Angie's List
Encyclopedia
Angie’s List is a website that aggregates verified consumer reviews of service companies as a way to "capture word-of-mouth wisdom". Angie’s List has about 1.5 million subscribers throughout the United States and Canada who post an average of about 40,000 reviews each month. The concept behind the website is to certify their data collection process by only allowing paid and registered subscribers to access the website, in order to prevent anonymous or biased reviews.
, Angie's List was co-founded by Bill Oesterle and Angie Hicks in 1995. It was inspired by Hicks' search for a reliable contractor in suburban Columbus on behalf of Oesterle, a venture capitalist and her former supervisor. She relocated to Columbus to join him in creating Angie's List, which started as a call-in service and publication for reviews about home and lawn care. Hicks went door-to-door, signing up members and collecting ratings on local contractors. After solely recruiting more than 1,000 members in Columbus within one year, Hicks turned to Oesterle to raise money from investors in order to develop the business at a steady pace.
In 1996, Angie's List purchased the Indianapolis, Indiana
-based community publication, Unified Neighbors from creator Bill Corbin and relocated its headquarters to Indianapolis. By 1999, the database of local services and reviews was moved to the internet. During the ensuing years, their customer base and business relationships grew throughout North America, while also expanding to include additional service industries such as health care and auto care.
CNN Money featured Angie's List as one of the 100 fastest-growing inner city businesses in the nation, with their 2009 revenues reaching $45.6 million in 2011.
during a 2009 audit Revenue
for Angie's List comes from member subscription fees, as well as advertising
from businesses that have an overall grade of B or higher on the website.
The listing process for contractors is stringent, as they are not allowed to pay to be on the list, nor are they able to list their own names and review their own company. Some critics state that determined contractors can find a way around that policy, by creating fake email accounts and using fake addresses; however, Angie’s List claims that their employees must read every single report as it comes in and ask each member whether he or she is affiliated with or is competing against the company they are reporting on. Also, members can only report on each company once every six months.
Angie’s List was also a finalist for the Nation’s Healthiest Employers of 2010. They have had a comprehensive employee wellness program for over 5 years, which includes about 30 different programs and events throughout the year. Employees are offered health, life and dental insurance, as well as access to the fitness programs and the on-site fitness center. They are encouraged to participate in various events created to foster a team environment and boost company spirit.
Membership fees are based on location. For example, Angie's List reported the following annual membership fees as of 4 December 2009:
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.
On November 17, 2011, Angie's List began trading on the NASDAQ
exchange under the ticker symbol ANGI. It priced 8.8M shares at $13 and opened for trading at $18, a 33% premium.
History
Formerly headquartered in Columbus, OhioColumbus, Ohio
Columbus is the capital of and the largest city in the U.S. state of Ohio. The broader metropolitan area encompasses several counties and is the third largest in Ohio behind those of Cleveland and Cincinnati. Columbus is the third largest city in the American Midwest, and the fifteenth largest city...
, Angie's List was co-founded by Bill Oesterle and Angie Hicks in 1995. It was inspired by Hicks' search for a reliable contractor in suburban Columbus on behalf of Oesterle, a venture capitalist and her former supervisor. She relocated to Columbus to join him in creating Angie's List, which started as a call-in service and publication for reviews about home and lawn care. Hicks went door-to-door, signing up members and collecting ratings on local contractors. After solely recruiting more than 1,000 members in Columbus within one year, Hicks turned to Oesterle to raise money from investors in order to develop the business at a steady pace.
In 1996, Angie's List purchased the Indianapolis, Indiana
Indianapolis
Indianapolis is the capital of the U.S. state of Indiana, and the county seat of Marion County, Indiana. As of the 2010 United States Census, the city's population is 839,489. It is by far Indiana's largest city and, as of the 2010 U.S...
-based community publication, Unified Neighbors from creator Bill Corbin and relocated its headquarters to Indianapolis. By 1999, the database of local services and reviews was moved to the internet. During the ensuing years, their customer base and business relationships grew throughout North America, while also expanding to include additional service industries such as health care and auto care.
CNN Money featured Angie's List as one of the 100 fastest-growing inner city businesses in the nation, with their 2009 revenues reaching $45.6 million in 2011.
Methodology
Angie's List grades companies using a report-card-style scale, which ranges from A to F; these ratings are based on the following criteria: price, quality, responsiveness, punctuality and professionalism. Each company has their own page, which is composed of a description of their business along with the customer reviews. The aggregate grade is drawn from the combined reviews and grades given to the businesses from the consumers. Angie's List employees are trained to identify any reviews that seem biased or sabotaged, so the overall rating only reflects legitimate customer reviews. This process was reviewed and approved by BPA WorldwideBPA Worldwide
BPA Worldwide audits the circulation of business-to-business and consumer magazines. It also provides audit services for newspapers, Web sites, events, email newsletters, digital magazines and other advertiser-supported media produced by its members. Membership comes from the media owners and...
during a 2009 audit Revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
for Angie's List comes from member subscription fees, as well as advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
from businesses that have an overall grade of B or higher on the website.
The listing process for contractors is stringent, as they are not allowed to pay to be on the list, nor are they able to list their own names and review their own company. Some critics state that determined contractors can find a way around that policy, by creating fake email accounts and using fake addresses; however, Angie’s List claims that their employees must read every single report as it comes in and ask each member whether he or she is affiliated with or is competing against the company they are reporting on. Also, members can only report on each company once every six months.
Corporate Affairs and Culture
Angie’s List is reputed to have a unique company culture, in that it encourages a laid-back yet innovative atmosphere. Communication is extremely open between management and staff, and ideas are encouraged from all employees, regardless of their positions. Angie’s List was named one of the Best Places to Work in Indiana in 2007 and 2008 by the Indiana Chamber of Commerce. The rankings for the list are based on the feedback of randomly selected employees at eligible Indiana businesses.Angie’s List was also a finalist for the Nation’s Healthiest Employers of 2010. They have had a comprehensive employee wellness program for over 5 years, which includes about 30 different programs and events throughout the year. Employees are offered health, life and dental insurance, as well as access to the fitness programs and the on-site fitness center. They are encouraged to participate in various events created to foster a team environment and boost company spirit.
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 [contractors are] 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 7 October 2008, Stephen C. Siebert et al. dismissed the complaint against Monica Hammock and Edwin Castillo.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, Virginia — $10
- Stamford, Connecticut — $32
- Beverly Hills, California — $36.25
- Pompano Beach, Florida — $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.
On November 17, 2011, Angie's List began trading on the NASDAQ
NASDAQ
The NASDAQ Stock Market, also known as the NASDAQ, is an American stock exchange. "NASDAQ" originally stood for "National Association of Securities Dealers Automated Quotations". It is the second-largest stock exchange by market capitalization in the world, after the New York Stock Exchange. As of...
exchange under the ticker symbol ANGI. It priced 8.8M shares at $13 and opened for trading at $18, a 33% premium.