Think about this: Trulia’s brand is trumping the franchise brand, requiring payments to Trulia, and the franchise brand is trumping the brokers’ and agents’ brands, requiring payments to the franchise. At the same time, the brokers and agents in the field are building the business relationships that form the foundations of the all the brands. They’re doing all the work and they’re having to pay very dearly for lead generation that the web is supposed to be making more efficient. Efficiency for Trulia and Realogy, perhaps, but it doesn’t look very efficient for the brokers and agents.
Check. I think working Realtors need to work without ceasing at developing sources of business that do not require you to give up half of your own deal to cling to the other half. Forget commission relief. There are way too many mouths to be fed upstream.
These business models don’t work in the long run. There’s a fascinating post today on O’Reilly Radar about how Google and others, in their quest to “free” information, need to be careful not to destroy content creation. Here’ a quote from a Google employee, I find highly relevant to MLS today: “”Some think of Google as selling search. Some business types think it sells ads. I think it needs to be in the business of ensuring there’s something to sell ads around.” Yes, exactly. We need to protect content creation, especially the content that’s hard to create, like broad, deep and standard listing information.
Sooner or later, the brokers and agents will figure out that they are paying too much money to Trulia or their franchises for these leads and that they can do it more efficiently through cooperation. This brings me back to the MLS, back to local decisions in the best interest of all competitors. The MLS can and will figure out a way through these challenges. The specific business model for data aggregation and sharing on a broader scale may not exist yet, but the solution exists in a framework of trust allowing MLSs to foster a national non-advertising listing portal controlled by the brokers and agents.
Okayfine, but how are you going to keep them singing around the campfire when the business model is built on cannibalism? I take your listing for free, pay Trulia a pittance to advertise it, hoard the click-throughs to myself, then sell them back to you for a 30% referral fee on top of everything else you’re already paying. The official cookbook term for this is: “Skewer you, Jack! You’ll roast up nicely.”
The MLS is an amazingly noble institution compared to what threatens to replace it…
Technorati Tags: disintermediation, real estate, real estate marketing
