Angie’s List Unveils a “Freemium” Model

In March, Angie's List, the Indianapolis, Indiana based paid subscription-supported website that contains crowd-sourced reviews of local businesses, said it will make its basic rating and review offerings free and now it really has!

On Wednesday, in its twenty one year's history, Angie's List for the very first time started offering a free so-called "freemium" model in all markets.

As per the new model, Angie's List will offer a pricing structure which will be charged only for services beyond a basic browsing and review writing. Earlier, the subscription at Angie's List's started at $9.99 per year.

Now the company's "green" tier is absolutely free for the users.  For subscribers who want to use the 'Silver' tier have to pay $24.99 per year and to avail the 'Gold' tier, the cost is $99.99 per year. The paid services provide different features like fair-price guarantees, service quality guarantee, chat and email support, exclusive discounts, a bi-monthly magazine as well as support for complaint-resolution. However, the non subscribing users do not have access t these features. In later months Angie's List expects to introduce further benefits for the paid tiers.

Although in the longer run, the newly introduced model is expected to generate greater revenue but initially the company says it will most probably take a revenue hit. Angie's List $345 million to $355 million full year revenue in 2016 and expects it to grow to $750 million by 2020.