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Continued: Minnesota start-up offers free, scaled-down model similar to Angie's List

  • Article by: JOHN EWOLDT , Star Tribune
  • Last update: July 15, 2013 - 10:40 PM

A larger sample of reviews improves the consumer’s odds, he said. Twenty people giving a company good reviews is preferable to one person’s kudos, who may have just had good luck, he said.

Krughoff said the most-helpful consumer reviews are for hotels or products, but service providers can be trickier. That, he says, is why 10 or 20 or more reviews are better than a handful.

“Some consumers wouldn’t know a good plumber from a bad one,” he said. “The important thing if you’re using Facebook friends as evaluators of service is to narrow the group down to friends who are consumer-savvy and don’t want to waste money.”

What about the business trying to stack the deck by writing its own reviews? Linstroth said that businesses can’t be listed until a user recommends them, and Heroic checks e-mail addresses and Facebook profiles for any company connection.

Like many Internet start-ups, the company is still “pre-revenue,” according to Linstroth, but they are considering a premium model that would charge businesses for deeper features.

 

John Ewoldt • 612-673-7633

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