Marketplace has a new podcast for kids, "Million Bazillion!" EPISODE OUT NOW

Is Angie’s List ready for its IPO?

Steve Henn Nov 17, 2011
HTML EMBED:
COPY

Is Angie’s List ready for its IPO?

Steve Henn Nov 17, 2011
HTML EMBED:
COPY

Jeremy Hobson: Another online company goes public today. This time, it’s Angie’s List, which lost $40 million last year. The company is a hub for consumer reviews for plumbers, lawyers and the like.

Marketplace’s Steve Henn has more now from Silicon Valley.


Steve Henn: Angie’s List has been around the block. It’s older than Google. It began before the first Internet bubble inflated, way back 1995. It’s even shown up on game shows.

Alex Trebek on “Jeopardy”: There’s Craigslist and her list, named for Ms. Hicks, who was frustrated when trying to find a good contractor. Tom.

Tom on “Jeopardy”: What is Angie’s List?

At first blush, its business model seems kind of brilliant. Angie’s List bundles up and sells consumer reviews. It doesn’t pay the reviewers a dime, but today more than a million people subscribe to Angie’s List for $30 to $60 a year. The company makes even more money by allowing well-reviewed businesses to advertise. So how is it that Angie’s List is still in a hole?

Nick Einhorn: They are spending a lot on marketing.

Nick Einhorn is with Renaissance Capital. He says the company spends around $80 on marketing to sign up a single new subscriber. Einhorn says the question of investors is whether all that spending will ever pay off.

In Silicon Valley, I’m Steve Henn for Marketplace.

We’re here to help you navigate this changed world and economy.

Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.

In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.

Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.