Should Zillow go from product company to digital

1. Zillow Buyer
Seller
Realtor(partner)
Peter
Raza
Xiaoyu
Revenue split
1) 33% - Real estate leads
2) 66% - iBuying (direct buy-sell)
iBuying
Leads

2. Should Zillow consider going from
product company to digital platform?

3. Agenda
1. Circumstances we see
2. What trends they represent
3. Evidence of their impact
4. We can achieve in our response

4. Our market position is under threat
• Digital is not the same: people spend all day virtually
• Our partners have lower profits, seeking new tools to win clients
• New competitors: in Phoenix, 20% of all sales are iBuying.
Trends in customer experience and partner ecosystem
Circumstances we see

5. Why matter
• COVID disrupted real estate market
• Growing competitor pressure
• Zillow becomes more susceptible to
market risks
• Higher customer expectations
• Higher demands by partners
• Competitors grow quicker than
we do
• Leverage makes our business
model riskier
What trends they represent

6. Why matter
• COVID disrupted real estate market
• Growing competitor pressure
• Zillow becomes more susceptible to
market risks
• NPS of customers<0
• NPS of our parters is twice than
competitor’s
• Redfin and Opendoor double
their iBuying every year (we
paused it during COVID)
• High leverage of iBuying is
driving our beta from 1.5 to 2
Evidence of their impact

7. A solution is to become a digital platform that
would bring our competitors to our site
• Provide match for our partners
with visitors to our site
• Create a process-driven
customer journey
• Provide third-party application to
enhance customer experience
• Turn our competitors into our
partners
• Increase customer satisfaction
• Monetizing value added as do
Google and Salesforce
We can achieve in our response