Zillow Flex is a new program that real estate agents can use to get referrals from Zillow. But how does it work, and is it worth the 35% referral fee? We break it down for you in this blog post.
You’re always looking for new leads as a busy real estate agent. And if you’re like most agents, you’re probably pretty familiar with Zillow. After all, it’s one of the most popular home-buying websites.
So when I heard about Zillow Flex – a new program that allows agents to get referrals from Zillow – I was intrigued. But how does it work? And is it worth the 35% referral fee?
What is Zillow Flex, and how does it work
Zillow Flex is a new program that allows real estate agents to get referrals from Zillow. Agents may get leads from Zillow for a 35% referral fee, with no up-front cost.
The leads are similar to Zillow Premier Agents’ current lead generation method, in which agents pay for a zip code and get all leads for that zip code. However, with Flex, agents only pay for the leads they convert after the transaction.
Agents may also utilize the software to increase their company’s visibility. Zillow offers a featured profile picture, an agent bio, and contact information on its website as part of the program.
So how does it work?
When customers inquire on Zillow’s website, they are connected with a local agent. The consumer can then interact with the agent and conclude the transaction. If the agent does not complete the sale, he or she does not get paid anything.
It looks like a great bargain, doesn’t it?
Continue reading to learn more.
How to get started with Zillow Flex
Zillow Flex is only available in a few cities and is invitation-only for “high-performing partners.” Zillow Flex is the lead distribution model in Phoenix, Atlanta, and a few other select locations throughout the country.
As Zillow finds eligible and willing agents to participate in the program, it is slowly phasing out its Premier Agent business.
So, if you’re interested in Zillow Flex, the ideal approach is to contact your local Zillow representative.
Pros and Cons of Zillow Flex
Let’s look at the benefits and drawbacks of Zillow Flex now that we know what it is and how to begin.
- There is no upfront cost to join
- Agents only pay for the leads they close
- Agents can get more exposure for their business
- The conversion ratio is similar to Premier Agent or Google PPC leads (~5%), so agents must work many dead-ends to close a deal.
- Must be selected by Zillow to participate
- The 35% referral fee is a bit high.
- There is no guarantee of leads.
So is Zillow Flex worth it?
That’s a tough one to answer. On the one hand, it’s a great system for agents seeking more exposure and is willing to pay a greater referral fee. On the other hand, some issues need to be worked out because it is still in its early phases.
It’s too early to tell if Zillow Flex is a long-term success. But it’s worth contacting your local Zillow representative immediately and expressing interest.
How does the 35% referral fee work
Zillow refers to their “Success fee” for closing a transaction as the 35% referral fee, and this charge is paid at closing on any transaction Zillow has negotiated.
When you use Zillow Flex, you’ll record all details concerning the status of each lead in the Zillow Premier Agent app, including when the customer signs a contract.
You submit a form and choose between two options for the success fee after you’ve been under contract for some time.
- Option 1 is to pay via a closing service or title firm.
- Option 2 is to pay Zillow directly after the closing.
In either situation, Zillow checks in with leads regularly to ensure that agents are keeping their end of the bargain.
How to maximize your profits with Zillow Flex
Many mixed opinions abound if you search for Zillow Flex reviews. In my opinion, the Zillow Flex leads are no different from current Zillow Premier Agent leads or Google PPC leads, to say nothing of regular organic search traffic.
These options might be fantastic if you set realistic expectations and are prepared to put in the effort to obtain a good bargain.
The conversion rate for a lead of this quality is typically around 5% (if you’re working them). This entails implementing a solid follow-up procedure, strong closing abilities, and your overall capacity to connect with a semi-warm lead and persuade them to collaborate with you.
Some of the most essential things to keep in mind with any internet lead, particularly Zillow flex, are as follows:
- Speed To Lead – The conversion rate of a lead increases by over 2,100 percent if you get on the internet in the first five minutes!
- Multiple Follow-Up Exposures – It might take anywhere from 6 to 8 tries to connect with an internet lead. Don’t give up too soon. Experiment with contacting them in different ways. Just calling and texting isn’t enough. Send them a voice message or, even better, a personal video text tailored to their interests.
- It’s The Long Game – Remember that many internet leads are still in the early stages of their journey. Furthermore, future revenue from repeat and referral clients will likely be a large portion of your return on investment. Don’t judge a lead source until it has had sufficient time to impact your company.
Can I Get Removed From The Program
Zillow keeps track of the success of all agents who sign up for the Flex program. If Zillow detects that certain agents are underperforming (closing a smaller proportion of leads than other agents), they may remove them from the program.
Keep in mind that Zillow has a lot of information on leads and agent performance throughout the country. Zillow does have an inside sales team that tries to pre-qualify prospects so that when they pass them on to the agent, they’ve already been somewhat evaluated.
In addition, Zillow offers agents training to ensure they have the most effective follow-up procedures. This education comes from fellow agents all around the country who’ve had successful outcomes with the Premier Agent Platform and the existing Flex system.
How to decide if using Zillow Flex is the best option for you
Consider the following as you evaluate whether Zillow Flex is something you should look into further:
Will you qualify for the program?
Zillow is currently only working with “High-performing agents” in markets where they are interested in launching this program. If you’re a first-time or seasoned seller, you might not be eligible to be a Zillow Flex Realtor.
Is it worth paying 35% to Zillow compared to other options?
Is it a good idea to use Zillow as a lead source if you’re not currently getting deals from it? This is determined by how much effort you want to put in.
In my view, you may create the same level of Zillow leads for a similar cost as Google PPC advertising to a landing page that converts visitors into leads. I’ve discovered that in most areas, you can get a Google lead for between $10 and $20 (while some high-ticket markets may cost up to $50 per lead).
Assuming a 5% conversion rate, you’ll need roughly 20 leads to secure a contract. For a closed deal, $400 would be divided by $20 per lead, which equals around $200 in profit.
If you’re getting paid an average of $7,500 for a Google PPC quality lead, sending $2600 for Zillow leads would be far more expensive than paying around $2.60 per click (35% of $7,500).
Do you want to work with Buyer Leads?
Zillow Flex leads are intended to be buyer-driven. Some will have a house for sale, but I’ve discovered that out of four completed buyer transactions with comparable quality leads, only one has a property to sell. This implies you’ll be dealing with many more buyers than sellers.
This is your choice, but scaling a buyer-based business is far more difficult than scaling a seller-based company. That said, there are currently many more purchasers to deal with, so now may seem like the best time to work with buyers and build your book of business to remarket later.
Alternatives to using Zillow Flex
There are several alternatives if Zillow Flex doesn’t appeal to you or you aren’t qualified for this sort of program. You could:
- Zillow Premier Agent is a membership program for real estate professionals that allows them to market their homes for sale or rent. It provides several benefits and is open to all agents.
- Create hyper-local real estate-related films to get in front of your target audience on YouTube.
- Google PPC Ads, Bing PPC Ads, and Facebook Advertising – Learn how to create your own Google PPC advertising and generate comparable quality leads to those generated by Zillow Flex (for less money).
- Through your website or blog, generate leads – this may be done via internet advertising, SEO, or social media.
- Consider real estate lead generating firms – several reputable businesses provide high-quality leads for money, such as Boomtown, Real Geeks, Placester, or YLOPO.
- Have you considered working with a real estate coach? This someone focuses on assisting real estate agents in generating more leads, developing systems, and making money.
- Traditional methods like direct mail or doorstep knocking may be more difficult in today’s market because of the fierce competition, but they can still be a viable option in certain areas and use cases.
Is Zillow Flex worth it, in your opinion? I’ve outlined the benefits and drawbacks for you, as well as my own viewpoint.
If you want to give it a go, don’t forget to use all the resources at your disposal to make your experience as pleasant as possible. Always keep in mind that nothing is lost if you take a chance!