Lead Marketplace Comparison: Which Is Least Bad?

Nobody loves lead marketplaces. Contractors complain about lead quality, shared leads, and costs that keep climbing. Yet most home service businesses still use at least one of them.

The reason is simple: they work often enough to justify the spend. The problem is knowing which platform wastes the least money for your specific situation.

The marketplace landscape in 2026

Three platforms dominate: Angi (formerly Angie’s List), Thumbtack, and HomeAdvisor. Here’s the twist that most contractors don’t realize - Angi and HomeAdvisor are the same company. ANGI Homeservices acquired HomeAdvisor in 2017, then merged with Angie’s List. They operate as separate brands but share backend infrastructure and, in many cases, the same leads.

Combined, these platforms generated over $1.5 billion in revenue last year. That money came directly from contractors paying for leads.

Thumbtack operates independently and has raised over $700 million in venture funding. They process millions of service requests annually and take a cut of every transaction.

What you’re actually paying

Lead costs vary wildly by trade and location. A plumbing lead in Phoenix costs different than an HVAC lead in Minneapolis. But here’s the general range:

Platform	Cost Per Lead	Typical Close Rate	Effective Cost Per Job
Angi Leads	$15-75	15-25%	$100-400
HomeAdvisor	$15-100	10-20%	$150-500
Thumbtack	$8-150	10-20%	$80-750

Those close rates assume you’re actually answering quickly. Miss the call or respond late, and your close rate drops to single digits.

The math gets worse when you factor in shared leads. HomeAdvisor sells the same lead to 3-4 contractors. Thumbtack shows the homeowner multiple pros for each request. You’re paying for a slot in a competition, not an exclusive opportunity.

Angi: The legacy brand with baggage

Angi started as Angie’s List in 1995, back when the internet was dial-up and reviews were revolutionary. Homeowners paid a membership fee for access to contractor reviews. The model worked because there was no alternative.

That changed. Yelp, Google, and Facebook made reviews free. Angie’s List dropped its paywall in 2016, then merged with HomeAdvisor in 2017. The rebrand to “Angi” came in 2021.

Today, Angi operates three revenue streams: Angi Leads (pay-per-lead like HomeAdvisor), Angi Ads (fixed monthly advertising), and Angi Services (they hire contractors directly for fixed-price jobs).

What works on Angi:

The review ecosystem still carries weight with older homeowners who remember the Angie’s List brand. Contractors with 50+ reviews and an “A” rating get preferential placement. The advertising model lets you set monthly budgets rather than paying per lead.

What doesn’t work:

Lead quality has declined since the HomeAdvisor merger. Many contractors report the same leads appearing on both platforms. The Angi Services model puts you in direct competition with Angi itself - they’re taking jobs that could have been yours and paying contractors a fixed rate.

Pricing transparency is poor. The same lead type costs different amounts based on your history with the platform, your close rate, and factors they don’t disclose. Contractors with higher revenue get charged more for identical leads.

HomeAdvisor: Volume over quality

HomeAdvisor invented the pay-per-lead model for home services. They spend heavily on TV advertising and SEO to capture homeowner demand, then sell that demand to contractors.

The platform sends you leads that match your service area and categories. You pay for each lead whether you close it or not. Lead costs range from $15 for a simple handyman request to $100+ for HVAC installation leads.

What works on HomeAdvisor:

Volume. They generate more leads than any other platform. For contractors who need to fill the schedule fast, HomeAdvisor delivers. Their instant booking feature lets homeowners schedule directly, which increases close rates for contractors who opt in.

What doesn’t work:

Shared leads remain the biggest complaint. You’re competing with 2-4 other contractors for every lead. By the time you call, the homeowner may have already talked to two others.

Lead quality varies dramatically. HomeAdvisor’s definition of a “lead” is generous - someone clicking on your profile counts, even if they never intended to hire anyone. The platform has faced multiple lawsuits over billing practices and lead quality.

The annual spend requirement catches contractors off guard. To maintain good standing and lead priority, you often need to commit to minimum monthly or annual spending. Miss those thresholds and your lead flow dries up.

Thumbtack: Different model, same problems

Thumbtack operates differently. Instead of selling leads, they facilitate connections. Homeowners post service requests. Contractors send quotes. Homeowners choose who to hire.

You only pay when a homeowner responds to your quote or views your contact information. In theory, this means you’re paying for engaged leads rather than tire-kickers.

What works on Thumbtack:

The per-response model means you don’t pay for leads that ghost you. Smaller contractors can start with minimal investment - just send a few quotes and see what happens. The platform works well for trades with lower average job values where HomeAdvisor’s per-lead costs don’t make sense.

Instant Match automates quoting for routine jobs. You set prices for standard services and the platform sends quotes automatically. For contractors drowning in quote requests, this saves hours.

What doesn’t work:

Competition is visible. Homeowners see 3-5 quotes side by side. Price becomes the primary differentiator, which compresses margins. Contractors with lower prices win more jobs but make less per job.

Thumbtack’s “promote” feature lets you pay extra for priority placement. What started as a level playing field becomes pay-to-play. Contractors who don’t promote see their response rates drop.

The category definitions are broad. You might get lumped with handymen when you’re a licensed plumber, competing for the same leads on an uneven playing field.

The hidden costs nobody mentions

Every platform has costs beyond the per-lead charges.

Time spent filtering leads. You’ll spend hours each week sorting good leads from bad ones, calling people who already hired someone, and chasing homeowners who requested quotes from five contractors simultaneously.

Reputation risk. Negative reviews on marketplace profiles follow you. One bad review among five total can tank your profile visibility. The platforms give homeowners more power in disputes because homeowners are the product.

Dependency. Contractors who rely too heavily on marketplace leads struggle when platform algorithms change or costs increase. You’re building on rented land.

Opportunity cost. Every hour spent managing marketplace leads is an hour not spent on marketing channels you own - your website, your email list, your referral network.

When marketplaces make sense

New contractors need leads fast. You don’t have review history, referral networks, or SEO rankings yet. Marketplaces provide instant access to homeowner demand while you build owned channels.

Seasonal fill-in works too. Slow week in November? Turn on marketplace leads to fill the schedule. Turn them off when you’re booked.

Testing new service areas is cheaper on marketplaces than running ads into unknown territory. Spend a few hundred dollars on leads to gauge demand before committing to a full marketing push.

When to reduce or eliminate marketplace dependency

Your cost per job matters more than cost per lead. Track the full math: how much you spent, how many jobs you booked, what those jobs were worth. If marketplace leads cost $400 per job while referrals cost $50, the answer is clear.

Website traffic that converts beats marketplace leads on every metric. A lead from your own website has no acquisition cost, no competition, and higher close rates. The homeowner already chose you over alternatives.

96% of website visitors leave without filling out a form or calling. They’re interested enough to visit but not ready to commit. Capturing those visitors before they hit a marketplace delivers leads at a fraction of marketplace costs.

Read more about why leads don’t equal jobs and capturing demand from your website.

Platform comparison by trade

Different trades have different experiences on each platform.

Trade	Best Platform	Why
Plumbing	HomeAdvisor	Volume for emergency work
HVAC	Angi Ads	Fixed costs for expensive leads
Roofing	Thumbtack	Lower cost for estimate requests
Electrical	HomeAdvisor	Consistent lead flow
Landscaping	Thumbtack	Lower job values match lower lead costs
Handyman	Thumbtack	Price-sensitive category, quote model works

These are generalizations. Your market, your pricing, and your close rate will determine what actually works.

How to make marketplaces less painful

Answer fast. 78% of homeowners go with the first contractor to respond. Set up instant notifications and respond within 5 minutes. This alone can double your close rate on marketplace leads.

Filter ruthlessly. Not every lead deserves your time. If the job is too small or the homeowner seems like a tire-kicker, pass. Your time has value.

Track everything. Know your cost per closed job by platform, by lead type, by month. If plumbing leads on HomeAdvisor cost $500 per job but HVAC leads cost $200, adjust your categories.

Set hard limits. Decide what you’ll spend monthly and don’t exceed it. Marketplaces make it easy to overspend chasing volume.

Build escape velocity. Every marketplace dollar should fund owned marketing. Use marketplace revenue to build your review count, improve your website, and generate referrals. The goal is dependency reduction over time.

The honest answer

Which marketplace is least bad? Depends on your trade, your market, and how you use it.

Thumbtack works for contractors who compete well on price and respond quickly to quote requests. HomeAdvisor delivers volume for contractors who can handle shared leads and have strong phone follow-up. Angi makes sense for contractors with established review profiles who want fixed monthly costs.

None of them are good alternatives to generating your own leads. Referrals close at 50-70%. Organic website traffic close at 20-30%. Marketplace leads close at 10-20% on a good month.

The best strategy is treating marketplaces as training wheels. Use them while you need them. Build channels you own. Reduce dependency as fast as your business allows.

Your website visitors are already warmer than any marketplace lead. They chose to visit you specifically. Capturing more of them - before they end up on Thumbtack or HomeAdvisor - is the fastest path off the marketplace treadmill.

Learn more about alternatives to lead marketplaces and how to capture lost website visitors.