Posted by on February 28, 2014 4:14 pm
Categories: Marketing NAR Point of View

Ok. Here is a little exercise for all of those who think that they are getting a FREE ride with Zillow, Trulia, and Move (

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 (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. 





 – 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.


8 responses to How many REALTORS would it take to support R,T and Z’s CURRENT Valuation?

  1. Greg Swann February 28th, 2014 at 4:41 pm

    You can’t get blood from a stone. I think Google will have to lose this money. Them or the taxpayers.


  2. Eric Blackwell February 28th, 2014 at 4:44 pm

    @Greg – True. Tomorrow’s post documents how much they are paying to frack that stone for blood. Interesting.


  3. Eric Blackwell February 28th, 2014 at 4:53 pm

    @Greg – or the shareholder that put a 3.44 Billion valuation on a company that loses $12.5MM in 2013. That is a possibility as well.


  4. Mark Washburn March 1st, 2014 at 1:33 pm

    Once this market is tapped out for new Realtor advertising subs, these companies will have to further crank up the acquisition strategy to enter adjacent markets. The list of acquired companies is growing and includes……Diverse Solutions, Market Leader, Postlets, Hot Pads, Street Easy, Rent Juice and a few more. Time to go start a company I can flip to Z or T for $50M!


  5. Eric Blackwell March 1st, 2014 at 2:22 pm

    That’s phase one Mark. And it is what they have opted for currently. They can use it leverage their marketing expenses (see today’s post) If that fails to feed the bulldog. The only next option is to cannibalize by going brokerage or franchise.


  6. Bob Wilson March 1st, 2014 at 5:15 pm

    Eric, you are dead.
    Zillow needs to own the lead distribution to continue to indenture these servant agents.

    I talk to thousands of agents and brokers a year and it is scary how many are unae to generate any business on their own.


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