Homeadvisor and Angie’s List Class Action Lawsuit 2018
By: Charles Kile
It’s no surprise to many of us that Homeadvisor and Angie’s list are under fire from contractors for providing fake leads and unsatisfactory customer service. All one has to do is read a few reviews of these services written by contractors to understand that they are generally not very popular from the professionals’ point of view. It begs the question then: Why are these online marketplaces so popular?
If you’re reading the reviews online, you’ll have to sift through a few positive reviews written by homeowners to find a negative one written by a contractor. The fact is these services make finding home improvement professionals a lot easier for homeowners. At least they used to.
10 years ago the internet was young. Most contractors didn’t have a website, Facebook, or any online presence. They were working off of word of mouth and traditional marketing mediums like radio and tv. When services like Homeadvisor first came out they were revolutionary in a sense. As thousands of homeowners turned to the internet to find professionals to work on their homes, a few contractors, the early adopters of the internet, were soaking up all the leads.
Over time, two things have happened: 1. More contractors signed up to be service providers on Homeadvisor and Angie’s List, and 2. The companies have grown to be enormous enterprises with gigantic marketing budgets.
Now, in 2018, there are more contractors than ever sharing the pool of homeowners provided by these services. The real pressure is on these companies, Homeadvisor and Angie’s List, to continue to stay profitable amongst rising marketing costs.
Over the years they have managed to spend more on marketing than any other companies in the industry. This is why when you search for a remodeling contractor in your city, Homeadvisor and Angie’s List are the first search results you see.
These companies have spent millions of dollars to be on top of the search results and they have to transfer these costs to someone. That someone is the contractors. This is why the price per lead has continued to rise and these mega-companies have had to resort to selling the same leads to multiple professionals. Some contractors have even reported receiving fake leads. But, how do you know if a lead is fake?
There is no way to be certain from the perspective of the home improvement professional. All they know is they paid $50 for a lead that never returned their call. Some have even reported talking to homeowners that already started and sometimes finished their projects.
There’s no doubt that something is amiss amongst these online home improvement marketplaces…
The conclusion I come to is simple. They aren’t needed anymore. These days it doesn’t take much for a construction company to get their name out there online without having to rent a listing from a company. Especially a company that doesn’t seem to value the contractor’s business. There are a few things every company should do, and often it’s enough to get all the jobs they want:
- Have a professional website
- Set up a GMB account – Google Maps listing
- Actively seek positive reviews from happy customers
- Take part in the community
- Be active on Facebook and create a presence there
The over-arching idea is simple. Today’s community is taking place online, so be a part of it. Make your company known and put a happy face to it. Get good results for your customers and get them to talk about it. That’s really all it takes.
Continuing to rely on companies like Homeadvisor and Angie’s List to have your best interests at heart is a losing proposition and should be avoided at all costs. If this is your plan instead of doing the things listed above, you are digging a hole for yourself and hoping that Homeadvisor and Angie’s List will provide a ladder to climb out. Trust me, they won’t.
You can read more about it at http://www.remodeling.hw.net/
Curious to how these various services compare? Read all about it here: