How Does Angie’s List Make Money?

Angie’s List is a popular website that provides consumers with reviews of local service providers. From plumbers to landscapers, Angie’s List has become the go-to resource for people in need of reliable recommendations. But have you ever wondered how Angie’s…

Angie’s List is a popular website that provides consumers with reviews of local service providers. From plumbers to landscapers, Angie’s List has become the go-to resource for people in need of reliable recommendations. But have you ever wondered how Angie’s List makes money?

In this article, we’ll take a closer look at the business model behind Angie’s List and explore the various ways in which the company generates revenue. Whether you’re a curious consumer or an entrepreneur looking for inspiration, understanding how Angie’s List monetizes its platform can provide valuable insights into the world of online marketplaces.

How Does Angie's List Make Money?

How Does Angie’s List Make Money?

Angie’s List is an American website that offers its users a platform to review and rate local service providers, such as plumbers, electricians, and contractors. The website was founded in 1995 and has since then grown to include more than 10 million verified reviews. In this article, we will explore the ways in which Angie’s List makes its money.

Membership Fees

One of the primary ways in which Angie’s List generates revenue is through its membership fees. Users can access the website for free, but to read the reviews and ratings, they need to pay for a membership. The membership fee varies based on the location, and it can range from $3 to $9 per month.

The company’s membership model has been successful because it ensures that the reviews are genuine and trustworthy. Members pay to access the website, so they are motivated to provide honest and accurate feedback. Additionally, the membership fees provide a steady stream of revenue for Angie’s List.

Advertising

Another way in which Angie’s List makes money is through advertising. The company allows local service providers to advertise on its website. These advertisements are typically in the form of sponsored search results or banner ads.

The advertising revenue is an essential source of income for Angie’s List. Local service providers are willing to pay a premium to advertise on the website because it helps them reach potential customers who are actively looking for their services.

E-commerce

Angie’s List also generates revenue through e-commerce. The company has a “Shop” section on its website, where users can purchase home services and products. The company has partnerships with service providers and retailers, and it earns a commission on every sale made through its website.

The e-commerce revenue is a relatively small part of Angie’s List’s overall revenue. However, it provides an additional source of income and helps the company diversify its revenue streams.

Angie’s List vs. Competitors

Angie’s List is not the only website that offers a platform for users to review and rate local service providers. Some of the company’s main competitors include Yelp, HomeAdvisor, and Thumbtack.

One of the main differences between Angie’s List and its competitors is the membership model. While Angie’s List charges its users a membership fee, most of its competitors offer their services for free. However, this also means that the reviews on these websites may not be as reliable as those on Angie’s List.

Another difference is the focus on specific services. While Angie’s List covers a wide range of services, its competitors tend to specialize in specific areas, such as home improvement or home cleaning.

Benefits of Angie’s List

There are several benefits to using Angie’s List. Firstly, the membership model ensures that the reviews are genuine and trustworthy. Members of the website have a vested interest in providing accurate feedback, as they are paying for the service.

Secondly, Angie’s List provides users with a comprehensive list of service providers in their area. Users can compare the ratings and reviews of different providers and make an informed decision.

Finally, Angie’s List offers a satisfaction guarantee to its users. If they are not satisfied with the service they receive from a provider they found on the website, Angie’s List will work with them to find a suitable solution.

Conclusion

In conclusion, Angie’s List generates revenue through membership fees, advertising, and e-commerce. Its membership model ensures that the reviews on the website are genuine and trustworthy, and the advertising revenue provides a steady stream of income. Additionally, the e-commerce revenue helps the company diversify its revenue streams. While Angie’s List has competitors, its focus on a wide range of services and reliable reviews sets it apart from the rest.

Frequently Asked Questions

Here are some common questions people have about Angie’s List and how they make money.

How does Angie’s List work?

Angie’s List is a website that allows consumers to find and review local service providers such as contractors, plumbers, and electricians. Members pay a fee to access the site and read reviews from other members. Service providers can also create a profile and advertise their services to members.

Angie’s List makes money through membership fees and advertising revenue from service providers. They also offer a variety of additional services such as priority customer service and dispute resolution for an additional fee.

What is the cost of an Angie’s List membership?

The cost of an Angie’s List membership varies depending on your location and the level of membership you choose. The basic membership is free, but it only provides limited access to reviews and services. The Silver and Gold memberships provide more access to reviews and services, but they come with a higher price tag. Memberships can be purchased on a monthly or annual basis.

Angie’s List also offers a Green membership, which is free and allows members to access a limited number of reviews each month. This membership is designed for people who only need occasional access to reviews and services.

What is Angie’s List’s revenue model?

Angie’s List makes money primarily through membership fees and advertising revenue from service providers. Members pay a fee to access the site and read reviews from other members. Service providers can also create a profile and advertise their services to members. Angie’s List also offers a variety of additional services such as priority customer service and dispute resolution for an additional fee.

In addition to these revenue streams, Angie’s List also generates revenue through partnerships with other companies. For example, they have partnered with HomeAdvisor to offer members access to additional service providers and services.

What are the benefits of an Angie’s List membership?

An Angie’s List membership provides several benefits to members. First and foremost, it allows members to access reviews and ratings of local service providers from other members. This can help members make informed decisions about which service providers to hire.

Members also receive exclusive discounts and offers from service providers, as well as access to priority customer service and dispute resolution services. Additionally, members can earn rewards points for writing reviews and referring new members to the site.

Is Angie’s List worth the cost?

Whether or not an Angie’s List membership is worth the cost depends on your individual needs and preferences. If you frequently hire service providers and want access to reliable reviews and ratings, an Angie’s List membership may be worth the cost.

However, if you only need occasional access to reviews and services, or if you prefer to rely on recommendations from friends and family, an Angie’s List membership may not be necessary. It’s important to weigh the cost of the membership against the potential benefits before making a decision.

ANGIE’S LIST REVIEW & How much money I made in the the first 30 days


In conclusion, Angie’s List is a reputable online platform that operates on a subscription model. Members pay a fee to access the company’s services, which include searching for and reviewing service providers in various industries. The company generates revenue from these subscription fees and also from advertising fees paid by service providers who want to appear prominently on the platform.

Moreover, Angie’s List has been successful in building a strong brand that consumers trust and rely on when making purchasing decisions. This has enabled the company to maintain a large and loyal user base, which in turn has attracted more service providers to the platform. As a result, Angie’s List continues to grow and expand its reach, providing valuable services to both consumers and service providers alike.

Overall, the success of Angie’s List can be attributed to its commitment to providing high-quality services and information to its users. By focusing on the needs of its members and building strong relationships with service providers, the company has been able to create a sustainable business model that benefits everyone involved. As such, Angie’s List is likely to remain a major player in the online service provider industry for years to come.

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