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Angie's List Plummeting On Securities Investigation

3930 Views 27 Replies 16 Participants Last post by  leeson1776
I thought this might be relevant for those using or considering Angie's List:

http://www.forbes.com/sites/maggiem...-list-plummeting-on-securities-investigation/

Relevant:
Specifically, however, CPR is raising a number of deeper questions and said Thursday that among the issues it is investigating are: whether “the company consistently derived more than half its revenues from the service providers,” which would be ”contrary to the company’s claim that it provides its members with unbiased, online reviews, disallowing service providers from buying ratings”; whether or not “the legitimacy of the service provider side of Angie’s List business model was dubious, as service providers were forced to pay the company thousands of dollars a year in order to be listed as a highly rated service providers, and if they did not, they would not get customer referrals from Angie’s List”; and if, because of the fees Angie’s List charged service providers, these companies were forced to either charge above-market prices for “basic, run-of-the-mill services” or abandon Angie’s List altogether.
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Nice, yeah AL is going down.

Here is a report stating that AL spends more then it brings in year after year
http://www.mason-contractor.com/service-providers/matter-time-angies-list/
Years ago, one of my plumbers was complaining about AL. He said they kept trying to persuade him to spend $$ for better placement (my recollection is vague). It didn't mean he got recommended, but somehow was listed higher on the page or something. He smelled a rat then.
Wowsers... Not like we all knew it wasn't going to happen but the continued progress of their failure is creeping. I feel bad for some people that I know who only use AL as their main source for work.
Houzz is the new go-to site for discussion and reviews. Sooner or later Google will be scraping them. I've heard some of the original members of Houzz (contractors) complain that it was great at first with a reasonable and up beat crowd but now there tons of people that post rude and trashy comments. (wonder which site they came from.... :whistling: )
Angies list is the Walmart of the web world. lol
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I still get weekly calls from AL to pay $300-500 a month to put my name above the normal members...its border line dishonest the way they run things

with being able to charge such high rates I don't see how they are having issues...they should be rolling in cash...I see their commercials daily on FOX News

one of my top customers gets many of his clients from Angies list...so it will effect me too if it goes under

Angies list is great if you've been around for a long time and were lucky enough to get reviews 10+ years ago....but starting out now its impossible for anyone to catch up with the guy with 500 reviews.....your screwed....even if you pay $500 a month to be #1 you still have 4 reviews compared to the guy in the #2 slot with 500 reviews....who's going to pick you because your on top

AL is too aggressive on the phone....I hung up on the guy once and he called me right back 10 seconds later...they don't let up...so now I have their # memorized.....every week it pops up....F'n relentless
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I hope the BBB gets exposed for what they are too. Same exact thing except they have a name that sound "scarier".
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I hope the BBB gets exposed for what they are too. Same exact thing except they have a name that sound "scarier".
the BBB is a necessary evil

my biggest problem with all these types of businesses is they don't have an arbitrator to throw out bogus complaints.....I could write a fake complaint about a competitor to AL or BBB and it would get posted....once someone says it its posted

I had a BBB complaint from a predatory customer....any thinking person would have thrown the complaint out.....I don't even think the BBB reads what people write back and forth

someone writes a complaint, they post it

im a BBB member....I also belong to 2 builders associations (one I never attend)....belonging to things makes you appear legit...I spend $1,600 a year on all 3 combined..looks nice on my van and business cards
the BBB is a necessary evil
Not if they are exposed for what they with enough regularity.

Elderly people and not so elderly are under the impression that the BBB is some branch of the government who will actually help them. Maybe that was how it was supposed to be years ago by the founders.

It's not like that now though. They are just a lead service with an important sounding name and nothing more.
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Wow! They called me on 12-27. Trying to get a end of year sale quota. I decided to join them cause I got a decent offer joining them. 420 a month. Originally they wanted 42,000 a year, but they stated they have a end of year promo. Anyways that went down to 21 to 13k to the 420 a month :p now I'll have to reevaluate this :)
I'm on houzz, and have gotten quite a few jobs out of it. After a couple years I got a call from houzz wanting me to pay for top placement in my area. I didn't do it because I was getting jobs and had plenty of work.
Originally they wanted 42,000 a year,
:eek::eek::eek: They seriously asked you for that much?
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rselectric1 said:
:eek::eek::eek: They seriously asked you for that much?
Yes. Lol :0 I've heard good stuff about them from my subs. Will see, u never know till u try.
It didn't mean he got recommended, but somehow was listed higher on the page or something. He smelled a rat then.
I agree. I thought it was a good service until they started hounding me for money. I've gotten several jobs from there due to a customer adding me to the database but I think asking contractors to pay to get a better placement is playing both sides of the fence.

I never paid and I've noticed I don't get any leads anymore. I'd say either they throttle my impressions down due to not paying or my competition is paying and boosted their's to the point I'm not getting shown anymore.

I've been meaning to sign up and as a homeowner and investigate but I really haven't had time when in the office.
Just to ask everyone's opinion... I have an icon on my website side bar with that says: "Check our Reviews on Angie's List" with the logo.

I thought of removing it. Maybe just doing a tiny one at the bottom or not have it at all... Would You??

It's funny that all of the sudden the Today Show had a segment on how great AL is with no mention of what's really going on.
42k a year?? LOL!

What a bunch of sleeze , I wouldnt give them a nickle.
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Just to ask everyone's opinion... I have an icon on my website side bar with that says: "Check our Reviews on Angie's List" with the logo.

I thought of removing it. Maybe just doing a tiny one at the bottom or not have it at all... Would You??

It's funny that all of the sudden the Today Show had a segment on how great AL is with no mention of what's really going on.
Personally I wouldn't have it on my website. If a potential client has made it to my website I don't want to give them an option to leave and go to a website where they can browse other contractors.

Maybe if they paid me for the advertising I would.
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I agree. I thought it was a good service until they started hounding me for money. I've gotten several jobs from there due to a customer adding me to the database but I think asking contractors to pay to get a better placement is playing both sides of the fence.

I never paid and I've noticed I don't get any leads anymore. I'd say either they throttle my impressions down due to not paying or my competition is paying and boosted their's to the point I'm not getting shown anymore.

I've been meaning to sign up and as a homeowner and investigate but I really haven't had time when in the office.
your actually in the office sometimes?:blink:
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I have to admit that I am not on anyone's list. Meaning, lead providers or so called "qualifiers" (like BBB, Diamond Certified, Yelp and so forth). I get call from these folks all the time, and, there is always some new company doing the same thing as the other, which is: you pay me money and I will put you in front of clients.

I know that some contractors rely on these types of businesses, but it's like a crutch. If you can't seem to market yourself and your business, then pay someone else to do it. Also, some firms have been around for so long with steady clients, that they simply budget in these types of promotions.....basically the same companies that take out full or multi-page yellow pages, large postcards every two weeks or so, commercials on cable channels and so forth........these are firms with a continuous "war chest" of marketing dollars.

These "lead" firms are like the lottery, they hype the few dozen winners, rather than the 10's of thousands of losers. And, virtually, all these firms and their "ratings" can be baited, meaning that you can artificially raise your scores and recommendations.
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Personally I wouldn't have it on my website. If a potential client has made it to my website I don't want to give them an option to leave and go to a website where they can browse other contractors.

Maybe if they paid me for the advertising I would.
Good Point. At the time I added that graphic, I was getting alot of work through them and the fact that google will recognize an outlink to a popular or "trusted" source... (not so much trusted these days)
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