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    Blog: The Rise and Fall of Angie’s List

    Storm Group Roofing is a full-service contractor specializing in full-service repairs as well as new exterior projects. At Storm Group Roofing, we take great pride in our staff to ensure great customer service and responsiveness to your needs.

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    The Rise and Fall of Angie’s List

    Angie’s List used to be service-based, intent on providing unparalleled customer service. The formula worked wonderfully, connect top-rated contractors with top-rated homeowners.

    Angie’s List was founded in 1995 by Angie Hicks and her business partner William Seelye Oesterle. Hicks produced this system because she wanted to develop a way for customers to be able to find reliable construction contractors.

    She implemented a ratings system, using data she collected by going door-to-door in different neighborhoods, asking people which companies they felt offered the best services.

    In 1999, as the internet soared in popularity, Hicks took all the data she collected from years of research and published it on her website.

    For over fifteen years, Angie’s List became the go-to destination for people searching for reliable contractors, peaking in August of 2016 when the website had over 3.2 million paying members.

    Yet, just three short years later, Angie’s List has begun to plummet. What happened to this once giant staple in the construction business? In this blog, Storm Group Roofing explains how Angie’s List has lost its reputation, one that for so long seemed impenetrable.

    What happened to Angie’s List? Where are they today?

    Here at Storm Group Roofing we would argue that Angie’s List was the best service to connect contractors and homeowners that has ever been on the market. On May 2, 2017, IAC, a powerful media company based in New York City, announced that it had purchased Angie’s List to the tune of $500 million. IAC had ambitions to change the structure of Angie’s List.

    Unfortunately, now that Angie’s List is owned by IAC, who also owns HomeAdvisor, we would argue that HomeAdvisor is absolutely the worst platform to connect homeowners and contractors.

    The demise of Angie’s List didn’t happen overnight. Before 2015, the company had been relying on capital infusions from investors, and for eighteen years the company never recorded a profit in their annual income reports. Something had to give.

    So, what happened? How did the worst company in business buy the best company in business?

    Angie’s List has been struggling for years, as a matter of fact for 18 years Angie’s List has been depending on cash infusions from investors. They were simply not profitable and only turned a profit right before they sold to HomeAdvisor.

    Angie’s List was a search engine. Think of Angie’s List as a Google for contractors. On the other hand, HomeAdvisor has always been in the lead generation business. A completely different business model. Angie’s list was focusing on quality where HomeAdvisor has always focused on quantity.

    Angie’s list was service based. HomeAdvisor is based on selling information. Angie’s List was connecting top rated contractors with top rated homeowners. Angie’s List worked because contractors were not competing with other contractors, they were competing for the attention of homeowners. Competition based on their reviews, based on how many offers they received through Angie’s List. It was good for business.

    A lot of people in the business from those early years 2010 through 2012 said that 80% to 90% of their business was coming from Angie’s List because the search engine was so powerfully relevant to the contractor. Reviews were really good and reliable, contractors were trustworthy, they were the best of the best. Bottomline, the best contractors would compete with the top 10-15 contractors in town. Angie’s List built the platform that was connecting homeowners with the top contractors. The contractors who made to the first page of Angie’s List did very well.

    Instead of Angie’s List prioritizing customer service, it is geared toward finding as many homeowners as possible, and then selling the prospective customers’ information to contractors.

    HomeAdvisor is all about who is willing to pay. You can start a company today and tomorrow you can start buying leads. So, your information if you’re the homeowner would be compromised. With HomeAdvisor they pretty much start selling information right away and it doesn’t matter how good the contractor is or how many reviews they have, they promise to connect you with the best. In reality they are connecting you only with the people who are willing to pay for the service.

    Angie’s List never turned a profit through their 18 years of business. They kept struggling, their stock kept struggling. On May 02, 2017 IAC Interactive Corp owner of HomeAdvisor announced that it had agreed to acquire Angie’s List for five hundred million dollars.

    Angie’s List was service based, it was connecting top-rated contractors with top-rated homeowners. Under the umbrella of IAC, Home Advisor’s acquisition of Angie’s List was simple, capitalize on the contractors and customers Angie’s List already had in place. HomeAdvisor is selling information to any contractor but mostly startups who are struggling to find jobs. The HomeAdvisor business model is very simple, find more homeowners to sell to more contractors. That’s why HomeAdvisor really needed to buy Angie’s List because they just became a huge competitor with way too many contractors who believed in it.

    HomeAdvisor acquiring Angie’s List was a no brainer. They wanted both homeowners and contractors that’s what they were after. They start making changes right away. It’s getting much harder to see contractors on Angie’s List. So pretty much if you’re a homeowner and you come to Angie’s List today you will be redirected to HomeAdvisor contractors and your information is going to be sold to them. So, you’re no longer using the search of Angie’s List. In some scenarios it is still possible but it’s way harder to actually get down to it because they’re building walls to protect those contractors because HomeAdvisor wants to make money. If a homeowner has a request for a job HomeAdvisor will trick you to connect you with a HomeAdvisor contractor and sell your information to them.

    HomeAdvisor does not want you to use Angie’s List as a search engine for top contractors. They don’t want you to see the actual list of top-rated contractors. They want to sell your information to people who are willing to buy it. And those people are not always the top rated. The way it works, if a contractor wants to buy leads that day and if you come in that day, it doesn’t matter who the contractor is, if he’s buying lists he’s buying leads and HomeAdvisor is going to sell it so that’s how it works today.

    Despite promises of keeping the Angie’s List model as it was, HomeAdvisor now sells customer information to HomeAdvisor contractors. Because of this discrepancy in honesty and policy, Angie’s List today does not get their old contractor renewals because a lot of companies all dropped out within the last two years.

    So, today Angie’s List lost a lot of good contractors, probably 80% of paying contractors. Because contractors are no longer willing to pay Angie’s List to promote their business because they don’t get leads from Angie’s List anymore. Those leads are being sold to HomeAdvisor contractors and pretty much HomeAdvisor has ruined Angie’s List. This means that high-end homeowners who loved the quality of Angie’s List are now being bombarded with inquiries from contractors with little to zero reputation, creating an environment that is not beneficial to either party.

    So, what’s the conclusion?

    The only way HomeAdvisor can keep growing is if it keeps buying platforms. Just recently they purchased Nextdoor app. Nextdoor was an amazing app where a lot of people were finding good contractors. But now, just like Angie’s List, it’s the same thing HomeAdvisor has been doing for years. So instead of a changed business model to monitor contractors they pretty much keep making money and not in a very ethical way. Nobody recommends them, turnover is huge inside the company and outside the company contractors don’t recommend them and nobody wants to be part of the network. Maybe we’ll get another player similar to Angie’s List who will be bold enough to compete with them. Amazon is doing a lot of things in the right direction now. Somebody like Amazon can put a stop to the current model of corruption, it’s only the beginning of the end.

    The bottom line is that under the new ownership, Angie’s List has been compromised. Angie’s List has turned into a company whose reputation loses credibility each time a frustrated homeowner is put in contact with an unreliable contractor. Today, the once proud contractors of Angie’s List? The ones who made the website what it was? They too are left wondering, “what happened?”

    Let me know what you guys think in comments below. I would like to invite you to take the public survey. If you’re a contractor and you did do business with Angie’s List and maybe you don’t do it anymore, or maybe you still stick with it, let us know in comments below we would like to hear from you or go to our Facebook page and share your story and we will send you a free t-shirt. Thank You, Storm Group Roofing Team.

    Dmitry Lipinskiy
    Host of Roofing Insights YouTube channel CEO of Storm Group Roofing Founder of Roofing Business School

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    42 Comments

    1. Thank you for opening our eyes about Angie’s list. We have used it before since we are home owners and needed someone reliable. We did find and hired someone that way. Then, by mistake Home Advisor was used for our next project. What a headache that was. Not only were we given contractors that WERE NOT in our area. Many were not licensed, nor wanted to do the job. Plus, we had to change our email due to them selling our email address to SPAM senders.

      • I was a Home Advisor Contractor, and came across some pretty good customers. I was tired of paying for free estimates that never materialized. I began to refer new customers to my old customers and built a “Word Of Mouth” business.

        • When you say “I began to refer new customers to my old customers…” what do you mean by that Anthony? You went with the old school way of providing references?

    2. Excellent review. Thank you. I used to use Angie’s list in the past. Now it has been destroyed. I tried using it the other day and it is totally shady and a crap service. I now have to go to my friends for recommendations. Really upset with Angie Hicks for letting this happen to her company.

    3. I got to hand it to Angie HIcks and Bill Oesterle. They walked away multi-millionaires on a company they ran for nearly 20 years without ever turning a profit. It was never a good business model and the shady things they were doing was reflected in the several lawsuits against the company.

    4. Angi is a horrible company to work with from the contractor’s perspective.

      They say that they charge up to 3 participating contractors $150 each for leads that are often unqualified, possibly bogus. That charge happened whether we made a sale, or not.

      On top of that, they have dirty tricks to play. We no longer work with them, but they are still listing our business on their website, but the number is a fake rerouted number.

    5. I feel very let down. I used Angie’s List in the past (when it first started and for years afterwards). I was generally pleased with the matches. I felt the contractors matched were ethical and did a great job. I am so dismayed to hear the owners sold out to an unethical company. Now there’s no way to do what Angie started. I will not be using it again ever.

    6. I have been and unfortunately currently am a provider with Angi’s List. I was with them for 8-10 years achieving their Super Service Award for 7 years with more than 70 reviews. I noticed that their customer service to me as a provider had certainly gone downhill. Finally when it was time to renew my contract with them at the end of 2018, I decided I had had enough. There were many instances of poor communication but what really made my decision to leave Angi’s List was I was scheduled for shoulder surgery and would be unable to work for 3 months. I asked if they could suspend my account during that time since I couldn’t work. After 7 Super Service Awards and 70+ reviews their answer was no. They wouldn’t suspend my account. With that decision, my decision was to discontinue my association with Angie’s List.

      In the last 3 years I have been called several times to rejoin and have always explained my experience and declined. However, in November 2021 I was called and after a lengthly conversation decided to sign up again . What a mistake. I have been trying to correct an e-mail address that I was assured by 2 different people would not be available to clients. This e-mail address is no longer being used and yet it remains as a “From” on the instant reply app. Therefore, anyone I resopond to sees that address, has no idea who it’s from and ignores it. I have called 4 times and am always told I can fix it through their business site. Well the business site doesn’t allow access to changing e-mails. I thought maybe it’s just me since I’m not to tech friendly so I asked my web designer to look at it. She agreed with me, there is no way to access the window to change the e-mail address. I emailed my “Success Manager” with screen shots showing where the problem is. Several days later I got a response that basically said, use the business app to change the e-mail. I’m wondering if a) they even read and looked at the e-mail and b) why am I spending this much time trying to change this address, Isn’t that something that my “Success Manager” should be doing? It would probably take her 2 minutes to fix but I’ve spent 2 1/2 -3 hours triying to rectify this problem. In my mind that is not “sucess” . What am I paying for every month if they can’t change an e-mail address. There is a penalty for canceling my contract prior to the end but I am seriously considering that. After spending more than a $1000.00 so far I’ve had 3 paying client referrals. Most of the referrals that I contact never turn a call or text. And since Angi’s has the incorrect e-mail address I never hear from possible clients. I may be losing several thousand dollars per month because “They” won’t correct a simple request.

    7. Angi (formerly Angie’s List ) is an American home services website owned by Angi Inc., a pubicly-traded subsidiary of IAC. Founded in 1995 by Angie Hicks and William S. Oesterle, it allows users to search for contractors to provide paid home improvement work. The service was originally developed as a database of reviews for local services. Prior to July 2016, Angie’s List was a subscription-based service, but shifted to a freemium model in July 2016. In 2017, the company was acquired by IAC and merged with HomeAdvisor .

    8. Great video, thank you.
      However, you make it look like IAC acquired Nextdoor. This is not true, Nextdoor is still an independent company.

      Dmitry, I’m wondering what other platforms you like now instead of Angie’s list? As a homeowner and real estate investor, I have been happy with Thumbtack so far. It’s helpful, for instance I was able to request quotes for a powerwashing project, and specify that there was no water source available, which will make it easier to narrow down to appropriate contractors.

    9. I’m not bill but that Angie is a shady broad and a horrible terrifying incident waiting to happen and all for not being faithfully orr truthfully with her Work description and than having the oddacity to reticule us with real pure hearts and real work ethic without cheating or stealing but some people just will never learn till it’s too late and that’s sad because the messed part is that the whole family is involved and they swear they’re better than anyone hahahahahahaha risk tisk

      • We thought angie’s list was a Vetted establishment – but we REALLY go the screws with PAVE RITE ASPHALT, MN that put CRAP down

    10. I found Angies list invaluable for contractor work on my house. At first I did not understand the company Home Advisor took over except I could not isolate on contractors I valued. After a time I started to get it. It was insidious. I would look up contractor work and Home Advisor would get ahold of me. Then I would get calls day and night from contractors in which I had no interest and no method of verifying their work. Home Advisor destroyed a wonderful business and I would suggest against using any of those horrible leads they generate.

    11. There is still a need for a list of contractors based on real customer reviews so there must be a way to start one again profitably.
      I would name the new company ‘BETTER THAN ANGIES LIST’
      I don’t know why angi lists business model failed but I guess it was because the cost of doing business was higher then the income generated from sales.
      The company was based in the USA .
      The cost of doing business here is high.
      Perhaps moving the company headquaters to a nation with a lower cost of doing business would of brought profitabilty and sustainiblity.
      Philipines and india come to mind as perfect places to base a new angies list.
      Those are two countries known for thier lower cost of doing buisness and thier english speaking population.
      Today one can easily carry on a buisness remotely through the use of computers and the internet.

    12. I am in the Commercial Insurance business and had many conversations with Contractors, They were not fans of Homeadvisor. They would promise leads for a Fee, but never really materialized because of the Undercutting of Price for Project hence leading to unhappy homeowners, Shoddy Workmanship. .

    13. I never liked homeadvisor and it was obvious from the first time I used them that they just took your info and immediately sold it to everyone, I had the sketchiest “contractors” showing up to give me bogus quotes whereas angies list provided a list for me to look for, they also had contractors offering essentially flat fees for services, such as furnace installations etc which made it easy for budgeting/quotes. I really miss angies list. HomeAdvisor is the worst and I knew they were going to ruin angies list once they bought them.

    14. Unfortunately they oftentimes match me with “Angi Pros” that have no reviews and they decide to cancel on the job. Not happy at all with Angi now.

    15. As a homeowner, I used to use Angie’s List a lot. I could browse through lists of contractors near me, I could read reviews, I could read what the contractors wrote about themselves and their services. And if I felt like it, I could solicit estimates & proposals from specific contractors — NOT random ones! When I first went into the “Angi” website, I was terribly disappointed. What had happened to my favorite resource? I’m forced to go through the process of describing a project, and then submit it for proposals from contractors I have no chance to review or select ahead of time. I miss the old Angie’s List. This new model just doesn’t work for me. I’m going back to general internet searching when I need work done around the house.

    16. What you’ve described here is verbatim what I’ve been experiencing and trying to figure out for the last year plus. Wow. We’ve been with Angie’s List since 2009 having over 400 reviews and a 4.8 star rating. I the last 2 years or so the leads have become what I’ve described as the bottom of the barrel or the leftovers. We recently threw another $200 a month at Angi to see if it was just a needing more leads problem, but that has not really helped much at all, just more crappy leads for me to sift through.

      Angi is the only place we have ever advertised in the 17 years we’ve been in business, so we are faced with considering what direction do we want to put our efforts into re-establishing our online profile and source for leads. Google Local Services was suggested to me today along with marketing to our 2400+ clients we’ve done work for or at least provided a quote to over the years.

      Any suggestions of what others are doing as Angi becomes worse and worse, as an alternative, would be very much appreciated.

    17. Excellent and informative! Thank you. I actually cam upon your article out of frustration with the the new Angi site. As a customer and not a contractor it is already extremely difficult to try to get remodeling information. Going to the granite, tile, plumbing, hardware companies (and I have gone to many dozen these past months) has been met with closed-mouthed business owners. Unless you are a subcontractor, they won’t discuss details with you.

      The Internet sites are even worse. I pity any serious DIY-er; you will be treated as lowest priority, or worse, invisible. Angie’s List used to be more informative than most. You can tell some by good reviews; you can tell a great deal more by bad reviews. Not the reviews themselves, but how [if] the contractor replies to such. I have found professional and honest contractors in good part to seeing how they replied to their fussiest, so sometimes seemingly most irrational, clients.

      Unfortunately, as you noted, the new Angi has become much like the YP, Ylp, and dozens of other “15 best” lists. They are driven by information selling and kickbacks from sponsor construction companies.

      It makes it extremely difficult to find contractors who share even a little of the client’s vision, expectations, or product desires. Very frustrating, and even more time consuming. If you want something specific or something more creative than the standard, it should not take months to find the skilled subcontractors a customer desires.

      Greater technology; lesser service. Welcome to the 21st Century Internet.

    18. You are pretty much telling my story. I have been with Angies since around 2010. IT was awesome. Got all my business from them, and then some. Then, after Home Advisor bought them, it went downhill…fast. My great account managers, who were like partners with me and I would talk to constantly, are now gone. My latest account manager hasn’t contacted me in a year and now automatically renews my advertising budget without letting me know. Even boosts the monthly fee without letting me know. And my leads are absolutely horrible. It’s like they no longer care what I do and send the absolute worse leads to me.

      So, like you, I’m looking into GOOGLE’s advertising programs.

      Angies list was the best. Now the worst. Amazing transformation. SHould be taught in Business Schools. lol

    19. I’m a small licensed contractor. Angi led me to believe that they would send me leads as my time allowed, and that I could hold off on leads until I was ready to take them on. Ultimately, they ended up billing me for leads that I never received. Being busy, I didn’t catch it right away. Of course, they’re telling me there’s no way they’ll refund me for the those leads.
      This company is crooked, crooked, crooked.

    20. Sorry I found this site so late. Angie’s is the worse, was wondering what happened. Contractors don’t show up, then charge for service. The absolute worse. Total waste of money.

    21. Excellent article and it covers all the bases insofar as the evolution of Angie’s List and its disintegration through the acquisition by HomeAdvisors. I was a faithful customer from the beginning over 20 years and won’t touch it with a 10-foot pole after having several bad experiences with the new Angi’s. Horrible service.

    22. I have been tryingfor weeks to get past angi firewall against accountability.
      Iam a lifetime (over60 years) indpendant contractor. At this point I an also primarily a consumer.
      As a consumer I have had zero satisfaction w/ angi. The contractors are all (almost) good hardworking honest people. But I everyday learn more of what these good people are anything but satisfied with how angi does business. THE WAY THEY TREAT CONTRACTORS IS WHAT PISSISS ME OFF!!!!
      I will either (1)- speak directly personal. ly.. with the owner (who that really is we do not know, but I will ascertain) OR, (2) personally destroy angi and more importantly those behind it. And for what it may be worth, I have unlimited Resources to achieve exactly that. Guaranteed.

      If you would like to join force and compare notes I can be reached at 719-209-6564.
      I have no interest in any other form of communication.tt

    23. This homeowner says thanks. I kind of figured out some of this as a former happy customer of Angi’s List some years ago and someone who had avoided Homeadvisor. But you put it altogether in a clear package in which I agree fully. I will keep my eye out for IAC as I see another name they have that I don’t particularly like.

    24. I had a bizzare incident with Angie this past week. I received an email from them asking what I knew about damage to a customers property. I responded saying I had never damaged anyone’s property and asked for the customers name and the job #. They told me they could not tell me and that they were dropping my name from the pro list until they were through investigating the issue. I smell a rat.

    25. Jack, I want to let you know that it is not always the Pro’s choice to cancel. Myself and my husband have a handyman business and work on the Pro side. Let me tell you it is also terrible. I am currently in a battle with them. My husband scheduled a job on Tuesday. He spoke to the customer before that to get the scope of work and to veriy that everything would be ready when he got there. That morning when he arrived spoke to the customer he realized that the customer didnt have the items removed so he could do the repair. A different company had to remove the item otherwise it would of voided the customers warranty. My husband said that it was not problem and to just call Angi and reschedule when the customer was ready. Now Angi is accusing my husband of not showing up. So what do they do as punishment. They canceled his Thrusday job on him. Sent him a text that because he did not show up for his tueday job (which he did) the customer canceled or wasn’t ready. Angi was canceling all his jobs.

    26. So far every time I have attempted to get a contractor, handyman or any service thru Angi I have been ghosted. I get names and leave messages (since nobody answers a phone anymore) and never get responses. Angi is a waste of time.

    27. Used to use them, but disappointed lately. Last time I added a project, I had two actual local companies call with in a few hours and discuss what I needed (nice!) and had EIGHT calls from the SAME overseas call center over two days. Very disappointing and maybe not even a legitimate contractor.

    28. This article includes false information. Home advisor didn’t buy out anything. BOTH HomeAdvisor and Angie’s List were bought out by IAC along with Handy and several other companies. The rebrand was made for all companies called “Angi.”

      Angie’s List isn’t suffering financially. It’s had record growth. Consumer contacts are slit 50/50 with HomeAdvisor and Angie’s List. The only thing I can agree on is HomeAdvisor isn’t a good platform and it’s bringing Angie’s List down with them.

    29. I came across this great Blog, by “Anger Searching” for information on Angi, after being scheduled and rescheduled to have my tree trimmed, 5 times…and never being given the name of the Pro who was assigned. Oh yeah, the notifications always came through Home Advisor.

      I wish that I had done my research BEFORE booking this Project. But I really didn’t see a reason to bc I’ve been a member for many years and NEVER had a problem. However, that has all changed and after reading your Blog and these comments, I understand why. Not that I’m any less angry, mind you…just more knowledgeable. SMDH.

    30. It is terrible that Angie’s List doesn’t work for contractors anymore. I can feel your pain, but as I read all of these comments. I see one glaring problem that you guys seems to have missed, and I think this is a problem with all these companies who start by giving away services for free or for less than is profitable.

      Is it really a good model if you are not turning a profit?
      The reason Angie’s List was great for home owner/contractor was the fact that Angie was in fact giving away her service for less than the value.
      Now i do not agree with the new busines model of course, but ultimately businesses are in the business of making money.

      We live in an age where a lot of companies – in order to have a lot of subscribers tout a free or cheap fee. Once they amass all these users they ultimately try to change the model to the disappointment of the subscribers. The new company has a differnt model and the reason they never had so many subscribers? It is because of their model which is geared towards making money.

      It makes me wonder…should we support these free/cheap ccompanies who basically use people (some not intentionally) or should we just blame ourselves for wanting everything free.

      The bottom line is that services cost money. When people start these businesses they are afraid to charge what they are worth because we all shy away from paying for it. That means that the company will reamin small.
      You cannnot blame Angie for taking those millions and running for the hills since she probably would not make a dime from her clearly bad business model.
      What good is a business if the only people making money are the customers.

      How do we shift this paradigm???

    31. hey hey OMG they are so bad such a rip off stole money from me , lots of jobs not paid out, even if i was there and did it they told me i wasnt so i just started calling the costumers, And even the costumers were mad cause they were getting charged twice or even more , I tell everyone i know dont join them cause you gonna go broke faster then you made money, and ya they hire who ever , i heard from one lady that said some guy came out to install an 80″ tv on wall , and asked him has he done that before and he said yes lots of them, and guess what he did instead of mounting the mount to studs he mounted with six drywall anquers , and as soon he hang the tv , the tv ripped of the wall and fell to the ground, what a dum axs , but ja been said I HATE THOSE MDF FIN THIEFS AND FAKE , NO WOUNDER EVERYONE IS TALIKS SNAP ABOUT THEM , ALRIGHT HAVE A GOOD ONE LADDIES AND GENTS

    32. SOLVED: I have found that while Angi was purchased by Home advisor (2017) there is another lead company called Modernize that was purchased (2020) by a growing marketing company called Quinstreet. My brother in finance used Quinstreet leads and loved them and the support provided. I have since used Modernize and couldnt be happier. They provide me an personal account manager that I meet with weekly, so no more dealing with 1800 no support from Angi. Just dont buy in DFW area because we dont want to share our leads, haha!

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