Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals

 
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Old 04-20-2017, 01:23 PM   #1
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Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


'HomeAdvisor is spending $100 million to convince homeowners to rely on its platform above referrals from friends and family. That should tell you something about where the market is going.'

https://www.proremodeler.com/homeadv...83&bid=1731346

What do you think?

Last edited by NJ Contractor; 04-20-2017 at 01:29 PM.
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Old 04-20-2017, 01:26 PM   #2
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


I think your link doesn't work.

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Old 04-20-2017, 01:29 PM   #3
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


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I think your link doesn't work.
I think I fixed it...
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Old 04-20-2017, 01:31 PM   #4
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


The link works for me.
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Old 04-20-2017, 01:59 PM   #5
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


Thank you for posting!
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Old 04-20-2017, 02:05 PM   #6
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


Is HomeAdvisor going to come clean and tell their customers that this $100million is going to ultimately come out of their collective pockets?
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Old 04-20-2017, 02:11 PM   #7
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


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Is HomeAdvisor going to come clean and tell their customers that this $100million is going to ultimately come out of their collective pockets?
Not if they want a good referral
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Old 04-20-2017, 02:21 PM   #8
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


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Not if they want a good referral
Which 'they'? HA or the HO?
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Old 04-20-2017, 02:22 PM   #9
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


HA...

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Old 04-21-2017, 08:25 AM   #10
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


Waste of 100 mil.
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Old 04-21-2017, 08:46 AM   #11
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


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HA...

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According to HA, ALL their referrals are good.

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Old 04-21-2017, 09:26 AM   #12
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


Think of how many people are (still) reluctant to give out information on the internet to make purchases, sign up for things, etc? You think those people are going to jump on the train of trusting a website before they trust someone who gives them a face to face referral?

Also, Home Advisor can't provide customers with a first hand look at a project I completed. We all know on some jobs, pictures don't do justice to the work completed. But when Joe Blow goes to Joe Schmoe and asks for a competent kitchen remodeling company, Joe Schmoe can show him the kitchen he just had done by my company first hand and pass a referral on.
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Old 04-21-2017, 10:47 PM   #13
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


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Think of how many people are (still) reluctant to give out information on the internet to make purchases, sign up for things, etc? You think those people are going to jump on the train of trusting a website before they trust someone who gives them a face to face referral?

Also, Home Advisor can't provide customers with a first hand look at a project I completed. We all know on some jobs, pictures don't do justice to the work completed. But when Joe Blow goes to Joe Schmoe and asks for a competent kitchen remodeling company, Joe Schmoe can show him the kitchen he just had done by my company first hand and pass a referral on.
Have you seen the last 2 generations? What do you mean people are reluctant to put information on the internet? Have you seen facebook? twitter? instagram? etc. Your statement used to be true... but it's quickly becoming not true. unfortunately these upcoming generations would rather talk with people online than ever face to face. People know their neighbors less and less but have 1,000 friends on facebook.
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Old 04-22-2017, 05:38 AM   #14
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


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Have you seen the last 2 generations? What do you mean people are reluctant to put information on the internet? Have you seen facebook? twitter? instagram? etc. Your statement used to be true... but it's quickly becoming not true. unfortunately these upcoming generations would rather talk with people online than ever face to face. People know their neighbors less and less but have 1,000 friends on facebook.
I agree, while a referral will always be the best form of advertising, most research and shopping nowadays is done online and it is very important to have a strong online presence with solid reviews and professional photos. I would not pay a company like HomeAdvisor to do this for me, but there obviously is a demand there if they are willing to put that kind of money behind it.

Based on what I see, if people could do the whole design/estimating/build process from behind their computer, they would prefer that over face to face interactions. Look up online interior design and see how the designers are moving their services online and are able to do work all over the world without speaking to their clients directly.

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Old 04-22-2017, 07:19 AM   #15
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


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Have you seen the last 2 generations? What do you mean people are reluctant to put information on the internet? Have you seen facebook? twitter? instagram? etc. Your statement used to be true... but it's quickly becoming not true. unfortunately these upcoming generations would rather talk with people online than ever face to face. People know their neighbors less and less but have 1,000 friends on facebook.
Chatting about cat photos and posting a Tweet about the elm tree in your back yard and "Friending" every Tom, Dick and Harry that Likes your FaceSpace and MyBook pages ain't the same thing as hiring a contractor to remodel your kitchen.

Most people's on-line shenanigans are totally shallow and meaningless.... traits that disappear when real money is on the line.
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Old 04-22-2017, 07:41 AM   #16
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


Their desperate, very desperate, things are not working out like they planned and now it's becoming a no holds bared slam fest to create a customer /contractor base.

I'll make generalizations, but for the most part I think I'm right: legit established contractors are not interested in using their services. So home adviser and angie are stuck with start up companies and low hanging fruit who rely on their services.

The majority of customers who used the internet to buy products and now services are looking for the lowest price possible. If they cared about creating relationships and cared about services they would go into a store and buy a product.

So these companies are dealing with the cheapest most difficult people out there. Both customers and services providers.
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Old 04-22-2017, 08:34 AM   #17
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


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Their desperate, very desperate, things are not working out like they planned and now it's becoming a no holds bared slam fest to create a customer /contractor base.

I'll make generalizations, but for the most part I think I'm right: legit established contractors are not interested in using their services. So home adviser and angie are stuck with start up companies and low hanging fruit who rely on their services.

The majority of customers who used the internet to buy products and now services are looking for the lowest price possible. If they cared about creating relationships and cared about services they would go into a store and buy a product.

So these companies are dealing with the cheapest most difficult people out there. Both customers and services providers.


I say depends on the type of work you're looking to have done. I've landed some great jobs off of both Angie's and HA over last few years. Been around 24 now.

Probably harder to sell a 50k kitchen off of these services but a $1500-2k gutter job can be sold without me even leaving my house sometimes. The system isn't perfect but it's just another way to get leads for me and others I know in the service business.

Word of mouth and subbing is still a major part of my business but we do 450- jobs a year so need to bring in more leads other ways. People see Angie's and ha all day on tv and will continue to use these services.

I get the lead, I respond, I show up on time for estimate in a professional vehicle, I educate about myself and my product. These are the same leads I used to to get from the newspaper and phone book but now they are coming in online.


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Old 04-22-2017, 08:42 AM   #18
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


The people with word of mouth references don't even know HA exists. How do you stop that?
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Old 04-22-2017, 09:03 AM   #19
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


Just heard a HA plug on NPR. They're definitely spending money. But I won't have any part of it. WOM has worked well for me my entire career and if it ever changes then I'll sell stuff on the internet that I make at home. HA just resembles a bad politician IMO.
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Old 04-22-2017, 09:19 AM   #20
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Re: Home Advisor Spending $100 Million To Combat Word-of-Mouth Referrals


I would never pay for this kind of lead service or trust it. Like NY said, depends on what you do though. As a general contractor I don't have any interest in Internet leads at this point, and I'm not an old timer, I'm 34. I imagine it depends on where you live, but a successful business can still be built in the custom market all WOM and be maintained all WOM.

I don't think 90% of my clients (3 of our current projects owners range from 35-45) would turn to the Internet for a major project. In fact, obviously they didnt. They trusted a referral or asked around

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