Are Real Estate Affiliate Programs Right for You?

In this article:

• What is a real estate affiliate program?
• How do real estate affiliate programs work?
• What are the benefits of real estate affiliate marketing?
• What are the drawbacks of real estate affiliate marketing?
• Rules associated with affiliate marketing for real estate agents
• Consequences of breaking an affiliate marketing real estate rule
• How to maximize your real estate affiliate income
• Should you participate in real estate agent affiliate programs?

Real estate affiliate marketing lets you connect buyers and sellers to the information and resources they’re searching for online — and earn a commission while doing it.

According to the Zillow Group Consumer Housing Trends Report 2019, millennials (ages 25-39) comprise the largest single group of home buyers. Their home searches are influenced by technology and a Google culture that empowers them to seek information on their own. If that sounds like your target market — or a growing percentage of your business — then it’s worth considering a real estate affiliate program.

What is a real estate affiliate program?

An affiliate program is a performance-based marketing strategy where you share another company’s product links on your real estate website or blog and earn a commission when you send traffic to the business or organization.

How do real estate affiliate programs work?

Web-based affiliate programs use ads with tracking codes. If one of your website visitors interacts with that ad — and either registers their info or purchases a product or service — you’ll get a cut of the proceeds.

Your cut will vary depending on the products being advertised and the terms of the affiliate program. Common programs include: 

Cost per click. A program that might pay 10 cents to $20 per click.

Cost per action. A program where a lead, submission, registration or purchase could pay up to $20.

Shared revenue partnership. An agreement where you could earn more than $20 per lead. 

However, a shared revenue partnership could be risky, because you could earn less than you would with another affiliate program.

Identifying who is searching online for real estate information will help you determine which type of affiliate program is best for your website.

What are the benefits of real estate affiliate marketing?

Affiliate marketing success varies depending on your website traffic, marketing relevance and other factors. The best real estate affiliate programs provide these advantages:

Reputation as a trusted source of real estate knowledge. Buyers and sellers will see you as helpful, credible and trustworthy.

Additional income. Affiliate marketing for real estate agents can be a viable source of extra income and can build professional connections with other businesses in the real estate market.

What are the drawbacks of real estate affiliate marketing?

Attracting the right audience takes time, effort and research — and promoting the right products for your audience can be just as much work. Some potential drawbacks of affiliate marketing real estate programs are:

Implied endorsement of bad products. The ads on your website can be seen as your personal recommendations. If the product is bad, you can lose credibility.

Competing against yourself. Do you want your visitors to stay on your site or visit the affiliate link?

Competing against larger sites. Large websites dominate internet traffic — you’ll need to use keyword search tools to bring visitors to your site. If you don’t already use these tools, you may need to spend time and money to learn.

Large amounts of time invested in your website. You’ll need a regular flow of helpful, engaging content to keep visitors coming to your site. If you can’t devote time to this, consider other advertising options like Zillow Premier Agent.

Rules associated with affiliate marketing for real estate agents

As individual blogging became more commonplace, the Federal Trade Commission (FTC) started receiving complaints about deceptive advertising and undisclosed relationships between advertisers and affiliate marketers. They created rules to protect consumers. Here’s a summary:

• Only promote a product or service you personally endorse 100%.
• Include a disclosure statement that notifies readers of your affiliate relationship.
• Carefully read and follow the policies for each real estate affiliate program.
• Include affiliate links responsibly — don’t spam visitors.
• Check with your broker or attorney before accepting commissions to ensure you’re complying with real estate law.

Consequences of breaking an affiliate marketing real estate rule

If your advertisements don’t comply with the law, you could face enforcement actions or civil lawsuits. For advertisers under the FTC’s jurisdiction, that could mean:

• Orders to cease and desist, with potential fines up to $16,000 per violation
• Injunctions by federal district courts — potential fines and civil or criminal contempt proceedings
• In some instances, payments to consumers for actual damages in civil lawsuits

How to maximize your real estate affiliate income

Once you establish regular website traffic, you need visitors to select a link and make a purchase. By offering helpful information and focusing on a relevant market, you can increase your chances of making that happen.

Become an influencer

Regular updates are important for building a constant stream of traffic to your website or blog. You need to:

• Know about the products your real estate affiliate marketing program offers.
• Understand your audience’s wants and needs.
• Provide useful recommendations to fulfill those wants and needs.

Demonstrate expertise

Write blog posts that share your real estate knowledge and keep visitors coming back for more.

One example: Promote a real estate investment book by blogging about your key takeaways. This shows you’re always improving your own skills and staying current with trends. It’s also an easy way to introduce an affiliate link.

Align blog content with natural real estate advertising

Create real estate content that benefits your audience, and affiliate products will naturally fit in. For example:

• Writing about fixing up your home opens advertisement opportunities for painters, contractors, window cleaners and landscapers.
• Writing about listing your home opens opportunities to advertise cameras and photography or staging services.

Should you participate in real estate agent affiliate programs?

Real estate affiliate marketing may not be for everyone. While it can supplement your income, it’s not a primary source of income. And it takes time to get it right — from establishing your website and building regular traffic to staying relevant and following regulations — so the extra work might not pay off for quite a while.

As with any business decision, ensure you understand and weigh the pros and cons. Don’t blindly join affiliate programs without understanding what it takes to succeed and what the potential ramifications are for failure. Test, evaluate and adjust as necessary — you may find some real estate affiliate programs are worth it and some aren’t.