# HomeAdvisor vs Angi: When You Ask for a Quote, Who Gets Paid?
Rigged No. 4 · Published 2026-10-19 · Last verified 2026-09-26 · https://l3ad.io/rigged/what-contractors-pay-for-leads
**Summary:** Angi Leads, Thumbtack and Yelp all have ways for contractors to pay for customer requests, and on Thumbtack a higher lead price makes a pro "more competitive" for those jobs. Angi Leads does not publish its lead fees. A 2023 FTC order bars HomeAdvisor from misrepresenting its leads, including with phrases like "Ready to hire."
> Cite as: L3ad.io Editorial Desk. (2026). HomeAdvisor vs Angi: When You Ask for a Quote, Who Gets Paid?. L3ad.io. https://l3ad.io/rigged/what-contractors-pay-for-leads
## What is the difference between a lead marketplace and a directory?
A directory shows you a list of businesses. You pick one and call it. A lead marketplace asks you to describe your job, then passes your request to one or more businesses that pay for it.
The FTC described HomeAdvisor's model this way in its 2022 complaint: HomeAdvisor "collects information about potential customers for home services like kitchen remodels or lawn care, and sells that information to service providers in its network." The FTC's final order defines a lead as information about a consumer that is shared with a service provider "who has paid Respondent for such information" or who is in its network.
Many sites do both. A page can look like a list of pros while the button on each listing starts a paid lead. For local businesses, these lead generation platforms compete with other ways to find potential customers, such as search results, Google ads and local SEO.
## HomeAdvisor vs Angi: what is the difference?
HomeAdvisor vs Angi is less of a choice than it looks. The FTC's 2023 order names the company as "HOMEADVISOR, INC." doing business as "ANGI LEADS" and "HOMEADVISOR POWERED BY ANGI," and the HomeAdvisor pro site carries a "HomeAdvisor powered by Angi" logo.
The two sell different things to pros. HomeAdvisor, now Angi Leads, uses a pay per lead model: pros "pay a nominal fee for each lead you match to." Angi.com sells advertising. Its FAQ says its revenue comes from "service professionals, who pay to advertise services on Angi," from paid homeowner memberships with an annual fee, and from Angi Services, "where projects are booked and completed by Angi."
Any pro can start with a free listing. Angi's FAQ says "You can set up a free profile to share information about your business and services." To buy Angi ads, a business with at least one review must keep an average rating of 3 stars or higher, and Angi says those pros can "pay to advertise their business through our website, magazine, and call center." Angi says advertising does not change ratings or reviews.
For a homeowner, both paths end the same way: your request or your click can become revenue for the platform. For a pro, the questions are lead quality, how many contractors get the same request, and what each job won really costs.
| | HomeAdvisor (Angi Leads) | Angi.com |
| --- | --- | --- |
| How pros pay | Per lead: a fee for each lead the pro matches to | Advertising, for pros who meet Angi's rating rule |
| Published prices | No. "Different sized jobs have different Lead Fees." | No prices on the Angi FAQ |
| Free listing | Not stated on the pages we checked | Yes, a free profile |
| Rating rule | Not stated on the pages we checked | 3 stars or higher to advertise, for businesses with reviews |
| Membership fee | The FTC's 2022 complaint cited an annual membership fee of $287.99 | Homeowners can buy a paid membership with an annual fee |
| Bad leads | Store credits, requested within 30 days, expiring after six months | Not applicable |
## How do Angi ads work for contractors?
Angi offers pros two paths: a free listing and paid Angi ads. Any business can set up a free profile. Angi ads are open to pros who keep an average rating of 3 stars or higher once they have at least one review, and Angi says advertisers can pay to show up on its website, in its magazine, and through its call center.
Paying members get placement. Angi's FAQ says that in search, "you'll find Angi Approved Pros listed above other service providers." It also says advertising does not affect ratings or reviews, so positive reviews and negative reviews stay on the profile either way.
Angi does not publish prices for Angi ads on its FAQ. Ask for the price in writing, and for how many other contractors in your service area and service type buy the same placement.
## What should a contracting business weigh before paying for leads?
Paid platforms can generate leads fast, but the costs land on your profit margins, so it helps to compare them on the same terms.
- Shared or exclusive. On a lead site, the same leads can go to several contractors at once. Chasing shared leads puts a premium on response time. Thumbtack, for one, limits a customer to five pros in the first four hours.
- Lead quality. Ask what happens with fake leads, wrong numbers and requests outside your service area. Angi Leads gives store credit for some bad leads, and none for a customer who never calls back.
- Control. On Thumbtack you set the price per lead and a weekly budget. On Angi Leads the fee depends on the job size. More control over price and budget makes the math easier.
- Competition. Popular service types, like HVAC repair in a big metro, can draw fierce competition. Higher competition can mean a higher cost per job you win, whether you pay per lead or per click.
- Other platforms. Google's Local Services Ads also charge per lead; Google's help page says "Pay only for leads related to your business and the services you offer." Its badge is called Google Verified. Paid ads on search engines, and local SEO that lifts you in local search results, are the other main routes to new customers.
- Your own reviews. Online reviews and verified reviews on a platform help you win jobs there. Reviews on your own Google profile and website stay with you when you stop paying.
- Marketing mix. General contractors, pest control companies and other local home service providers can spread their risk across more than one source. Track costs and jobs won by source, and move budget to the paid listings or campaigns that pay for themselves.
## Angi ads vs Google ads: where does lead generation money go?
A contractor's lead generation budget can go to three places: Angi ads or Angi Leads, Google ads, or work on your own site and profile. Each trades costs, control and competition differently.
Angi ads put you in front of people searching on Angi, and Angi says Approved pros are listed above other service providers there. Google ads put you on the first page of Google search results for the words you bid on, with other search engines selling similar paid ads. Your own site, local SEO and online reviews build online visibility you keep after you stop paying.
Compare them on the same numbers: what each lead or click costs, how many turn into jobs (your conversion rates), and what a job is worth. A marketing plan that tracks those three can tell you whether Angi ads, Google ads or paid listings elsewhere pay for themselves.
| Channel | How you pay | Who you compete with | How much control you have |
| --- | --- | --- | --- |
| Angi ads | Advertising, open to pros with a 3+ star average | Other advertisers in your service type and area | Angi does not publish prices on its FAQ |
| Angi Leads (HomeAdvisor) | A fee per lead you match to | Multiple contractors can get the same request | Fees vary by job size; bad leads earn store credit at most |
| Thumbtack | Per lead, from a weekly budget | Up to five pros in the first four hours | You set the lead price and the budget |
| Google Local Services Ads | Per lead, per Google's help page | Other local businesses in the same category | See Google's help page for settings |
| Your site and local SEO | Your time or a contractor's | Everyone in local search results | Full control, slower results |
## What are the common complaints about paid lead sites?
The biggest case on record is the FTC's against HomeAdvisor. The FTC alleged that HomeAdvisor's claims about lead quality were "false, misleading, or unsubstantiated," including claims that leads came from people ready to hire. HomeAdvisor neither admitted nor denied the allegations and agreed to the 2023 order.
From the platforms' own rules, three other friction points stand out. Leads can be shared, so several contractors chase the same homeowner. Refunds are limited: Angi Leads gives store credit only for some problems and says a customer who does not call back is already priced in. And prices are often not published, so you learn the real cost only after you spend.
None of this means these sites never work. It means claims of higher quality leads deserve the same test as any other marketing claim: ask for the terms in writing and track your results.
## How much do contractors pay per lead?
Last verified: September 26, 2026, against each company's own help pages. Prices and rules change often, so check the source before you rely on them.
| Platform | How pros pay | Who sets the price | How many pros can get one request | Bad lead policy | Source |
| --- | --- | --- | --- | --- | --- |
| Angi Leads (HomeAdvisor) | "You pay a nominal fee for each lead you match to." The FTC's 2022 complaint said pros also paid an "annual membership fee of $287.99." | Angi Leads. "Different sized jobs have different Lead Fees." Prices are not published; the FAQ gives a phone number. | Not stated on the pages we checked. | Credits, not cash. Credits are "store credits" that must be requested within 30 days and expire after six months. "You did not win the job" does not qualify. | |
| Thumbtack | Pros pay for each lead from a weekly budget. For "Opportunities", "You only pay the price shown if the customer responds to you." | The pro, with a slider. "The price you set for a lead is the exact amount you'll pay." | Up to five in the first four hours. After that, the customer "can contact additional pros." | Refund request if a paid lead has "a disconnected or invalid phone number." | |
| Yelp Request a Quote | "Request a Quote is free to set up." For Nearby Jobs, businesses browse for free "and they pay for the jobs they choose to respond to." | Yelp. Ad clicks are priced "through an automated auction." | A Nearby Job expires after 14 days "or if 6 other businesses have already responded to the project." | Not checked for this issue. | |
## How does Angi Leads charge contractors?
HomeAdvisor's pro business now runs as Angi Leads. The FTC's final order names the company as "HOMEADVISOR, INC." doing business as "ANGI LEADS" and "HOMEADVISOR POWERED BY ANGI."
The Angi Leads pro FAQ says pros choose their work type and area and "pay a nominal fee for each lead you match to." It does not list prices. It says "Different sized jobs have different Lead Fees" and gives a phone number for details.
When a lead goes bad, the pro gets account credit at best, not cash. The lead credit rules say "We may, in our sole discretion, issue you a credit," and credits "will be issued as store credits, which will be applied toward future charges to your account." Unused credits expire six months after they are issued.
Some problems qualify, like a duplicate request, the wrong zip code, or contact details that are all wrong. Others do not. The rules say these cases "are accounted for in our lead pricing and therefore not eligible for lead credits": the consumer is not calling back, already hired someone, changed their mind, or is just "shopping," or "You did not win the job."
## Does paying more help on Thumbtack?
Thumbtack lets each pro set a price per lead. Its help center says "Setting a higher price for a specific service makes you more competitive for those leads." It also says "Your lead prices are one of several factors that determine how many leads you get," along with a pro's profile, star rating and reviews, response speed, and local demand.
Spending also decides whether a pro shows up at all. Thumbtack's Ranking 101 lesson lists "Decide how much to spend" as a step before a pro can appear in search. It warns: "If you reach your budget before the week is over, you'll stop appearing in search results."
The same lesson lists the ranking factors as reviews, responsiveness, pricing, customer engagement and profile. There, "pricing" means showing prices on your profile: "You have prices and they don't."
Thumbtack limits shared leads on each request. It says "we limit the number of pros a customer can contact to five in the first four hours of their search."
## How does Yelp Request a Quote work, and who pays?
On a service business's Yelp page, a "Request a Quote" button opens a short set of questions and sends the answers to that business. Yelp says "Request a Quote is free to set up."
Your request may not stay with one business. Yelp says a customer who sends a direct request is "also given the option to send the same request to other related businesses." Customers can also "start projects, where their requests get sent to multiple businesses on Yelp that can meet their needs."
Those shared requests feed a paid product called Nearby Jobs. Yelp says businesses can "browse a feed of available jobs in their area for free, and they pay for the jobs they choose to respond to." A job leaves the feed after 14 days or once 6 other businesses have responded.
Yelp also sells ads, and its business article suggests pairing Request a Quote with Yelp Ads "for even better results." Yelp says the price of an ad click "is determined dynamically through an automated auction."
## What did the FTC's HomeAdvisor order require?
In a complaint filed in March 2022, the FTC alleged that HomeAdvisor made "false, misleading, or unsubstantiated" claims to pros about its leads. According to the complaint, HomeAdvisor said its leads came from people who planned to hire soon, matched each pro's chosen services and area, and came from people who "knowingly sought its assistance." The FTC alleged that many did not, and that many leads were bought from third parties whose forms did not always reveal a tie to HomeAdvisor.
The complaint also alleged that HomeAdvisor sold a membership package for $347.98 that included a month of mHelpDesk software described as free. Per the FTC, the software "increases the cost of the annual membership by $59.99" and renewed at $59.99 a month unless canceled.
HomeAdvisor settled. Under the consent agreement it "neither admits nor denies any of the allegations in the Complaint." The FTC approved the final order on April 21, 2023, by a 3-0 vote. The order lasts 20 years. Here is what it requires:
- No misrepresenting that leads come from people who "intend to hire a Service Provider soon," including through phrases such as "Ready to hire", "Project-ready", "Not window shopping", "Not just price-shopping" or "Need a project done now."
- No misrepresenting that leads only cover the services and areas a pro chose, or only come from people who asked HomeAdvisor directly.
- No calling a product free when it is not free "or when it increases the price of another product or service."
- No claims about how often leads turn into jobs unless the claim is not misleading and HomeAdvisor has "a reasonable basis for the claim" plus data or written proof at the time it makes the claim.
- A payment of $4,448,000, plus up to $2,752,000 more if mHelpDesk claims ran high, for a total of up to $7.2 million.
- Refunds of up to $30 per membership for the lead claims, and up to $59.99 per mHelpDesk membership for those who filed a claim.
- Copies of the order to owners, managers and certain staff, a compliance report, and records kept for the FTC.
## Did pros get money back?
Yes. On November 28, 2023, the FTC said it was sending "more than $3 million in refunds" in 110,372 checks to businesses that paid for HomeAdvisor memberships. It also mailed 91,273 claim forms to businesses that paid for mHelpDesk, with a deadline of February 26, 2024.
## What should you ask before you fill out a quote form?
A quote form is not bad by itself. It helps to know where your name and number go.
- Is this form going to one business, or to several? Look for a checkbox or note about sending your request to "other" or "related" businesses.
- Did the business on the page pay to be shown to me? Look for "Sponsored" or "Ad" labels next to the listing.
- Would I rather call? Calling a business you picked yourself keeps your request with one company.
- Is the business licensed for this work? A marketplace badge is not a state license. In Florida, check the license yourself with the state.
- Are the reviews on this site the only ones I have seen? Compare with other sources before you hire.
## How L3ad.io is different
L3ad.io sells nothing: no listings, placements, badges, reports or leads. No business pays to be on a list, to move up, or to receive your request.
Lists are built from public records, like Florida state license records, and the method is public. To reach a business you find there, you contact the business yourself.
Spot a factual error? It gets fixed and noted on the list it affects.
## Questions
**How does Angi work for contractors?**
Any business can set up a free profile. Pros with an average rating of 3 stars or higher (once they have a review) can pay for Angi ads, which Angi says run on its website, magazine and call center, and Angi Approved pros are listed above other providers in search. Separately, Angi Leads, the former HomeAdvisor, sells leads per match.
**Is a free listing on Angi enough?**
A free listing puts your business profile on Angi at no cost, which is worth having. It does not buy the placement Angi gives to Angi Approved advertisers, who Angi says are "listed above other service providers" in search.
**Do negative reviews stay on Angi if I pay for Angi ads?**
Angi says yes. Its FAQ says "Companies are not obligated to advertise, nor does their decision to advertise affect their ratings or reviews." Positive and negative reviews stay either way.
**Is HomeAdvisor the same as Angi?**
They are one company. The FTC's 2023 final order names "HOMEADVISOR, INC." doing business as "ANGI LEADS" and "HOMEADVISOR POWERED BY ANGI." HomeAdvisor sells leads to pros per lead, while Angi.com sells advertising to pros who keep an average rating of 3 stars or higher.
**Is an Angi listing free for contractors?**
A basic listing is. Angi's FAQ says "You can set up a free profile to share information about your business and services." Paying to advertise on Angi requires an average rating of 3 stars or higher for businesses with at least one review.
**Is Angi worth it for contractors?**
It depends on what each job won costs you. Angi does not publish its ad or lead prices, and Angi Leads credits for bad leads are store credit, not cash. Track what you spend and how many jobs you win before you decide.
**What did the FTC say about HomeAdvisor lead quality?**
In its 2022 complaint, the FTC alleged HomeAdvisor made "false, misleading, or unsubstantiated" claims about the quality and source of its leads, such as saying they came from people ready to hire. HomeAdvisor settled without admitting or denying the allegations, and the 2023 order bars those claims and requires proof for any claims about conversion rates.
**How much does Angi charge contractors per lead?**
Angi Leads does not publish its lead prices. Its pro FAQ says pros "pay a nominal fee for each lead you match to" and that "Different sized jobs have different Lead Fees." In its 2022 complaint, the FTC said HomeAdvisor pros also paid an annual membership fee of $287.99.
**How much do Thumbtack leads cost?**
Thumbtack pros set their own lead prices with a slider, and Thumbtack says the price you set "is the exact amount you'll pay," unless a discount or promotion applies. Spending is capped by a weekly budget. Thumbtack says a higher lead price makes a pro "more competitive for those leads."
**Is Yelp Request a Quote free for businesses?**
Yelp says Request a Quote "is free to set up." Requests that customers choose to share with more businesses go to a paid feed called Nearby Jobs, where businesses "pay for the jobs they choose to respond to." Yelp Ads are sold separately, priced per click through an automated auction.
**Is a lead site the same as a business directory?**
No. A directory lists businesses and you contact the one you choose. A lead site collects your request and passes it to businesses that pay for it, sometimes several at once. Some sites do both on the same page.
**What did the FTC order HomeAdvisor to do?**
The FTC's April 21, 2023 final order bars HomeAdvisor from misrepresenting its leads, including with phrases like "Ready to hire," from calling a product free when it raises the price of another, and from making job-rate claims without data to back them. HomeAdvisor agreed to pay up to $7.2 million and neither admitted nor denied the FTC's allegations. The order lasts 20 years.
**Can contractors get a refund for a bad lead on Angi?**
Angi Leads may issue credits "in our sole discretion," as store credit toward future charges, not cash. Requests must be made within 30 days, and credits expire after six months. Cases like a customer who never calls back or "You did not win the job" do not qualify.
**When I request quotes online, who gets my information?**
It depends on the site. On Thumbtack, a customer can contact up to five pros in the first four hours. On Yelp, you can choose to send your request to other related businesses, and a shared request stays in Yelp's paid Nearby Jobs feed until 6 other businesses respond or 14 days pass. Read the form before you submit it.
## Sources
1. Google Local Services Ads help (Google Verified badge, pay per lead): (verified 2026-09-26)
2. Angi: FAQ (how Angi makes money, free profiles, advertising rules): (verified 2026-09-26)
3. HomeAdvisor pro site (HomeAdvisor powered by Angi): (verified 2026-09-26)
4. FTC: Order requires HomeAdvisor to pay up to $7.2 million (Jan. 23, 2023): (verified 2026-09-26)
5. FTC: Final order against HomeAdvisor (Apr. 21, 2023): (verified 2026-09-26)
6. FTC: HomeAdvisor case page (Docket 9407): (verified 2026-09-26)
7. FTC: HomeAdvisor administrative complaint, public redacted (Mar. 11, 2022): (verified 2026-09-26)
8. FTC: HomeAdvisor Decision and Order (Apr. 21, 2023): (verified 2026-09-26)
9. FTC: Analysis of Proposed Consent Order to Aid Public Comment (Jan. 23, 2023): (verified 2026-09-26)
10. FTC: Refunds to businesses that paid for HomeAdvisor memberships (Nov. 28, 2023): (verified 2026-09-26)
11. Angi Leads: Service professional FAQs: (verified 2026-09-26)
12. Angi Leads: Lead credit guidelines: (verified 2026-09-26)
13. Thumbtack Help: How much do I pay for leads and opportunities?: (verified 2026-09-26)
14. Thumbtack Help: How to set my lead prices: (verified 2026-09-26)
15. Thumbtack Help: Ranking 101: (verified 2026-09-26)
16. Thumbtack Help: What is Thumbtack's Quality Commitment?: (verified 2026-09-26)
17. Yelp for Business: How to get job requests from customers on Yelp: (verified 2026-09-26)
18. Yelp Business Help: Request A Quote vs. Nearby Jobs: (verified 2026-09-26)
19. Yelp Business Help: What is Nearby Jobs?: (verified 2026-09-26)
20. Yelp Business Help: How is the cost-per-click for Yelp Ads determined?: (verified 2026-09-26)
L3ad.io sells nothing to the businesses it covers. Corrections: https://l3ad.io/corrections