How Zillow Makes Money
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Zillow is an online real estate marketplace that offers various services for both home buyers and sellers.
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It is best known for its
Zestimate
, which provides you with the estimated market value of any given home.
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The firm was started in 2005 by Rich Barton and Lloyd Frink. Barton had previously founded online travel agency Expedia.
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They ultimately took the company public in 2011. Barton stepped down from his CEO role a year prior but returned to lead Zillow in 2019.
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Today, close to 250 million people visit its site every month while the company generates over $8 billion in revenue.
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In late 2021, Zillow shut down its home buying division, which forced it to lay off 2,000 people and incurred losses of more than $1 billion.
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But how does Zillow actually make money?
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Marketing Software
Real estate agents can pay for access to Zillow’s software. The firm charges agents for every lead it facilitates.
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Mortgages
Borrowers can take out loans or refinance their homes with Zillow. The company makes money on the interest those loans incur.
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Selling Homes
Despite shutting down its
Homes
division, Zillow continues to generate revenue as it offloads the remaining homes in its portfolio.
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