Realtors are starting to catch on to the game, Zillow has been using all their hard work, copyrighted images and data through their "syndication" agreements. It was fine when Zillow was small and it was mutually beneficial, but since Zillow is now charging these very people to "buy" their own leads back, there's a big push to pull back the feeds to Zillow, Trulia, etc. On top of it, Zillow is barely profitable, what happens if say just 20% of this data gets pulled back? The consumer will find out where it is, and that being the local Realtor MLS or wheverever they put it, and they'll stop using Zillow. If the move off Zillow gains momentum, the site becomes irrelevant overnight and a has been. Furthermore, these same Realtors who are paying for Zillow are going to stop paying if their local organizations pull back the data feeds. That's how the death spiral begins. In the mean time Zillow will keep throwing more cash at the problem in "marketing" and buying up other non-profitable real estate sites. Once they run out of cash, it's game over.
It's a no brainer that Realtors wise up to Zillow as Brad highlights. Why would they pay Zillow an average zip code fee of $267 a month when the information is so restricted as to make it even more useless than it already is. What with the Point2 syndication restrictions detailed below it looks like the begining of the end for Zillow
surbiton99 • Mar 19, 2013 9:35 PM 0users liked this postsusers disliked this posts0Reply
How will Point2' new listings distribution policy impact Zillows 1st quarter revenues?
Point2 Technologies is the 2nd largest real estate listings syndication platform and from January 1st they implemented a new listings distribution policy which means that Point2-fed listings may not be re-syndicated, must prominently displays the listing and the agents name and contact information, and must not be used to sell to other agents or brokers.
With Zillow selling ads for competing agents next to listings that are provided by other brokers it will be interesting how the new Point2 policy impacts Zillows revenues. For full information on Point2's new policy, go to the Inman website and put "Point2 will limit third-party sites' use of listing data" in the search box to call up the full explanation.