In the Movie Industry, "Any publicity is good publicity." Anything generating more talk, more buzz and more media coverage, ink and otherwise; is good. And it's all free. Just think of those sex tapes of Pam Anderson and Paris Hilton; or almost anything Brittany Spears drops; or does, or doesn't wear. Bad is the new Good; at least when it come to publicity.
But what does all this have to do with Zillow and Home Search (besides checking out the homes of Pam, Paris and Mrs Federline)? Hasn't selling houses always been Zillow's real goal? Isn't Zillow a closet RE/MAX? Doesn't Zillow have tons of top agents holed up in Seattle, chomping at the bit, ready to go and steal our commissions? No! No! A thousand times, No! Zillow's goal is to sell advertising, not houses. If you fear Zillow will become Ziplow Realty, Coldwell Barton, or Z-Lo/MAX; then you should mount your next ad campaign against your local newspaper, too. Zillow is a media company, not a NRT wannabee. Your local newspaper is a print media, selling classified ads. Zillow is an Internet media, selling virtual classified ads. Can you sell virtual houses? Yet? Know! Know! A thousand times Know!
Media companies drive traffic first. Zillow is driving traffic first. As much traffic as possible. Just like Google (think Google-Zillow Model) did and does. Then Zillow monetizes the traffic by selling Google ads all over their home-search click steam. Wallah: "Make money the new fashioned way; like Google."
Google proved the model for Horizontal Search. Will Zillow prove the model for Vertical Search? Three Venture Capital firms: PAR Capital (Boston), Benchmark Capital (Ca), and Technology Crossover Venture (Ca), think so; to the tune of $57 million of their post dot-com-bust dollars. But we still need to wait and see if Zillow can be successful in the Home Search space. Zillow is the first major test of the Internet ad-sale model for Vertical Search Engines.
But won't Google and the "Me Too" Googles (Yahoo, MSN, AOL and Ask) beat Zillow to the promised land of the Home Search ad space? Yahoo already subscribes to Zillow's property info. And, if Google's failures with blog search (Technorati.com), social networking (MySpace.com) and Internet video (YouTube) are any indication; Zillow will have the best opportunity to be #1 in selling the advertising on people's most valuable asset. Google may have to settle for an ad piece of Zillow's Home Search pie.
Who would want to be the next HSA, RE/MAX or Prudential of Real Estate; when tey could be the first Google of Home Search? Competition? What Competition? There is little competition in the Ad-Sale Home Search Market. Are any of Zillow's VC's putting their millions into Next Realty, Zip Realty, NRT or any of the other Real Estate Brokerages? How are these Real Estate stocks doing in this higher interest rate market? Did you get out on time?
In Real Estate 2.0, the most valuable property will be the Real Estate in the hearts and minds of home buyers and sellers; and the Web Real Estate around the pictures, maps and info of every home in the US. Guess where Zillow is?
By offering Google-like search, Google-like results, at a Google-like price, free ; Zillow will become the top-of-the-mind Web site for every home seller wanting to find out the first approximation of their homes' value. Think: Driving Traffic. Whether Zillow's Zestimate is right or wrong, is not the issue. Think: Driving Traffic. Zillow is first in their minds. Zillow has the prime Real Estate. Zillow has the high ground. Zillow has the "A" Office Space.
Zillow drives traffic first. Zillow provides all their data, one click, in seconds, interactive, on the Web; and free. How long did it take to do your last CMA? Do you do CMA's for everyone? Did you want or get their email address or their phone number? Just read your own newspaper ads and flyers, and see if you did.
Zillow had 2.3 million visitors last month, doing at least that many Zestimates. There were 1.1 million Realtors and 2.3 million licensed agents in 2005. How many CMA's did they do? How many hours did it take? "I'll get back to you in a few hours." "Sign the contract."
But what's in Zillow's home search for Realtors? A lot. Soon we'll be able to advertise on our own listings and target our advertising to any or all home listings by location, price or feature.
What's in it for Zillow? A lot. They have the ideal tool to sell ads to Realtors, Lenders and Lawyers. And if Zillow can work out a strategy to bring home buyers and sellers back, after they sign the purchase contract, after they close and after they move in; Zillow can sell ads to all the other home-sale-related businesses and to all the new-home-owner related businesses. Then Zillow will stop selling ads, recruit a bunch of agents, and start selling houses? Because that's what we say they will do?
As Realtors, we can cooperate with Zillow, share our data; and laser target advertise on the most powerful media for Real Estate sales. Our cooperation with Zillow will open up our listings to all the Search Engines. Doesn't the due diligence of our agency to our clients, home sellers, dictate we expose their listings to the most markets possible? Even if that exposure is free?
When will sellers demand that we Realtors act like the professionals we say we are? When will sellers demand we do our due diligence and open up their data? We work with Zillow and the other Search Engines, and we'll both benefit. We can also try to take our data and go home. If we hide our data, openness will be forced on us; by Zillow, by the other search Engines, and by our good friends at the Department of Justice. Let's make our choice on our terms, while we still have a choice.
Comments