O Dont Care How Much It Costs Make This Man Well Again
Last updated: July 24, 2021
Thumbtack can be a fast and easy mode to get customers and grow your business. In fact, for some people, it has enabled them to start a business organization in the first place.
But should you lot employ this pb generation service?
I've talked to several pro handymen who consistently generate quality leads through Thumbtack, but when you read online reviews, it's similar Thumbtack is out there killing babies or something. People are pissed (every bit you can see from the 70+ comments at the bottom of this page).
And so who should you trust, and well-nigh importantly, should you utilise it to generate leads for your business? That is the ultimate question I'll answer in this commodity.
I'll talk nearly the controversial issues effectually Thumbtack, the pros and cons of using it, how much you can expect to pay for a lead, and tips for maximizing your results if yous decide to sign up and exam it for yourself.
Common Complaints From Thumbtack Pros and Contractors
Complaint #ane – Large jumps in the price of leads
This happened first in 2017. Thumbtack announced a new feature called "Instant Lucifer." Every bit this new feature rolled out, the cost of leads increased significantly.
In one review on ConsumerAffairs.com, a Thumbtack pro said, "I sent a message to 2 different customers that would have commonly been $8-$15 each only to notice (in one case my card had been charged) that those 2 bids now price me $65."
Another reviewer mentioned that leads that used to cost $3-$15 now cost $55. Assuming those reviews are accurate, that'southward over a 700% increase in the cost of leads.
Just expect just a 2nd.
When I dug deeper, I found out that most leads don't cost anywhere near $l or $sixty. In fact, many handyman jobs cost less than $x per atomic number 82. Those higher-priced leads in the complaints are most likely for large contracting jobs like kitchen remodels and habitation additions, where honestly, $l for a lead is reasonable.
Has Thumbtack raised the price of leads? Yes, they have. Just leads are withal a bargain, specially when compared to Home Counselor.
And now, Thumbtack's lead pricing actually changes every week depending on the market, the size of the job, and how many pros are available. This is similar to how Uber adjusts their prices based on demand.
If you are worried about pb prices, don't. One expert thing about Thumbtack is that y'all can see the prices of leads before you lot always pay for a unmarried one. In fact, every Friday, they volition update their pb prices for the following calendar week, so there are no surprises.
Complaint #2 – Too much competition
Another complaint is that too many pros are allowed to compete for each atomic number 82. According to some reviews online, in that location used to exist a maximum of 3 to 5 pros submitting bids on a job, and at present in that location could be as many as xv bidders for a single job.
Thumbtack does limit contest, yet, as part of their "Quality Commitment."
Currently, they limit the number of pros a customer tin contact to five in the first iv hours of a customer searching for a pro. So, assuming y'all respond quickly to a lead, y'all will be competing with a maximum of v others, and frequently less.
All the same, after that four hours, it opens up to more pros. According to Thumbtack, this is "to make sure customers can find a pro," which makes sense.
Complaint #iii – Accounts beingness deleted
If you read the fine print in Thumbtack's Terms of Use, you'll learn that Thumbtack tin can deactivate your contour without warning and at their own discretion.
So let's say yous've been on the platform for two years, built up a solid profile with dozens of five-star reviews, and depend on Thumbtack to keep your schedule total. If Thumbtack doesn't like something about your contour or if you lot fail to follow their terms, they can shut you down.
Unfortunately, this has happened to several people who rely on Thumbtack. Based on reviews on BBB and some comments beneath, it seems like business relationship deactivation normally happens as a consequence of failing to pay for leads or issuing a chargeback with your credit card. Thumbtack has little patience for people who don't pay upwardly.
Unfortunately, in one case your account is deactivated, it can be hard to become it support and running, which could crusade problems if y'all rely on them for business organization.
Thumbtack probably won't delete your profile every bit long as you follow good business practices. They don't have a good reason to. Merely it's notwithstanding risky to identify the well-being of your visitor in the hands of another business.
Complaint #4 – Poor-quality leads
Low-quality leads are a complaint that you see with all lead generation services, and thumbtack is no different. It'due south a problem that isn't easy to solve with digital marketplaces.
Local competitors, non-serious homeowners, and flaky people will often asking work on Thumbtack, costing difficult-working businesses time and money. These "fake" leads get annoying and expensive.
Thumbtack will outcome refunds for certain types of bad leads in certain situations, simply not e'er. Many people have complained nearly not being reimbursed when they felt similar they should accept been. They've fifty-fifty gone as far every bit describing Thumbtack as a scam.
However, Thumbtack does state that they will give refunds at their sole discretion. So, it seems that paying for a few fake leads is merely a cost of doing business organization these days.
Simply is Thumbtack effective?
Look, if Thumbtack didn't work for handymen, contractors, firm cleaners, and dozens of other service providers, it would quickly disappear. But information technology hasn't. Instead, it'south known equally a unicorn (a privately held company worth over a billion dollars).
In 2019 Thumbtack was valued at a whopping $i.7 Billion. It'due south been consistently growing over the last decade with no signs of it slowing.
Anytime you read online reviews on sites like BBB, and all y'all run into are bad reviews, understand that happy customers aren't leaving reviews. Only angry people who feel like they got screwed have plenty motivation to take time out of their day and exit a review.
There could exist a hundred delighted pros for every negative review you observe online. Practice you really think that pros who've struck lead generation gold are going to tell everybody about it? No, they're going to quietly milk Thumbtack for as long as they tin can earlier anybody figures it out.
Then the short answer is yes, Thumbtack can be an effective method for generating leads if used properly. I've spoken to several pros who benefit from information technology, and others accept left comments below sharing their successes.
Should yous utilise Thumbtack to grow your business?
Honestly, it depends. I don't personally use it because I tin can generate more than enough leads through my website (and those leads are free).
However, I recommend Thumbtack to many of my readers and clients who are merely getting started because information technology's a great temporary solution. Buying leads is practiced for the brusk-term while you work on longer-term marketing strategies like edifice an online presence.
And then if you're starting your business or you need some customers fast to fill your schedule, give it a try. Test it. Learn how to use it properly (which I'll talk over below), requite information technology a fair shake, and stop using it if information technology doesn't work for you.
Uncomplicated.
Don't be like many people I've seen that are so scared of being scammed that they won't effort anything and finish upwardly leaving money on the tabular array as a result.
However, I take a word of warning…
Hither's what to AVOID
The only problem with using services similar Thumbtack is when they are your sole method of getting new customers. Relying on services similar this leaves your business exposed in a mode that tin can beat profits if anything changes. And things inevitably alter (like the increment in atomic number 82 prices, for example).
View Thumbtack every bit a tool for getting leads quickly while working on other marketing methods that you have more than control over.
You'll want to do things like building a website, soliciting reviews on websites like Yelp, and doing SEO to get your website to show upwards on Google so you can generate complimentary leads.
Just like when investing your coin, you desire to DIVERSIFY where your leads come from to reduce risk and go along your schedule filled all twelvemonth. That way, if one source of new customers disappears, you have several others that can selection upward the slack.
Never outsource your unabridged marketing efforts to one company that y'all don't command. They can change things in the blink of an eye and literally wipe you out. Or, this can force you to lower your prices to stay competitive as the competition grows.
The Details – How does Thumbtack work?
Thumbtack's goal is to make hiring a plumber, handyman, gardener, dog groomer, or any local service business as easy as ordering products from Amazon.
And I have to say, their platform is brilliant. Here's how it works.
Customers visit their website or App and search for pros. Then, based on some filters, Thumbtack displays a list of pros to choose from. Customers browse through the business profiles and choose who to attain out to.
It'southward basically a search engine with a few fundamental twists.
Equally a pro, you get listed on the search engine for complimentary. All the same, in one case a customer contacts you lot, you go charged for the pb. You don't pay to exist shown to customers. You merely pay when they contact you. That'southward a very nice characteristic.
As a pro, yous get to set your "target preferences." This allows you lot to define exactly which jobs you desire to exist shown for and in what areas. That manner, you lot only pay for leads for the verbal services yous offer in the verbal areas that you offering them.
There are ii ways yous can land new clients on Thumbtack.
Lead type #one – Straight leads
This is when a customer finds you lot in the search results and reaches out to you.
You are automatically billed for direct leads, so it'due south important to set your target preferences carefully and so you only target your ideal jobs. Otherwise, yous'll stop up paying for a agglomeration of leads yous don't want.
Many of the complaints about getting bad leads are technically the pro's error since they didn't optimize their preferences.
Lead type #2 – Opportunities
At that place is a tab inside the Thumbtack app called Opportunities. This is where you tin can run into customers who have reached out to other pros and are actively requesting quotes for services you provide. If you see any jobs that interest you, you tin reach out to the customer through the app. And then, fifty-fifty if yous don't get chosen by the client in the search results, yous still have an opportunity to state the job.
The do good of opportunities is that you lot can see the price of the lead before reaching out, and y'all only pay if the customer responds to you.
Thumbtack Pricing – How Much Does Information technology Cost for Pros?
Equally with all lead gen services, the answer is that information technology depends. According to Thumbtack's website, "The cost of each quote will vary, depending on the value of the job and the number of available and interested pros in the surface area." At that place is no price to sign upward.
So, bigger jobs like kitchen remodels will cost $fifty+, while smaller jobs like replacing a toilet or a mean solar day of handyman services will be in the $8-$25 range.
Essentially, Thumbtack allows the marketplace to make up one's mind how much a lead costs. If there are many pros in one expanse competing for the same jobs, the toll of leads volition go upward. If in that location are very few, and so the cost of leads volition go downwardly.
For instance, during the pandemic, the cost of leads increased since in that location were lots of pros looking for work and fewer jobs to go effectually (another good reason to avoid relying on Thumbtack).
You lot accept the ability to accommodate your weekly spend limit and then y'all don't get hit with gigantic bills. You can test the waters with minimal investment.
Are Background Checks Required?
It's unclear if they do background checks on everyone. However, their terms country that past using the app, you lot qualify Thumbtack to do background and credit checks and to inform customers if you lot have been checked.
So no, it doesn't seem that groundwork checks are required across the board. But, information technology's a good idea to get 1 since it will increase the chances of being hired.
What I like about Thumbtack
- You just pay for leads if a customer reaches out to you directly (directly lead) or if a customer responds to your involvement when reaching out for opportunities. This helps reduce a lot of bad leads.
- The platform allows you to get jobs apace, which is squeamish if y'all're just getting started or need to fill gaps in your schedule.
- You can see what your competition is charging and do market place research before starting your business concern.
- Information technology's easy to stand out if you put some effort into your contour or are responsive to leads.
- You lot can see the price of leads before y'all decide to receive them and fine-tune which leads y'all receive.
What I don't like about Thumbtack
- You don't control information technology, and so you're at their mercy. If lead prices go up, your profits become down. If they decide to change how the whole organisation works, y'all have no choice but to adopt the new system. This isn't much dissimilar than having a job.
- It may force you to drop your prices to compete, specially when demand is lowest and lead prices are highest. That means yous'd face up increase lead costs while at the same time taking a striking on profits, squeezing you from both ends.
- It can be time-consuming going back and forth with customers or being forced to stop what your doing to respond immediately.
- Thumbtack encourages customers to contact several pros, even when a customer has chosen you from the search results. I tin can see why they do this (they get paid for more leads), but I don't believe it necessarily helps customers while at the same time costing pros more per lead.
Thumbtack From a Homeowners Perspective
This review wouldn't be consummate if I didn't talk about the homeowner'due south feel while using Thumbtack. And like any expert detective, I spent some fourth dimension investigating that.
Here'due south what they do really well for homeowners:
- Their website and app are top-notch – This is a huge trust builder for homeowners, and while you're browsing their site, you get the feeling that y'all are well taken care of.
- There are many pros to choose from – Within seconds of entering a job, I had three different options of handymen to choose from, and more came over the following days.
- Pricing is transparent – I knew how much the handymen charged correct away.
- It's easy to communicate with pros – You can message pros directly through the website to answer your questions. From a customer standpoint, this is a neat fashion to get a feel for how well the pro communicates and their style before getting on a telephone call.
- Reviews are mostly from verified customers – Just like any online directory, they have reviews, about of which have to be from verified customers, so fake reviews aren't a problem.
- Pros are responsive – Thumbtack awards pros who respond quickly with higher rankings in search, encouraging them to respond quickly. Also, since pros are paying for leads, it means they are accepting new clients.
Thumbtack makes it really easy to find and connect with contained contractors. The whole process for the client is streamlined, professional, and like shooting fish in a barrel to use. In fact, I can see myself using it in the future for random services I may need.
And, as time passes, I'1000 sure the platform volition keep to improve, more service providers will sign up (they already accept over 250,000), and Thumbtack will get even improve for homeowners. That's nice, but the price of that convenience is that they volition take more control over the industry.
Quick Tips for Maximizing ROI
If you decide to try Thumbtack, here are some tips to help you shut more leads and make more money.
#i – Add a adept headshot
Most handymen just put their logo or a picture of a recent job for their profile pic. Don't do that. Customers want to see who they are hiring. Past simply having a professional headshot on your profile, you'll go 10x as many jobs – which means you'll pay less to get customers. This is such a simple thing to exercise. It's amazing how few practice it well.
#2 – Respond to leads rapidly
Think about it. Customers are using Thumbtack to save time searching for a pro. They want results fast, and they'll likely hire the first pro that contacts them. Sure, on jobs like kitchen remodels, customers will desire to talk to three or more different contractors and weigh their options. Only on smaller jobs, they just want to rent and move on.
Too, Thumbtack will honour you with higher rankings in search for responding quickly. It even states on Thumbtack's website that faster responses will significantly increase your odds of converting a lead into a customer.
#3 – Clip your service offering
Once yous've bid on 25-50 jobs, get back and look at your history to see which leads turned into customers and which ones didn't. You'll probably observe a pattern. Certain types of leads will never plow into customers, so change your settings and stop wasting your time bidding on those jobs. Conversely, you'll find that certain jobs have a very high closing rate. Double down on those.
#4 – Get Some Reviews
To bear witness up in the search results, y'all must have at least one review. Higher reviews too heave your rankings in search and give you the opportunity to become a Top Pro, which gives you a nice badge side by side to your contour, letting customers know you are a neat person to hire. Online reviews are essential on all digital marketplaces, so some effort put here will pay off.
Quick Thumbtack facts and stats
- Thumbtack was founded in 2008 and is a privately held visitor.
- Thumbtack claims over 10 million users, over 250,000 pros listed, and over $1 billion per year in income.
- Thumbtack has approximately 500 types of services in categories such equally domicile services, wellness, events, and even lessons.
- Thumbtack has a 1.13/5 star rating based on reviews on BBB, yet BBB nevertheless gives them an A+ rating.
Sources: BBB, CNBC, Wikipedia
Conclusion
Thumbtack tin can be a great tool to aid you fill your schedule, jumpstart your business, or gain access to customers you wouldn't otherwise exist able to reach. Just don't rely on information technology equally your sole source of leads because you don't control it.
Test it, see how well it works in your area, and if it works, great. If non, end using it.
As ever, with lead generation services, apply it every bit much as necessary and as little equally possible.
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