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Has anybody used Zillow Premier Agent? Are the leads worth it?
I quit my job a year ago and spent the last year flipping and building my rental portfolio. I can't say I'm upset with the way things have gone but I need a steady income to keep everything moving forward. I got my real estate license and just parked it as an assistant under my mentor. (She is an agent with ReMax.) I'm thinking of pulling it out, dusting it off, and getting some listings.
I have been contacted multiple times by Zillow to sign up as a premier agent. The cost isn't terrible, a couple hundred a month at the most. They claim the leads increase 44x that of just listing yourself on their website.
Does anybody have any experience using Zillow Premier agent? If so I'd appreciate any insight you can provide regarding getting the most from the service.
Thanks,
Hemanth
Hi Hemanth:
Great to meet you. I have spoken with Zillow quite a few times for the area I focus on in Manhattan as an agent. From various conversations with folks there, it seems one needs about 20% view saturation to get any quality leads, which differs in price based on demand/availability. For my specific neighborhood in Manhattan, the minimum was $1520/month for 7% of the available impressions. 20% was $4,055/month, and the supposed "sweet spot" is 40% at $7,700/month. As you can imagine, that is a serious investment when the minimum contract is 6 months.
They did say shooting video is often a much cheaper option, and not something many agents do on Zillow, which may be worth looking into.
Curious to see if anyone has any other experiences to share.
Best regards,
Maria
For what it's worth, I did a smaller spend on:
1. Trulia (before the merger with Zillow). Somewhat high volume of poor quality leads. About 85% in the poorest town in the county, which was not the primary target of my campaign. It was one of the "bonus" towns.
2. Realtor.com. Very low quantity of poor quality leads. Higher price towns, but still not converting well at all.
3. Google. I'm managing my own campaigns by braille. Fair quantity of leads, but suspiciously, a significant number of clicks are in the 2 AM to 3 AM time frame. Not converting well, but the campaign is still new and needs tweaking.
I'm about to do a JV with a much larger real estate brokerage from another state. When we talked, they shared their study results obtained by talking with brokers around the country who are diligent about data tracking. Here's what they found.
Zillow, Trulia and Realtor (ZTR) won't make hard claims on lead quality, but they will "suggest" that you should close 5% of raw leads.
This JV company's study showed that across the nation, ZTR leads actually converted at 0.5% to 1%.
With that, you can figure out whether a spend is worth it. My cost for the Realtor.com leads was a little over $500/month. I got about 25 leads over 6 months. The average commission in my pocket (the pocket that's paying for the leads) is $7000 per closed sale.
Assume that I covert at 1% of raw leads - the high end of the study results. I need 100 leads to close 1 sale. 25 leads in 6 months means that I need 24 months of leadgen with Realtor.com to generate 100 leads.
24 months at $500/month = a $12,000 ad spend to generate $7,000 in net commission.
If I close at 0.5% of raw leads (the low end of the study results), I'd need to spend $24,000 to generate that same $7,000 in commission.
To break even, I'd need to close 1.71% of leads, which sounds good if you say it fast, but with measured numbers suggesting 0.5% to 1%, seems unrealistic.
Using the study's median close rate of 0.75%, I'd have to improve my close ratio by a factor of 2.28 just to break even on the ad spend!
The major problem I have with the likes of ZTR is that they put these great sales pitches on, and if everything works the way that they say it will (5% conversion), then I win and they win.
But if - as research suggests - things don't work out the way they suggest, then I lose - but they still win. I take 100% of the risk and they have nothing to lose.
If one of them would offer a risk-sharing leadgen program, I'd listen, but short of that, I am about done with these snake oil salesmen and their "programs".
PS - for many of the lower cost ZTR programs, don't forget that the same lead goes out to 3 or more realtors at the same time. No wonder the REAL conversion rates are so awful.
Zillow leads are worthless
We paid for the Zillow Premier Agent for a little while. Leads were HORRIBLE. "Yes, I'd like to see this $40,000 house." blah!
The best leads we got from Zillow were on our own listings... who would have thought?! Luckily, our broker had a contract with Zillow so we'd show up on our own listings. So, in reality, we were paying for it anyways through broker fees.
I dont know what kid of agent I am with them, but they debit my card $10/mo
What level is that? I would assume basic/starter or whatever!
In my experience the premier agent position isn't worth it unless you 1) have more than 50% of the time slots, and 2) have more 5 star reviews than anyone else that will be listed as an agent in the area. The public really looks at and stack ranks agents based on total quantity of reviews. So, your top agents who already have 100-200+ five star reviews get leads regularly. Everyone else just props them up, since they don't have nearly as many top reviews.
Zillow's sales pitch assumes you're the only one that a viewer will see on zillow, but its so not true. People are clicking around all over the place. Before they reach out to an agent, they will have seen many of them on zillow and will pick the "best" one (by total number of 5 star reviews) to contact. The ones serious about buying/selling know they don't have to click the name next to the listing they just saw online. The serious ones have spent hours on zillow before they finally reach out to an agent.
Facebook works really well for real estate industry and also mortgage for me. I do find that creating re-targeting systems that follow up with the emails and phone numbers are increasing conversions. For example 38 leads generated in a month 4 of these leads in processing with a loan officer. Posting in Facebook Groups, Video ( BIG WINNER) and using infusion soft for email has also helped tremendously. Give it a try and good luck.
I read Charlie's post above and love his math and cannot argue with any of it. His equation is exactly why I created Ushud.com years ago. Charlie is light years ahead of anyone I have read on any post in a very long time. However there are methods of improving conversion rates which changes the key factor in the equation regardless of where the leads are being generated.
There is no getting away from the fact that internet leads are different than traditional referrals. I have experienced closing percentages of as high as 8% from online leads however I approached them differently than other leads and here is what worked well for me.
1. I called each lead for the first time within minutes of receiving it. Quicker if possible. This communicated to the home buyer without me having to say it that my service was going to be superior to anyone else.
2. If I did not get them on the phone I left a polite message that included that I was going to call them back later. And I did.
3. I recognized that people go online looking for a deal no matter what the product or service. So I always started the conversation with a quick mention of how I pride myself on saving my clients money. That appeals to everyone in every price range.
4. I never pushed my own listings. I pushed my service and their savings.
That is how I closed 8% to 10% of all online leads. I promise it worked for me.
I almost caved and did Zillow Premier, but I've just heard so many horror stories and seen many people spend crazy amounts of money to get nothing.
Teddy, The problem is partly high expectations that are rarely met and the fact that few people know of any real alternative. Zillow has sucked the oxygen out of the internet by monopolizing the search engines. Then we go home an they are on the radio on the way and then on television. It is no wonder that we are like moths to a flame. My suggestions:
1. If you want to generate leads first determine how many you want to generate using Charlie's math above is fine but be sure you know what you are going to say before you get the buyers on the phone. Practice a little and be prepared for the avoidance answers and ways of overcoming them. (this is the internet and we have to remember that when we call)
2. Follow up as if every lead is the last lead in the world and your results will be somewhere between Charlie's reported (and brilliantly calculated) .5 to 1% and my own 8 to 10%. From online leads.
3. Is Zillow your best option? Probably not, however, what doesn't work is wishing the internet did not exist.
@Michael Urbanski I am interested in learning about your colleague's method of closing 15% of internet leads.
@Michael Urbanski I am interested in learning about this as well. Please send me DM.
@Michael Urbanski I too am interested in learning about your colleague's meathod of closing 15% of internet leads. Thank you
@Jesse Lucero I too reside in Las Vegas, NV. What groups FB groups do you advertise in? Any advice would be appreciated.
@Michael Urbanski I too am interested in learning more about the 15% lead generation.
Been using for three years now, about $400 a month. Seems like 80% of the leads are garbage.
We are reevaluating where we are spending our marketing dollars.
All,
Below is an email we received from a very successful real estate agent on USHUD.com. I can ask her if she would speak with anyone who is interested. The problem with sites such as ZTR in my opinion is the number of agents that receive the same lead at the same time. This means the homebuyer is being called by up to four agents at the same time (provided follow up is good)
Putting ourselves in the buyers position...this is tough. Who is the buyer supposed to work with?
That is why agents get avoided so often in my opinion.
This is why USHUD.com uses the concept of exclusivity. Being the only is far more valuable to both the buyer and the professional. When the referral goes to only one agent as it does on USHUD.com the likelihood of selling a home increases by more than the multiple of agents. The text below is verbatim and was not intended to be posted but I wanted to get back to everyone that had asked.
"I wanted to thank you for all your support with this amazing lead generator
As we were talking today I have received 43 leads and converting now 8
When I receive the leads all the contact info and a brief summary about the client
I immediatly follow up with a quick "thank you" call
If they do not answer I send a text message and a email
I follow up with the client 2-3 times that day
Text
Then follow up the following day and keep it going for a total of five days
Then I move the lead over to a buyers agent if I have not had any success in the contact
Once contact has been established just a quick summary on how I can assist them
Get them to a lender for a approval
Place on a MLS search
Place on a drip campaign to keep in constant contact with them
I have have a great response back
Getting 8 approved and have several on the MLS search
This program works if you know how to keep that contact moving
I wanted to thank you again for all your assistance in helping me decide which areas to work with and always making yourself available to answer my questions
I know that I have only participated on this program for less than a month and I am so excited to see what the next few months are going to bring
Thank you"
Sharon J
Put that money into lead generation source like vulcan7 or landvoice. Thats where you'll find your listings. You'll be chasing flaky buyers all over the place using zillow.
I see this is a very old post but I'll respond any way. To the gentleman that said Zillow leads are worthless I would have to disagree. If you pick the right zip codes it can actually give you a decent return on your investment. Personally, I work my proverbial tail off to work leads and I think this helps. If you are lazy or don't respond then it won't work for you. I received roughly a 15% return on my investment with Zillow even though it can be very frustrating and has it's ups and downs.
Zillow is calling you non stop (prospecting YOU).
Trying to sell YOU on their "leads" that are mostly buyer leads IF they are any good.
Saying you don't need to prospect, WE will send leads to you, while they are doing the very thing they are trying to sell you on not having to do...
think about that..
Have you read the Real Estate Millionaire Agent? A big focus in that book is mailing people you haven't met so they get familiar with you and you become what the books states, "first or second real estate agent." Try to look into that book it could help with getting more leads!
I have had a good return on purchasing Zillow leads. Surprisingly, my best leads have been the ones I get for network marketing.
Zillow is not worth your time or money.
You can pay Zillow to be featured in zip codes but if you do not have enough decent reviews, no will will call you. Definitely don't recommend for new agents.