What Have We Learned From Zillow?
Following up the conversation from last week on Zillow’s January traffic (see Bad Week for Trulia).
This from Property Portal Watch:
According to Zillow, traffic was 7.5 million unique in January. However, according to other sources such as compete.com, traffic is much lower. Irrespective of this, it appears that having lots of traffic doesn’t necessarily mean that you have lots of revenue. The rumour is that Zillow has revenues around the US$10m per annum mark.
No doubt the company has been phenomenally successful building their brand. But Simon wonders how best build a business around all that traffic?
Read more at Zillow Turns 3 – What Have We Learned?
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Joseph Bridges | Feb 10, 2009 | Reply
There are plenty of niche companies who get far less traffic and make substantial amounts of money.
I think this shows that one needs to start with a revenue model to build around first instead of just building with the “If you build it we will make money” philosphy. One needs to start with the correct money making models first so as it grows more money is made and not another round of VC funding.
Jon Fitch | Feb 10, 2009 | Reply
Zillow’s traffic as measured by comScore for December (most recent month available) was only 1,890,000 — that’s a big delta from 7M.