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$4,500 for 5 Zillow Leads....
I was contacted by a Zillow sales rep about becoming a premier agent. I know the reputation Zillow leads have, but I was curious to have a conversation. I could not believe what he told me...
For 5 leads a month in my market, the price is $4,500... I could not believe that. Even the best agent has a slim chance of converting even one of these leads to a paycheck. I suppose there is a reason agents are doing it but I cannot see this as a profitable endeavor...
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Real Estate Agent
- EXP Realty
- 561-850-8229
- [email protected]
Quote from @Ryan Cleary:Seems high to me. Does he have references you can talk to?
I was contacted by a Zillow sales rep about becoming a premier agent. I know the reputation Zillow leads have, but I was curious to have a conversation. I could not believe what he told me...
For 5 leads a month in my market, the price is $4,500... I could not believe that. Even the best agent has a slim chance of converting even one of these leads to a paycheck. I suppose there is a reason agents are doing it but I cannot see this as a profitable endeavor...
For $4500 a month I can do a lot of marketing and for sure find two off market deals.
Quote from @Bob P.:The two I spoke to was super cool agreeing with me that the numbers were difficult.
Quote from @Ryan Cleary:Seems high to me. Does he have references you can talk to?
I was contacted by a Zillow sales rep about becoming a premier agent. I know the reputation Zillow leads have, but I was curious to have a conversation. I could not believe what he told me...
For 5 leads a month in my market, the price is $4,500... I could not believe that. Even the best agent has a slim chance of converting even one of these leads to a paycheck. I suppose there is a reason agents are doing it but I cannot see this as a profitable endeavor...
For $4500 a month I can do a lot of marketing and for sure find two off market deals.
Ive used the Zillow leads in the past (I think it was $350 a month for a 6 month contract in 2020) and did not convert a single lead. In fact most leads were not actually leads.
I'm more so surprised at how much they are charging now and the fact that some realtors pay this amount of money for so few leads
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Real Estate Agent
- EXP Realty
- 561-850-8229
- [email protected]
We have both a realty practice and mortgage practice. That is one of the reasons we quit advertising with them. We were pumping $7500-$8000/mo into Zillow Real Estate Leads several years ago when we were getting about a 4.17X ROI. Over time, they raised prices, cut the lead amounts, and had their Internal telemarketing team make the first contact and then tried to "warm connect" us. Our close rate and ROI plummeted to around 1.5X. It simply was no longer worth it and we jumped too. You're not alone.
Quote from @Doug Smith:
We have both a realty practice and mortgage practice. That is one of the reasons we quit advertising with them. We were pumping $7500-$8000/mo into Zillow Real Estate Leads several years ago when we were getting about a 4.17X ROI. Over time, they raised prices, cut the lead amounts, and had their Internal telemarketing team make the first contact and then tried to "warm connect" us. Our close rate and ROI plummeted to around 1.5X. It simply was no longer worth it and we jumped too. You're not alone.
Kind of a sad practice, preying on the small business owner...
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Real Estate Agent
- EXP Realty
- 561-850-8229
- [email protected]
Standard conversion rate is 2%. So you need about 50 leads to convert to 1 transaction. So 5 months at 50 leads would be $45,000. What's the average commission in the zip code offered? Would need to be a very high priced zip code for the math to work out here.
Quote from @Bob P.:
Quote from @Ryan Cleary:Seems high to me. Does he have references you can talk to?
I was contacted by a Zillow sales rep about becoming a premier agent. I know the reputation Zillow leads have, but I was curious to have a conversation. I could not believe what he told me...
For 5 leads a month in my market, the price is $4,500... I could not believe that. Even the best agent has a slim chance of converting even one of these leads to a paycheck. I suppose there is a reason agents are doing it but I cannot see this as a profitable endeavor...
For $4500 a month I can do a lot of marketing and for sure find two off market deals.
Bob P I’m not an agent, but I have done a lot of my own marketing to find sellers willing to sell me their house in a manner or price that would make sense for me. There’s been many times I have spent way more than $4500 without finding a deal. Please share how you can find two off market deals for $4500 if you would be so kind.
Quote from @Russell Brazil:
Standard conversion rate is 2%. So you need about 50 leads to convert to 1 transaction. So 5 months at 50 leads would be $45,000. What's the average commission in the zip code offered? Would need to be a very high priced zip code for the math to work out here.
Sounds like a good way to go broke!
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Real Estate Agent
- EXP Realty
- 561-850-8229
- [email protected]
Quote from @Joe S.:Sure, first I am not an agent and I don't use the MLS. I'm not a wholesaler, so I am not looking for 70% LTV deals. I'm not using SEO or PPC. I am not fishing in the same hole where the majority of people believe the deals are ( major cities).
Quote from @Bob P.:
Quote from @Ryan Cleary:Seems high to me. Does he have references you can talk to?
I was contacted by a Zillow sales rep about becoming a premier agent. I know the reputation Zillow leads have, but I was curious to have a conversation. I could not believe what he told me...
For 5 leads a month in my market, the price is $4,500... I could not believe that. Even the best agent has a slim chance of converting even one of these leads to a paycheck. I suppose there is a reason agents are doing it but I cannot see this as a profitable endeavor...
For $4500 a month I can do a lot of marketing and for sure find two off market deals.Bob P I’m not an agent, but I have done a lot of my own marketing to find sellers willing to sell me their house in a manner or price that would make sense for me. There’s been many times I have spent way more than $4500 without finding a deal. Please share how you can find two off market deals for $4500 if you would be so kind.
I have simply isolated one slice of the pie that few people are interested in (which also provides cash flowing, low equity, taking over the loan, selling on lease option) so there is much less competition. I have an approach that went out of favor a while back for being heavily over used, so people turned away from it, but it is now producing again.
There is nothing new under the sun. It's just a different part of the cycle approached from ways that apply to this environment and will apply until the housing market breaks loose, which I believe will be after 2026.
That is absolutely nuts...
We had Zillow and they kept upcharging and the lead quality went down. Plus the market became so oversaturated with agents. There was a point in time that you could have a market share out of 200+%
Made no sense. Overpriced.
I hope @biggerpockets doesn't oversaturate leads!!!!
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Real Estate Agent New Jersey (#2323863) and Pennsylvania (#RS3399189)
- 267-767-0111
- [email protected]
- Lender
- The Woodlands, TX
- 8,344
- Votes |
- 5,454
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Quote from @Ryan Cleary:I believe that Realtors who sign with Realtor.com leads pay a percentage of their commission to Realtor.com if they successfully close the deal - something between 20 - 40%.
I was contacted by a Zillow sales rep about becoming a premier agent. I know the reputation Zillow leads have, but I was curious to have a conversation. I could not believe what he told me...
For 5 leads a month in my market, the price is $4,500... I could not believe that. Even the best agent has a slim chance of converting even one of these leads to a paycheck. I suppose there is a reason agents are doing it but I cannot see this as a profitable endeavor...
Quote from @Don Konipol:I suppose that’s a better set up than Zillow but I couldn’t imagine giving possibly 40% of my hard work to a software
Quote from @Ryan Cleary:I believe that Realtors who sign with Realtor.com leads pay a percentage of their commission to Realtor.com if they successfully close the deal - something between 20 - 40%.
I was contacted by a Zillow sales rep about becoming a premier agent. I know the reputation Zillow leads have, but I was curious to have a conversation. I could not believe what he told me...
For 5 leads a month in my market, the price is $4,500... I could not believe that. Even the best agent has a slim chance of converting even one of these leads to a paycheck. I suppose there is a reason agents are doing it but I cannot see this as a profitable endeavor...
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Real Estate Agent
- EXP Realty
- 561-850-8229
- [email protected]
- Lender
- Lake Oswego OR Summerlin, NV
- 61,254
- Votes |
- 41,517
- Posts
Quote from @Don Konipol:
Quote from @Ryan Cleary:I believe that Realtors who sign with Realtor.com leads pay a percentage of their commission to Realtor.com if they successfully close the deal - something between 20 - 40%.
I was contacted by a Zillow sales rep about becoming a premier agent. I know the reputation Zillow leads have, but I was curious to have a conversation. I could not believe what he told me...
For 5 leads a month in my market, the price is $4,500... I could not believe that. Even the best agent has a slim chance of converting even one of these leads to a paycheck. I suppose there is a reason agents are doing it but I cannot see this as a profitable endeavor...
I wonder if Realtor dot com is licensed then in all 50 states.. so they can legally take a slice of the commish ?
Quote from @Jay Hinrichs:
Quote from @Don Konipol:
Quote from @Ryan Cleary:I believe that Realtors who sign with Realtor.com leads pay a percentage of their commission to Realtor.com if they successfully close the deal - something between 20 - 40%.
I was contacted by a Zillow sales rep about becoming a premier agent. I know the reputation Zillow leads have, but I was curious to have a conversation. I could not believe what he told me...
For 5 leads a month in my market, the price is $4,500... I could not believe that. Even the best agent has a slim chance of converting even one of these leads to a paycheck. I suppose there is a reason agents are doing it but I cannot see this as a profitable endeavor...
I wonder if Realtor dot com is licensed then in all 50 states.. so they can legally take a slice of the commish ?
Interesting thought!
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Real Estate Agent
- EXP Realty
- 561-850-8229
- [email protected]
Getting started out in a HCLM, so...not interested in buying leads at all. Thanks for the heads up.
I was on the other end with Zillow . I put my house up for sale FSBO . And low and behold the first day it went live on the website , I was getting 6 or 7 calls per HOUR . All from agents , they were blowing up my phone . ( All were reading from the same script using all the same sales buzz words ) . All in all it was over 85 different agents .
Think who is making the money , and it isnt the agent .
- Lender
- The Woodlands, TX
- 8,344
- Votes |
- 5,454
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I think that if you’re in a real estate service business for the long run and want sustainability of your business you’ve got to develop a source of funneling your own leads and not rely on purchasing leads. There are on line marketing experts out there specializing in real estate that could create an ongoing program making an agent well known in their market and getting lots of quality leads. Takes an investment of $50k + depending on market. Then you’ve got to get referrals and more referrals from sources developed. And create a team to handle the stuff you don’t have time for. You know, operate it like a business.
- Lender
- Lake Oswego OR Summerlin, NV
- 61,254
- Votes |
- 41,517
- Posts
Quote from @Don Konipol:
I think that if you’re in a real estate service business for the long run and want sustainability of your business you’ve got to develop a source of funneling your own leads and not rely on purchasing leads. There are on line marketing experts out there specializing in real estate that could create an ongoing program making an agent well known in their market and getting lots of quality leads. Takes an investment of $50k + depending on market. Then you’ve got to get referrals and more referrals from sources developed. And create a team to handle the stuff you don’t have time for. You know, operate it like a business.
referrals are the lifeblood of any really good resi agent.. My Wife has 35 years at this and 100% of her bizz comes from referrals she has not paid to market in a very very long time.
Quote from @Don Konipol:
I think that if you’re in a real estate service business for the long run and want sustainability of your business you’ve got to develop a source of funneling your own leads and not rely on purchasing leads. There are on line marketing experts out there specializing in real estate that could create an ongoing program making an agent well known in their market and getting lots of quality leads. Takes an investment of $50k + depending on market. Then you’ve got to get referrals and more referrals from sources developed. And create a team to handle the stuff you don’t have time for. You know, operate it like a business.
You have to just commit to doing the lead generation 5-6 days a week (social posts, door knocking, talk to people you know, talk to people you don't know, host open houses for agents in your office, drive for FSBO's, etc) until you have planted so many "seeds" that they result in business. I bought leads from Realtor.com for a year...2 panned out into closed transactions, so I guess I broke even. I will not ever buy leads from the company that rhymes with "willow" because they aren't looking out for agents...at all.
Necessity is the mother of invention! Take massive action, and eventually it pays off. Without buying leads.
their prices have gotten absurd, but they have a monopolistic edge. I jumped ship and tried my own SEO / Adwords campaigns, hired experts and did all the right things but couldn't generate an abundance of leads let alone anything of quality. Tho it seems Google Ads has changed their algo significantly in recent years, it's tough to keep up.
Zillow is a behemoth not to be fed.