6 Reasons why Angie’s List Sucks? Continue Review on angieslist.com

The other day, I wrote Review on Angie’s list (angieslist.com) – Angie’s list is not what it claims to be? about my own validation on whether I can trust the local business reviews I found on Angie’s list a few months ago. The answer is not exactly. To be fair though, my sample size is very small (3-4 contractors) based on my personal experience, so either Angie’s luck ran out at me, or I am extremely unlucky.

I have asked my friend to show me around the site trying to check the site out, read other people’s complaints and reviews. My friend wasn’t happy with it either, so after getting disappointed by AL, he decided to cancel the services. And it was another nightmare for him, I am very very glad that I didn’t have to go through that.

I think there are quite a few fundamental problems with the business model and the usability of the site.

Major Problems with Angie’s List

  1. Angie’s List is not exactly on the consumer’s side as they advertise
  2. Angie’s List isn’t on contractor or business’s side either
  3. Asking consumer to pay money $$$$ to write an review.
  4. Aggressive sales and bad customer service
  5. Once you pay, nearly impossible to get refund
  6. The major one, I don’t trust the business

Angie’s List problem #1 : Angie’s List is not exactly on the consumer’s side

Angie’s list emphasizes that they are on the side of consumers. They verify all the reviews, and they don’t let Business to create fake reviews by asking their families and friends to write about them. Their own answer to this problem is to make consumers to pay to write a review. The theory is that if people have to pay to write a fake review, bogus reviews won’t get written. Families of any contractor can still pay to write fake glowing reviews, the cost is not significant compare the the goods they can fake for the bad business.

If you are writing a first review, what exactly you are doing is that  you are paying to do data entry for Angie’s list. To tell them about a new business, to tell them how to contact the business owner.

In addition, there are reviews that bad reviews by actual customers are not posted on Angie’s list. The consumers are chasing the Angie’s List customer service representatives about the missing bad reviews, but they were ignored. My guesses,  and not only mine, is that Angie’s list is holding off these negative reviews for high paying customers. I can’t verify it, but there is no sane explanations.

I love to hear more stories around this.

Angie’s List Problem #2: Angie’s list is not exactly on Business or Local Business’ side

So, if you are a customer, you need to pay to write a review for your favorite contractors, or local business. But what would happen after you do that? What would happen is a Sales person from Angie’s List’s famous Customer service department is going to contact the business and tell them that a new review is written about it. They will tell you that you should now go to Angie’s list, look at the review, and start advertising with them. With Angie’s list, you can pay hundreds to thousands (whatever the customer service rep says) to put your company rank higher than others.

Angie’s list says that they only allow companies that have a good rating to advertise, but what if a company that treats its consumer bad, but want to pay for advertisement, would they stop you? I highly doubt it. There are online comments reporting that Angie’s List customer service rep gets a high percentage of first year membership fee as commission, so make your own sane judgment.

This reminds me of my another post Business Review & Rating firm BBB CEO Resigns after “Pay for Play” scheme revealed.

And I believe this may contribute to some of the problems we saw in #1 that negative reviews are disappearing, because it may cause issues to acquire new business(money) from non advertising members.

So, what it appears that Angie’s list is on the business side before they sign up for their advertising.

So, let’s say, you fell for it, you paid for the advertising. Now pray that there is no negative reviews because now Angie’s list has no reasons to be on your side. They would proudly publish all negative reviews they received because you are already on hook. And if you dare to stop advertising, you never know how your rating would change based on new bad reviews because you just don’t know.

It may be no change, or it may be a dramatic drop because you are not one of the favorite business.

My advice, stay away and keep yourself clean.

Angie’s List problem #3: Asking consumer to pay money $$$$ to write reviews.

This is one of the most common complaints and WTF about Angie’s list. They want Consumers to pay them maybe over $100 if they want to recommend a good business to others! really, WTF.

Why would you do that? you really like that business that much? if so, why don’t you just tip the business with the $100 you pay Angie’s List and write a reference letter somewhere else, or a letter to the business?

And for people who is new to an area, why you have to pay to get some (IMO) not trustworthy reviews based on Problem #1 and Problem #2?

I have moved and lived in 5 cities in the last few years, I always have the problem looking for contractor. I have a lot of experience getting referrals, research online, reading business reviews and complaints to locate a good contractors. I have a lot of successes, but at times not too successful as well. I realize there are lots of flaws in all these review sites and system and determined to find out why and how they can be improved. Nevertheless, What I try to point out here is that there isn’t any points to pay and write a review, or even to get a review from others.

Going back to problem #1, Angie’s List claims that they charge for writing reviews to get rid of the spammers and fakers. Either it is a big fat money sucking excuse to charge uninformed consumers lots of money, or the Angie’s List executive team is plain stupid. I would love to hear back and see what Angie picks. If you see her, ask her for me :)

OK. I am over my head, lets go back 2000 steps. Now you say, what if they really mean it and get it work? So, say Angie’s List does everything they can do to kick out fake reviews, and all reviews are good ones. Does it worth it?

My big answer is still NO. why? Because you only pay for advice from professionals. You pay for doctor’s advices, Accountant’s advices, and laywer’s time. But not a layman like your Aunt or the 20 years old kid next door for a highly skilled professional work.

The reason we pay for professional advice is because these people are educated and experience to provide feedback, judgments that we don’t have.

Would you ask your neighbor about a mechanic referral and pay him/her $5 for a year for that advices? Hell no. if your neighbor asks for $100 for telling you that her hair stylist is first class, you would probably say FuXk off.

It is the same deal with the reviewers on the internet, their opinions are only valuable within proper context and background. I think enough said for this point.

Angie’s List problem #4: Aggressive sales and bad customer service

I hear this point from my 2 contractor sources as well as online comments after doing some research. I just find out that there is no shortage of negative reviews online about Angie’s List. It indicates that the negative views on Angie’s list are simple issues.

From my interviews of the contractors, the aggressive sales approach and strategy of Angie’s List Salespersons are the most annoying experience they ever had. These sales calls them, push them to do advertisement, if you say no, they will keep calling back and repeat the scripts. From point 2 above, one way to get into this mess is that one of your customers write a review for you. So you better learn to hate your customer glowing reviews because of Angie’s list.

In my observation, it seems that Angie’s list’s sales get a large chuck of every business’s first year advertising fee, and the sales are making peanuts unless they make a sales. This is just like all other businesses and I don’t blame them. However, my rule of thumb is, If  there is someone selling something very hard to you (super hard sell), it isn’t a very good product and stay away.

I Don’t see the genius in Apple store pushing me into the corner and try to make a sale. I don’t see Amazon Kindle sales department calling everyone to buy a kindle, but it still is the most popular product on Amazon.

I can’t say I can speak for everyone, but based on the facts and my experience,  Angie’s List isn’t good at least through Word of Mouth and that is extremely important for a service that is trying to capitalize on Word of Mouth.

I will continue updating this post later on the following points.

Angie’s List problem #5: Once you pay, nearly impossible to get refund

I really don’t want to spend much efforts on this points because the amount of feedback online regarding this point is so overwhelming. This is the most common complaint from consumer. Yes, you are entitled to pay $10 a month for the service only, but you have to keep your subscription for a year. That is $120 a year!

What you hear online is “Impossible to cancel”, “No online cancellation channel”.  People have been trying to cancel, sending email, calling customer services, but most of them have no luck. The renewal of the service is in the term of service.

so again, I am not going to spend more time on this topic, because it is a solid verdict online.

You can easily sign up and pay in 5 minutes, it will take you $X00 and months to cancel. Why do you want to get in in the first place?


Angie’s List problem #6: The major one, I don’t trust the business

Reason #6, simply I just don’t trust Angie’st List. I think the business model is flawed, because it doesn’t have good reasons to do a lot of things. All I see from the business model is money, money, and money. Not yours, or mine, but every consumers, businesses.

From A quote online:

A manager at Angie’s List told me that the CEO, Bill Osterle, told her that the company “is always for sale.” Maybe they should post an ad on Craig’s List.

Another Quote from a Former Angie’s List Employee:

He’ll sell out the company as soon as he can, but with all the revenue they generate and the $60 million in VC they have received in 2 years they cannot figure out how to turn a profit. They can’t sell a company that hemorrhages money millions of dollars at a time. It is bloated and operated poorly with a lot of waste.

The business model is not transparent enough, and a lot of harms has been done.

I think I will add more in the last two points when I have more energies, and feel it is worthy.

If you haven’t read my last review on Angie’s List, Don’t Miss it.

Part 1 – Review on Angie’s list (angieslist.com) – Angie’s list is not what it claims to be?

Review on Angie’s list (angieslist.com) – Angie’s list is not what it claims to be?

Today I am writing about my personal review on Angie’s list.  This is just like another review that shows up on Angie’s list about other business.

Angie’s list is a online business review service site that claims to be on the customer and consumer side. They will let customers to post good and bad reviews. My first impression about it is it must either be a very successful business or it is ripping the customer off because of the frequency of TV commercials I see on TV.

I then go online and do some  research, trying to find out which of the above case it is. It appears neither case by my standards.

Financial situation

According to online resources, Angie’s list has received funding of USD $35 millions in 2008, another 18 mil in november 2008, 2 rounds of $22.5 Mil and $2.5 Mil in 2010. So what does it mean? It means that the company is not yet making a healthy profit and is still relying on Investor funding after almost 16 years in business. It appears to me that they are still looking for a successful strategy to monetize. I think these are great information (or not?) for me to understand better the background of this business and gives me insights that why they are doing something that doesn’t make sense to me.

My Experience

First of all, I myself am not a member of Angie’s list because I wouldn’t pay for something I can’t even see how it works. And Angie’s list is not a site that I can take a peek at or run a test query to verify its usefulness.

However, I had an opportunity to look at how it works while a friend of mine is using it to look for a indoor painter in the area. Of course I am not going to miss this opportunities to check out what the buzz is about.

Test 1 : Verifying good businesses

I moved to my ‘hood’ about 2 years ago. Back then I used a few contractors in my area and I have done a lot of research around the neighborhood, reading reviews online like everyone else =) , asking via my company’s internal mail list. I had some success and found some good services.

So the first thing I asked my friend to do is to look for these good services that I had. What I found out that only 1 out of the 3 services that I looked for are in the top 5 of Angie’s list’s recommendation. And what shocked me is that one of the known bad companies are shown up high in the list on all three queries we submitted.

I tried to look at the reviews on my good companies and why they weren’t listed higher, it appeared to me that all three good businesses didn’t have any or enough reviews by their customers to boost them up. However, the bad contractor that I had do have a few glowing reviews that I can’t believe in at all.

I am curious about these results so I try to find out why in my own ways. For one, I emailed my good businesses and ask them what is happening. I got replies from two of the 3 businesses, and here are their replies.

“We were contacted by Angie’s List a few times before telling me that one of my customers wrote a nice review for me, and they asked me to verify the review. After some understanding about Angie list, I found out that it was purely a sale call that asks me to pay hundreds of dollars a month to advertise. After knowing that, I said Thank you. I remember one thing the sales implied is that it is difficult to boost up my ranking on the queries if I don’t encourage my customer to post more and advertise with them. I am not interested in this service, and basically don’t care if there is any lead from it. “

And here is from my 2nd good business

…. I don’t have a high ranking because I do not pay them money to rank higher. Angie’s list has been known to be a problem to honest contractors like us. To them, you are not a great business if you don’t pay them.

I was indeed quite surprise to read these two responses because I have also thought businesses endorse angie’s list because of the leads. It appears not.

Test 2 : Bad Contractors?

So now I guess why good business don’t have good rankings. so what about bad businesses?

Fortunately, I had only one bad contractor, which happens to be an auto mechanic that I used. I tried to locate the contractor and I found that it has over 10+ great shinning reviews. It looked suspicious to me and I read some of the reviews. Call me weird, I have a feeling that those are staged.

Also, even though this company has lots of good reviews, but the number of reviews is not near the number of good reviews of some of the mechanics that rank much lower than this one. I am thinking something not obvious is here, either this bad mechanics paid more than the other one to have a higher ranking, or Angie’s list is having some strange or flawed algorithm to rank the mechanics. I won’t have an answer for this, but until then, my bet is on the former.

So what is next?

At this point, I think I have lost interests in exploring more and find out how Angie’s list works. however, top of my head, I see a few problems with Angie’s list.

I have written a 2nd review on Angie’s List.

Part 2 : 6 Reasons why Angie’s List Sucks? Continue Review on angieslist.com

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