Phil Faranda: Zillow Puts My Listings In Front of Millions

If you spend much time perusing the chatter in Facebook groups or blog comments, you're likely to run across someone voicing an opinion like this:

'Zillow takes my listings and sells me back the leads.'

Or, 'But there are competitors displayed on my listings!'

Recently, I spoke at length about this topic with J. Philip Faranda, a real estate broker in Westchester County, New York, and the owner of J. Philip Real Estate.

Marketing is not an entitlement

'When I got into the industry in 1996, sellers would say to us, 'I want to see my house in the newspaper, and in the homes magazine,' and the costs for those were prohibitive,' Phil told me.

To which I responded, 'But you were the exclusive agent on those ads, right?'

Phil replied, 'Yes, when you bought those ads, you were the sole contact for that ad. But, it was a very expensive proposition for a vehicle that would show up Sunday morning and be in the recycle bin or left on the subway by Monday afternoon.

'Then came the Internet, which allowed us to market our properties 24/7 without them disappearing into the recycle bin. For us to be the only contact there was a cost. That's called marketing. It's a marketing expense.

'Being the sole contact on your listing on a third-party website is not an entitlement, it is a very cost-effective marketing expense that is Lilliputian compared to what we used to spend on the New York Times. I used to give the Times the equivalent of a mortgage payment every month.'

Can you forego online advertising?

At this point, I wondered out loud how effective those classified and magazine ads were. Naturally, Phil had the answer.

'$500 a month for the homes magazine, and in three years the only call I ever got was from people who were riding the bus or subway and picked up a free copy. They called asking if they could rent a for-sale property. They weren't even close to being a buyer prospect.'

If traditional marketing techniques like classified ads and magazines aren't the most cost-effective or efficient ways of marketing listings today, does an agent HAVE to advertise on Zillow, or online in general?

Phil remarked, 'The reach of the Internet is so surgically precise, so easy to measure, so scientifically accurate that I now have sellers who can find out more about their listing while they smoke a cigar in their bathtub with their iPad than I could get even three years ago.

'This is simply paying for marketing. If you don't want to market your listings on Zillow or elsewhere, then don't. Personally and professionally, I can't fathom telling your seller their home won't be on the highest-trafficked real estate sites on the planet, but it is an option.'

Exclusivity comes with a cost

As we wound down our conversation, I asked Phil once more if being the exclusive advertiser on your listings was critical.

'It's nonsensical. A few out there preach that being the sole agent displayed on your marketing platforms is the only way to get 'your' leads. I'd like to ask them this question: If exclusivity truly makes a difference, then why aren't people making an absolute fortune from sign calls?

'The answer to that is simple. It's because most people don't drive around looking at signs anymore. Why not? Because they are on the Internet. For the few that do still drive around, they aren't going to call you, they'll still use the Internet. They are going to pull up to a home, Google the address or open up their preferred app — be that Zillow, Trulia, a brokerage app, whatever. And if your listing doesn't show up on their app, what will they do? They'll drive down the street and try pulling up the next one. Now you're stuck trying to explain to your client that because you might miss a lead or two, you won't put their home on a Zillow or Trulia — for free I might add. Good luck with that conversation.'

As we wrapped up our (thoroughly delightful) conversation, Phil offered this food for thought:

'Look, I understand that it feels like everyone has their hands in our pockets. Trust me, I get calls every day from someone trying to sell me something. You have to evaluate all your options. For me, if an agent spends $250 a month advertising on Zillow, that's the equivalent of buying a tiny little classified ad that lived for a day and a half in 2004. Now they get world-wide exposure, with a CRM, 24/7 visibility and granular stats on visibility... And that's bad? How is that bad? I just don't get it.

'To be the sole contact on your listing, the sole contact, there is an expense. To be shown as the listing agent, along with other advertising agents, is free. Zillow doesn't 'sell me back my leads,' they provide a remarkably efficient and effective marketing plan that puts my seller's home in front of a world-wide audience. Again, I have to ask, when did a marketing cost become an entitlement? Why does anyone expect to market for free? There is no marketing platform in existence, none, that doesn't come with a cost.'

Set up a free profile on Zillow

As Phil mentioned, with a free Zillow profile, you can be displayed on your listings at no charge. You'll get top billing and be identified as the listing agent for free. It's easy and fast — click here for a step-by-step guide to setting up a free profile on ZIllow.