The High Cost of Working with Angie’s Leads: Is It Worth the Investment for Your Business?

Are you on the hunt for more leads? Maybe you’re thinking of expanding your business, investing more in marketing, or perhaps you’ve been approached by Angie’s Leads with a promise of potential clients. Before you say yes to Angie’s, it’s crucial to understand what you’re getting into and to evaluate whether it’s truly beneficial for your business.

What Are Angie’s Leads?

Angie’s Leads originated as a reliable platform, Angie’s List, where homeowners could find reputable contractors based on peer recommendations. At the time, contractors needed a minimum of two unsolicited referrals from satisfied clients to be listed. However, with the rise of platforms like Google Reviews, Angie’s business model shifted. Rather than homeowners paying for access to a list of trusted contractors, contractors are now charged to be included on Angie’s Leads, a platform that sells leads to contractors rather than relying solely on reputation-based listings.

The Reality Behind Angie’s Leads for Contractors

While Angie’s Leads can work for certain businesses, it often leaves contractors disappointed. Many business owners are drawn in by promises of high-quality leads in their service area. However, instead of exclusive leads, contractors often find themselves competing in a crowded race. Angie’s frequently sells the same lead to multiple contractors—often up to five—meaning you’re paying a premium to compete against your own competitors.

Here’s What You Need to Know:

1. Aggressive Marketing Tactics: Angie’s Leads gathers business information through various methods, including monitoring new business registrations and social media. They employ relentless telemarketing tactics, calling business owners repeatedly from different numbers to avoid being blocked. Once they get you on the line, expect high-pressure sales tactics aimed at convincing you of the immediate demand for your services in the area.

2. Shared Leads: Angie’s may claim to have potential clients looking for services in your area, with each lead offered at a set price—often around $50. However, the same lead is frequently sold to multiple contractors, creating a competition-driven “race to the phone.” Contractors are often racing against four other companies to reach the lead, and only the fastest caller might secure an appointment.

3. The Risk of Wasting Resources: Even when you’re first to respond, you may find the lead isn’t quite what you expected. Many times, leads are from clients simply searching for budget estimates or, in some cases, from bots or unqualified prospects. These “leads” can lead to wasted time and money, often resulting in minimal return on investment.

Is There Any Upside to Using Angie’s Leads?

While there are clear drawbacks, Angie’s Leads can work for contractors who are highly organized, understand their financials, and can afford the potentially high costs associated with shared leads. To make the platform profitable, a business should have:

• Clear Tracking and Metrics: Track every dollar spent, cost per lead, revenue per lead, average sale, closing percentage, and the lifetime value of a client. These metrics will help determine whether the investment in Angie’s Leads is worth it.
• Established Marketing Channels: Businesses with strong Google My Business (GMB), Local Services Ads (LSA), SEO, a well-designed website, pay-per-click (PPC) campaigns, and targeted landing pages are better positioned to handle and convert leads from Angie’s.
• Solid Operational Procedures: Contractors who succeed with Angie’s Leads usually have streamlined processes, including standard operating procedures (SOPs) for their marketing, call center, service team, sales team, production, accounting, and remarketing efforts.

Final Thoughts: Is Angie’s Leads Right for You?

For businesses that are operationally excellent, priced competitively, and financially prepared to track their return on investment meticulously, Angie’s Leads can be a part of a broader marketing strategy. However, if your business isn’t prepared to manage lead costs, respond instantly, and navigate high competition, the costs associated with Angie’s Leads could end up supporting Angie’s investors more than your bottom line.

Ultimately, Angie’s Leads might help contractors, but only those equipped with the tools and strategies needed to make it work. If your business isn’t ready, you could find yourself with drained resources and limited results, leaving you to wonder if Angie’s Leads is truly a good investment.