In 2016, the value of the US housing stock was $29.6 trillion.
In fact, the US real estate market has recovered all of the value that was lost during the housing crisis.
So, clearly, there is a large amount of money in the real estate market.
With over 5.5 million homes sold each year, there is a lot of competition from realtors to broker the sale of these houses.
Is there a booming affiliate marketing industry in real estate profiting from this competition? Is there money to be made from real estate affiliate marketing?
Let’s have a look and find out.
Real Estate Industry
- $127 billion: The value of the US Real Estate Sales and Brokerage industry in 2016.
- 14.19%: The percentage of Americans who move house each year.
- $250 million: The price of America’s most expensive home.
- $244,800: The median price of a house sold in the US today
- 2.5-3%: The average commission the buying and selling realtor are each paid
What are People Searching For?
Although we don’t have any up to date figures, it was said that in 2013, the top 10 real estate websites got almost 50% of the traffic. The search volumes for the keywords above show the sheer volume of that traffic.
Bearing that in mind, one strategy may be to identify these branded websites and figure out if they have affiliate programs of their own.
Real Estate Keywords
|how to buy a house||40||21,000|
|apartments for rent nyc||40||18,000|
|office space for rent||0||7,700|
|luxury real estate||77||6,600|
|design your own home||60||4,500|
|million dollar homes||11||4,300|
|roommate finder nyc||22||2,100|
|rent before owning||2||1,600|
|when to buy a house||28||1,400|
|how much does it cost to build a home||17||1,300|
|multi million dollar homes for sale||18||100|
How and when keywords, such as “how to buy a house” and “when to buy a house”, are the easiest format of article to monetize.
You can simply create something along the lines of this complete guide to buying a home and link out throughout the guide to real estate agents, mortgage providers, lawyers and everyone else involved in the home buying process.
However, where you run into trouble is with the level of competition you will face in getting traffic to this page from ether organic or paid search. The competition is extremely high.
This means that you are very unlikely to be successful in the real estate affiliate marketing arena unless you find an interesting angle or target market for your site.
There are a number of sub-niches that can be identified from the keyword research. From this, it gives you an idea of what angle to take on the site.
For example, between “nyu housing” and “nyu campus” there are over 10,000 monthly searches. This suggest that there is enough traffic to support a dedicated real estate website that supports either NYU, students in New York or a general student housing websites that is nationwide. While the vast majority of these students may be renting, there is still an opportunity to monetize this traffic through rental affiliate programs.
Keywords such as “million dollar homes” or “multi million dollar homes for sale” suggest that a website could simply focus on high-end homes. Although there may be less traffic for these keywords, if you can find an affiliate program with percentage based commission, you are able to make more money with less traffic.
Keywords such as “gay neighborhoods” suggest that there could be scope in a real estate website that is targeted towards minority groups. Whether this be the LGBT community or various immigrant groups that like choose to create communities or even a site focused on housing that is friendly to disabled people.
“Office space for rent” suggests that there may be scope for a website that focuses on commercial property.
This could be as diverse as office space for small business owners up to purchasing hotels or shopping malls.
Who is Doing Real Estate Affiliate Marketing Well?
The Balance is more of a money management website but they do have a major category focusing on purchasing homes.
It is a monster of a website, with over 60,000 referring domains and around 26 million visitors per month from organic search.
The Balance have created an “Ultimate Guide to Buying a Home”.
This article alone generates 3,500 visitors per month from organic search and has 176 referring domains.
The Balance have been clever in that they have created this page to be like a table of content for the entire section on their site. The entire article is formated in simple bullet points. It links out to the pages where they can convert the customer (such as this “where to get a mortgage” page).
This allows The Balance to make as much money as possible from each customer by converting them on multiple occasions for different services.
However, as cynical as this sounds, The Balance is writing great content.
One of the most impressive things about the content is that they have hired qualified real estate brokers to create the content.
Best Real Estate Affiliate Marketing Offers
Pros of Real Estate Affiliate Marketing
Should I Start a Real Estate Affiliate Marketing Website?
Don’t do it.
The competition is far too great. The top websites get almost 50% of the traffic.
It takes a lot of technology or time and effort to keep any kind of listings system updated.
There are not a lot of obvious areas for monetization, beyond the zillow affiliate scheme or perhaps mortgages.
Based on the analysis, I definitely feel there are better niches to spend your time, effort and money.