HomeAdvisor (now part of Angi) promises leads. And they deliver them — technically. But the real cost of those leads, when you account for shared leads, low close rates, and the time spent chasing them, tells a very different story.
The advertised cost vs. the real cost
HomeAdvisor charges $15–$100+ per lead depending on the trade and project size. Sounds reasonable. But here's what they don't emphasize: each lead is typically shared with 3–4 other contractors. You're paying for a chance, not a customer.
Let's do the math for a typical plumber:
- Average lead cost: $60
- Leads shared with: 3 other contractors
- Close rate on shared leads: ~15–20%
- Actual cost per customer: $300–$400
For a $5,000 job, a $350 acquisition cost might work. For a $200 service call, you're losing money. And that's before you factor in the time spent calling leads back, leaving voicemails, and competing on price.
The hidden costs
Time: Every shared lead requires a fast callback, often a detailed estimate, and follow-up. Multiply that by the leads you don't close — which is the majority — and you're spending hours per week on dead-end leads.
Price pressure: When homeowners are comparing 4 quotes, they naturally gravitate toward the lowest price. This pushes your margins down even on the leads you do close.
No compounding: Every month starts at zero. You stop paying, the leads stop coming. You build zero long-term asset.
Compare: organic lead cost
A properly built website with SEO generates leads at dramatically different economics. After the initial investment, organic leads cost nothing per lead. Close rates are 2–3x higher because the homeowner chose you specifically. And the pipeline grows over time instead of resetting every month.
A contractor spending $500/month on SEO and content who generates 30 organic leads/month after 12 months has a cost per lead of under $17 — and that cost keeps dropping as lead volume grows.
The transition plan
Don't quit HomeAdvisor cold turkey. Start building your organic pipeline while continuing to buy leads. As organic leads increase, reduce platform spending. Most contractors who commit to this transition find they can eliminate platform leads within 12–18 months.
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