Zillow’s Most Interesting Product

In a year dominated by a confusing market, major advances in AI, and disruptors fighting for survival – Zillow has arguably released its most ambitious product since iBuying: Listing Showcase .

Why it matters: Listing Showcase represents a new business model – from pay-per-lead to pay-per-listing – which is aligned to how Zillow’s very profitable international peers monetize their market-leading positions.

The Listing Showcase product promotes a specific listing with larger photos, enhanced agent branding, and premium placement in search results.

• It’s also exclusive in each market, providing participating agents a unique advantage over other agents (“only my listings are enhanced in this market, making your property stand out”).
  

• The result is a high profile listing with strong agent branding, ideally leading to more seller leads for partner agents.

Dig deeper : For years, seller leads have been the mythical holy grail of online real estate – incredibly valuable, but very difficult to generate at scale.

• One surprise of the last five years was iBuying, which despite its challenges, turned out to be a great way to generate high quality, high intent seller leads (read more: Zillow's billion dollar seller lead opportunity ).
  

• Before it was shut down, Zillow Offers was generating tens of thousands of valuable seller leads per month.

Like its overseas peers , Zillow is using the concept of scarcity to increase the value of Listing Showcase; if it were available to any agent willing to pay, it would confer no unique advantage – but offered on an exclusive basis, the value becomes exponentially higher.

• Without an MLS, nearly all international portals charge agents (or home sellers) on a pay-per-listing basis, with multiple tiers of enhanced exposure.
  

• Australia’s REA Group is masterful in the art of premium listings, which always include larger photos, premium placement in search results, and enhanced agent branding – all of which are features of Zillow’s Listing Showcase.

Yes, but : By only promoting the listing agent, Listing Showcase will cannibalize Zillow’s existing buyer lead business – but that’s not necessarily a bad thing.

• Listing Showcase is a hedge against any potential impact from the various lawsuits that may restrict or change buyer agent commissions.
  

• It also neutralizes the threat of CoStar's "your listing, your lead" product offering.

The bottom line : Listing Showcase is a serious, credible attempt by Zillow to expand its business from selling leads to selling exposure .

• Modeled on its international peers, Listing Showcase has the hallmarks of a classic pay-to-play premium product, which, on a per listing basis, is a significant endeavor for the company.
  

• At its best, it’s a potential premium revenue stream that’s good for agents (the ones that pay), consumers, and Zillow's bottom line.