| Revision as of 08:12, 10 June 2011 editWikieditor9877 (talk | contribs)1 editNo edit summary← Previous edit | Revision as of 19:01, 10 June 2011 edit undoScottyBerg (talk | contribs)12,729 edits rev unsourced ORNext edit → | ||
| Line 120: | Line 120: | ||
| According to the ''New York Times'', for companies like Angie's List, the number of reviews of businesses in many cities and their suburbs is thin and there are more business listings in cities where the review company has been operating longer.<ref name=Toilet/> Like many of its competitors, Angie's List has paid people to submit reviews through programs such as its Angie Cash fundraising program, which was discontinued in March 2006.<ref></ref> Angie's List has not released data on the number of consumer reviews it receives per company listed, but it does report receiving approximately 20,000 consumer reviews each month.<!-- Updated number to 20,000, per information on AngiesList.com --> | According to the ''New York Times'', for companies like Angie's List, the number of reviews of businesses in many cities and their suburbs is thin and there are more business listings in cities where the review company has been operating longer.<ref name=Toilet/> Like many of its competitors, Angie's List has paid people to submit reviews through programs such as its Angie Cash fundraising program, which was discontinued in March 2006.<ref></ref> Angie's List has not released data on the number of consumer reviews it receives per company listed, but it does report receiving approximately 20,000 consumer reviews each month.<!-- Updated number to 20,000, per information on AngiesList.com --> | ||
| Angie's List is unique in that, unlike most online subscription services, unsubscribing requires the user to phone the Angie's list office during Central timezone business hours. | |||
| ==Legal controversy== | ==Legal controversy== | ||
Revision as of 19:01, 10 June 2011
| File:Angie's List Logo.png | |
| Company type | Domestic Limited Liability Company (LLC) |
|---|---|
| Industry | Information collection and delivery |
| Founded | 1995-04-26 |
| Founder | Angie Hicks |
| Headquarters | 1030 E. Washington St., Indianapolis, IN 46202 |
| Key people | William S. (Bill) Oesterle (Chief Executive Officer), Angie Hicks (Chief Marketing Officer) |
| Revenue | $58 mil (est.) |
| Number of employees | 447 |
| Parent | Brownstone Publishing, LLC |
| Website | http://www.angieslist.com/ |
| Footnotes / references | |
Angie's List is website which aggregates consumer reviews of local service companies, as a way to "capture word-of-mouth wisdom." Angie's List is unusual in that it charges consumers to see reviews, reflecting the company's claim that charging consumers "adds credibility to the information."
Corporate history
Based in Indianapolis, Indiana, the company was founded by Bill Oesterle while Angie Hicks worked as an intern in 1995. The company modeled the list after Unified Neighbors, an Indianapolis-based community publication created by Bill Corbin . Angie Hicks, who earned an MBA in 2000, went door-to-door in Columbus, Ohio, signing up members and collecting ratings on local contractors. In 1996, Angie's List purchased Unified Neighbors and relocated the company from Columbus to Indianapolis. As of January 2007, the company serves 124 U.S cities and provides reviews of companies in more than 250 categories. 2008 brought the addition of the medical industry to the List, including doctors, dentists, hospitals, and insurers.
In July 2010, Angie's List was recognized as one of the “2010 Hottest Companies in the Midwest” by Lead411.
Methodology
Angie's List grades companies using a report-card-style A through F scale based on consumer reviews. Revenue for Angie's List comes from fees paid by its members and advertising. It claims to accept advertising from only companies that have a B rating or higher. Not all reports submitted by members are used in establishing a company's rating, as Angie's List employees "are skilled at picking out would-be saboteurs" who would distort a company's rating by submitting a negative review.
Angie's List's stated policies prohibit contractors from paying to be on the list, adding their own names, or reporting on their companies. A blog entry quoted in Newsday, however, demonstrates that it would be possible for business owners to get around this prohibition:
Let's say that I'm the business owner.... If I can create a fake e-mail account and use my home address (or my neighbor's address) so that Angie's List doesn't know who I am, then a month is a pittance for being able to enter a review of my own business. So, their whole 'we charge a small fee to keep the reviews honest' thing doesn't work ... but it sure does help bring in revenue without worrying about advertising.
In response to such criticisms, Angie's List states that to check for abuse and inaccuracies, an employee reads every report as it comes in. Angie's list also explains that the employees ask each member submitting reviews whether she or he is affiliated with or competes against the company they are reporting on, and that a member can only report on a company once every six months.
According to the New York Times, for companies like Angie's List, the number of reviews of businesses in many cities and their suburbs is thin and there are more business listings in cities where the review company has been operating longer. Like many of its competitors, Angie's List has paid people to submit reviews through programs such as its Angie Cash fundraising program, which was discontinued in March 2006. Angie's List has not released data on the number of consumer reviews it receives per company listed, but it does report receiving approximately 20,000 consumer reviews each month.
Legal controversy
According to the Washington Post, in March 2007, SCS Contracting Group sued two Angie's List members for libel for their negative reviews of the company. One of the two members remarked, "If able to sue, then the value of Angie's List depreciates .... People aren't going to be willing to submit reviews if they could be threatened with a lawsuit." On 23 December 2009, they dismissed the complaint.
Financial information
Angie's List estimated that its annual revenue in 2008 was $58 million, generated primarily through advertising in its newsletter and membership fees. Angie's List has not published its annual expenses or net income.
Membership fees are based on location. For example, Angie's List reported the following annual membership fees as of 4 December 2009:
- Charlottesville, VA—$10
- Stamford, CT—$32
- Beverly Hills, CA—$36.25
- Pompano Beach, FL—$47
In 2010, Angie's List raised a total of $25 million in capital from investors. In September 2010, Wasatch Funds and Battery Ventures invested $22 million. In November 2010, Saints Capital led an additional funding of $2.5 million.
References
- "accessIndiana". Indiana Secretary of State. Retrieved 2006-11-07.
- ^ Schein, Amy. "Brownstone Publishing, LLC". Hoovers.com. Hoovers. Retrieved 2007-01-30.
- ^ Duros, Sally (2007-01-05). "Mining gold from Chicagoans' word of mouth". Chicago Sun Times. Retrieved 2007-01-29.
- ^ Darlin, Damon (2006-08-05). "Let's Say Your Toilet Backs Up. How Do You Find a Good Plumber?". New York Times. Retrieved 2007-01-10.
- DeBare, Ilana (September 3, 2006). "Amateur reviews changing approach of small businesses". San Francisco Chronicle. pp. F–1.
- ^ Murphy, Tom (2007-01-20). "Angie's to-do list: doctors; Service ratings firm explores expansion into health care". Indiana Business Journal. Retrieved 2007-02-01.
- Daniels, Mary (2007-01-14). "5 Things to Know...about home warranties". Chicago Tribune. Archived from the original on 2007-02-22. Retrieved 2007-01-29.
- Lead411 launches "Hottest Companies in the Midwest" awards
- Tribble, Sarah Jane (2006-08-28). "Angie's List earns an "A" for filling consumer niche". Seattle Times. Retrieved 2007-01-10.
- "Angie's List: Metro shoppers' best friend". The Detroit News. 2006-12-07.
{{cite news}}: Cite has empty unknown parameter:|coauthors=(help) - "Angie's List helps you choose a contractor". KVBC. 2006-07-10. Retrieved 2007-01-29.
- Original blog entry
- May, Liisa (2007-01-26). "All You Need to Know on the Web". Newsday. Retrieved 2007-02-05.
- Leonard, Kim (February 1, 2007). "When it comes to local BBB, region better watch the watchdog". Pittsburgh Tribune-Review.
- Angie Cash at the Internet Archive
- Kelly, John (March 13, 2007). "Homeowner's Web Gripe Draws Contractor Lawsuit". Washington Post.
- Merino, Faith (21 September 2010). "Angie's List strikes big with $22M". VatorNews.
- Merino, Faith (11 November 2010). "Angie's List raises $2.5M adding to $22.5M". VatorNews.