If you’re unfamiliar with Zillow Flex leads, it’s the perfect time to tune in. There are other real estate lead generation services out there, but the Zillow Flex program offers a unique model with some interesting options.
Understanding how Flex leads work is crucial for your success, especially in a highly competitive market. In this post, we’re breaking down everything you need to know to unlock the real potential of Zillow Flex leads.
How Does Zillow Flex Get (and Distribute) These Leads?
Zillow casts a wide net across the internet, attracting home buyers and sellers like moths to a flame. They use complex algorithms (the kind you don’t want to think too hard about) to determine which leads are hot and ready to transact.
Now, here’s where it gets interesting—Zillow doesn’t hand out leads to just anyone. It’s not as simple as signing up and having leads delivered to your inbox. They have a criteria system that considers your performance as an agent. So, if you’ve got the chops, you’ll get more leads. But if you’re slacking, don’t be surprised if your lead supply dries up faster.
Importantly, Zillow Flex is a pay-for-performance model, which means you only pay for leads that actually close (as opposed to other programs where you pay for the leads upfront). There are a lot of Zillow Flex leads reviews saying the platform is a smart investment for agents who are confident in their abilities and just want a bump in volume.
What Kind of Leads do Agents Get?
Sometimes, agents are turned off from lead services because they aren’t getting high-quality prospects. Zillow Flex claims to be different, due to agent performance standards and technology advancements (like those algorithms we mentioned).
Typically, a Flex lead is someone who’s either looking to buy or sell. They’ve been validated, so you’re not just getting anyone off the street. These leads are ready to transact, not a random person who’s “thinking about selling” but never seems to get around to it.
Many Zillow Flex leads reviews say that these prospects are higher-quality and more likely to close, but obviously this will vary based on your particular region and the other agents competing for leads.
Agent Expectations
With great leads come great responsibilities. Zillow expects agents to follow up promptly. You’ll need to meet certain performance metrics–and they’re not just suggestions. Fail to meet them, and you might find yourself on the naughty list, getting fewer leads than your competition.
The KPIs that Zillow will monitor for agents include*:
- 100% or greater % to Logged Transaction Target over the last 6 months.
- 15% Engaged Transfer Rate for a three-month period, including an additional month of buffer to allow for leads to mature.
- Your Zillow Home Loans Contact Rate must be at least 60% over a 3 month timeframe for your Flex team to be eligible for connection volume growth.
- 60% or greater Answer Rate over the last three months.
- 100% Pay on Time Rate over the last 3 months.
- 100% Closing Doc Submission Rate over the last three months.
*From the Zillow Flex website.
Strategies for Converting Zillow Flex Leads
Alright, so you’ve got your Flex leads—now what? Here are some best practices for turning those leads into clients.
Make The Initial Contact Count
When you get a Flex lead, the clock starts ticking! Start by reaching out promptly, preferably within minutes of receiving the lead. A quick call or personalized email can make all the difference. Note the word “personalized”: it’s best not to just read from a script, but make it conversational, ask about their goals, and listen actively.
Craft Engaging Follow-Up Messages
As most agents know, follow-ups are crucial after the initial contact. Think of them as gentle nudges rather than annoying reminders. Space your follow-up messages strategically. A good rule of thumb is to reach out within a few days and then at regular intervals after that.
Furthermore, remember that content matters. Share valuable information, like market trends or new listings that align with their interests. This positions you as a helpful resource rather than just a salesperson. Plus, it can subconsciously trigger the principle of reciprocity–where people feel like they want to do something for you if you’ve done something for them.
Utilize Zillow’s Tools and CRM System
Zillow provides a range of tools to help you manage leads effectively. Dive into these resources—they’re there for a reason! In particular, taking full advantage of Zillow’s CRM to track lead interactions, set reminders, and log notes can be really helpful. Plus, you can set up automated messaging features so that your leads get timely updates (though of course, you should take some time to personalize them first).
Remember: Personalization is Key
In case it’s not clear already, we think customization is really important. In a world full of cookie-cutter approaches, personalization stands out. Reference specific details from your conversations. If someone mentioned a favorite neighborhood, bring it up in your follow-ups.
You can also create tailored market reports that reflect specific interests. It shows you’re invested in someone’s journey. The more valuable information you can provide on their unique situation, the better.
Build Relationships
As you already know, real estate is a business of connections. Long-term success with Flex leads isn’t just about closing deals; it’s about building relationships.
Even after closing, we suggest staying in touch with contacts. Send them holiday greetings or check in on their new home. Happy clients are often repeat clients and great sources of referrals. You may also want to ask for their feedback on your services. It shows you care and provides insights that can improve your approach. Then you can parlay this investment into full-commission opportunities!
The Good and the Bad: What Reviews Say About Zillow Flex Leads
Let’s break it down—what are the perks and pitfalls of working with Zillow Flex leads? Here are the general points that most Zillow Flex leads reviews touch on.
Advantages of Zillow Flex Leads
- No Upfront Costs–One of the biggest perks of Zillow Flex is that you don’t pay upfront for the leads. You only pay when you close a deal, which means less financial risk for you.
- Access to Motivated Leads–Flex leads are typically more motivated than your average lead. These are people ready to make a move—whether buying or selling—so you’re working with potential clients who are serious about their decisions.
- Performance-Based Distribution–Since leads are distributed based on agent performance, there’s a built-in incentive to improve your skills and services. This not only helps you grow as an agent but also fosters a competitive spirit among agents, leading to better service overall.
- Enhanced Visibility on Zillow–Being part of the Flex program often means enhanced visibility on the Zillow platform. This boosts your chances of being seen by potential clients who are browsing listings, giving you an edge over agents not in the program.
Potential Downsides of Zillow Flex Leads
- High Referral Fees–While there are no upfront costs, the referral fees can be steep. Once you close a deal, Zillow takes a percentage, which might feel like a bite out of your hard-earned commission.
- Performance Pressure–If you don’t meet the standards set by Zillow, you risk losing access to leads. This can create an even higher-stress environment, especially when you’re just starting out or trying to establish yourself in a competitive market.
- Limited Control Over Lead Distribution–You don’t have control over how many leads you receive or their specific quality. If you’re in a market with many competing agents, you might find yourself getting fewer leads than you anticipated. There’s no contract promising a certain amount of leads each month.
- Dependency on Zillow’s Algorithm–Your success will be tied to Zillow’s ever-evolving algorithm and lead distribution methods (at least somewhat). If they change the criteria for lead allocation, it could impact your business without warning.
Comparison with Other Lead Generation Programs
Zillow has another lead generation option called Premier Agents, and both platforms can be helpful for pros looking to grow their business. That said, Flex operates on a success fee basis, while Premier Agents users typically pay upfront for advertising. So, the main difference here is that you’ll pay for Flex leads at closing, while Premier Agent requires some initial investment.
When stacking Zillow Flex up against other third-party lead providers, you’ll want to weigh the costs and benefits carefully. There’s no one-size-fits-all program that’s going to be ideal for every agent.
In addition to the performance-based payment structure, Zillow Flex offers great brand recognition as the leading online real estate marketplace. You can also take advantage of their integrated tools and resources, including CRM and marketing support. Here are a few specific platforms and the ways that Zillow Flex leads differ:
- Realtor.com–This platform offers lead generation through its marketing and advertising services, but typically charges agents upfront for leads. Several models are available, and most require initial investments, while their ReadyConnect Concierge service connects agents with leads for a fee, similar to Zillow Flex.
- Redfin–Operating as both a real estate brokerage and a lead generation service, the company employs a salaried agent model, which differs from the commission-based structure of Zillow Flex. Redfin offers its technology and tools for agents, so some of the perks of Zillow Flex can also be found here.
- OpCity–Similar to Zillow Flex, agents pay a fee for closed deals rather than upfront costs. While aligned with Zillow Flex in performance-based payment, OpCity does not have the same level of brand recognition as Zillow and, therefore, may provide fewer leads.
- BoomTown–Marketed as a comprehensive real estate CRM and marketing platform that offers lead generation services, BoomTown charges a subscription fee for its services. You can also expect additional costs for leads.
Future Outlook for Zillow Flex Leads
Rumor has it there could be changes in lead distribution methods and expansion plans—because who doesn’t want more leads, right? But obviously, only the decision-makers at Zillow know what the future holds there.
As the real estate landscape progresses, so will lead generation methods. We could be looking at an increased use of AI and automation, which will likely change the algorithms that platforms such as Zillow Flex use. Also, consumer expectations are shifting to more sophisticated marketing strategies (including enhanced personalization) and faster responses. We also expect more integration between various real estate tools and technologies, which may allow agents to manage leads more effectively but could also further consolidate the influence certain companies have (including Zillow).
For now, we believe that if you take the time to understand Zillow Flex leads, it can be a game-changer for your real estate results. For those ready to put in the work and embrace the hustle, these leads could be your next golden ticket. That said, it might be a less lucrative option for newbie agents or those who need to get a few more deals under their belts before committing to Zillow Flex performance standards.
