What Is the Difference Between Realtor.com and Zillow Leads?

 

Lead Generation Insights: Realtor.com and Zillow | ASK YLOPO

In A Nutshell:


Real estate agents must carefully evaluate Realtor.com's hands-off approach against Zillow's involved partnership model when choosing lead generation platforms. Consider market availability, costs, and personal preferences to maximize success in connecting with potential clients.

 
 

Comparing Realtor.com and Zillow Leads: Essential Differences

Realtor.com and Zillow are major players in real estate lead generation, offering bottom-of-funnel leads to agents and brokers.

While both platforms provide leads from people who generally know what they want, their approaches, costs, and involvement in lead nurturing differ significantly.

We asked Barry Jenkins, Realtor in Residence at Ylopo, for his expert take.

Barry says, "Both companies offer bottom of funnel leads people that know more or less what they're looking for. The cost per leads for both is a little bit more expensive."

He emphasizes the importance of talking to both companies to understand market availability, cost per lead, required monthly spend, and expected outcomes before making a decision.

 

Market Availability and Cost Considerations

First, check market availability.

As Barry notes, "They might already be sold out."

If the market is open, consider the cost per lead and required monthly spend, which can vary based on the specific market and competition level.

Agents should clearly understand their budget and ROI expectations before committing.

"What is what do I have to spend? What markets are available and you know what they expect or anticipate will happen if you end up giving them money every month."

These upfront conversations help agents make informed decisions aligned with their business goals and financial constraints.

 

Realtor.com: A Hands-Off Approach to Lead Delivery

Barry highlights a main difference between Realtor.com and Zillow: their level of involvement in lead delivery.

"I would say one of the key differences I've observed is that realtor.com. They're just going to give you the lead, right?"

Realtor.com provides leads but expects agents to handle nurturing and conversion independently.

This suits experienced agents with established systems who prefer full control over lead management.

However, Realtor.com doesn't completely abandon agents.

Barry clarifies, "I'm not saying they're never going to talk to you or anything like that. It's not it's not that type of scenario, but they're basically going to give you the lead and expect you to do your job."

Agents can expect some communication and assistance, but lead nurturing responsibility primarily falls on them.

 

Zillow: A More Involved Partnership Model

Zillow takes a more hands-on approach to lead delivery and management.

"Zillow is going to take a more involved approach. So they're going to be looking at the reviews that leads are giving after the calls over. They're going to look at your conversion percentages. They're really going to be more involved in the day to day."

Zillow's model includes monitoring lead reviews, tracking conversion rates, and providing ongoing support to help agents improve.

This benefits newer agents or those aiming to refine their lead nurturing strategies.

Barry mentions Zillow offers different arrangements:

"There's like a Zillow flex model that's giving a referral fee and then there's the pay per lead model."

Agents should explore these options to find the best fit for their business needs.

 

Choosing the Right Fit: Realtor.com vs Zillow

The choice between Realtor.com and Zillow depends on individual agent preferences and business goals.

"That's great for some agents. It's not for others. So it really depends on what you're looking for."

For agents focused on acquiring leads and managing nurturing independently, Realtor.com might be preferable.

Barry suggests, "You're looking just to buy leads, you know, maybe realtor.com based on your market might be the way to go."

Agents seeking a comprehensive partnership, guidance on lead nurturing, and support in improving conversion rates may prefer Zillow's model.

"If you're looking for more of an overall investment into a new process, new ways of speaking to leads, having somebody kind of coach you or give you insight into increasing your conversion, it might be Zillow."

Subfield Analysis: New Construction and Luxury Niches

Let's explore how these platforms cater to specific real estate niches: new construction and luxury properties.

 

New Construction Leads

Both platforms offer leads for new construction projects.

Realtor.com's hands-off approach may provide leads from a broader range of builders, giving agents more options.

Agents can use their relationships and expertise to guide buyers through the new construction process.

Zillow may have exclusive partnerships with select builders, offering agents access to high-quality leads and potential incentives.

Their involved partnership model could be particularly useful in new construction, as Zillow's support can help agents work effectively with builders and manage buyer expectations.

 

Luxury Property Leads

The luxury real estate market operates differently, requiring a targeted lead generation approach.

Both platforms offer luxury property leads, but effectiveness may vary based on the specific market and partnerships with luxury brokerages.

Realtor.com's hands-off approach allows agents to use their networks and luxury-specific marketing strategies.

Agents with established luxury market relationships may find this flexibility advantageous.

Zillow's involved partnership model could provide valuable support in the luxury niche, especially for agents new to the high-end market.

Zillow's guidance on communication strategies, pricing insights, and market trends can help agents tackle luxury real estate challenges.

 

Wrapping It Up

Understanding the differences between Realtor.com and Zillow leads is crucial for agents and brokers aiming to maximize ROI and achieve business goals.

As Barry Jenkins highlights, both platforms offer viable options, but the choice depends on individual preferences, market availability, and desired level of partnership and support.

  • Examining key distinctions like Realtor.com's hands-off approach and Zillow's involved partnership model lets you make informed decisions aligned with their strengths and objectives.

  • Exploring niches like new construction and luxury properties provides further insights into how these platforms serve different market segments.

As real estate continues to evolve, staying informed about future trends and developments in lead generation and management will be essential for agents to remain competitive.

Leverage the unique offerings of Realtor.com and Zillow, and adapt to emerging technologies and strategies to position yourself for success in the dynamic landscape of real estate lead generation.

 

  • Let's delve deeper into real estate lead generation, recognizing the importance of choosing the right platform to support your business goals.

    We've explored Realtor.com and Zillow, industry giants that have transformed how agents connect with potential clients.

    Now, let's examine how to leverage these platforms to maximize your lead generation efforts and boost your real estate career.

    Mastering the Platforms

    Zillow and Realtor.com lead the U.S. real estate market, but understanding how to use their unique features effectively is crucial.

    Zillow's massive user base offers agents an unmatched opportunity to expand reach and engage diverse potential clients.

    Realtor.com's specialized tools and support system empower agents to nurture leads and build lasting client relationships.

    Mastering each platform's intricacies allows you to create a comprehensive lead generation strategy that maximizes success chances.

    Analyzing Lead Quality

    Conversion rates are critical for assessing lead generation effectiveness.

    While Zillow and Realtor.com show similar conversion rates, it's important to examine factors influencing lead quality.

    Analyze your target market's specific characteristics, such as demographics, preferences, and behavior patterns, to tailor your approach and attract high-quality leads more likely to become clients.

    Lead Quality Metrics: A Closer Look

    When comparing lead quality metrics, Zillow offers around 20 leads for $150 on average per month, while Realtor.com provides comparable lead potential. Both platforms show similar conversion rates, with 1 in 30 leads converting in the same month and 2 in 30 converting within 6-8 months. In terms of website traffic ranking, Zillow holds the position of the leading U.S. real estate portal, while Realtor.com is the second-largest U.S. real estate portal.

    Harnessing the Power of Distinctive Features

    To excel in lead generation, leverage each platform's unique features.

    Zillow's Premier Agent Program can significantly boost your visibility and positioning, increasing client engagement.

    Zillow's automated home value estimates, while sometimes differing from other platforms, can initiate conversations and guide clients through decision-making.

    Realtor.com's Connections Plus service empowers agents with tools for effective client connections.

    The platform's lead management solutions help streamline your nurturing process and ensure no potential client is overlooked.

    Using these distinctive features creates a comprehensive lead generation strategy that sets you apart from competitors.

    Navigating Cost Considerations

    Understanding the financial implications of using Zillow and Realtor.com is crucial for agents.

    Zillow primarily uses a pay-per-lead model, while Realtor.com offers both subscription-based and pay-per-lead options.

    Carefully evaluate your budget and marketing goals to select a pricing structure that aligns with your needs and ensures a positive return on investment.

    Future Trends and Developments

    Looking ahead to the next five years, the real estate industry is set for significant advancements in lead generation and management.

    While fundamental differences between Realtor.com and Zillow leads may persist, both platforms will likely evolve and introduce new features to stay competitive.

    One potential trend is increased integration of artificial intelligence (AI) and machine learning in lead qualification and distribution.

    Both platforms may use AI algorithms to analyze lead behavior, preferences, and engagement patterns, enabling more accurate lead scoring and targeted distribution to agents with the highest conversion likelihood.

    Another possible development is expanded personalized lead nurturing tools and resources.

    Realtor.com may introduce more comprehensive lead management dashboards, providing agents with insights and recommendations to optimize nurturing strategies.

    Zillow may further enhance its coaching and support services, using data analytics to provide agents with actionable insights and best practices.

    Additionally, virtual and augmented reality (VR/AR) technologies could reshape lead generation.

    Both platforms may explore VR/AR features for immersive property experiences, allowing potential buyers to virtually tour homes and interact with agents remotely.

    This could open new avenues for lead generation and engagement, particularly in luxury and new construction niches.

  • BARRY:

    "I would recommend they talk to both companies.

    Both companies offer bottom of funnel leads people that know more or less what they're looking for.

    The cost per leads for both is a little bit more expensive.

    But when you're talking to both what they're going to be able to share with you is the market availability.

    They might already be sold out.

    If it's not sold out, what is the cost per lead?

    What is what do I have to spend?

    What markets are available and you know what they expect or anticipate will happen if you end up giving them money every month.

    Now, I would say one of the key differences I've observed is that realtor.com.

    They're just going to give you the lead, right?

    I'm not saying they're never going to talk to you or anything like that.

    It's not it's not that type of scenario, but they're basically going to give you the lead and expect you to do your job.

    And so with Zillow depending on your market because there's different arrangements.

    There's like a Zillow flex model that's giving a referral fee and then there's the pay per lead model.

    Zillow is going to take a more involved approach.

    So they're going to be looking at the reviews that leads are giving after the calls over.

    They're going to look at your conversion percentages.

    They're really going to be more involved in the day to day.

    That's great for some agents.

    It's not for others.

    So it really depends on what you're looking for.

    You're looking just to buy leads, you know, maybe realtor.com based on your market might be the way to go.

    If you're looking for more of an overall investment into a new process, new ways of speaking to leads, having somebody kind of coach you or give you insight into increasing your conversion, it might be Zillow.

    You know, both have viable options.

    Teams across the country both do well on those programs.

    So you definitely talk to them and see what's right for you." 

 

Barry Jenkins

Realtor, Speaker, Coach, Trainer, Author, and Head Realtor in Residence at Ylopo