How Does Angie's List Make Money?

Jon York

Member
Nov 30, 2018
103
21
18
What City & State do you work in?
New York City
A lot of users have wondered how Angie's List makes money since most of them don't have to pay anything to use it. Like other similar sites they make most of their money by charging the service providers a fee for every job that's sent to them. (Although in the case of Thumbtack, the service providers are charged simply for responding to a request)!

Angie's List has a few revenue sources. One source comes from consumers who pay a fee for Silver or Gold memberships to Angie’s List.

Angie’s List also generates revenue from service providers. For example, Angie’s List allows providers who maintain an "A"- or "B"-overall rating (if the provider has received at least one review) and those who have not yet received a review to pay to advertise coupons, discounts, or other promotions to our members through our website, magazine, and call center, so long as they meet other eligibility requirements, including their owner or relevant manager passing a criminal background check. If a rated provider’s rating falls below a "B" or if they fail to respond to our Complaint Resolution team, we can revoke their advertising privileges and remove their coupons, discounts, and promotions from the magazine, our call center, and AngiesList.com. Angie’s List also can, but does not always, earn revenue from the various e-commerce offerings, including Angie’s List Big Deal. Angie’s List may from time to time modify the eligibility requirements for service provider advertising and offerings, including, but not limited to, in one or more test markets where eligibility criteria may vary.

Angie's List
 

McCrank

Member
Jan 5, 2019
101
9
18
Austin, Texas
What City & State do you work in?
New York, NY
I heard through a couple of contractors I hired that Angie's List takes a pretty big bite out of worker earnings. But, once a contractor gets a job through Angie's List he's free to work with that client again - direct.
 

Jon York

Member
Nov 30, 2018
103
21
18
What City & State do you work in?
New York City
I've always had a feeling that there's something sketchy about Angie's list but I've never been able to quiet put my finger on it.
 

McCrank

Member
Jan 5, 2019
101
9
18
Austin, Texas
What City & State do you work in?
New York, NY
Well, remember, they were the ones who started out charging CUSTOMERS a monthly fee to access their website. And I think it was something crazy high like $50 a month. That model failed because no one was going to pay for the privilege of doing business with a website! It was like they were saying, 'you pay us and we will give you the opportunity to spend more money with us.' So yes, that was shady.

You really get the feeling a lot of these companies have no idea how to make money. You get the feeling they're so inexperienced at business that they really think customers have no problem with paying a monthly fee to buy the right to spend more money with you!

It wasn't like Amazon's annual Prime fee. People who pay the $100+ per year with Amazon at least are promised some benefit for doing so. They supposedly get free shipping or access to tons of videos or whatever. But Amazon at least has enough sense to promise them something extra!

If Amazon did what Angie's List does - they would say 'pay us $125 a year for the privilege of buying things on our site'.... no "free" shipping, no free videos, no nothing. Just pay us the hefty annual fee for the right to do further business with us. That would be stupid! But that's what Angie's list originally thought was a great idea!

When Angie's List finally realized (just before they almost went out of business, I'm sure) that customers didn't want to pay around $600 a year for the privilege of using their site to find contractors - they finally came to their senses and realized why not charge the contractors. After all 'we're sending business to them'. Finally, they made some sense! But now they charge their contractors way too much money. To the point it's hardly worth it for a lot of them.

So yeah, there's definitely something shady about them.
 

Graham

Member
Feb 4, 2019
141
10
18
What City & State do you work in?
Glendale AZ
Angie's List always felt like another 'review mafia' site, similar to Yelp but a lot more open about it.