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.
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 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. Contractors can sign up for Angi Pro Leads, which is meant to give 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 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 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 Angi Leads.
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.
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.
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, 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
- 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!