Last month, I reported on how Market Leader and Zillow appear to be on a collision course in the online real estate market as both roll out new services for real estate agents across. Well, Market Leader — the older, but lesser known and less valuable of the two companies — just picked up a big deal with the largest real estate company in the world.
Century 21, with more than 7,600 franchise broker offices worldwide, has agreed to adopt Market Leader’s online marketing and CRM tools in the U.S. The initial 2-year deal is valued at a minimum of $2.55 million, with the product launch expected later this year.
“Everyone at Market Leader is very proud to have been chosen by CENTURY 21 Real Estate, the world’s largest real estate sales organization, to provide this comprehensive marketing and technology solution for their network of real estate professionals,” said Ian Morris, CEO of Market Leader in a statement.
The deal follows an announcement by Zillow last month in which it indicated a new product offering to help real estate agents better manage sales leads and contacts. At the time of the announcement, Zillow CEo Spencer Rrascoff said that the company is “in the midst of a calculated, strategic expansion evolving our agent offering from a one-sized fits all advertising program to become more of a central hub for a variety of marketing and business services.”
Market Leader’s CRM and online marketing system will be provided to Century 21 agents at no cost, with agents able to add on premium services for an additional fee.
Shares of Market Leader are up slightly on the news, now giving the company a market value of $93 million. Zillow’s shares also are rising with the company — which went public at $20 per share last July — now valued at $892 million.
Founded in 1999 under the moniker HouseValues, Market Leader last year reported a net loss of $4.1 million on revenues of $34 million.