Understanding Angi
So, Is Angi Worth It for your business?
Angi, formerly known as Angie’s List, is a well-known business listing and lead generation platform that connects contractors with homeowners looking for services like roofing, plumbing, and remodeling. While it promises to bring in new business, many contractors report frustrations with high costs, shared leads, and inconsistent quality.
Understanding how Angi works and comparing it to other lead generation methods is crucial to ensuring a solid return on investment (ROI). Before committing, contractors should carefully evaluate whether Angi are truly worth the investment.
How Angi Works for Contractors
Angi connects contractors with homeowners searching for services like roofing, plumbing, and remodeling. Contractors create a profile detailing their specialties, service areas, and pricing. When homeowners search for services, Angi matches them with relevant contractors based on their profile. Angi lead generation service offers a pay-per-lead model, meaning contractors are charged each time a potential client contacts them. To turn these leads into jobs, contractors must respond quickly and effectively.
Key Aspects of Angi’s Lead Generation Model:
- Profile Creation: Contractors showcase their business with service details and customer reviews.
- Lead Matching: Homeowners are connected with multiple contractors based on profile relevance.
- Pay-Per-Lead Model: Contractors pay for each lead received, regardless of job success.
- Lead Quality: Some leads may not be a perfect fit, requiring careful qualification.

Challenges to consider include the cost vs. ROI, as paying for leads doesn’t guarantee jobs, making it essential to track conversion rates closely. Contractors must invest significant time in following up with leads and have strong sales skills to secure work. Additionally, relying on Angi’s algorithm means contractors have limited control over the quality and volume of leads they receive, which can lead to inconsistent results.
Compared to Angi’s pay-per-lead model, inbound marketing (using strategies like PPC, content marketing, and local search optimization) can attract potential customers quickly and organically. This approach gives contractors more control over their lead quality and offers long-term cost savings. Building an inbound strategy allows contractors to develop a sustainable, self-owned lead generation system that doesn’t rely on third-party platforms.
Pros and Cons of Using Angi
Angi offers businesses a way to quickly connect with homeowners looking for contractor services like remodeling, plumbing, and HVAC. It provides immediate exposure, helping businesses increase visibility without the need for extensive marketing efforts. With a well-optimized profile, contractors can build trust through customer reviews and take advantage of Angi’s brand recognition to attract new clients.
Pros of Using Angi:
- Immediate Access to Potential Customers: Contractors can start receiving leads as soon as they sign up.
- Increased Online Visibility: Angi’s established reputation can help contractors stand out in a crowded market.
- Brand Recognition & Customer Trust: Verified reviews on the platform help build credibility and attract inquiries.
However, there are several downsides that contractors should carefully consider before investing. The high cost per lead can make it challenging to achieve a profitable return, as contractors pay whether or not a job is secured. Additionally, competition on the platform is fierce, with multiple contractors bidding for the same leads, making it difficult to stand out and convert leads into customers. Furthermore, contractors remain dependent on Angi’s platform and algorithms, limiting their control over lead quality and business growth.
Cons of Using Angi:
- Uncertainties Due to Upcoming Spinoff: Angi’s separation from IAC in 2025 could lead to changes in pricing, service quality, and support, creating uncertainty for contractors relying on the platform.
- High Cost per Lead: Contractors pay fees for every lead, even if it doesn’t turn into a job.
- Intense Competition: Leads are often shared with multiple businesses, reducing the chance of closing deals.
- Platform Dependency: Relying on Angi means less control over the lead generation process.
Recent regulatory actions, such as the FTC’s settlement with Angi’s parent company over misleading practices, have also raised concerns about lead quality and transparency. Contractors should weigh these factors carefully when deciding if Angi is the right fit for their business.
Learn more about the FTC settlement here.
Cost Breakdown: Is Angi Worth the Investment?
Contractors using Angi need to evaluate both the upfront costs and the long-term return on investment (ROI). The cost per lead (CPL) (what contractors pay each time a potential customer contacts them) typically ranges from $15 to over $100, depending on the service type and market. While CPL may seem manageable, it’s only part of the equation.
The cost per acquisition (CPA) (what it actually costs to turn a lead into a paying customer) can be significantly higher. Let’s break down the numbers and compare Google-based lead sources (LSA, PPC, GBP, SEO) to Angi’s lead aggregator model to see which one delivers the best ROI.
*These are real world numbers from a local contractors we’ve worked with.
Lead Source | Pros | Cons | Estimated Leads | Estimated CPL | Estimated CPA |
---|---|---|---|---|---|
Local Service Ads (LSA) | High Speed | Strict Requirements | 19 | $210 | $1,050 |
Paid Search Ads (PPC) | High Speed | High Cost | 14 | $280 | $1,400 |
Google Map Pack (GBP) | Low Cost | Low Volume | 7 | $70 | $360 |
Organic Search (SEO) | Low Cost | Slow Ramp-Up | 24 | $60 | $310 |
Lead Aggregators (Angi) | High Speed | Low Quality | 24 | $80 | $2,500 |
At first glance, Angi’s $80 CPL might seem reasonable compared to PPC or LSA. But cost per acquisition (CPA) tells a different story:
🔸 Angi’s $2,500 CPA is the highest among all lead sources, making it the least cost-effective option. SEO ($310 CPA) and GBP ($360 CPA) deliver the best value, while even paid options like PPC and LSA outperform Angi by a significant margin.
Here’s another one from a local remodeling contractor:
Lead Source | Pros | Cons | Estimated Leads | Estimated CPL | Estimated CPA |
---|---|---|---|---|---|
Paid Search Ads (PPC) | High Speed | High Cost | 15 | $220 | $640 |
Organic Search (SEO) | Low Cost | Slow Ramp-Up | 15 | $100 | $290 |
Lead Aggregators (Angi) | High Speed | Low Quality | 15 | $100 | $1,430 |
🔸 The Numbers Don’t Lie – A contractor paying $1,430 per customer with Angi could land 4-5 customers for the same cost using SEO or PPC. While Angi offers speed, it drains ROI with high conversion costs. At just $290 CPA, SEO is the smartest long-term investment for sustainable growth.
Angi’s Hidden costs to consider:
- Paying for unqualified leads that aren’t a good fit for your services.
- “Recycled” leads that multiple contractors receive, leading to intense competition.
- Time spent following up with leads that don’t convert into paying jobs.
In contrast, inbound marketing strategies—such as SEO, content marketing, and local search optimization—focus on attracting qualified leads organically. With inbound, you have more control over your audience and can reduce both CPL and CPA over time. While the upfront investment in inbound marketing may seem higher, the long-term savings and better lead quality often result in a far superior ROI compared to pay-per-lead services like Angi.
Contractors should carefully compare the immediate costs of using Angi to the sustainable benefits of building their own lead generation system through inbound marketing.
Contractor Reviews and Real-World Experiences
Feedback from contractors who have used Angi is mixed, with many expressing frustration over the platform’s cost, competition, and lead quality. One Reddit user described Angi as a “waste of money,” explaining that they were charged for leads that didn’t convert into paying jobs. Read more here.
Another contractor noted the intense competition for leads, saying, “It’s hard to stand out when homeowners get contacted by multiple contractors at once.” A common complaint is the quality of the leads themselves. As one user shared, “Half the leads I received were either uninterested in hiring or didn’t have the budget for the job.” See the full discussion here.
Some contractors even mentioned receiving recycled or irrelevant leads, with one pointing out that they were contacted by customers far outside their service area. Read more experiences here.
On the other hand, a small number of contractors report moderate success with Angi. These users emphasized the importance of having a well-optimized profile and responding to leads quickly to improve conversion rates. However, even they acknowledged the need for strong sales skills to secure jobs in such a competitive environment.
Key takeaway: by diversifying your marketing strategy and also focusing on inbound methods, you can build a sustainable, high-quality lead pipeline while reducing reliance on third-party platforms like Angi.

Given these experiences, many contractors are reconsidering their reliance on Angi and exploring alternatives like inbound marketing. By focusing on SEO, content marketing, and local search optimization, contractors can attract higher-quality leads organically. Additionally, Local Services Ads (LSA) and PPC (Pay-Per-Click advertising) provide powerful ways to generate leads quickly.
LSAs allow contractors to appear at the top of Google search results, verified as “Google Guaranteed,” which builds trust with potential clients. PPC campaigns, on the other hand, allow you to target specific service areas, project types, and customer demographics—without sharing leads with competitors.
Angi Lead Generation vs. Inbound Lead Generation: Which Is Better?
When comparing Angi lead generation to inbound lead generation, the biggest difference is control. With Angi, contractors essentially “rent” leads from the platform, paying for access but having little control over the quality or exclusivity of the leads. In contrast, inbound marketing allows contractors to “own” their leads by attracting prospects directly through strategies like SEO, LSA, and Google Business Profile optimization.
Inbound marketing also tends to be more cost-efficient in the long run. While Angi requires contractors to pay per lead or per month, inbound methods create a sustainable flow of leads with lower acquisition costs over time. Additionally, inbound leads are often more engaged and qualified because they are actively searching for the services you offer, rather than being part of a shared pool.
How Contractors Can Maximize Their Marketing Investment
If you’re using Angi, maximizing your return on investment starts with optimizing your profile. Make sure your service areas, specialties, and pricing are clearly outlined. Positive reviews are critical to standing out, so encourage satisfied customers to leave feedback. Respond to leads quickly, as homeowners are often comparing multiple contractors and may hire the first one who responds.

Beyond Angi, investing in inbound marketing is key to long-term lead generation success. Start with SEO (Search Engine Optimization) to ensure your website ranks high in local search results. Claim and optimize your Google Business Profile, which helps your business show up when customers search for services near them. Content marketing—such as blog posts, FAQs, and how-to guides—can attract and educate potential clients, establishing your expertise.
Local search advertising, such as Google Local Services Ads (LSAs), is another powerful way to reach high-intent customers. With LSAs, you can target specific service areas and earn a “Google Guaranteed” badge to build trust with homeowners. Pairing this with email marketing and nurturing campaigns can help you stay top-of-mind with prospects and convert more leads into paying customers.
By diversifying your marketing strategy and focusing on inbound methods, you can build a sustainable, high-quality lead pipeline while reducing reliance on third-party platforms like Angi.
Are Angi ‘s Leads Worth It – Or Is There a Better Way?
While Angi can offer quick access to potential customers, it comes with significant costs, fierce competition, and limited control over lead quality. Contractors seeking a more sustainable and cost-effective solution need to consider diversifying their strategies.
Ultimately, the choice depends on your business goals and budget, but building your own lead generation system through inbound marketing can provide the control and scalability needed for long-term growth.
Tired of paying for leads that don’t convert? Let Improve & Grow help you build a lead generation strategy that delivers real results. Explore our marketing services here >>