HomeAdvisor vs Pay-Per-Call Lead Generation
HomeAdvisor (now part of Angi) is one of the largest shared lead marketplaces for home services. Their model: homeowners submit a project request, which gets sold to 3-4 contractors. You receive a notification, call the homeowner, and compete with multiple other contractors who received the same lead at the same time.
This model has a structural limitation that's not about HomeAdvisor's quality of traffic -- it's about the nature of shared leads. When you call a HomeAdvisor lead, you're calling someone who is also being called by competitors. The close rate on this model averages 5-15% for most contractors.
Pay-per-call flips this: you receive an exclusive inbound call from a homeowner who sought you out. The homeowner isn't simultaneously receiving calls from competitors. Your close rate on these calls runs 25-40%. The comparison: HomeAdvisor at $30/lead and 8% close rate = $375 per acquired job. Pay-per-call at $70/call and 30% close rate = $233 per acquired job.
Frequently Asked Questions
How does HomeAdvisor compare to pay-per-call for contractors?
HomeAdvisor delivers shared leads sold to multiple contractors. Pay-per-call delivers exclusive inbound calls. HomeAdvisor leads close at 5-15%; exclusive calls close at 25-40%. Pay-per-call typically produces lower cost-per-job despite higher per-contact cost.
What are the main complaints about HomeAdvisor leads?
High competition (3-4 contractors per lead), low close rates, inconsistent lead quality, and subscription fees are common complaints. Contractors often find that the cost-per-acquired-job is high despite the low per-lead cost.
Can I use both HomeAdvisor and pay-per-call?
Yes. Many contractors run multiple lead sources. Pay-per-call is typically more scalable and produces better unit economics, but testing both while tracking cost-per-job by source is the right approach.