Ok. Here is a little exercise for all of those who think that they are getting a FREE ride with Zillow, Trulia, and Move (REaltor.com).
As you look at these figures, PLEASE realize that currently while there are roughly 987,000 REALTORS currently that are members of NAR, realistically, there are only about 250,000 that are making enough to support Zillow and Trulia and Realtor.com (Move, Inc.) to any great degree. The rest make so little that there is NO way that they can pay much of anything to them.
The time for REALTORS to get taken to the cleaners is long since passed and it is STARTING to happen. The salad days of parties at NAR, and social media friends who want us to like these guys are going to go by the wayside as they reach DEEPER into REALTOR wallets. Here are the current valuations of these companies.
Zillow- And something to keep in mind is that Zillow spent over $108 Million (according to their 2103 annual report) in sales and marketing to generate only $197 Million in Revenue. And they lost money to the tune of $12.5 Million for the year. (source: Annual Report 2-2014). And yet they are Valued at over 3.44 BILLION
Trulia -another really RICH valuation by anyone’s measure.
Realtor.com – By comparison a bargain. BUT still the SAME business model.
“So there are well over $5 BILLION dollars of valuation sitting in companies and they are looking to YOU as REALTORS for their income. How does that make you feel?” – Eric Blackwell
Now total ALL of these up and divide it by the 250,00 Realtors who even COULD pay anything and you see that this is about to get VERY EXPENSIVE for REALTORS really soon, right?
Something to think about.