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Recurring business is really tough when you're effective just introducing customers to other businesses. Thumbtack handles this by not even addressing the recur

Recurring business is really tough when you're effective just introducing customers to other businesses. Thumbtack handles this by not even addressing the recurring aspect, and focusing on getting good introductions. Recurring revenue is great, but how does a matchmaking service continue to provide value once a good fit had been found?

enjo 11y ago
Just to elaborate: Thumbtack also services a very wide range of verticals, which allows them to succeed purely as a matchmaker. It's an inherent flaw in what folks like Homejoy were doing (although they had aspirations of a larger vertical focus). I need thumbtack like 3 or 4 times a year. I need Homejoy once ever.
- elif 11y ago
  It never occurred to me to try hiring my HJ cleaner directly... If i have to travel and reschedule, i can just push a button on my phone and reschedule. I never have to worry about writing checks or tipping (thinking about it in hindsight.. does that make me a jerk?). The time I had an issue, their support made the experience "magical" Also if a cleaner ever started to get lazy and cut corners, i have the option to just chose another one... that gives me a lot of influential power even if i never have to use it. Those benefits are what made the service worthwhile for me... If I wanted to find a cleaner at the lowest rate and handle all the overhead myself i could just look on craigslist...
bsbechtel 11y ago
Not too sure about Thumbtack, but Home Advisor basically just buys Google Ads to get consumer traffic, then turns around and sells the lead to contractors at a higher rate. If contractors spent 20 minutes figuring out how to set up a Google Ad campaign, they could easily outbid Home Advisor for the exact same customer. I feel like this is pretty much the same thing Thumbtack does, with a few logistical differences. These business models really seem unsustainable (or rather uncompetitive) with any service professional that takes his or her business seriously and doesn't mind putting in the work to market themselves. These companies are basically playing Google Ad arbitrage.

enjo 11y ago

Just to elaborate: Thumbtack also services a very wide range of verticals, which allows them to succeed purely as a matchmaker. It's an inherent flaw in what folks like Homejoy were doing (although they had aspirations of a larger vertical focus). I need thumbtack like 3 or 4 times a year. I need Homejoy once ever.

elif 11y ago
It never occurred to me to try hiring my HJ cleaner directly... If i have to travel and reschedule, i can just push a button on my phone and reschedule. I never have to worry about writing checks or tipping (thinking about it in hindsight.. does that make me a jerk?). The time I had an issue, their support made the experience "magical" Also if a cleaner ever started to get lazy and cut corners, i have the option to just chose another one... that gives me a lot of influential power even if i never have to use it. Those benefits are what made the service worthwhile for me... If I wanted to find a cleaner at the lowest rate and handle all the overhead myself i could just look on craigslist...

bsbechtel 11y ago

Not too sure about Thumbtack, but Home Advisor basically just buys Google Ads to get consumer traffic, then turns around and sells the lead to contractors at a higher rate. If contractors spent 20 minutes figuring out how to set up a Google Ad campaign, they could easily outbid Home Advisor for the exact same customer. I feel like this is pretty much the same thing Thumbtack does, with a few logistical differences. These business models really seem unsustainable (or rather uncompetitive) with any service professional that takes his or her business seriously and doesn't mind putting in the work to market themselves. These companies are basically playing Google Ad arbitrage.