Angie’s List & HomeAdvisor Merger:
Superhero or Supervillain?

Two superheroes are better than one. Isn’t that how the Justice League was born? When Superman couldn’t take care of something himself, Wonder Woman or Batman would swoop in and solve the problem at hand.

Right now in the home improvement industry, we are witnessing our very own Justice League moment. Angie’s List and HomeAdvisor have merged to become ANGI Homeservices. With their union averaging at least 22 million monthly visitors, this duo intends to help homeowners across America find the perfect contractor for their home improvement needs.

With such a powerful presence, they will either become heroes or villains to the average contractor. But with the correct leverage, contractors can use this merger to become the superheroes of their own service areas.

A Kryptonite-Proof Alliance

Started in 1995, Angie’s List was one of the first websites to create a trustworthy pipeline between contractor and homeowner. The company recently moved from a fee-based revenue model to a “freemium” model, but they were unable to maintain growth.

HomeAdvisor’s model gave homeowners free access to reviews and contact information, but they charged contractors for qualified leads. Since they used a bid-based system, quotes were often driven down by competition.

Basically, each site had its own kryptonite. It is too soon to say if the merger will remedy each company’s weaknesses, but investors are optimistic. According to Tech Crunch: ANGI Homeservices stocks soared 44.3% on the day the news broke. With Angie’s List’s phenomenal review quality and HomeAdvisor’s popularity, the two are destined to generate up to $250 million in annual synergies, according to the Denver Post.

How it Affects Your Business

The merger doesn’t necessarily mean you’ll be missing out on leads, but you can expect to be seeing a lot more of ANGI’s Homeservices online. Contractors who use ANGI Homeservices for leads will likely see higher volume, but the quality of leads may be unpredictable.

If you haven’t dealt with HomeAdvisor or Angie’s List yet, you’ll likely have to factor them in soon. Since ANGI Homeservices will continue to use HomeAdvisor’s on-demand bidding model, your presence will require more engagement and attention. The time to think about your lead strategy is now.

It’s very possible the new ANGI Homeservices will give your company better lead-sensing superpowers, allowing you to be a homeowner’s superhero in their time of need.