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Angie Hicks, Angie’s List founder and chief marketing officer, on her business model and why consumers are willing to pay for their fellow consumers...
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OK so -- list recently -- a big milestone.
-- -- 15 million members for subscription based business which provides consumer ratings on everything from plumbers to doctors.
So -- are so many people willing to pay for and Jesus in the -- -- hit around three reviews on the way now.
Joining us now the founder of and he's list Angie hicks -- I'm so glad -- -- and I was thinking about this you know finding a plumber first person I called my stepfather my.
I gotta leak right why why are people coming to the site and paying for.
Well consumers -- good trusted information when making these important hiring decisions -- your hiring the plumber might only cost a hundred dollars the higher the plumber.
But if they don't do it right if they don't show while but they don't return your call.
You can get into a lot of money spent so -- useless focus is very much allowed to call high cost of failure transaction your home your health your pets.
And really focus on getting quality information so you can make quick.
Smart decision was writing these reviews the reviews -- solely from consumers from the members.
We're part of inches list review the company's they've hired an eight -- -- just like a school report card.
And we do not allow anonymous reviews.
So that I firmly believe there should be accountability right in interviews and on the Internet -- I -- other review my plumber is not his mom.
Absolutely we've got systems in place -- around for seventeen years over the years we've developed great systems.
To check for things like that and we have algorithms that run.
And if it -- -- by the algorithm which a team of people that look at the reviews and they I think wanted to be detectives in their former life soon outpace and then you have let's talk about their earnings quarter.
The numbers missed but why why do you think that was easy is it that hard to sell a subscription on the web these days we had great quarter we grew the business -- member of a 74%.
Had great renewal rates strong revenue per member.
The key here is the business is in investment mode.
And we invest in acquiring new members and new advertisers.
And that peaks in the second and third quarter.
And that really is we're investing in the future because of the strong renewal rates that comes back IPO was November 2011 stock basically flat since then do you regret -- public had having to have these conversations of people make me really -- when he got there talk about you know the review system.
Not in the business is doing well you know going public allowed us the opportunity continues scale the business side think.
-- all Malta good -- we've been through many economic cycles in this business and her hand over seventeen years.
You know our approach at least prospered for them all so -- to stay the course quickly we got you started from very very small -- you know what it's like these -- business in this environment.
What's the one thing -- government right now.
-- got -- let companies go out and do it on their own it's important there's lots of innovation going on and we need to give companies a chance to do that.
Check out the web sites in c.'s list dot com -- and GI ES list NGX thank you so much.
