).

Several contractors and handymen have found out the hard way (including myself). Not only does HA build links back to their own site in the small business's name, but they also list HA's phone number. When a potential customer calls that number, they forward it to you, the business owner, and charge you for what they call an "Exact Match Lead."

I couldn't believe it myself until I read their terms of service and then did a quick Google of my business name. Sure enough, I found that my YP.com listing had all of my business information but the wrong phone number. Upon dialing that number, I was connected with HomeAdvisor! Not only that, but they spelled my business name wrong.

Not cool, HomeAdvisor, not cool at all.

This is a pretty big issue for me, and it definitely hurts HomeAdvisor's image in my eyes. Although it is clearly explained in their terms of service, this is not something they explained when I signed up. It's flat-out deceptive.

However, this issue can be mitigated by simply doing some cleanup work online. I've sought out these fake listings and changed them to reflect my business's correct information.

One thing I recommend doing before signing up for HA is creating your own online listings. By doing so, you reduce the risk of this happening to you.

Issue #4 – Pushy and misleading sales tactics

Many of the complaints occur because pros were promised the world by cold-calling HomeAdvisor salesmen, only to be immediately disappointed by what they actually get.

One pro complained that when he signed up, the salesmen said he would receive about two leads per week. Then, in the first week, he received ten leads, many of which were bad leads.

Unfortunately, the salesman failed to mention something that is stated in HA terms of service – which is that in some cases you can receive leads above your spend target. So, if your profile isn't carefully configured, you could end up spending more on leads than you are prepared for.

Another thing I dislike about HA and other websites like YELP is that they are constantly cold-calling small businesses in an attempt to sell them ads or premiere placement on their platforms. They are usually pushy and persistent, wasting the precious time of already time-poor business owners.

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HomeAdvisor/Angi Leads Quick Facts and Stats

HomeAdvisor certainly has some questionable business practices, but they must be doing something right. Otherwise, how would they have built a billion-dollar business?

• Originally called ServiceMagic, HomeAdvisor was founded in 1998.
• ServiceMagic rebranded in 2012 as HomeAdvisor.
• HomeAdvisor merged with Angie's List in 2017, forming Angi Homeservices Inc. (NASDAQ: ANGI), which is the world's largest digital marketplace for home services, including everything from maids to handymen to contractors.
• In 2020, over 240,000 businesses used Angi Homeservices to connect with customers, and over 32 million projects were requested in more than 500 categories.
• In 2020, Angi Homeservices had revenue of $1.47 Billion, 10.5% higher than in 2019.
• In 2021, HomeAdvisor Pro was rebranded to Angi Leads.

Source: Wikipedia, ANGI 2020 annual report.

The Pros and Cons of HomeAdvisor

Pros

• It's effective. There's one major reason that HA is still in business, and that's because it works. With more and more people turning to the web to find service providers, having a strong online presence is essential. HomeAdvisor has an extremely powerful web presence and a well-designed website that makes it easy for homeowners to find pros. After all, they are part of the biggest digital marketplace for home services in the world.
• High long-term ROI. To some people, the price of leads seems expensive, but if you consider that many of the customers you connect with on HomeAdvisor will end up becoming long-term clients, the value proposition becomes more attractive. For example, I paid $20 for a lead to mount a TV and that customer ended up hiring me for over $20,000 in work over the following years.
• Good for new businesses.  Before you can start generating customers from word of mouth, you need to actually have customers. HA allows you to leverage their brand to gain trust and gain your first clients. It also allows you to reach customers that you otherwise wouldn't have the marketing abilities or funds to reach.
• Easy to manage. Once you've set up your account, it's straightforward to manage. You can even turn your leads on and off whenever you choose. This allows you to only use the service when you are slow or trying to expand your business. They even have an app where you can manage customer requests and collect payments. HA clearly understands how to leverage technology to make their platform easier for both customers and service pros.
• You choose which jobs you get leads for. One of my favorite things about HomeAdvisor is how you can pick and choose which jobs you get leads for. If you only want leads for TV wall mounts, you can do that. If you discover that certain leads don't turn into customers, you can modify your profile to stop getting those particular leads.
• Great for filling gaps in your schedule. One of the best uses of HomeAdvisor is to fill gaps in your schedule during slow times – like during winter when business tends to slow down or while you work on other marketing strategies that free you from having to pay for leads.

Cons

• Giving up some rights to your brand. HA's terms of service clearly state that HA can use any information on your profile to direct links to their site. This essentially allows them to use your name to promote their business – and then charge you for it. And this extends to any pictures you upload, your logo, or even pictures of you. They get irrevocable access to use this however they want if you sign up and agree.
• Bad leads. I've received several leads that were just people price shopping with no interest in actually hiring anybody. Sometimes leads won't even answer the phone. A refund will be granted in some cases, but I've still paid for several bad leads. This isn't surprising since it clearly states in HA's terms of service that they make no guarantees on the quality of the leads you get.
• It can get expensive. Paying for leads can eat into profits fast, especially if you are signed up for more expensive leads like kitchen or bath remodel leads and cannot convert leads into customers effectively. But lead fees aren't the only fees. You can also pay for a subscription to simply have your business listed with your phone number (instead of HA's). You often have to pay an enrollment fee of $300 just to get started. They will try to sell you other services like website development and hosting. There's even an option to pay to use HA's seal on your website. If you're not careful, the fees can add up quickly.
• It can be a headache. When you get fake leads or leads that don't even answer the phone, it gets frustrating – especially when you shelled out cash for those leads. Additionally, it can be tough to differentiate yourself from the competition on HA. That often leads to having to be more competitive on price, which can further eat into profits.
• Reviews aren't yours. The reviews you work hard to earn while using the platform are owned solely by HomeAdvisor, and they clearly state that you cannot use these or republish them in any form. The only way to legally post the reviews on your website is to purchase your website and hosting from HomeAdvisor, which I wouldn't recommend for anyone.
• Feeding the "beast" – As I talk about in this article, using services like HomeAdvisor further strengthens their already dominant position as the go-to place for homeowners to find pros. As useful as it may be, this gives the middle man a lot of power, which may not be so good for small business profits in the long run.

Should you use HomeAdvisor?

Here is the ultimate question, and the answer is that it depends.

Personally, I believe it's effective and I have personally had success using the service. In my first year of business, I spent $1,152 advertising with HA and gained $4,425 in business directly from leads received. Those numbers may sound small, but as a handyman, my average job size is just a few hundred dollars. The real value came from helping me build a client base from nothing while working on other, long-term marketing strategies that I rely on now. I was able to gain some excellent customers and accelerate my business in the short term, which gave me time to invest in less expensive and better marketing strategies.

However, I don't agree with some of their business practices, namely how they use a company's name to direct leads back to their website. This is a real problem for me.

I no longer use HA, and I dropped them as soon as I could keep my schedule filled without them. I view this service as a tool for jump-starting a small business but not a long-term marketing tool.

Here's What I Recommend

If you are starting your business and can't wait to grow your business slowly while implementing your own marketing strategies, then HomeAdvisor is worth a test run. The potential upside outweighs the downside. Yes, you will waste money on bad leads, but sometimes you have to spend money to make money and the momentum it can give your business is very nice.

It's also worth testing if you are already established and need a method to quickly ramp up leads either during the slow season or if you are hiring help to scale your business up.

Just be careful of which services you sign up for. HomeAdvisor does far more than send you leads now. They will build and host websites for you, allow you to use their seal, have a subscription service, and even collect payments from customers. Who knows where things will go next since they are part of a huge e-commerce conglomerate that also owns Angi and Handy platforms.

I wouldn't recommend having HomeAdvisor build or host your website – especially given how easy it is to do it yourself. It will just further lock you into a company that you may not enjoy partnering with over the long term.

I wouldn't recommend their subscription member service either since all you are paying for is a listing on their directory. If you are going to pay to be in a directory, you might as well pay to be featured on YELP.

I also do NOT recommend paying to have their seal on your website. This is silly and would only give a marginal improvement to conversions at best. Also, it will only matter if your website generates lots of traffic already, which if it did, you probably wouldn't need HomeAdvisor in the first place.

Now, if you don't need customers immediately to survive, then there are better ways to generate leads that I recommend focusing on first.

Either way, don't make the mistake of totally outsourcing your marketing to Home Advisor, Thumbtack, or other lead generation companies. If you do, then you don't really have a business. You have a job. Think about that for a minute.

Quick Tips to Maximize ROI with HomeAdvisor

If you do decide to use HA to grow your business, here are some insights that I've gained from my experience that will help you close more leads and spend less.

Tip #1:  Call leads immediately

This is the single most important tip for making HA work for you, even more so than having good reviews. I've found that nine times out of ten, if I call within minutes of receiving the lead, I get the business. Some customers have even told me that they always choose the first person that calls without even entertaining what the next service pro has to say.

So, if you want to get the business, call immediately. Don't even waste ten seconds. As soon as you get that lead, pick up your phone and call them.

Tip #2:  Only sign up for small job leads (at first)

Leads for big jobs are expensive at $50 and up. With price shoppers all over the place, this can eat into your profits really fast. That's why I recommend only signing up to receive leads that cost under $25 (usually includes small repair jobs and handyman jobs). This way, you can still get your foot in the door, build your client base, and then bank on the return business.

Once you get your sales process dialed in, then it makes sense to start paying for the bigger jobs like kitchen and bath remodels.

Tip #3:  Eliminate leads that don't pay

After you've been using the service for a while, it's a good idea to go back over your past leads and see which lead categories paid off and which ones provide mostly junk leads. When I did this, I noticed that leads for certain projects nearly always turned into customers, while leads for "general handyman – multiple projects" NEVER turned into a single customer. I also noticed that this was my most common lead. So, I changed my profile to no longer get leads for "general handyman – multiple projects." The result was lower lead costs, fewer bad leads, and just as many good leads.

Tip #4: Read the Terms of Service thoroughly

Not only will reading HA's Terms of Service page give you a better understanding of what you're signing up for, but it will also help you understand the different ways to use the platform. HomeAdvisor is constantly creating and testing new ways to connect service pros with customers. In fact, buying leads is just one way to use HA to gain customers. By taking thirty minutes to read the terms and conditions carefully, you will gain insights into different programs they are running and be better armed to talk to the salesman before signing up.

Tip #5: Don't be afraid to negotiate

Just like cable companies, HA has designed its pricing to maximize profits. That means those who are lazy will pay a premium. But, if you are willing to ask a few questions and even threaten to quit or walk away, you can likely get out of paying huge enrollment fees and high subscription rates. At a minimum, it never hurts to ask for a better deal.

Conclusion

HomeAdvisor (now Angi Leads) can be an effective tool to attract customers and grow your business. But just like any tool, if it's used incorrectly, it can end up hurting you. Use it with caution.

A good rule of thumb is to use it as much as necessary, and as little as possible.

I hope you found this article helpful. If you'd like to gain more insights, tips, and practical strategies for growing a better business as a service pro, consider signing up for my email newsletter. You'll learn better ways to attract customers and grow your business. I've got a no BS approach, and you can unsubscribe at any time.

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Source: https://www.handymanstartup.com/home-advisor-pro-review-what-you-need-to-know/

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