Real estate and rental listing firm Zillow reported a 69 percent year-over-year revenue growth as of Q2 2013, a 66 percent YOY increase in traffic and an 80 percent boost in consumer contacts to agents.  Mortgage revenue has more than doubled since this time last year, and 4,777 new Premier Agents joined Zillow in the second quarter.

Zillow Rentals, realizing 10 million visitors each month, has just started to monetize, by way of a two-week old paid-inclusion model for multi-family properties.

Zillow CEO Spencer Rascott contrasted Zillow with its competitors in two key areas – software and rental strategy:

  • “We’re offering light, almost-always-free software products,” he said. “We’re not trying to launch enterprise systems, to lock agents into a single source. We’re not interested in selling software tools to agents and brokers. We think the big pie is selling access to our audience.”
  • “Our strategy on rentals is different from the others. We’re drilling our own wells. We haven’t outsourced a significant part of our rentals to another company; we’re unencumbered and we have audience leadership.”

Half of Zillow’s bookings come from current agents who add more paid products, which contrasts positively with two years ago, when current agents only represented 30 percent of these sales.

“New agents, largely because of our new impression-based platform, can come in with a much smaller buy than in the past, can then systemize their approach to the platform and continue to buy up,” Rascoff said. “So, new agents are spending significantly under the average $266 average revenue per unit (ARPU.)

Here’s the earnings release.

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