- What is Angie’s List, and how does Angie’s List work?
- How does Angie’s List make money?
- Consumer Connection Revenue (Angi Leads)
- Subscription Revenue (Angi Key Membership)
- Angi Services Revenue
- Advertising Revenue (Angi Ads)
- Angie’s List Subsidiaries, Acquisitions, and Exits
- Angie’s List profit and revenue
- What is the Angie’s List business and revenue model?
- Angie’s List funding, net worth, and market cap
How does Angie’s List make money? Here is a full, in depth, breakdown of their four (4) revenue streams and the different products and services they offer, as well as Angie’s List’s business model, their profit and revenue, and how Angie’s List works.
What is Angie’s List, and how does Angie’s List work?
Angi, formerly known as Angie’s List, is an online marketplace that allows customers to hire and review local contractors for home related service jobs in more than 500 different categories.
Founded in 1995 by Angie Hicks and William S. Oesterle, Angie’s List began trading on the NASDAQ on November 17, 2011, under the ticker symbol “ANGI”.
Since that time, Angie’s List has merged with Homeadvisor, a subsidiary of IAC, and rebranded as Angi in 2021. Now, Angi has more than 250,000 contractors, or “pros”, on its platform who have serviced over 150 million service requests from homeowners since being founded back in 1995.
So, how does Angie’s List work? To use Angi, customers can simply either download their mobile app on the Apple App Store or Google Play store; or visit their website.
Once on the homepage, customers can choose from over 500 job categories Angi and their contractors offer. They can then choose a service they are interested in and fill in some details about the job. Angi will then match customers with contractors in the area with price quotes.
How does Angie’s List make money?
According to Angi’s about page, Angie’s List has more than 250,000 contractors on their platform and serviced over 150 million service requests from homeowners since being founded back in 1995.
So how does Angie’s List make money off of all their contractors and service requests?
Below is a breakdown of how much money Angie’s List makes and its revenue model. Including all revenue streams and how much they charge for their services.
Here are the 4 ways of how Angie’s List makes money in 2022
Angie’s List has a revenue model that makes money in four (4) ways; by charging service professionals for leads (Angi Leads), subscription revenue, advertising revenue, and Angi Services revenue.
#1. Consumer Connection Revenue (Angi Leads)
Angie’s List makes most of its money by collecting fees from its service professionals in exchange for leads. In fact, $896.71 million, or 53.2% of Angie’s List’s total revenue came from these fees in 2021.
How does Angie’s List make money from leads? Angi makes money every time they send their service professionals leads in their area. And in return, Angi charges them for those leads – whether they get the job or not.
According to Angi, they matched their service professionals with roughly 33 million projects on the platform in 2021. Most of which were matched through a lead, and Angie’s List gets paid for each one of those leads.
Note: Angi charges its service professionals for leads regardless of whether the service professional gets the job or not.
#2. Subscription Revenue (Angi Key Membership)
Angie’s List also makes money from their customers’ subscription services; Angi Key and legacy Angie’s List. Which, in 2021, brought in an additional $68 million in revenue for Angi.
For a yearly fee of $29.99 per year, members get 20% savings on hundreds of Angi home projects, as well as other exclusive membership perks.
And for the customers who had the Silver or Gold membership (now known as legacy Angie’s List Membership) before Angie’s List was rebranded to Angi. This membership includes what Angi Key offers, plus the print and digital subscription to Angi magazine – all for an additional price. Which you can see below.
How much does Angie’s List cost?
- Angi Key Membership: $29.99 per year
- Legacy Angie’s List Membership: $24.99 or $99.99 per year depending on the plan (Silver or Gold)
#3. Angi Services Revenue
In August 2019, Angi launched and began offering pre-priced options to its customers on the platform as an alternative to customers requesting and receiving quotes from the service professionals on Angi. (referred to as Angi Leads, as we talked about above)
How doe Angie’s List make money from these services? The way it works is customers purchase home services directly from Angi for a pre-fixed price upfront and then Angi finds and contracts a service professional to do that job.
Angi then profits the difference between the price they charged the customer and how much they contracted the service professional for. Resulting in $357.97 million of revenue for Angi in 2021.
#4. Advertising Revenue (Angi Ads)
Lastly, Angie’s List also makes money from its ad revenue, which they call Angi Ads. Which generated $252 million in revenue for Angi in 2021.
Angi Ads allow businesses to list their business on the Angi platform; thereby increasing their visibility to millions of Angi users looking for local contractors.
According to Angi, Angi Ads had roughly 38,000 service professionals under contract for advertising, as of December 31, 2021. Of which, Angi has all of them under an advertising contract. Which you can see below how much it costs.
Angie’s List Advertising Cost:
- starting at $300 per month (one year contract)
Note: When advertising with Angi, they require service professionals to sign a one-year contract, which starts at $300 per month.
Angie’s List Subsidiaries, Acquisitions, and Exits
Aside from Angie’s List being acquired by IAC for a reported $500 million, Angie’s List has had its own fair share of acquisitions as well.
To date, Angi Inc. has made a total of 1 acquisition.
Angie’s List profit and revenue
In 2021, Angie’s List reported $1.69 billion in revenue.
Note: Because Angi Inc. is a publicly traded company, under the Securities Exchange Act of 1934, they must file continuous financial filings with the U.S. Securities and Exchange Commission (SEC). You can find all of Angie’s List’s publicly released financial reports, including annual reports, through Angie’s List’s investor section on their website.
What is the Angie’s List business and revenue model?
Angie’s List makes money through a few revenue models that they combine within their company, they are:
- Fee for service (FFS) business model
- Subscription business model
- Transaction based business model
- Advertising business model
- B2B2C (partnerships) business model
- Mergers & acquisitions (M&A) business model
Angie’s List funding, net worth, and market cap
According to Angie’s List’s Crunchbase profile, Angie’s List has raised $182.6 million over 9 rounds and has a market cap of $2.75 billion as of June 2022.