read this before you start advertising on zillow
This article was inspired by a coaching client who asked me if they should start advertising on Zillow because $200 was open in a zip code they would like to be in.
It all started because Zillow has been contacting agents with the good news that they've opened up spots in popular zip codes. Apparently they're getting more traffic and leads than they expected so they can let more advertisers in.
But, before you invest, consider what you'll GET for your money.
For example, if a zip code you want has only $200 available - how many live connections will you receive?
Probably less than 1 per month.
Is $200 really worth .5 a lead? That's a HALF of a lead. Seriously.
That means you'll be getting ONE lead every other month. WHAT?!?
Your Zillow rep (aka sales person) will sell you on the "nurture" leads. These are also sometimes called "other" leads. And, while all leads are welcome and nice to have, you need to understand that they are a lower quality leads and they don't convert like the live calls.
The "Nurture/Other" leads include people that are unresponsive - which means the lead is OLD. Who even knows how long Zillow has attempted to reach this lead. Probably at least a few days, if not more. Those leads look like this:
Then, there's the "Nurture/Other" leads that specifically say they're not ready to talk to an agent. Maybe they said "OMG, DON'T CALL ME!" or maybe they said, "Ooops, I didn't mean to submit that on Zillow." Or, my favorite, "I don't know what you're talking about, I never asked about a property??" Those leads look like this:
The live calls, or "connections" are the best quality of the paid leads through Zillow.
However, they aren't as amazing as Zillow would have you believe.
To give you some perspective, I spent $1168 on Zillow in the last month.
With that investment, in the last 30 days I've received 5 "connections" and this is where they're at today:
1 - was a bonus connection - it wasn't in the zip code we advertise in it. Thank goodness, because turns out she has an agent. She told us on the phone she didn't have an agent, but then when we drove 30 minutes to show her a rural property she mentioned in fact she DOES have an agent. Awesome.
1 - buyer rescheduled two different appointments with us but did take our advice to get pre-approved. Unfortunately, they don't have enough trade lines to get approved today. Naturally, we'll stay in touch and hopefully convert them to a sale in the future.
1- showed the buyer one house, her brother is buying it for her family but can't provide a pre-approval letter. After days of inquiring on pre-foreclosures (aka homes NOT for sale) she's ghosted us. We will continue to call, text and email and nurture this lead.
2 - were decent prospects that aren't ready to buy today, but might be ready to write within the next 6 months.
SO, in 30 days, we have 2 good prospects.
What do you think about those leads? Does it seem sort of low for the investment? I know a lot of agents in more competitive cities and they're paying THOUSANDS more, for basically the same results.
Now, imagine if you're spending $200. That half a lead isn't going to get you very far, is it?
So, before you invest your hard earned dollars - be very clear about what you can expect in return for that investment.
Please note that if you're a brand new advertiser with Zillow, you can probably expect to be in a 6 month contract. Maybe even a year contract.
It's no fun spending money when you're not getting much of anything in return.
So, if you've been wondering if you should start advertising on Zillow (or any other online portal) I hope you take some time to analyze what you can expect to get for your investment.
While I'm not against investing in Zillow or other online lead strategies (obviously, since I do!) I firmly believe you should have a SOLID STRATEGY to help grow your business. And paying for half a lead a month isn't a very good strategy. Paying for online leads without a solid strategy isn't going to help you grow.
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