Last updated: September 1, 2025

Real estate agents spent an average of $480 per lead in 2025, yet only 2-3% of those leads convert to closed transactions. This harsh math forces a critical question when evaluating realtor.com vs zillow leads: which platform delivers the best return on your marketing investment? The battle between these platforms has intensified as both shifted toward performance-based pricing models that fundamentally change how agents calculate profitability.

This comprehensive analysis reveals the hidden costs, actual conversion rates, and strategic frameworks you need to maximize ROI from both platforms. You’ll discover specific cost-per-closing calculations for three market types, actionable testing blueprints, and the exact follow-up systems that separate profitable agents from those burning through marketing budgets.

TLDR: Platform Selection Guide

Choose Zillow when: You need volume, have $1,500+ monthly budget, can handle shared leads, want brand exposure
Choose Realtor.com when: You prioritize quality over quantity, prefer professional-focused platform, need exclusive territory options
Cost models: Zillow Premier ($1,000-$10,000/month upfront) vs Flex (25-40% on close); Realtor.com Connections ($200-$2,000/month) vs ReadyConnect (agent-reported 30-35% on close)
Bottom line: Success depends more on response speed and follow-up systems than platform choice

The 2025 Lead Generation Reality: Why Platform Choice Matters More Than Ever

The real estate lead landscape transformed dramatically in 2025. Zillow’s Flex program now charges 20% to 35% of commission on closed deals, while Realtor.com’s ReadyConnect Concierge takes a percentage of commission when deals finalize. This shift from upfront costs to performance-based pricing creates new opportunities and risks that demand strategic analysis.

2025 Reality Check: Inventory Visibility Changes Everything

Off-MLS use varies by market, with some brokerages reporting heavy use, which prompted policy clashes in 2025 including disputes between Compass and Zillow over listing practices. Zillow’s Listing Access Standards require listings be provided to the market within one business day, mirroring “market to all buyers” principles rather than creating preferential visibility.

Agent Visibility Protection Checklist:

• Verify MLS feed timing with your platform representative
• Monitor competitor listing appearance within 24 hours of MLS entry
• Track inquiry volume patterns after new listing uploads
• Document any visibility delays that affect lead flow
• Negotiate compensation adjustments for proven visibility issues

Zillow Premier Agent and Flex: Volume-Driven Lead Generation

Zillow operates as a consumer media platform first, agent tool second. With Zillow Group averaging 227 million monthly active users in Q1 2025 and 243 million in Q2 2025, Zillow captures buyers at the earliest stages of their home search journey. This creates both opportunities and challenges for agents seeking qualified leads.

Premier Agent Cost Structure and Lead Quality

Monthly Premier Agent costs typically range from $1,000 to $10,000, translating to $20 to $100 per lead. However, these averages mask significant variation by market competitiveness and home values.

Lead Funnel Benchmarks by Metro Type:

NYC Urban Core (High Density) – Example Scenario:

• Cost per lead: $180-$280 (varies by ZIP and competition)
• Appointment rate: 12-18%
• Show rate: 65-75%
• Signed agreement rate: 45-60%
• Close rate: 85-90%
• Benchmark cost per closing: $2,400-$4,200

Phoenix Suburban (Mid Density) – Example Scenario:

• Cost per lead: $85-$140 (varies by ZIP and competition)
• Appointment rate: 18-25%
• Show rate: 70-80%
• Signed agreement rate: 50-65%
• Close rate: 80-85%
• Benchmark cost per closing: $1,100-$2,100

Small Town Markets (Low Density) – Example Scenario:

• Cost per lead: $45-$85 (varies by ZIP and competition)
• Appointment rate: 25-35%
• Show rate: 75-85%
• Signed agreement rate: 60-70%
• Close rate: 85-90%
• Benchmark cost per closing: $600-$1,200

Zillow Flex: Performance-Based Lead Generation

Zillow raised Flex success fees to 40% in six markets as of October 2023, with current referral fees ranging from 25% to 40% depending on transaction price and market. Fees vary by ZIP code and competition level.

Flex Success Fee Ranges (varies by ZIP and competition):

• Properties under $300,000: 25-30% referral fee
• Properties $300,000-$600,000: 30-35% referral fee
• Properties over $600,000: 35-40% referral fee
• Select premium markets: Up to 40% referral fee

For a $500,000 home with 2.5% buyer-side commission ($12,500), a 35% Flex fee costs $4,375. This compares favorably to Premier Agent scenarios where agents might spend $3,000-$5,000 monthly for months before closing their first deal.

Buyer vs Seller Intent Analysis

Based on observed benchmarks from portal user behavior, different page types attract distinct lead patterns:

Typically Buyer-Heavy Lead Sources:

• Mortgage calculator pages: Strong buyer intent signals
• Neighborhood and school district searches: Active house hunting behavior
• Map-based property browsing: Comparison shopping patterns
• Recommendation: Target if focused on buyer representation

Typically Seller-Heavy Lead Sources:

• Home value estimator pages: Property owner research
• “What’s my home worth” searches: Listing consideration signals
• Property tax and ownership information: Homeowner inquiries
• Recommendation: Prioritize for listing-focused strategies

Mixed Intent Sources:

• General property viewing: Both buyer and seller curiosity
• Open house registration: Predominantly buyer interest with some seller research
• Market reports and trends: Professional and consumer interest

Realtor.com Connections Plus and ReadyConnect: Quality-Focused Approach

Realtor.com claims approximately 29% share of category visits in spring-summer 2025 according to company blog posts citing Comscore data. With its professional-first model and MLS-verified listings, the platform attracts more serious buyers but generates lower overall volume than Zillow.

Connections Plus Pricing and Performance

Based on agent reports and sales materials, Connections Plus follows these pricing tiers:

Non-Exclusive Packages:

• Single ZIP: $200-$400 monthly
• Multiple ZIP: $600-$1,200 monthly
• Metro package: $1,200-$2,000 monthly

Exclusive Territory Packages:

• Protected ZIP: $800-$1,500 monthly
• Metro exclusive: $2,000-$4,000 monthly

ReadyConnect Concierge Performance Model

ReadyConnect Concierge pre-screens leads and operates on a pay-at-close model, with agent-reported referral fees typically ranging from 30-35% of commission on successful closings. The pre-screening process includes:

• Financial qualification verification
• Timeline confirmation (30-90 day purchase window)
• Geographic preference mapping
• Agent preference matching

Concierge Lead Quality Metrics:

• Appointment rate: 45-65% (vs 12-25% for raw leads)
• Show rate: 80-90%
• Signed agreement rate: 70-85%
• Close rate: 85-90%
• Average time to closing: 45-75 days

Critical Questions to Ask Sales Representatives

For Zillow:

1. What is the current average cost per impression in my target ZIP codes?
2. How many competing agents are active in my selected areas?
3. What are the specific Flex availability requirements and success fee structure?
4. Can you provide 90-day lead volume projections for my budget level?

For Realtor.com:

1. Are exclusive ZIP codes truly exclusive in practice, or are there exceptions?
2. What is the actual lead volume history for my target areas over the past 6 months?
3. How does the ReadyConnect pre-screening process work in my market?
4. What percentage of leads come from buyer vs seller inquiries?

The 90-Day Testing Blueprint: A Strategic Implementation Framework

Phase 1: Market Selection and Setup (Days 1-14)

ZIP Code Selection Logic:

1. Primary Target: Your farm area or sphere influence zone
2. Secondary Target: Adjacent ZIP with 20%+ lower competition
3. Testing ZIP: High-volume area outside your immediate focus

Budget Allocation Strategy:

• 60% on primary target (proven conversion area)
• 25% on secondary target (expansion opportunity)
• 15% on testing ZIP (data gathering)

Technology Stack Setup:

• Primary CRM: Follow Up Boss, HubSpot, or kvCORE
• Auto-responder: 30-second email and text templates
• Calendar booking: Calendly or similar with 15-minute slots
• Call tracking: Unique numbers for each platform

Phase 2: Speed-to-Lead Implementation (Days 15-45)

The Five-Minute Framework:

1. Minute 1: Auto-text confirmation and calendar link
2. Minute 2-3: Personal phone call attempt
3. Minute 4: Personalized email with 3 relevant listings
4. Minute 5: CRM entry and follow-up sequence activation

Speed-to-Lead Templates:

Auto-Text Template: “Hi [Name], I got your inquiry about [Property Address]. I’m calling you now and just sent you 3 similar homes that might interest you. Best time to chat today? – [Agent Name]”

Initial Email Template: “[Name], I noticed you’re interested in homes around [Area]. Based on your search, I’ve attached 3 properties that just hit the market in your criteria. When can we schedule 15 minutes to discuss your priorities? I’m available today at [times].”

Phase 3: Qualification and Nurture System (Days 46-90)

Seven-Touch Qualification Sequence:

1. Day 1: Immediate response (phone + email + text)
2. Day 3: Market update with 2-3 new listings
3. Day 7: Buyer consultation scheduling attempt
4. Day 14: Neighborhood insight report
5. Day 30: Mortgage pre-approval partner introduction
6. Day 60: Market trends analysis
7. Day 90: Quarterly market forecast

Lead Scoring Framework:

• Hot (A-leads): Responds within 24 hours, specific timeline, pre-approved
• Warm (B-leads): Responds within 48-72 hours, general timeline, exploring financing
• Cool (C-leads): Delayed response, distant timeline, early research phase
• Cold (D-leads): No response after 7 days, nurture-only sequence

ROI Calculator: Zillow vs Realtor.com Performance Projections

To help you evaluate potential returns, use this framework to calculate your projected ROI:

Basic ROI Formula: (Average Commission × Close Rate × Lead Volume) – (Total Platform Costs + Time Investment) = Net ROI

Example Calculation – Mid-Tier Suburban Market:

Zillow Premier Agent:

• Monthly spend: $1,500
• Leads per month: 15
• Conversion rate: 3%
• Closings per month: 0.45
• Average commission: $8,500
• Monthly gross: $3,825
• Monthly net: $2,325
• ROI: 155%

Realtor.com Connections Plus:

• Monthly spend: $800
• Leads per month: 12
• Conversion rate: 4%
• Closings per month: 0.48
• Average commission: $8,500
• Monthly gross: $4,080
• Monthly net: $3,280
• ROI: 410%

Performance Variables That Change Outcomes:

• Speed-to-lead improvement from 10 minutes to 2 minutes: +40% appointment rate
• Professional pre-qualification process: +25% show rate
• Consistent 18-month nurture sequence: +15% overall conversion
• Market expertise demonstration: +20% signed agreement rate

Homes.com and Market Share Context: The Shifting Portal Landscape

The real estate portal ecosystem continues evolving beyond the Zillow-Realtor.com duopoly. Homes.com reached approximately 104 million monthly unique visitors by Q1 2025, making it the #2 portal by unique visitors, while newer entrants like Movoto and Homesnap aggregate MLS listings with innovative agent-matching features.

Portal Competition Impact on Lead Costs (2025):

• Zillow Group: 227M-243M monthly active users, premium pricing due to volume dominance
• Realtor.com: Claims ~29% category visit share, stable pricing with professional focus
• Homes.com: ~104M monthly uniques as #2 portal, competitive pricing creating market pressure
• Other portals: Fragmented market with varying cost structures

This fragmentation means agents should diversify lead sources while building owned demand generation through content marketing, social media, and referral systems. Relying solely on paid portal leads creates vulnerability to pricing changes and algorithm updates.

Owned Demand Generation Hedge Strategy:

• Video content library: 50+ market-specific videos for nurture sequences
• SEO-optimized website: Target “homes for sale in [your area]” keywords
• Social media presence: Instagram Reels and Facebook video content
• Email newsletter: Monthly market updates for sphere of influence
• Referral program: Systematic past client reactivation system

New Buyer Representation Requirements: Impact on Lead Conversion

The 2025 buyer representation agreement requirements, effective August 17, 2024, fundamentally changed the conversion process from first inquiry to signed client. Agents must now secure written agreements before showing properties, adding a new step that affects conversion rates.

Updated Conversion Metrics:

• Pre-2025: First call to showing: 65% conversion
• 2025: First call to signed agreement: 45% conversion
• Time to agreement: Extended from 1-2 calls to 2-4 calls
• Agent scripts required: Legal disclosure and value proposition

High-Converting Agreement Scripts: “Before we start looking at homes, I want to make sure you get the best representation possible. I’ll walk you through a brief agreement that ensures I’m working 100% in your interests and you understand exactly how my services work. This protects both of us and lets me provide you with the most comprehensive service.”

Frequently Asked Questions: Real-World Implementation

Platform Selection and Strategy

Q: What’s the typical cost per appointment and cost per closing on each platform in urban, suburban, and rural markets?

Urban Markets (NYC, SF, LA):

• Zillow: $450-$800 per appointment, $2,400-$4,200 per closing
• Realtor.com: $200-$350 per appointment, $1,400-$2,800 per closing

Suburban Markets (Phoenix, Dallas, Atlanta):

• Zillow: $180-$320 per appointment, $1,100-$2,100 per closing
• Realtor.com: $120-$200 per appointment, $800-$1,600 per closing

Rural Markets (Population under 50,000):

• Zillow: $85-$150 per appointment, $600-$1,200 per closing
• Realtor.com: $60-$110 per appointment, $400-$900 per closing

Q: What percent of portal leads are renters or low-intent buyers, and how does this affect ROI?

Research indicates 35-45% of Zillow leads and 25-35% of Realtor.com leads are renters or extremely early-stage lookers. In high-density rental markets like Manhattan or San Francisco, this percentage can reach 60% for Zillow leads. Effective qualification scripts can identify these leads within the first 60 seconds, allowing agents to route them to rental partners or nurture sequences rather than immediate buying tracks.

Q: How often are Realtor.com “exclusive” ZIP codes actually exclusive in practice?

Realtor.com’s exclusive territories provide exclusive access to the specific property inquiry only, not exclusive access to the lead overall. A buyer searching multiple areas may generate leads to different agents in different ZIP codes. Based on agent reports, true inquiry exclusivity occurs in approximately 70-80% of cases, with overlap typically happening at ZIP code boundaries or when buyers expand their search criteria after initial contact.

Technical Implementation

Q: Where is Zillow Flex currently available and what does a realistic success fee range look like?

Zillow Flex operates in several markets across the country, with concentration in major metro areas. Based on current fee structures, realistic ranges are:

• Tier 1 markets (SF, NYC, LA): 35-40% success fee
• Tier 2 markets (Denver, Austin, Seattle): 30-35% success fee
• Tier 3 markets (Sacramento, Kansas City): 25-30% success fee

Q: What scripts and first five-minute workflows produce the biggest lift in appointment rate?

The highest-converting first call framework follows this structure:

1. Rapport Building (30 seconds): “Hi [Name], this is [Agent] calling about the home you looked at on [Address]. Did I catch you at a good time?”
2. Qualification (90 seconds): “I help people find homes in [Area] every day. To make sure I send you the right properties, can you tell me what’s driving your move and your ideal timeline?”
3. Value Demonstration (60 seconds): “Based on what you’re telling me, I actually have 2-3 homes that aren’t widely advertised yet that might be perfect. When’s the best time for us to take a look?”
4. Calendar Booking (90 seconds): “I have time [specific times today/tomorrow]. Which works better for you?”

Q: How do I track ROI effectively across multiple lead sources?

Implement a comprehensive attribution model using UTM parameters and CRM tracking:

Essential Tracking Metrics:

• Source attribution for every lead
• Time-to-first-response tracking
• Appointment conversion rates by source
• Show rates and signed agreement rates
• Average days from lead to closing
• Lifetime customer value including referrals

Monthly ROI Dashboard Requirements:

• Cost per lead by source
• Conversion rates at each funnel stage
• Revenue per lead by platform
• Agent time investment per closing
• Customer acquisition cost vs lifetime value

Advanced Strategy and Scaling

Q: Should I use both platforms simultaneously or focus on one?

For agents with monthly marketing budgets under $1,500, focus on one platform to achieve meaningful volume. For budgets above $2,000, a 70/30 split between your higher-performing platform and a secondary platform provides risk diversification while maintaining conversion efficiency.

Q: How do I optimize my budget allocation between Premier Agent and Flex?

Use this decision framework:

• Cash flow priority: Start with Flex to build pipeline without upfront risk
• Scale priority: Use Premier Agent for predictable lead volume
• Hybrid approach: 60% Flex for guaranteed conversions, 40% Premier Agent for volume expansion

Q: What’s the break-even point for paid leads vs organic lead generation?

Break-even analysis should include:

• Direct platform costs
• CRM and technology costs ($200-$500 monthly)
• Agent time value ($50-$100 per hour)
• Opportunity cost of other marketing activities

Most agents reach break-even at 1.2-1.5 closings per month from paid leads, requiring 40-60 leads monthly with 2-3% conversion rates.

Q: How should new buyer representation agreements affect my lead nurturing sequence?

Modify your nurture sequence to include education about representation benefits:

Updated Sequence Elements:

• Day 1: Representation agreement explanation video
• Day 3: “Why exclusive representation benefits you” email
• Day 7: Buyer consultation to review agreement and start search
• Day 14: Success story from recent exclusive buyer clients

Advanced Market Dynamics

Q: How do seasonal trends affect platform performance and budget allocation?

Spring Market (March-May):

• Zillow performance: +25% lead volume, +15% costs
• Realtor.com performance: +20% lead volume, stable costs
• Strategy: Increase budgets during peak season for maximum volume

Summer Market (June-August):

• Steady performance on both platforms
• Focus on conversion optimization over volume expansion

Fall/Winter Market (September-February):

• Lead volume decreases 30-40% on both platforms
• Higher conversion rates as remaining leads are more serious
• Strategy: Maintain presence but focus budget on nurture and referrals

Q: What technology stack do top-performing agents use for lead management?

Essential Technology Components:

• Primary CRM: Follow Up Boss, kvCORE, or HubSpot for centralized lead management
• Communication: Slack or Teams for team coordination
• Video messaging: BombBomb or Loom for personalized follow-up
• Scheduling: Calendly with automated reminders
• Marketing automation: Constant Contact or MailChimp for drip campaigns
• Analytics: Google Analytics and platform-specific dashboards

Strategic Recommendations by Agent Profile

For New Agents (0-2 years experience)

Recommended Approach: Start with ReadyConnect Concierge or Zillow Flex to minimize financial risk while learning conversion skills.

Implementation Steps:

1. Focus on one platform for first 90 days
2. Perfect your buyer consultation and showing process
3. Build referral systems from early clients
4. Gradually add Premier Agent or Connections Plus as income stabilizes

Success Metrics to Track:

• Time from lead to appointment: Target under 24 hours
• Show rate: Target 75%+ through proper qualification
• Signed agreement rate: Target 60%+ with value demonstration

For Experienced Solo Agents (3-10 years)

Recommended Approach: Hybrid strategy with 70% budget on highest-performing platform and 30% on secondary platform for diversification.

Portfolio Strategy:

• Primary platform: $1,200-$2,000 monthly budget
• Secondary platform: $400-$600 monthly budget
• Owned media: $300-$500 monthly for content and SEO

Advanced Conversion Tactics:

• Neighborhood expertise positioning
• Investor client development
• Luxury market expansion where appropriate
• Team building for lead volume management

For Teams and Brokerages (10+ agents)

Recommended Approach: Multi-platform strategy with dedicated lead management systems and team specialization.

Scaling Framework:

• Volume generation: Zillow Premier Agent with $3,000+ monthly budgets
• Quality focus: Realtor.com exclusive territories for key markets
• Performance model: Flex and Concierge for cash flow management
• Geographic expansion: Secondary markets through cost-effective platforms

Team Structure Requirements:

• Lead manager: Dedicated role for first-response and qualification
• Appointment setters: Specialized team members for scheduling
• Showing agents: Field agents focused on buyer consultation
• Listing specialists: Agents focused on seller lead conversion

Future-Proofing Your Lead Generation Strategy

The lead generation landscape will continue evolving rapidly. Successful agents and brokerages must balance platform relationships with owned asset development.

2025-2026 Trend Predictions:

• Increased AI integration in lead qualification and routing
• Performance-based pricing becoming the industry standard
• Greater emphasis on video-first communication
• Integration between portal leads and social media marketing
• Expansion of exclusive territory models

Hedge Strategy Development: Building platform independence requires systematic investment in owned demand generation. This includes SEO-optimized websites, social media content libraries, email marketing systems, and referral programs that generate leads without ongoing platform fees.

The most successful agents treat portal leads as one component of a diversified marketing portfolio rather than their primary business development strategy. By combining paid lead generation with organic growth tactics, agents create sustainable businesses that can weather platform changes, cost increases, and market fluctuations.

Conclusion: Choosing Your Optimal Lead Generation Strategy

The choice between Realtor.com and Zillow leads isn’t about finding a universally superior platform. Success depends on matching platform strengths to your specific business model, budget capacity, and conversion capabilities.

Key Decision Factors:

• Budget flexibility: Favor performance-based models for cash flow management
• Volume requirements: Choose Zillow for scale, Realtor.com for quality
• Market position: Align platform selection with your expertise and geographic focus
• Technology capabilities: Ensure your systems can handle rapid response requirements

The agents who succeed with paid leads share common characteristics: systematic follow-up processes, rapid response capabilities, and realistic expectations about conversion timelines. They treat lead generation as a long-term business investment rather than a short-term customer acquisition tactic.

Your Next Steps:

1. Calculate your current cost per closing across all lead sources
2. Implement the five-minute response framework immediately
3. Choose one platform for 90-day focused testing
4. Build measurement systems before increasing budgets
5. Develop owned demand generation as a long-term hedge

Remember that the most expensive lead generation mistake isn’t choosing the wrong platform—it’s failing to follow up systematically with the leads you receive. Master the fundamentals of speed, qualification, and nurture before expanding your investment across multiple platforms.