Zillow vs Redfin


The app is OK. I've got to give it to them for starting the 'tech-realtor revolution' by creating a popular website/app for listings to be sold (by realtors or by FSBOs). But.. this recognition is likely short-lived due to their business model… Zillow makes all its money by selling leads to agents. They are one of the most expensive and effective lead generation sources for agents. Until….


Awesome app. But even more influential – their structure. They're like the China of the tech-realtor revolution because they're growing slow and smart, over time. Instead of selling advertisement, like Zillow, they've basically created a nation-wide agency that employs agents! By doing this, they relieve realtors of the most difficult task in real estate – prospecting. The app does all the prospecting for Redfin agents. In addition to never having to prospect again, Redfin agents get a minimal monthly salary along with a small fraction of the commissions of their sales, which abolishes another severe task agents endure – waiting for the next pay check…

As the economy corrects itself and real estate cools off, I think Zillow will become lass worth the marketing dollars while Redfin will continue developing its technologies and solving more problems in the everyday life of the real estate business.

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