Advantages and Disadvantages Of Using HomeAdvisor For Your Local Home Service Business That You Should Know
HomeAdvisor is a website that connects homeowners to local contractors in your local area.
Whenever a homeowner has a project that they are needing to get done, they visit HomeAdvisor to submit their project and see what local contractors they get matched up with.
Sounds great, right?
There is always a catch that has its advantages and disadvantages.
While it may seem great they HomeAdvisor can bring in new business for your local home service company, but if you do not use it properly, it could cost you more money than its worth.
Let’s start by going into the advantages of HomeAdvisor first…
Advantages of Using HomeAdvisor
If HomeAdvisor was not effective then they would not be in business. HomeAdvisor relies on their advertisers to pay their electric bill, employees, and big salaries.
No matter what industry that HomeAdvisor offers, they rank in the top of the search results in most major cities with both organic search engine rankings and paid sponsored listing with Google Adwords.
They have a team of Pay Per Click specialists and Search Engine Optimization specialists that are able to get them to the top of these search results to generate leads for contractor based companies.
If you were to tak on search engine optimization and pay per click management, it can be very costly upfront while you learn the platform, make changes, and be able to optimize it over time. HomeAdvisor has spent MILLIONS in this process already and it is a quick way for your local home service business to get customers fast without having to worry about learning a new trade skill.
At Digital 904, we provide Search Engine Optimization and Pay Per Click Management services for our clients that want to go the route of owning their own property online to eliminate relying on other lead services like HomeAdvisor.
Disadvantages of Using HomeAdvisor
Now that we know some of the good of using lead services like HomeAdvisor, let’s dig into the disadvantages.
Disadvantage #1: Whenever a new lead comes in you are charged for that lead. No matter if they convert into a customer or not. So before you dive right into HomeAdvisor, be sure that you have a sales person that is good at closing leads into customer.
You also want to ensure that you have a open phone line where ALL calls are answered, no matter if you are on a job site or not. This is where having a receptionist for your business pays off.
Disadvantage #2: The cost per lead can be high. Depending on your industry, you can be paying anywhere from $10 – $700 per lead! So you can imagine the loss of revenues you will have if a $300 lead comes in that was unanswered.
Disadvantage #3: Depending on the lead that you choose to accept, you are not the only company that the lead is getting sent to. Some leads are sold to 5 – 8 other companies, which means that your sales and project bidding game must be on point in order to win that customer. If not, you are still stuck paying the costs for that lead.
Since HomeAdvisor allows a easy platform for home owners to submit their project and see bids from different companies prior to having a contractor come out to their property, you get a lot of people that are shopping for price. So usually the lowest bid wins the job.
If you provide quality service then you want to demand prices that you are worth. But if you are on a slow period or just starting out, this may not be an issue for you.
There are many alternatives that may be available for your company that would be a better fit than HomeAdvisor. This would depend on your business location and the industry that you are in.
At Digital 904, we provide a simple alternative to local home based service companies that are looking to increase the amount of leads that they are currently recieving each week.
- Cost Per (Quality) Lead: Which means if a lead comes in and they are looking for a service that you do not provide, you will not get charged for that lead. We provide a lead scoring system and if the lead does not meet the score, then you do not pay for it.
- Lead Receptionist Service: We know how important it is to answer the leads call right away. If not, they will hang up and call your competitor. Our lead reception service is a USA based call center that answers your leads under your company name, asks your pre-set qualifing questions, and passes on the lead information via Email and SMS right away. This way you can recieve the lead and call back to estimate their project accordingly.
- Get started with just $100 annual fee and receive a $100 in free lead credit. Perfect low risk solution for you to give it a try to see how profitable our cost per lead solution is for your business prior to commiting to it long term.