Ryan Mahoney (Dubai, UAE) is the owner and CEO of CenCorp. Utilizing his considerable experience of the property sector, Ryan Mahoney leads a conglomerate of real estate-related businesses. This article will look at next generation lead generation and how it is driving transformation in the global real estate industry.
Next generation lead generation marks an evolution towards delivering qualified leads within a commission share model. It accounts for an increasing proportion of portal lead generation revenues. This emerging global trend targets both buyer and seller leads, with some of the world’s biggest real estate portals investing heavily in next generation lead generation, including several large acquisitions.
In 2022, Zillow announced that it was shifting all operations to its Flex success fee model in two major markets: Raleigh and Denver. Flex is a next generation lead generation model that features a 35% commission share and lead qualification by Zillow employees. Many industry insiders predict that the model is the future of real estate portal lead generation, enabling Zillow to get much closer to the transaction.
Zillow previously operated its Flex model alongside its conventional pay-per-lead model. However, this changed in 2022 when the portal decided to go all out with two major markets, using the Flex model exclusively in Denver and Raleigh. In doing this, Zillow sent a powerful signal of its intent to control more of the transaction.
In addition to Zillow, several other leading real estate portals have made bold moves towards this model, with Realtor.com acquiring Opcity for $210 million in 2018; Axel Springer acquiring MeilleursAgents for a reported €200 million in 2019; and ImmoScout24 acquiring Immoverkauf24 for €27 million in 2020.
While US portals are focusing primarily on monetizing buyer leads, international platforms like MeilleursAgents and ImmoScout24 are placing more emphasis on generating seller leads. Agents are increasingly discovering that the most effective means of reaching prospective sellers is by providing property valuations. One of the greatest advantages of this model lies in the fact that leads are qualified before being handed over to a partner agent, in many cases having been called directly by the portal within mere minutes of submitting a form.
Like other industries, the property market continues to evolve in response to changing consumer demands. Today, homebuyers and sellers alike demand a different kind of interaction between themselves and real estate professionals. As a result, the techniques and responsibility of lead generation are also changing as agents scramble to keep pace with changing customer needs and preferences.