Together, they co-founded Angie’s List, a review service of home-improvement companies designed to take the angst out of hiring contractors. Today, Angie’s list has grown to more than one million members in some 200 cities and serves up reviews in 500 categories, primarily home and healthcare services. In the last two years alone, the 400-employee Indianapolis company raised $81.5 million from investors; it expects revenue—from membership fees and select advertising from highly rated service providers—to reach $60 million this year.
And the kill quote:
We always re-think our decision to [charge for access to reviews], something that’s virtually unheard of today, but we’ve found consumers are willing to pay for good information.
Why didn’t any newspaper think of this? It’s a natural for them. They’re supposed to be in the information business.
Newspapers can also dig for information everyday people — and startups — can’t.
Meanwhile, The New York Times sits on an archive worth at least a billion dollars and doesn’t know how to turn even that into money.
I have no pity for the unimaginative. They are their own worst enemies.