Thumbtack Business Model & Thumbtack Revenue

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Thumbtack has carved out a unique niche by connecting customers with local professionals across a diverse range of services. Founded in 2009 by Jeremy Tunnell, Marco Zappacosta, Sander Daniels, and Jonathan Swanson, Thumbtack has revolutionised how individuals find and hire service providers, from home improvement specialists to personal trainers and event organisers.

Here we discuss the Thumbtack Business Model and how they manage their revenue streams.

What is Thumbtack?

Thumbtack is a marketplace that caters to local professionals by matching them with customers who have specific demands. More than 1,100 different service kinds, including wellness, home, events, lessons, and more, are already available on the marketplace platform. Thanks to Thumbtack’s great administration, anyone may find and hire a local service provider in the most efficient and effective way possible.

The marketplace platform mainly generates revenue from the fees collected from professionals when buying credits. It charges no more than 10% compensation as the platform fees.

Thumbtack Features and Functionality

For Customers

  • Ease of Use: Customers can quickly post a service request by answering a few questions about their needs.
  • Quotes and Comparisons: Multiple professionals respond with quotes, allowing customers to compare prices, read reviews, and view profiles.
  • Direct Communication: Customers can directly chat with professionals to clarify details and finalise agreements.

For Professionals

  • Lead Generation: Professionals receive leads that match their services, allowing them to focus on converting these leads into jobs.
  • Profile Management: Service providers can create detailed profiles showcasing their expertise, past work, and customer reviews.
  • Business Tools: Thumbtack offers tools to help professionals manage their leads, appointments, and payments.

Thumbtack Business Model Explained

Here’s a detailed breakdown of how Thumbtack business model operates:

At its core, Thumbtack operates as a two-sided marketplace, facilitating transactions between two distinct groups: customers in need of services and local professionals offering their expertise. 

Value Propositions

Thumbtack business model success hinges on its ability to deliver three primary value propositions:

Accessibility: By offering services in over 1,100 categories and across all 50 states, Thumbtack ensures that customers can easily find the help they need, while professionals gain access to a vast pool of potential clients.

Convenience: The platform’s intuitive interface and sophisticated matching algorithm streamline the process of finding and hiring local professionals. Customers can compare quotes, profiles, and reviews to make informed decisions.

Brand/Status: Thumbtack has established itself as a trusted brand in the marketplace, providing a reliable platform where quality and professionalism are paramount.

Market Disruption

Thumbtack has disrupted traditional methods of finding local services, such as yellow pages and classified ads, by offering a digital, streamlined process that benefits both customers and professionals.


Thumbtack operates in a competitive space with several notable competitors:

  • Angi (formerly Angie’s List): Known for its comprehensive reviews and ratings of home service providers.
  • TaskRabbit: Focuses on small, task-oriented jobs and same-day service.
  • HomeAdvisor: Specialises in home improvement and repair services.
thumbtack business model in a nutshell

Continuous Innovation

To maintain its competitive edge and cater to evolving customer needs, Thumbtack focuses on continuous innovation:

Expanding Service Categories: Regularly adding new service categories to attract a broader audience.

Technological Enhancements: Investing in AI and machine learning to improve matching algorithms and user experience.

Geographic Expansion: Entering new markets to increase its reach and customer base.

Thumbtack Revenue Model

Thumbtack employs multiple revenue streams to sustain and grow its business. These streams are designed to monetize the platform’s services by charging professionals for the leads and opportunities they receive.

The platform only charges service providers for the initial quote, and they don’t charge anything for the jobs they fulfil or those that come from recommendations or repeat customers. The price of a single Thumbtack credit ranges from $1.50 to $1.42.

Professionals can take advantage of platform perks when purchasing credits in bulk. For professionals, there are three different credit packs available: 12 credits for roughly $17.99, 24 credits for about $34.99, and 60 credits for about $84.99.

Pay-Per-Lead Model

Lead Fees: The primary revenue stream for Thumbtack business model is the pay-per-lead model. Whenever a customer contacts a contractor for a job, it is considered a lead. Contractors are charged a fee for each lead they receive, regardless of whether the customer ultimately hires them.

Lead Cost Variability: The fee for a lead varies based on several factors, including the type of service, geographic location, and current demand.

Thumbtack Credits: These lead fees are managed through Thumbtack credits, which service providers can purchase. Professionals can buy credits in three ways: pay-as-you-go, prepaid bundles, or monthly subscriptions.

Subscription or Membership Plans

Subscription Plans: Thumbtack offers subscription or membership plans that provide additional features or enhanced visibility for professionals. These plans are designed to give professionals more tools and options to attract customers.

Enhanced Visibility: Professionals who subscribe to these plans may receive benefits such as higher placement in search results, access to premium features, and discounts on lead purchases.

thumbtack business model and how thumbtack earns revenue

Thumbtack Promote

Premium Service: Thumbtack Promote is a premium service that allows contractors to enhance their profile visibility in search results, increasing the likelihood of receiving more leads.

Profile Promotion: Contractors can opt for Thumbtack Promote to make their profiles more visible. This service typically results in higher lead fees due to the increased exposure.

Discount Incentives: Contractors who use Thumbtack Promote receive a 20% discount on the purchase of lead credits, incentivising more professionals to use this service and generating additional revenue for Thumbtack.


Thumbtack business model has successfully revolutionised the local services marketplace by providing a seamless platform that connects customers with skilled professionals. Its innovative business model, which includes a pay-per-lead system and subscription plans, ensures that both customers and service providers benefit from a user-friendly and efficient service.

By focusing on accessibility, convenience, and trust, Thumbtack has set a high standard in the industry, offering valuable insights for anyone looking to develop a similar platform.

Are you inspired by Thumbtack’s success and plan to develop your own service marketplace app? At Appscrip, we specialise in creating robust, feature-rich applications that can bring your vision to life. Whether you’re looking to build a custom solution from scratch or prefer a ready-made platform, our development experts are here to guide you through every step of the process.

Build your dream app with Appscrip and transform the way customers and professionals connect in your chosen market.

thumbtack business model explained
Disclaimer: The Blog has been created with consideration and care. We strive to ensure that all information is as complete, correct, comprehensible, accurate and up-to-date as possible. Despite our continuing efforts, we cannot guarantee that the information made available is complete, correct, accurate or up-to-date.
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29 days ago

hey it’s nice

Last edited 29 days ago by kanchan

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