by Brian Brady
Commercial Real Estate Finance Expert
Structured Debt and Equity
Licensed Real Estate Broker in AL, CA, and FL
Louis Cammarosano, of Home Gain, outlines his theory about the failed promise of RE2.0. He offers four thoughts to back up his premise:
1- Success has been marginal.
2- It’s TOO consumer-centric and neglects the real estate professional (I’m still trying to understand how the anonymous presentation from real estate professionals, at Home Gain, really puts the REALTOR out in front.)
3- User-generated content is biased and therefore irrelevant.
4- Re.net adopters are somewhat smug in our “secret” which eventually turns people off.
Louis is new to weblogging so I want to be welcoming. He’s also a big boy and can handle himself so I will pay him the compliment of being blunt. He started his weblog with the initial purpose of communicating with his subscribers. When he invited a bunch of real estate bloggers to contribute, he recognized that Web 2.0 has legs. The very platform he criticizes is the one he employs to deliver that criticism and that…makes no sense.
The kept promise of interactive marketing is independence. We look no farther than my co-contributor (on Home Gain) Jay Thompson for proof of that kept promise; independence. Web 2.0 disintermediates the BROKER and LENDER (in my case) if practiced correctly. It allows you to connect with consumers around the globe. 90% of the consumers are still going to use a real estate agent when buying or selling a home. While that percentage may drop, it will still be overwhelmingly large.
Why? Real estate agents (and mortgage originators) add value. If we can communicate that value proposition, directly to the consumer, without dependency on a Home Gain, a Countrywide, or a RE/MAX, to do our advertising, both we and the consumers win.
I continually proclaim that blogging isn’t the “little purple pill” to cure all of your marketing deficiencies. It is, however, an opportunity for you to find a large number of people, who when employing a long-tail search, want exactly what you can provide.
That’s not failure. That’s power.
Benn says:
Tiny nail, sledge hammer. Brilliant.
February 24, 2008 — 11:56 am
Missy Caulk says:
Brian, I just left a comment on Louis’s blog, I guess it is waiting moderation. I agree blogging is NOT a purple pill, however, it does bring me business. I personally believe agents need to track what works, and most don’t. If something you are doing isn’t bringing results then it is time to let it go. The old ways are mostly obsolete.
February 24, 2008 — 12:06 pm
Todd Carpenter says:
In reading that post last night, my first impression was that his goal was for you, or any other RE.netter to write a post just like this one.
February 24, 2008 — 12:07 pm
Jason Lopez says:
I found #3 interesting. If consumers are making remarks or blogging about what they feel, want or need, how is that irrevelant? It seems like a clear message to me. “Hey mr. Real Estate Professional…here is what I want and how I expect to get it”. I have not read Louis’s blog, but I look forward to it.
February 24, 2008 — 12:13 pm
Mike Farmer says:
Amen. I see lines being drawn. I’m leaning toward to power of the individual connected many other individuals. Yes, that’s power.
February 24, 2008 — 1:34 pm
Brian Brady says:
“I’m leaning toward to power of the individual connected many other individuals”
That’s the REAL power; interdependency. Great insight, Mike!
February 24, 2008 — 1:53 pm
Morgan says:
Brian,
I will agree with Louis on #4. In Scoble’s book “Naked Conversations” he talks frequently about the idea of an “echo chamber” wherein bloggers simply amplify issues that are seemingly important through a large series of pingbacks, trackbacks, and posts that pile up on one another to create a massive echo boom. This echo gives the impression of elevated discourse, the impression of debating important issues, etc. when really the issues are completely irrelevant to the greater audience.
The RE.net in my opinion suffering badly from this echo chamber. Do consumers really care about the back-and-forth of the RE.net? I don’t think so. Do “members of the RE.net club” care? Apparently too much.
An even more important question – do those outside the RE.net pale see and record these actions in a positive light? It’s hard to say, but it’s harder to say they do.
Real estate and mortgage blogging for me is about staying out of the echo chamber of back and forth to present a point of view to consumers that is different from the other voices out there.
I think Louis addresses the problem with echo chamber in #4. A lot of realtors writing back and forth about each other do relatively little for consumers looking for good information.
It’s the people outside of the RE.net that truly matter – we should stop worrying about each other so much and worry about delivering value to those not in on ‘it’.
February 24, 2008 — 2:32 pm
Morgan says:
Mike you beat me to it. Interdependence is the strongest form of power out there.
February 24, 2008 — 2:33 pm
Greg Swann says:
> It’s the people outside of the RE.net that truly matter – we should stop worrying about each other so much and worry about delivering value to those not in on ‘it’.
I think you’re dead on, Morgan, but better days are upon us. I wrote this in email this morning:
February 24, 2008 — 2:39 pm
Morgan says:
> The objective is not to be appealing to 150 RE.net webloggers, but to grab whatever share you can of 150 million adult consumers.
I couldn’t have said it better.
February 24, 2008 — 2:42 pm
Louis Cammarosano says:
Thanks for the respectful comments on my blog post.
While I enjoy the banter and debate with the RE.net crowd, that is not my primary purpose of the HomeGain blog.
I am not using the HomeGain blog as means to reach the RE.net crowd but rather as a means for the RE.net to meet HomeGain agents and provide them with marketing tips that can help supplement their HomeGain spend to become more successful. Your service to them is invaluable and I thank you for providing it to them for free.
My criticism of RE.net is that its a lot of talking to itself-witness the endless posts on active rain of agents talking to each other instead of talking to customers.
They spend more time trying to convince each other of inane points -200 blog posts on Laurie Manny’s blog on why you should not only not use HomeGain, but not post on our blog! Isn’t there time better spent? Are they not issues more important?
I guess if people are blogging not to use HomeGain I am entitled to use HomeGain to tell people not to blog!
Keep up the great discussion.
Regards
Louis
February 24, 2008 — 3:46 pm
Louis Cammarosano says:
Brian as to point 3. I think you missed what I was saying. For truly social matters like music, books and restaurants user generated content is unbiased and can be MORE valuable than the opinions of critics as it is unbiased and can reflect the wisdom of crowds.
I contend that user generated content in the real estate context IS biased and not to be trusted as the writer has an economic motive that does not exist when one writes about a movie or restaurant.
In the Zillow Make Me Move example I was saying the content IS biased as it is not subject to any meaningful editing. Therefore the Make Me Move content, while it is user generated, is to be no more trusted than an unedited realtor MLS description of a property.
Just because the Make Me Move content is user generated doesn’t necessarily give it the same transparent benefits of other user generated content submitted to restaurant, movie and book blogs.
February 24, 2008 — 4:00 pm
Brian Brady says:
“I guess if people are blogging not to use HomeGain I am entitled to use HomeGain to tell people not to blog!”
Of course you do, Louis. However, that defeats the purpose. Home Gain AND blogging BOTH have value propositions; it’s a business channel mix. We should be talking to people about how to use both channels.
“Keep up the great discussion.”
You, too.
February 24, 2008 — 4:01 pm
Thomas Johnson says:
“Therefore the Make Me Move content, while it is user generated, is to be no more trusted than an unedited realtor MLS description of a property.”
Or an unverified unprequalified lead of an unsuspecting prospect purchased from a vendor? Do I detect a full guerilla (or Louis,gorilla) assault on the RE blogosphere by the vendors?
For the record, Louis, our Make Move Price is about 300% of current market value. We love our home and are not Real Estate day traders. And your point is?
Just my observation of this recent trend of vendors starting these food fights. Louis, don’t worry not all of us are Jay Thompson so you won’t get disintermediated by blogs any time soon. I do find a certain irony that Home Gain, founded by Brad Inman to disintermediate Realtors, is worried about being disintermediated by Word Press and Ning and BHB.
February 24, 2008 — 8:14 pm
Louis Cammarosano says:
What me worry? http://www.leconcombre.com/concpost/fr/postcard4/alfred_e_neuman.jpg
February 24, 2008 — 8:28 pm
Lane Bailey says:
“I am not using the HomeGain blog as means to reach the RE.net crowd but rather as a means for the RE.net to meet HomeGain agents and provide them with marketing tips that can help supplement their HomeGain spend to become more successful.”
and then…
“They spend more time trying to convince each other of inane points -200 blog posts on Laurie Manny’s blog on why you should not only not use HomeGain, but not post on our blog! Isn’t there time better spent? Are they not issues more important?”
Don’t you find these points to run a little counter to each other? Or is it only certain information that you want passed on?
In the first case, you want bloggers to converse with your agents to tell them how to be successful, and in the second, you think it is inane for agents to talk among themselves about something they feel may stand in the way of that success.
Remember, not all blogs are pointed to consumers. Some blogs, and some posts are there for those in the industry.
February 25, 2008 — 8:20 am
Sean Purcell says:
“Remember, not all blogs are pointed to consumers. Some blogs, and some posts are there for those in the industry.”
Lane you nailed it. Greg Swann refers to it s “birthing agony” and that is as apt a description as any. It should be clear that there are two forums going on here. There is the .net wherein industry insiders are talking to each other: BHB, ActiveRain (whether you like it or not), The Real Estate Tomato and so on. Then there are the public blogs (one hopes that people are not posting on the aforementioned sights and sending their clients there) which are directed to marketing. When any medium is new (and blogging is an infant) there are as many discussions about the medium as there are IN the medium. Does anyone think television just appeared in its current format?
Brian Brady often and correctly reminds us all that this is about marketing to clients. Once you have separated the two types of blogging, concerns over the incestuous nature of intra-industry conversation is less perplexing.
Luis’ issue #1 (which, by the way, is the only real issue that I see; issues 2-4 seem to be more of a HomeGain advertisement and/or gripe) asks for the success of Web 2.0. But blogging is a form of marketing and like any other it requires a commitment of time. It must be tracked and corrected. But most importantly, it is ONE ASPECT of what should be multiple marketing efforts. It is somewhat disingenuous to ask how many deals have closed or how much money is being made by just blogging. Do you know how many deals you have made or money earned sending out birthday cards to clients? How about a quarterly newsletter? Or was it the birthday card combined with the newsletter? Tracking a bus bench ad is easy. When it comes to client retention or “top of mind status” marketing, tracking to one singularity is nearly impossible.
By the way, it is thanks to the blogging done between industry insiders (and aimed at industry insiders, as opposed to their public blogs) that I have learned how powerful a TOOL blogging can be to increase volume over time.
February 25, 2008 — 10:17 am
Laurie Manny says:
I guess if people are blogging not to use HomeGain I am entitled to use HomeGain to tell people not to blog!
Louis, I guess you would have to ask “What came first, the chicken or the egg?”
February 25, 2008 — 12:14 pm
Laurie Manny says:
Louis,
The post on Active Rain was about a lot more than Homegain. It was about lead generation and empowering individual agents to drive business directly so there would not be a need to purchase leads.
Homegain enters our farms as a middleman and sells leads back to local agents. The same leads that they could drive directly to themselves with the right systems in place and a bit of effort. Sounds like a Vig to me.
It is very self serving of Homegain to run a campaign that basically tells future bloggers that it is a waste of their time and that they probably will not be successful at it.
The New York Lottery had a fabulous tag line years ago:
: You have to be in it to win it.
Blogging to consumers (not the RE.net) IS driving traffic in and bypassing the Homegains of the world. Future real estate bloggers should be encouraged, not discouraged.
February 25, 2008 — 12:26 pm
Missy Caulk says:
Louis, why didn’t you let me comment on the homegain blog?
February 25, 2008 — 1:21 pm
Louis Cammarosano says:
Hi Missy
Please take another look- I posted your comment and my reply yestderday.
Louis
February 25, 2008 — 1:27 pm