Is Thumbtack Worth It? A Review for Service Providers

If you’re a service provider wondering whether Thumbtack is worth the investment, the short answer is: it depends on your business model, the cost of leads in your industry, and how effectively you convert leads into paying customers. Thumbtack can provide a platform for pros to connect with clients, but with rising lead costs, competition, and declining customer service, many professionals are reassessing its value. In this article, we’ll take a closer look at the pros and cons of Thumbtack for professionals, and help you decide if it should be a part of your marketing strategy.

Thumbtack is an online platform that connects customers with local professionals in a wide range of service categories such as home improvement, cleaning, event planning, personal training, and more. The platform allows service providers to list their offerings, and customers can search for and hire these professionals directly. However, Thumbtack charges service providers for each lead they receive, making it crucial for pros to weigh the potential return on investment (ROI) before diving in.

Lead Costs: Can You Afford Thumbtack?

One of the most critical factors to consider when deciding if Thumbtack is worth it for your business is the cost of leads. Lead prices on Thumbtack vary significantly based on the service category and geographic location. For example, lead costs can range from $10 to over $100 depending on the industry and competition in your area. In certain industries like plumbing, the average cost of a lead might hover around $20, but acquiring a paying customer could cost as much as $133. This means that if a customer is worth more than $100 to your business, Thumbtack may be a worthwhile investment.

However, it’s important to monitor these costs closely. In some cases, pros find that lead costs quickly add up, making Thumbtack an expensive option if they aren’t able to close enough deals to offset the investment. Additionally, the platform doesn’t refund fees for leads that don’t respond, so it’s essential to track your spending and ensure you’re getting a solid return on each lead.

Lead Quality and Close Rates

Another major factor in determining Thumbtack’s value is lead quality. While Thumbtack has helped many professionals connect with clients, some pros report that lead quality has declined in recent years. Many leads may not respond after initial contact, and this lack of engagement can be frustrating, especially given that Thumbtack doesn’t offer refunds for unresponsive leads.

Close rates also vary significantly by industry and depend largely on the effort you put into using Thumbtack. Some professionals find that Thumbtack generates a steady stream of high-quality leads that convert into paying customers, while others struggle with low close rates and unresponsive leads. Success on Thumbtack often requires an investment of time and effort, including responding quickly to new leads, maintaining a polished profile, and generating positive reviews.

It’s worth noting that Thumbtack allows anyone, even non-customers, to leave reviews. This can negatively impact pros, especially if someone leaves a negative review without ever having used your services. With reviews being a key part of your Thumbtack profile, it’s important to manage this aspect carefully and encourage satisfied clients to leave positive feedback.

Competition

One of the biggest challenges for professionals on Thumbtack is the high level of competition. As more and more service providers join the platform, it becomes increasingly difficult to stand out and win leads. Pros from all over the world are competing for the same pool of customers, which can drive up lead costs and reduce the chances of securing jobs.

Thumbtack and Angi both connect people with service pros, but they differ in focus. Thumbtack covers a wide range of services like home repairs, event planning, and personal care, while Angi is more centered around home improvement and maintenance, offering detailed reviews and ratings for home service pros. On the other hand, Thumbtack and TaskRabbit are different in that Thumbtack helps people find professionals for long-term projects or specialized work, whereas TaskRabbit is geared more toward quick, everyday tasks like furniture assembly, cleaning, or running errands.

Additionally, because Thumbtack uses an auto-booking feature that allows customers to book services without much interaction, some pros feel that this increases competition unfairly. Auto-booking is seen by many as a “money grab” for Thumbtack, as it drives lead volume but doesn’t always result in meaningful customer connections. For service providers, this means having to invest even more effort to differentiate themselves from the competition and stand out in a crowded marketplace.

Pros of Using Thumbtack for Your Business

Despite the challenges, there are several benefits to using Thumbtack for your business:

1. Wider Audience: Thumbtack provides an opportunity to reach a broad audience and connect with potential customers who may not have found you otherwise. This can be particularly useful for new businesses or those looking to expand their reach.
2. Targeted Leads: Thumbtack allows pros to set filters for the types of leads they want to receive, enabling you to focus on your ideal customers. This can help you avoid wasting time and money on leads that aren’t a good fit for your services.
3. Automated Lead Sourcing: For pros who want to streamline their lead generation, Thumbtack offers a low-effort way to source leads on autopilot. By setting up your preferences and letting the platform send you leads, you can focus more on running your business and less on marketing.

Cons of Using Thumbtack 

1. High Lead Costs: As mentioned earlier, lead costs can be prohibitively expensive, especially in highly competitive markets. The high cost of leads, combined with the lack of refunds for unresponsive leads, has left many pros questioning whether Thumbtack is a good investment.
2. Customer Service Issues: In recent years, Thumbtack’s customer service has been criticized for declining in quality. Many pros have reported that it’s difficult to get in touch with a human representative when issues arise, leading to frustration when problems like lead quality or billing errors occur.
3. Perceived Shift Towards Profitability Over Service: Some pros feel that Thumbtack is more focused on maximizing its own profits than providing a helpful platform for professionals. Features like auto-booking and the lack of refunds for non-responsive leads are seen by some as examples of Thumbtack prioritizing its bottom line over the success of its users.

Conclusion: Should You Use Thumbtack?

Thumbtack can be a valuable tool for service providers looking to expand their reach and connect with new clients, but it’s not without its challenges. High lead costs, competition, and declining customer service have made the platform less attractive to some pros in recent years. However, for those who can navigate these challenges and convert leads effectively, Thumbtack can still be a worthwhile investment. It’s important to track your costs and close rates carefully, and consider Thumbtack as one part of a broader marketing strategy rather than relying on it as your sole source of leads.

For service professionals, the key is to test Thumbtack, track results, and determine whether it provides a positive return on investment for your business. At 7ten Digital Marketing, we help businesses like yours evaluate and optimize their marketing channels for maximum impact. If you’re unsure whether Thumbtack is right for you, we can guide you through the process and help you make informed decisions for your marketing strategy.