Service magic is often reported as a scam but I think it is just a faulty business model. Since consumers pay nothing to use the service they place no value in what they get from the service.
They quickly find the request they placed leads to 3 or 4 contractors calling their phones off the hook. Why? Each was charged $35 for the "lead" and they are desperate for the business. Net result: contractors have paid $140 for a lead that may be totally worthless and a consumer is innundated with calls from angry contractors.
Both the contractor and the consumer are worse off and only Service Magic has gained.
If Service Magic charged the consumer $20 and then charged the contractor $25 they would make more per call and the client would self qualify themselves. It would be a lower volume business but might just be sustainable.
As it is the sooner Service Magic goes out of business the better contractors and consumers will be.