Is Angie’s List Worth it for a Small Business?

September 15, 2015 / Reading: 4 minutes

If you are running or own a small business then you might have asked yourself: Is Angie’s List worth the money for me? Compare the potential benefits and drawbacks to gaining customers through Angie’s List.

Angie’s list has become a household name. You have probably seen their TV commercials or internet ads. It seems that everyone is using them to find companies to do business with. But, is this simply a good marketing strategy or the truth?

Will Angie’s List really bring your small business new customers?

This is the real question. After all, you are in business to get new customers. There are many lead generation companies out there. The premise of Angie’s list seems sound. Current customers rate your business and future customers can see those ratings. If you get good reviews then it should turn into sales, correct?

What Makes a Great Source of New Customers?

There a few questions that you should look at when considering any potential source of new customers. These will identify great sources from ones that will simply waste your money.

  • Is the lead source working for you? – You are paying this company to find YOU new customers. You want their focus to be on you. If they are selling you on potential customer leads but really just want your money than they are not worth your time.
  • How many leads can they deliver? – Is the potential lead company able to offer you a consistent amount of potential new customers? If they are only giving you one lead a month then it probably isn’t worth it.
  • How many leads turn into sales? – There are many companies that offer to bring thousands of visitors to your website. But, few of these turn into sales. They are simply eyeballs going to a page. If the potential lead company is doing the same thing then you will not see a good return on your investment.

These are not all the questions you can ask about a lead generation company. But, they are the big three. You will be surprised how many low quality companies will be knocked out by these.

The Good and the Bad of Angie’s List for Small Business

Angie’s List is well known. There is no doubt about that. But, there are some potential problems with small businesses trying to attract customers with them. Let’s compare Angie’s List to our questions above.

  • Good: They can offer pre-sold customers. When a potential customer visits Angie’s List then they are looking for your type of business. They are looking for the service you offer right now. They are ready to buy. They just have to find the right company.
  • Good: Angie’s List does a large amount of advertising. They are working hard to get people to come to their site. This increases the chance that someone looking for your service will visit them. The more visitors they get then the more chances you get of obtaining new customers.
  • Bad: They are a sales company. Angie’s list claims to be about the visitors and providing quality reviews. However, they are a sales company. They do not even allow companies to mention how many reviews they have received. The only thing a company can do is put a badge on their website to Angie’s list. This does not go to the companies reviews. It goes to a page to sell more subscriptions.
  • Bad: It is easy to fake a review on Angie’s list. I worked for a company that actually required its employees to post a review about them on Angie’s List. Angie’s List did catch a few of these fake reviews but only about 10%. The other 90% were posted as real reviews. This gave the company a false rating.
  • Bad: Angie’s List targets a specific demographic. This is one thing that many don’t consider. But, Angie’s List members do come from a specific demographic. The majorities of their members are college educated, make over $300,000 a year, and are between the ages of 30 and 69. You need to decide if this is the demographic that buys your products.

The Bottom Line:

There are many companies that swear by Angie’s List. They will tell you that they receive a constant flow of new customers. This depends greatly on the business you are in and the demographic you service. Angie’s List is geared towards contractors and service workers. If your small business is not one of these then it may not work for you. I cannot answer, “Is Angie’s List Worth it for a Small Business?” for you. But, I have offered you several things to think about when deciding it if is worth the money for you.