Zillow goes exclusively to commission-based payment model in six markets
Have you all heard about Zillow gradual shift from monthly fixed-fee subscriptions to a commission-based model? With the new model, advertising agents don't pay up front for leads, but if they close on a Zillow lead, they have to pay 30%-35% of their take on the sale.
Zillow recently announced it would move exclusively to the commission model in two new markets: Charlotte and Durham, North Carolina. With these two addition, there are six markets across the country on the commission-only system, with the other cities being Phoenix, Atlanta, Denver and Raleigh, N.C.
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I write about Zillow for an investor news site: AimGroup.com. I'm looking for real estate agents, preferably ones who subscribe to Zillow's Premier Agent program, to give feedback on this move by Zillow. Is it good or bad for agents? Is the 30% - 35% cut fair? If you're willing to discuss it with me, it can be on of off the record, your choice.
Thanks, Greg
Most Popular Reply
I think 30-35% is extreme. All agents are familiar with the referral structure, but 25% is my norm. For a lead that you have to work so hard to cultivate, such as a Zillow lead, that's a lot. My team used to use Zillow as a lead source but dropped them a couple of years back. In my experience, with Zillow leads, many are not serious or do not value Realtors and simply look at them as door openers. I'd much rather focus on other sources for buyers and sellers that are more inclined to talk to an agent and respect our expertise and time.