If you have an advertising agreement with Zillow, you may want to review the conditions of the contract as Zillow appears to be in trouble, according to industry analysts.
Following two “downgrades” by Barclays there’s more troubling news for Zillow Group as they (Z and ZG) announced plans to sell Market Leader, a customer relationship management system, to the Perseus Division of Constellation Software, an international provider of software and services.
This couldn’t have come at a worse time as the CFPB has ruled the monies received from marketing service agreements (MSAs) violate RESPA section 8(a) while the BRE and IRS have quietly ramped up enforcement against both agents and lenders who fee split.
Also included in the deal the other lead generation businesses housed within Market Leader, including HouseValues.com.
Trulia became a Zillow company when Zillow acquired Trulia in February of this year.
Trulia’s relationship with "Market Leader" began with much fanfare.
At the time, then-Trulia CEO Pete Flint said, "We are very excited we can now provide the real estate industry with the finest marketing and software tools”.
But in June 2014, Trulia laid off 85 of Market Leader’s employees “primarily in the sales and administrative functions”, including four of Market Leader’s senior executives.The company spent between $4-6 million on the “reorganization.”
Zillow will continue to partner with "Market Leader" through Zillow Tech Connect, which sends its Premier Agents' leads into any CRM of their choosing.
The sale is expected to close early in the fourth quarter.
ReBlogged from-Daniel Dobbs
Capital Mtg. Services
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