Lead prices out of control

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!

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