GrumpyPlumber
Licensed Grump
I broke into self employment using a company called ServiceMagic back in 2005 to generate new customers and build my business, I had huge success with them, they got my foot in the door with new customers which generated even more business through word of mouth & referrals.
They'd send me leads, along with 3 other plumbers and in that first year I closed 1 in 3 leads, I never lowballed, just did good work for a reasonable price.
They had a ratings system that customers would rate you by 1 to 5 stars, I was just under 5, the highest rated plumber in my area at the time, around 10 years ago when I stopped using them.
In 2012, they changed name to HomeAdvisor, now known as Angi, which is a merger of Angie's list and Homeadvisor.
Immediately I noticed that phone numbers were bad, wrong addresses and folks weren't returning calls, I'd call them to ask what was happening, they'd tell me it was my profile, or I wasn't calling back fast enough, or...or...or.
I recently learned that IAC, the parent company of Homeadvisor & Angi is now under investigation by the FTC for creating and selling intentionally erroneous leads. -
www.ftc.gov
I've also learned that Angi is also under investigation for what appears to be a "pay to play" scheme, obscuring higher rated service providers below companies that outspend in advertising. Resulting in homeowners getting lower rated providers who outspent the better ones, after being told they were getting the highest quality. That case is here- https://law.justia.com/cases/federal/appellate-courts/ca10/19-3025/19-3025-2020-03-09.html
That said, I've tried other lead services like ThumbTack, and homeowners need to be wary.
These services charge providers per lead, and almost every time the homeowner wants the lowest price, please be ESPECIALLY careful with gas fixtures or heat, fires & CO poisoning can kill, make absolutely sure you're getting a licensed plumber or gasfitter for these.
With Thumbtack, I'm almost certain they're allowing unlicensed providers to buy their leads, this means that legitimately licensed, insured & experienced electricians, plumbers, gasfitters & HVAC techs cannot compete with a kid living in his parents basement.
In the example of Thumbtack, they advertise a bath remodel "should" cost an average of $5,000, they then charge "pro's" $200 per lead, and sell that lead to 5 or 6 "pro's".
The cost, assuming the homeowner demands his $5,000 remodel, would be $1000 per job for the "pro", leaving him $4,000 after bidding 5 jobs at that price.
Folks, I do this for a living, $4,000 will barely buy materials for a cheap bath remodel, anyone engaging in a bidding war under those conditions is either inexperienced, desperate or scamming.
As a plumber, any time I work in a home, I take extreme precautions with my work, I test and get it inspected, because, God forbid I get a slow leak above thousands of dollars worth of finished space, hardwood floors, electronics or worse, a leak rots out the framing.
There's probably no stopping these services, but recent litigation, class action suits, seems to be roping them in,
There will likely be times you need to use one of them, to that, I say be careful of extremely low prices, make sure the entity you hire has a license and liability insurance.
Check the name & license of any provider outside the source to be sure they're not just being promoted by the lead company alone.
They'd send me leads, along with 3 other plumbers and in that first year I closed 1 in 3 leads, I never lowballed, just did good work for a reasonable price.
They had a ratings system that customers would rate you by 1 to 5 stars, I was just under 5, the highest rated plumber in my area at the time, around 10 years ago when I stopped using them.
In 2012, they changed name to HomeAdvisor, now known as Angi, which is a merger of Angie's list and Homeadvisor.
Immediately I noticed that phone numbers were bad, wrong addresses and folks weren't returning calls, I'd call them to ask what was happening, they'd tell me it was my profile, or I wasn't calling back fast enough, or...or...or.
I recently learned that IAC, the parent company of Homeadvisor & Angi is now under investigation by the FTC for creating and selling intentionally erroneous leads. -
FTC Charges HomeAdvisor, Inc. with Cheating Businesses, Including Small Businesses, Seeking Leads for Home Improvement Projects
The Federal Trade Commission today issued an administrative compl
I've also learned that Angi is also under investigation for what appears to be a "pay to play" scheme, obscuring higher rated service providers below companies that outspend in advertising. Resulting in homeowners getting lower rated providers who outspent the better ones, after being told they were getting the highest quality. That case is here- https://law.justia.com/cases/federal/appellate-courts/ca10/19-3025/19-3025-2020-03-09.html
That said, I've tried other lead services like ThumbTack, and homeowners need to be wary.
These services charge providers per lead, and almost every time the homeowner wants the lowest price, please be ESPECIALLY careful with gas fixtures or heat, fires & CO poisoning can kill, make absolutely sure you're getting a licensed plumber or gasfitter for these.
With Thumbtack, I'm almost certain they're allowing unlicensed providers to buy their leads, this means that legitimately licensed, insured & experienced electricians, plumbers, gasfitters & HVAC techs cannot compete with a kid living in his parents basement.
In the example of Thumbtack, they advertise a bath remodel "should" cost an average of $5,000, they then charge "pro's" $200 per lead, and sell that lead to 5 or 6 "pro's".
The cost, assuming the homeowner demands his $5,000 remodel, would be $1000 per job for the "pro", leaving him $4,000 after bidding 5 jobs at that price.
Folks, I do this for a living, $4,000 will barely buy materials for a cheap bath remodel, anyone engaging in a bidding war under those conditions is either inexperienced, desperate or scamming.
As a plumber, any time I work in a home, I take extreme precautions with my work, I test and get it inspected, because, God forbid I get a slow leak above thousands of dollars worth of finished space, hardwood floors, electronics or worse, a leak rots out the framing.
There's probably no stopping these services, but recent litigation, class action suits, seems to be roping them in,
There will likely be times you need to use one of them, to that, I say be careful of extremely low prices, make sure the entity you hire has a license and liability insurance.
Check the name & license of any provider outside the source to be sure they're not just being promoted by the lead company alone.
