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.