Zillow Begins Trialing Major Changes to Premier Agent Program
Zillow recently announced major changes to its Premier Agent program, ultimately leaving hundreds of partners without access to the lead generation platform. The changes come after reevaluating how the company supports its growing customer base.
Starting May 25, the Premier Agent program will pilot a new pay structure and hands-on approach to connecting new customers with Premier Agent partners. While only a pilot at this time, the program is expected to expand to various markets in the near future.
Here’s what you need to know about the changes.
What is Happening to Zillow’s Premier Agent Program?
Zillow Senior Vice President of Business Operations Stephen Capezza announced that the company will be switching the Premier Agent program to a “post pay” or “success fee” payment structure. The news was shared in mid-April via a letter posted to Zillow Group’s blog.
Currently, the Premier Agent program charges an upfront monthly fee for lead generation services. But soon, agents will be charged 20-35% of their commission on any transactions completed as a result of leads from Zillow. So, for example, if a contract states a total 5% commission, with 2.5% going to each agent, Zillow would charge the Premier Agent partner up to 35% of that 2.5% commission.
On May 25, Zillow will launch a pilot of the new structure in two cities, Raleigh, NC and Denver, CO, to test the service before expanding to other markets. However, not all Premier Agent partners in the two cities will have the opportunity to participate.
When the pilot program launches, the option to pay upfront for leads will disappear for all Premier Agent partners in the two markets. Only agents selected by Zillow will be able to participate in the new program and have access to paid leads. While all current Premier Agent partners in Raleigh and Denver will still have access to their agent profiles on Zillow, the “several hundred” agents not selected to move forward in the new program will be without access to pre-paid leads.
Beyond the new payment structure, the pivot in strategy also includes other changes. In an effort to make the homebuying process more seamless for customers, Zillow will now be offering additional services to help homebuyers move more quickly. For example, when a customer reaches out to Zillow in regards to a property, they will now be routed directly to a Zillow Advisor. That advisor will help the customer be “better prepared to transact.” When the customer is ready, the advisor will then refer them out to a Premier Agent partner ready to help them seal the deal on their next home.
Zillow is also exploring ways they can integrate Zillow Home Loans into the process, with the goal of helping customers at every phase of their homebuying journey. Capezza says that by integrating the loan service into the process, Zillow can connect more “transaction-ready customers” with Premier Agent partners.
Zillow hopes that by implementing stronger support for customers throughout the entire homebuying process, they will feel more confident in their final transaction.
Is the Prepaid Lead Generation Model Disappearing for Good?
While the prepaid model will be done away with in some cities, Capezza shared that he doesn’t anticipate Zillow’s traditional prepaid model ever fully disappearing in every market. That said, he does plan to replicate the “post pay” model in cities beyond Raleigh and Denver. However, at this time, Zillow has not identified which markets it hopes to expand the program to.
Why is Zillow Making These Changes to the Premier Agent Program?
In Capezza’s letter, he shared that the changes to the Premier Agent program are coming after an effort to define what it really means to “help [their] customers do more than just connect with a great agent.” Capezza said that this means streamlining the homebuying process to get customers into their next home more easily.
In the letter, he said, “This is all part of our efforts to create an ecosystem of integrated solutions designed to empower customers and partners throughout the real estate process — from start to finish.”
That said, the changes to the Premier Program are coming just months after Zillow shut down its iBuying business. While the iBuying program was once a core piece of Zillow’s vision for 2022, the program wasn’t as profitable as the company initially hoped. Ultimately, Zillow ran into several issues with the program, causing the company’s stock price to plummet.
The changes to the Premier Program are simply a start in a much larger vision for Zillow’s pivot. Zillow plans to use what they learn from implementing these changes to continue to innovate and craft additional solutions for partners across the country.
Capezza said he is excited about the changes coming to Zillow, both for agents and for customers. He firmly believes that “the products [they’re] building will bring efficiencies to [their] agent partners while also positioning them to take part in more transactions.“
Overwhelmed by digital marketing and looking for some help? Listing3D has got you covered. With our exclusive marketing packages, we use the most up-to-date technology to advertise your work to the biggest and best audience. Our packages include immersive virtual tours (created using 3D cameras), teaser videos of the property, 3D Flyers with scannable QR codes, and a landing webpage with all your contact information, helping future clients easily contact you. With your talent and our technology, we’ll advertise your listings far and wide to help you sell your properties faster and more efficiently.
Additional Services
Take Your Marketing Even Further
Additional Features at no cost
Part of any package
Press
