Zillow CEO Spencer Rascoff tells the investor website The Motley Fool that the company is currently the beneficiary of a “virtuous cycle” in which agents buy more advertising from Zillow as they grow commission revenue.
“We’ve had 17 months in a row now of home value appreciation, which is great,” Rascoff said. “It means home shoppers are getting off the fence and they’re buying houses. When they buy houses, agents collect commissions. When agents collect commissions they become more bullish about their business — they turn around and buy more advertising from us.” Source: fool.com.