The Problem With Shared Home Service Leads: Deceptive Lead Pricing

June 27, 2024

Who doesn't want a $30 - $40 home contracting lead? On the surface it sounds great!

If you're looking into using services like Angi, HomeAdvisor, Thumbtack, or similar listing websites, the initial "cost per lead" may seem attractive. However, you're probably paying to give leads to your competitors... and they may not be the best leads.

How Listings Sites Like Angi, HomeAdvisor, and Thumbtack Really Work

When you pay for a lead from these popular listing websites, they are sending the same lead to up-to 6 of your local competitors. And, if you use both Angi and HomeAdvisor, you may end-up paying for some of the same leads twice, sharing leads with up-to 8 local competitors because Angi and HomeAdvisor are actually the same company.

So, the real winner is the listing company because they make up-to 6X the cost of a lead because they have 6 companies all paying for the same contact. Then, you have to deal with a price sensitive customer, and that's only if you can even follow-up with the contact fast enough to book an appointment before they've booked with your competitors. 

And, if all of that wasn't bad enough, some of these platforms, like Thumbtack, charge you per interaction with a lead. The charges from the back-and-forth messages with a contact can add-up quick!

Then, to add insult to injury, some of these listing sites are locking you into a 12-month contract  that can require a 35% termination fee to get out early. So, if you find that you're not getting the expected return, you could be locked into tens -of-thousands of dollars of wasted spend for the rest of the year.

Always Explore Alternatives to Major Listing Site Providers

Gozango only generates exclusive leads for our customers. Gozango leads are people actively in the market for the type of service you're promoting, who click on a link directly to a page or profile for your business, and then decide to contact you directly. In addition, Gozango has extra filters in place to weed-out contacts outside your service area, telemarketers and spammers, and wrong number dials.

FREE Google Checklist for Home Service Businesses

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• Google Business Profile

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• Google Ads

• Organic Website Page Rankings on Google Search Engine Page Results

Have Questions?

Gozango is here to help! We know that as a local business owner or manager, your time is valuable. Sometimes the easiest way to get the information you need for your specific business scenario is to talk to an expert who can provide a custom answer. Please feel free to message us here or call us at (888) 559-8702 to speak with an expert today.

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