{"id":3092,"date":"2022-05-04T15:11:21","date_gmt":"2022-05-04T15:11:21","guid":{"rendered":"https:\/\/preprod.realtrends.com\/blog\/2022\/05\/04\/zillows-flex-model-play-with-next-generation-lead\/"},"modified":"2025-03-13T02:41:58","modified_gmt":"2025-03-13T02:41:58","slug":"zillows-flex-model-play-with-next-generation-lead","status":"publish","type":"post","link":"https:\/\/preprod.realtrends.com\/blog\/2022\/05\/04\/zillows-flex-model-play-with-next-generation-lead\/","title":{"rendered":"Zillow&#8217;s Flex model play with next-generation lead gen"},"content":{"rendered":"\n<p>Zillow\u00a0recently\u00a0announced\u00a0that it was moving exclusively to its success fee <a href=\"https:\/\/preprod.realtrends.com\/blog\/zillow-testing-major-changes-to-premier-agent-program\/\" target=\"_blank\" rel=\"noreferrer noopener\">Flex model<\/a> in two major markets, Denver and Raleigh.<\/p>\n\n\n\n<p><strong>Why It Matters:<\/strong>\u00a0Zillow Flex is &#8220;<a href=\"https:\/\/mikedp.us15.list-manage.com\/track\/click?u=bc08d9a05ce4a7baada0a3bfc&amp;id=33a3afa23a&amp;e=7bfa474041\" target=\"_blank\" rel=\"noreferrer noopener\">Next Gen Lead Gen<\/a>,&#8221; featuring a 35% commission share and lead qualification by Zillow employees. It&#8217;s the future of real estate portal lead gen \u2014 and gets <a href=\"https:\/\/preprod.realtrends.com\/blog\/everything-must-go-zillows-race-to-end-ibuying\/\" target=\"_blank\" rel=\"noreferrer noopener\">Zillow<\/a> much closer to the transaction.\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>In the past, Zillow has operated Flex&nbsp;<em>alongside<\/em>&nbsp;its traditional pay per lead model; this changes that.<\/li><li>By going all in in two major markets, Zillow is signaling its intent to control more of the transaction in order to satisfy its goals of&nbsp;<a href=\"https:\/\/mikedp.us15.list-manage.com\/track\/click?u=bc08d9a05ce4a7baada0a3bfc&amp;id=e021695f16&amp;e=7bfa474041\" target=\"_blank\" rel=\"noreferrer noopener\">doubling its Premier Agent business<\/a>&nbsp;by 2025.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/preprod.realtrends.com\/blog\/wp-content\/uploads\/sites\/9\/2022\/05\/zillow1.png?w=1024\" alt=\"zillow1\" class=\"wp-image-25798\"\/><\/figure>\n\n\n\n<p><strong>Zillow&#8217;s new strategy<\/strong>&nbsp;(<a href=\"https:\/\/mikedp.us15.list-manage.com\/track\/click?u=bc08d9a05ce4a7baada0a3bfc&amp;id=91dffa7182&amp;e=7bfa474041\" target=\"_blank\" rel=\"noreferrer noopener\">Zillow 3.0: Back to Basics<\/a>) has the company going back to its roots, doubling down on agent lead gen, and extracting more revenue from real estate commissions.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>This trend started in 2018 with&nbsp;<a href=\"https:\/\/mikedp.us15.list-manage.com\/track\/click?u=bc08d9a05ce4a7baada0a3bfc&amp;id=f89f8cbe2e&amp;e=7bfa474041\" target=\"_blank\" rel=\"noreferrer noopener\">Opcity, lead conversion, and the journey down the funnel<\/a>.<br>&nbsp;<\/li><li>Targeting real estate commissions as a source of revenue isn&#8217;t unique to Zillow; many big tech players are&nbsp;<a href=\"https:\/\/mikedp.us15.list-manage.com\/track\/click?u=bc08d9a05ce4a7baada0a3bfc&amp;id=afefccb1ae&amp;e=7bfa474041\">coming after agent commissions in a big<\/a> way.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/preprod.realtrends.com\/blog\/wp-content\/uploads\/sites\/9\/2022\/05\/zillow2.png?w=1024\" alt=\"zillow2\" class=\"wp-image-25799\"\/><\/figure>\n\n\n\n<p><strong>Winners and losers:&nbsp;<\/strong>Next gen lead gen works for the agent partners that decide to participate in the program; those agents and brokers receive millions of leads.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>But those agents may become even more reliant on the portal&nbsp;as a critical business partner, giving the portal&nbsp;more market power.<br>&nbsp;<\/li><li>Over the long term, agents&nbsp;<em>not<\/em>&nbsp;participating in these invite-only programs will receive fewer online leads, and may be at a significant competitive disadvantage in the race to acquire customers.<\/li><\/ul>\n\n\n\n<p><strong>What to watch<\/strong>: How Zillow integrates mortgage (Zillow Home Loans) and ShowingTime into its renewed Flex\u00a0program.<\/p>\n\n\n\n<p><em>Mike DelPrete is a real estate technology strategist.<\/em><\/p>\n\n\n\n<p><em>This column does not necessarily reflect the opinion of RealTrends\u2019 editorial department and its owners.<\/em><\/p>\n\n\n\n<p>To contact the author of this story:<br>Mike DelPrete at&nbsp;<a href=\"mailto:mike@mikedp.com\" target=\"_blank\" rel=\"noreferrer noopener\">mike@mikedp.com<\/a><\/p>\n\n\n\n<p>To contact the editor responsible for this story:<br>Tracey Velt at\u00a0<a href=\"mailto:tvelt@realtrends.com\" target=\"_blank\" rel=\"noreferrer noopener\">tracey@hwmedia.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Strategist Mike Del Prete analyzes what&#8217;s next for Zillow with the announcement of its Flex model play as Zillow gets closer to the transaction.<\/p>\n","protected":false},"author":15802,"featured_media":4822,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3255],"tags":[],"coauthors":[2227],"class_list":["post-3092","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-archive"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.4 (Yoast SEO v26.8) - 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