Premier Agent prices skyrocket, but brokers pay up
On the UWS, cost per lead rose to $197 from $72 over nine months
New York /
(Illustration by Lexi Pilgrim for The Real Deal)
The city’s residential brokers slammed Premier Agent when it debuted in March. But now, they’re fighting each other for a seat at the table.
Thanks to auction-based pricing, the cost to participate in StreetEasy’s agent advertising program — where agents purchase buyer leads in specific ZIP codes — has shot up over the past few months.
On the Upper West Side, for example, the price per lead skyrocketed 183 percent to $196.88 in October, compared to just $72.07 in May, according to data obtained by The Real Deal. On the Upper East Side, the cost per lead climbed to $166.84 from $107.08 over the same time period.
StreetEasy’s parent company, Zillow Group, acknowledged the price jumps last week, when it reported revenue from Premier Agent rose to $197.1 million during the third quarter, up 24 percent year over year — in part because of New York agents’ participation.
“We were dramatically undermonetized in New York relative to the size of our leads, the size of our audience,” CEO Spencer Rascoff said during an earnings call on Nov. 7. “So there was a bit of a gold rush in New York where agents and teams were buying impressions at a very low price and leads at a very low pri[……]