Lead prices out of control

Mattacus
Mattacus Posts: 24
in Network and Collaborate

Anybody else having issues with lead prices going up more than 50% lately? Im paying 20% of what I charge for my service per lead, I need to book 1/5 to cover leads at the moment, its insane.

I paid less than $20 per lead last year, when I slide the set max lead price to $20 it says ill get 2 per month. I was paying this per lead last year and getting over 20 leads a month. Has something changed with how TT is setting lead prices, they are wildly inconsistent at the moment for me.

Comments

  • Mattacus
    Mattacus Posts: 24

    @DustiO are you able to shed some light? Can you see what the average lead price for engagement photography in Charleston SC is? Maybe then we can figure out why it’s jumped 3x higher all of a sudden. If a service costs $250 surely the lead should only be 5-10% of that max

  • Matt
    Matt Posts: 169

    My lead prices are all over the map, some high demand areas I have had as low as $20, then a low demand area shoot up to $44+. It’s pretty crazy to think that I have paid $40 for a lead that had a $100 budget

    I wish they asked more of the clients reaching out, this would help sort out some pros who aren’t willing to move forward if the clients job/budget is just too low.

  • DustiO
    DustiO Administrator, Moderator Posts: 1,910

    @Mattacus you are able to see the average price of leads in your categories if you look in your Max Lead price section and click on performance, or if you look in your insights. Hope this helps!

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  • DustiO
    DustiO Administrator, Moderator Posts: 1,910

    @TheOneWillFocus Please review our Community Code of Conduct and keep conversations constructive. If you have feedback for Thumbtack, this is not the space. You can leave feedback by following these instructions or sending it to support@thumbtack.com so that it can be properly logged. Thank you.

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  • Mattacus
    Mattacus Posts: 24

    I agree, every lead should just be say 7% of the cost of the job. That way we can budget it in and know what to expect.

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  • CynthiaD
    CynthiaD Posts: 2

    I’ve spent $2800 on leads this month and only about 10 converted into customers. 90 percent ghosted me and half didn’t even bother reading my messages. When I first joined this platform each lead was $4. Now I’m paying up to $55 and a finger job only things in $300-400 so essentially 60 percent of my profit it going to Thumbtack this month. Thumbtack charges each pro the same amount so they are essentially earning the entire value of the job. . I’m trying to transition off the platform but there are months like this month when I don’t get as many referrals so I need that pipeline built stronger. I’m trying out a few other cheaper sites but I really did use to live this platform. Now it’s impossible for a small business owner like me to succeed in the platform because the lead prices have increased by a factor of over 10. It feels terribly unfair to continually increase lead prices this much over a 5 year period. Thumbtack will eventually lose its pros because it’s charging too much and is hurting small businesses. I can’t afford a overhead this high but I also need clients. I came onto the community to see if anyone else was having an issue with these YOY rate increases. I’m at the point now where I’m looking for a job because thumbtack is putting me out of business essentially by charging so much for the leads. It’s crazy to have to work this hard for a job that I’m earning 40% on.


    I lower my cost per lead sometimes as low as posisble but then I don’t even show up in the rankings even though I have over 200 5-star reviews and rank exceptional. I don’t even show up in my own zip code unless I make it $40+.

    I have a stellar response rate and exceptional reviews but it feels like I’m getting punished because I’m a one person shop and can’t afford $3-4 grand a month to market my business.

    Rarely do I get a refund approved anymore so I don’t even try. It’s always the same message.

    I’ve had customers I served last year that reach out again and thumbtack charged me all over again for the leads. This has happened in at least 5-10 occasions. And when I wrote back, I got the same canned response from customer service.

    All I can do is continually charge my clients more but most people who contact me tell me they can’t afford the cost of my services. I don’t understand how some professionals can give an $87 bid when they’re paying over $40 for one lead.

    My brother in law and husband both inactivated their pro accounts on thumbtack because of the cost per lead. .

    Unless something changes soon, I fear I’m probably going to have to deactivate my services as a pro too. There ought to be a way pros can influence what’s happening with leads. My stomach turns when I get a lead because 90 percent of the time, I know I’m going to be completely ignored even when I text them or call them numerous times to follow up.

    I feel like I’m harassing them trying to get business, but those who do respond tell me that I’m too expensive for them. I have two masters’ degrees and offer a high quality service. I can’t afford to be making $15-20 an hour for the services I am providing.

    i did schedule a few calls at one point with one of the reps and they promised to give pointers on improving my strategies. They reviewed my profile and my messages to potential leads and told me they were excellent and had no advice to offer.

    So I’m convinced that the only people truly benefiting from this model is Thumbtack and not us, the pros, nor the customers we serve because we’re forced to raise prices because of how much the leads cost.

    I guess it helps to know I’m not the only one frustrated with this platform.

    Thanks for sharing!

  • CynthiaD
    CynthiaD Posts: 2

    Sorry not a finger job… should say a single job only brings in …

  • Bretdouglas
    Bretdouglas Posts: 94

    Cynthia d.


    Just wanted to reach out my name is Brett douglas. I'm one of the top pro advisor board members and would definitely be interested in partnering up to help you. If I can. May I ask what type of business leads you're paying for that might help me to get an understanding if you want us to take this message offline I can be text at 386-500-8217 or we can communicate on here I've been a top pro with a platform forever and have always had to change my strategies for the sum of the problems. However I'm a landscape contractor so I'm in like seven different categories but if I have a little bit of information to work with I'm sure that I can get you on the right page. Dusty is an amazing go to person too but I know she sometimes overwhelmed by all the people working on her. If I can assist you I would love to do it for free I'm just a top pro trying to look out for other pros. I have a lot of free time in between different jobs so I love to help our community

  • Bretdouglas
    Bretdouglas Posts: 94

    We are only as strong as the people who care about us. I'm not paid by thumbtack I'm simply someone who's benefited from the application and I want to make sure that everybody else is getting the best results. If I can help you I am always here

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