A 51-year-old introvert overcame her "greatest fear" to establish her $1.2 billion enterprise.
To build a billion-dollar company, Angie Hicks first had to overcome her fear of talking to strangers.
Angi co-founder Hicks describes himself as an introvert.
Angi, a popular online home services guide with millions of subscribers, was founded by a woman who is also named after her. Today, the company is worth $1.2 billion.
Since 2017, Angi's chief customer officer has been Hicks. However, when the company was launched in 1995, Hicks was responsible for recruiting Angi's first customers. This was a challenging task for someone who was uncomfortable with socializing with strangers.
"Hicks, 51, reveals to CNBC Make It that he is very shy and going door to door was his worst nightmare."
Earning $20,000 as a startup founder
Before starting Angi, Hicks had initially planned to become a consultant.
Prior to her graduation from DePauw University, she was offered a job at a consulting firm in Washington, D.C., with an initial salary of $40,000.
During an internship at CID Partners, Hicks met Oesterle, a venture capitalist, who later proposed a different proposition to her.
Oesterle resided in Columbus, Ohio, and was attempting to renovate an old house. If he had lived in Indianapolis, he could have easily completed the project with the help of Unified Neighbors, a company that connects individuals with trustworthy contractors and home service providers.
Oesterle believed that a similar service to Columbus could be beneficial in Columbus.
He amassed $50,000 in seed money over a year and invited Hicks to relocate to Columbus and assist him in launching Columbus Neighbors as a co-founder.
He proposed to Hicks an annual salary of $20,000 to assist in managing the company, which was half of what she could have earned in her consulting position.
"Hicks confesses that he disliked it because he is introverted and always perceived entrepreneurs as charismatic and outgoing. He told Bill, "That's not me.""
Despite not receiving the desired outcome, Oesterle remained determined. Hicks remarks, "In the event of failure, the only downside is that you will have a strong essay for your business school application."
Hicks sought advice from her grandfather, who persuaded her to join the startup.
What sets apart being 22 and searching for employment from being 23 and job hunting?
"When I was young and had few responsibilities, that comment helped me realize that it was the best time to take a risk," she says.
An 'inconsequential decision' that paid off
After graduating, Hicks relocated to Columbus and commenced work from a small office situated near her studio apartment.
Oesterle had a full-time job in finance, so she often worked alone.
"Since I was so young, my parents had rented the office space for me to do homework, which the other folks in the building thought," Hicks says, chuckling. "The only window faced a cinderblock wall."
Hicks took initiative to promote the fledgling business by borrowing Oesterle's neighbor's holiday card mailing list, marching in local parades, and hustling to get the word out.
Despite shifts in Angi's medium over time, from a call-in service and monthly newsletter to an online platform, the fundamental essence of its business model has remained constant.
Through the Angi platform, homeowners can easily connect with local service professionals for various home-related tasks, such as repairs, cleaning, and renovations. Users can effortlessly browse service providers, read reviews, request quotes, and schedule appointments all in one convenient location.
Although socializing and marketing the business didn't come naturally to Hicks as an introvert, she developed strategies to become a more confident leader. These strategies included practicing her script before a daunting presentation or sales pitch and setting small, realistic goals to celebrate.
""Selling one membership in a day made me thrilled, and I learned to tackle the hardest tasks first and save the fun ones for later, which helped me stay motivated and be more productive," she says."
Hicks' persistence resulted in a membership growth of approximately 1,000 within a year, demonstrating the concept's potential to investors.
In 1996, the company changed its name to Angie's List due to customers linking Hicks with the endorsements.
Hicks describes the name change as an inconsequential decision made at the age of 22.
Building a billion-dollar brand
In 1998, Oesterle left his job to work full-time with Hicks, and that same year, the company relocated its headquarters to Indianapolis, Indiana. Currently, Angi has offices in Indianapolis, New York City, and Denver, Colorado. Oesterle, the longtime CEO, departed the company in 2015. He passed away in 2023 at the age of 57.
Angie's List has been offering a free basic service since 2016. The platform generates revenue mainly from contractors who advertise on Angi and from paid memberships that offer discounts on additional services for an annual fee.
Since 2018, the company, which went public in 2011, has consistently generated over one billion dollars in annual revenue.
In 2021, Angie's List became Angi and has since become a dominant player in the $90 billion U.S. home services market. In 2023, Angi received more than 23 million service requests from homeowners and generated about $1.3 billion in revenue.
Check out the latest episode of CNBC Make It's Founder Effect to learn how Hicks helped turn Angie's List into a billion-dollar business.
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