I couldn’t believe it myself until I read their terms of service and then did a quick Google of my business name. When a potential customer calls that number, they forward it to you, the business owner, and charge you for what they call an “Exact Match Lead.”
Not only does HA build links back to their own site in the small business’s name, but they also list HA’s phone number. Several contractors and handymen have found out the hard way (including myself). That means they can go out, create a bunch of profiles on other online business directories in your business name using your logo and pictures, and then point those directories back to HA, where they can then sell the leads to other contractors (or to you). If you decide to sign up for HA, be sure to read the fine print because by signing up, you give them the right to use your business name, logo, and images for marketing purposes, such as directing links back to their own site. Issue #3: Deceptive marketing practices (This is a BIG one) It’s important to know that HomeAdvisor provides leads, not customers, and if a business doesn’t follow best practices for turning leads into customers, they’ll likely waste a lot of money with little results.Ī tool is only as good as the hand that’s using it, after all. They are unable to turn leads into customers and end up blaming HomeAdvisor. However, I think that a big source of these complaints is business owners who can’t close the sale. But when you are paying $150 for a lead (which is the case for some services), it can be downright painful. When you pay $15 per lead, these bad leads get annoying.
Low-quality leads are a real issue, but I wouldn’t call it a scam. And some of the bad leads are from competing businesses that are doing market research. Some of the bad leads are homeowners who are price shopping and don’t realize their curiosity costs contractors real money. Some of them are “dead leads” who don’t even answer the phone or respond when you follow up with them. I’ve personally dealt with dozens of bad leads. Many of the complaints in the comments on this page and on BBB are about HomeAdvisor “scamming” contractors with low-quality or fake leads. The real problem is with what those complaints are about. When you deal with that many people, complaints are inevitable. This doesn’t necessarily bother me, though, because they deal with tens of millions of projects every year and have over 100,000 small businesses using their platform. (Side note: This article alone has received over 280 comments from local businesses about HA – 90% of which are negative reviews. Even though they have an A rating, that’s still a lot of complaints. HomeAdvisor has had over 1,900 customer complaints with the Better Business Bureau in the last three years. Why the Controversy? Issue #1: Lots of complaints from other businesses
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