Marketing

Is HomeAdvisor Legit?

Tanner Mullen
·
March 21, 2021

If you're a contractor or a soon to be contractor, you've definitely heard of the word "HomeAdvisor" 

Chances are, they've either contacted you, or you've seen their ads on TV, email, and anywhere else ads follow you - most likely because you've been searching for information on anything to do with home improvement. If you haven't seen their ads, you've probably heard from a fellow contractor complaining about how much of a scam they are.

Let's put it this way: They're everywhere, and very well known (both good and bad) in the contracting space.

If you ask the majority about HomeAdvisor (Go ahead, ask whatever Facebook Group you're in that has anything to do with Contractors...) 90% will say they are a scam, they send bad leads, they will steal from you...All of the above.

But, there's this small percentage (including myself) that will say otherwise. Actually, I credit HomeAdvisor to a large part of my early success in my House Painting business.

For starters, I want to say that I am NOT at all affiliated with HomeAdvisor. So, this article is 100% un-biased.

First, let's talk about what HomeAdvisor is:

It's a pay-per-lead generation company that specializes in helping homeowners find reliable contractors to help them with their home-improvement projects. Their motto is that the Homeowner is going to get "Screened & Approved Pros". What that means is, you will have to submit to a background check before you can be approved to accept leads on their platform.

"Pay-Per-Lead" means that every time HomeAdvisor sends you a lead, you pay. Whether you sell the job or not. This is one of the major drawbacks that frustrates many contractors simply because the inevitable happens: Some leads don't answer the phone, some leads don't respond to your calls, some leads aren't ready for the work to be done, and in some cases, they'll tell you they weren't even looking! (Which could be true, or false) 

Many contractors have said that HomeAdvisor is a scam service because of this - and rightfully so, if they truly believe that they are being sent bogus leads...However, I have had a different experience with HomeAdvisor.

Coming from a sales background, in both car sales and life insurance, I have had the unique opportunity to nurture leads throughout each profession. I recognize that leads are NOT guarantees. That means, that even though we paid for the lead, we are not guaranteed to get the job.

Leads need to be nurtured, they need to be followed up with multiple times from the moment they put in the request...as many times as possible. The one goal whenever you get a HomeAdvisor lead is to get them to commit to an in-person appointment.

It is also to be noted that just because a lead isn't ready to meet with you immediately, you do have their information. This means, you should have a marketing system in place to help you nurture that lead in the future, for when they are ready.

So, the big question is, Is HomeAdvisor Legit?

My answer: Yes.

HomeAdvisor is very legit. I have spent well over $80,000 over the span of 5 years buying leads from HomeAdvisor. I've seen incredible returns in my own House Painting Business.

But, the reality is, many contractors haven't seen much of a return...so in this post I want to outline 5 things you can do to see a better return on investment if you decide to purchase HomeAdvisor leads:

1. Contact the lead immediately

So, in order to win the game, you must know the rules. When a homeowner submits their information on HomeAdvisor to be contacted for an estimate, multiple other pros in your area are receiving the same lead information. If you wait too long, the other pros would've secured the appointment. Most homeowners typically get 2-3 estimates before making a decision, so once they've booked those estimates, you're pretty much out of contention.

2. Don't assume just because they didn't answer, they're not interested

When the lead submits their information, they could be on the go, at work, getting ready to make dinner... you never know exactly what they're doing at the time they are doing it. Some leads (who haven't used a service like HomeAdvisor before) may not even know that pros will be reaching out so fast.

So, if you do indeed call the lead immediately and they do not answer, it would be wise to send an email and a text message right after, which will give them the opportunity to connect with you on their time, when they're ready to commit to an appointment.

DripJobs integrates with HomeAdvisor, so as soon as a lead comes into your DripJobs account, a text and email will send to the homeowner automatically.

3. Be Persistent

Sales is a game of persistence. Many contractors start to get frustrated after the second day if a lead hasn't picked up, returned their calls, texts, or emails. (I mean, who wouldn't...honestly...) But, that doesn't mean that we just give up! Don't think you are being "annoying" if you call, email, and text a lead multiple times. You have to remember, they submitted their information to be contacted - you paid for that information - you have every right to reach out to that lead in any way you can. If you really want to, you could drive to the address provided and knock on the door! Stay persistent, set a schedule on what days and times you will be making calls to reach out to leads that you've been unable to schedule appointments with.

4. Set a Budget

HomeAdvisor gives you the ability to set a budget for how much you want to spend on leads. Start small, set a budget that is comfortable for you - see how it goes. My suggestion is to see your budget through the entire month. A large majority of contractors that don't understand these types of lead services will give up after a few bad leads. It is very possible that you may get 5 leads that don't answer the phone right off the bat - this has happened to me, and could easily happen to you. However, this is where many contractors quit and give up! See the budget all the way through the entire month, calculate your return once you've received all the leads for the budget you've set and decide if the return on your investment was good enough to re-invest in it again. (In most cases, it will be!) 

5. Stay Organized

Ok, this is one of the biggest reasons why contractors fail with HomeAdvisor. They lose track of who's who, what's what, and where's where. In other words, the more leads they get, the more confused they are about which lead they have yet to contact, which one they've spoken to, which one they booked, so on and so forth. This confusion could cost big bucks in the grand scheme of things.

Our recommendation is that you integrate your HomeAdvisor leads with a CRM like DripJobs. DripJobs will not only follow up with your leads automatically with texts and emails, it will help you organize the leads based on where they are in the buying process. For example, all of your leads that you have yet to schedule an estimate with will fall into the "New Leads" stage in the system, leads that you've spoken to that have yet to commit to an appointment will fall into the "Estimate Pending" category. The best part? DripJobs will automate follow ups specific to these leads encouraging them to book an appointment with you! 

I hope you've found value in this post! My name is Tanner, and I'm the Founder & CEO of DripJobs for Contractors. It's a powerful tool that will help you run many aspects of your business. I'd love to connect with you, you can find me on instagram @ContractorCoach!