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What is Thumbtack?
For those unfamiliar with Thumbtack, it is a lead generation platform for service providers across various industries, including food service, legal, fitness, consulting, and more. Thumbtack offers some marketing and email promotions for businesses that rank high enough on their platform.
How Thumbtack Works
On the client side, consumers search for services and receive a list of providers in their area, which they can contact for free. They create an account, submit project or service request details, and wait for responses from service providers.
For service providers, setting up an account involves detailing services and creating a homepage on Thumbtack showcasing past projects, reviews, and ratings. However, this service is not free. Thumbtack operates on a pay-per-lead model, charging providers from $5 to over $400 per lead, with an average cost of about $150 per lead. Thumbtack charges service providers as soon as a prospective client reaches out, often resulting in multiple providers paying for the same lead.
Our Experience with Thumbtack
We have used Thumbtack for almost two years. Initially, we received a few leads, mainly for consulting. Over time, we built a review base, and our ranking improved, leading to more leads. We were even awarded "Top Pro," which significantly increased our lead volume. However, along with the increased volume came a substantial cost and a decline in lead quality.
The Beginning of the End
We started receiving leads that did not match our service criteria, such as requests for Halal or Kosher food, which we do not offer. Despite following the refund process for these mismatched leads, our requests were consistently denied.
After several months of frustration, we resorted to credit card chargebacks for two leads that clearly did not meet our criteria. Shortly after, our account was suspended, with the only recourse being to recall the chargebacks.
The Problem
Thumbtack's model allows them to charge service providers whatever they wish, with no accountability. Providers must accept these charges or risk losing access to the platform. This is problematic, especially when providers receive invalid leads with fake contact information and face an impossible refund process. Many small businesses are being taken advantage of, and this is a systemic issue that needs addressing.
The Solution
Thumbtack could make several improvements to their platform:
Charge service providers a cost per lead that correlates with the cost of the job or service.
Clearly define service categories to allow providers to tailor their offerings more precisely.
Overhaul the refund process to include human review rather than relying on automated systems.
Provide real customer service agents for service providers to speak with directly.
Lessons for Others
To help others avoid our experience, we offer the following advice:
Focus on building your business on platforms like Google and Yelp. Use Thumbtack for ancillary revenue, not as your primary source.
Set your maximum lead price as low as possible. This helps control costs and prevent overspending on low-quality leads.
Do not hesitate to request refunds or initiate chargebacks when necessary. This is crucial in holding platforms like Thumbtack accountable.
Next Steps to Leave Thumbtack
We will leave our profile up, but due to the dispute, our results will still appear on Google and other search engines, though we will not show up in active Thumbtack searches. Clients can still contact us directly via email, our website, or phone, as well as through Yelp and Google.
In business, sometimes you win, and sometimes you lose. We hope sharing our experience helps others avoid being taken advantage of by platforms like Thumbtack. #ChargebackThumbtack
Thank you to all the many customers we have been able to consult and be personal chefs for that we met through Thumbtack. We look forward to many more!
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