Zillow Flex is a referral program that allows agents to get referrals from the vast Zillow database without paying anything upfront. Real estate agents only pay a percentage of the commission when they successfully close the sale.
This is quite different from the Zillow Premier Agent, where you pay a monthly fee for leads within your zip code. For Zillow Flex, the percentage commission usually varies between 20% to 35% depending on the local real estate market.
The pay-per-performance model of Zillow Flex significantly reduces the financial risks and upfront costs, making it an attractive option, especially for those agents who are starting their careers or with a tight budget.
We will dig deeper into this and examine whether Zillow Flex is worth your time and money. Stay tuned to find out.
Table of Contents:
Understanding Zillow Flex
What is Zillow Flex?
Zillow Flex provides agents with an alternative payment option, allowing them to receive leads without any initial payment. It offers a flexible approach to lead generation, particularly suitable for agents who may not have the immediate budget to invest upfront.
The traditional method of becoming a Zillow Premier Agent requires an upfront payment, which can be expensive for many agents. With Zillow Flex, agents can access leads without making an initial financial commitment. Instead, they pay a referral fee when a transaction successfully closes.
Is Zillow Flex Worth it?
When considering Zillow Flex, it’s important to note that agents are subject to closing fees that can reach as high as 35% of their gross commission. The exact rate varies depending on the zip code and the prices of the transactions involved.
For new or relatively inexperienced real estate agents, the main benefit of Zillow Flex lies in the exposure it provides. However, it’s crucial to understand that the leads generated through Zillow Flex may not always be as ready to convert into clients as Zillow claims. Converting these leads requires significant effort and dedication.
So how to Convert these Leads?
If you choose to operate independently using Zillow Flex, you must assemble a team and allocate resources to nurture these leads effectively.
Alternatively, suppose your business already has a solid foundation and decent exposure. In that case, you may consider bypassing Zillow Flex’s high closing costs and exploring more cost-friendly alternatives that offer better functionality.
How Does Zillow Flex Work?
The process is relatively straightforward: When a client lists a property or shows interest in buying one, Zillow Flex refers that lead to a real estate agent in that area.
The rest is up to the agent. If he converts that lead into his client and closes the sale, he will pay a percentage of the total commission he receives.
As mentioned earlier, the percentage commission will depend on the location and the local real estate market. In bustling metropolitan areas with a thriving real estate market, the commission rate will be lower as compared to regions with a less competitive market.
Pros and Cons of using Zillow Flex
Before jumping into this lead-generating program, it’s necessary to weigh its pros and cons to gain a holistic understanding:
Pros
- The most crucial benefit is, of course, the exposure you get from being associated with a leading real estate market platform.
- Zillow Flex helps you connect with potential buyers from the vast and highly active traffic on Zillow.com.
- You won’t be asked to make any upfront payments until a transaction is closed.
Cons
- There are potential challenges in converting leads into clients, as users have experienced a 5% conversion rate in all services available.
- High referral fees of up to 35% can significantly impact an agent’s commission.
- The lead generation screening process is outdated and lacks proper vetting, potentially affecting the quality of leads received by agents.
What are the Alternatives to Zillow Flex?
If Zillow Flex isn’t your preferred choice, there are other alternatives you can consider.
Zillow Premier Agent
With Zillow Premier Agent, you have a powerful tool to generate real estate leads. Utilize this option by creating a compelling profile that showcases your expertise, past sales, and client testimonials. In order to build trust, it’s essential to respond quickly to inquiries and reviews.
You can maximize your exposure by strategically selecting zip codes and investing in advertising options. Engage with potential clients by providing valuable insights in the Q&A section. Leverage the platform’s resources and analytics to track your performance and continuously refine your lead generation strategies.
Content Marketing
Another way of generating more leads is by establishing a strong online presence. You can create informative blog articles, e-books, or video content that addresses common real estate questions and provides value to your target audience.
Optimize your content for search engines to attract organic traffic and capture leads through opt-in forms or lead magnets.
Check this out: How to Boost Lead Generation Using Content Marketing
Online Advertising
Generating leads through online advertising platforms is simpler than you might think. First, identify your target audience and create compelling ads that catch their attention. Platforms like Google, Bing, or Facebook allow you to reach potential clients effectively.
All you need is to determine a budget, select relevant keywords or demographics, and launch your ads. Once users click on your advertisements, they’ll be directed to a dedicated landing page. Here, they will fill out their personal information in exchange for valuable resources or enticing offers. These acquired leads can then be effectively nurtured and followed up with.
The Bottom Line
Zillow Flex can be a valuable source for generating leads, particularly for individuals in the early stages of their real estate careers. It gives an opportunity to connect with potential buyers without any upfront costs, allowing agents to focus on nurturing relationships and closing transactions.
However, it is crucial to approach Zillow Flex with a discerning mindset. As with any lead generation program, assessing its suitability for your specific business needs and market dynamics is essential.
Being smart means exploring other options as well. Diversifying lead generation strategies, such as leveraging social media, content marketing, referrals, and other online advertising platforms, can enhance your reach and increase your chances of success.
Last modified: May 16, 2023
