Is Broker Reciprocity supposed to help brokers or agents capture more leads? That depends on the brokers' business models, and how the majority votes to direct their MLSs to implement the NAR's IDX guidelines. But not all brokers are thrilled with some MLS rulings, especially if they have to spend more money on Websites and lead tracking tools to satisfy their agents.

A case in point.

RE/MAX franchise brokers are famous for paying high commissions (90 to 100 percent) and taking a hands-off approach to managing agents. Agents, in fact, are responsible for generating the sales that come into the company. For that reason, agents typically do their own advertising and promotion, including the use of sophisticated Websites and other solutions to generate leads. Agents don't compete against the broker for leads.

That's the opposite of how traditional brokerages operate in which the broker establishes a strong local brand and generates leads for his/her salespeople. Salespeople, because they are given more tools, typically take a lower split in commissions. Leads that are brought in by the broker, particularly from Web sites are typically monetized as referrals.

It is the clash of these two business models that has the Carolina MLS changing its mind about how Broker Reciprocity should be implemented. The MLS first allowed agents to put customized Broker Reciprocity listings on their Websites, which allowed agents to capture e-mails and contact information from their site visitors off the listings. Then the MLS reversed itself on December 6, 2001.

The new guidelines state that "any Internet Website used for publication of the BR Database or any portion thereof must be controlled by a BRS (broker reciprocity subscriber, who is the member participant or broker owner of the firm) and advertised as that BRS's Internet Website. The BRS may only have one primary Website hosting BR data. All secondary brokerage Websites and all agent Websites shall:

1. Frame the brokerage's primary Website in order to display BR listings.

2. Frame the brokerage's primary Website in its entirety. This frame must initialize at the "main"or "front" page of the brokerage's primary Website.

3. Not split, divide, or alter in any way the frame containing the brokerage's primary Website. The brokerage's primary Website appearing in the frame must remain intact at all times. Not alter in any way the listing data within the brokerage's primary Website frame. Examples of this include, but are not limited to: resorting the data, adding e-mail links,adding hyperlinks, adding any additional information.

4. Be in compliance with the Broker Reciprocity Website Standards graphic. Further, in order for an agent to have a Website displaying BR data, all of the following must be true:
   • The agent's brokerage firm must be contributing listings to the program.
   • The agent's brokerage firm must have an existing BR Website of its own.
   • The agent must have the broker's written permission to frame its Website."

The new rules are going to be a hassle for Gene Fisher, broker of record for RE/MAX Metro Realty. He doesn't use his Web site for consumers, but to recruit agents. In order for the brokerage's agents to have listings on their Web sites, he is going to have to create a new Website and implement a new lead management system. "I'm not happy about it, but I'll live with it," says Fisher. "I don't want to say any more."

Ray Eschert, a telecommunications expert, is married to one of Fisher's agents, Elaine Eschert. According to Eschert, the board has much more to consider, including how it is going to help brokers track leads for their agents when it is the agent who has provided the lead to the broker via the agent's personal Web site.

"The new guidelines raise questions due to technical issues. At this point we now have a frame framing a frame with multiple e-mails offering agent contact, one for the agent on their frame, one on the brokers frame, 'Contact an agent' and a third on the listing line for a property 'to contact the agent,'" explains Eschert. "Can we do any more to confuse the client?"

He continues, "The MLS representatives addressed this by telling the meeting it was the broker's decision as to where the e-mail leads would go. In our case the associates are in luck since the broker wants the associates to get them directly. However the new rules did not allow for this since no modifications could be made to the e-mail links on the BR listing line for "contact the agent" nor would it be practical to change it on the broker's page that is being framed.

"The recommendations were made that the e-mail logo on the associate's frame should be made 'bigger' so it stands out more, and to have the office increase its staff, and let the broker route the e-mails to the associates."

The problem is that lead tracking like this can't really be done by the broker. The MLS will have to provide a referral tracking system so that the broker knows where the leads are coming from and can therefore route them to the agent who brought in the lead via a personal Web site which is framing the broker's site.

Carolina MLS officials could not be reached for comment.

Published: December 17, 2001

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Blanche Evans is the award-winning senior editor of Realty Times, the Internet's leading independent real estate news service. She is featured daily on the Realty Times Video Network in the "Realty Viewpoint" segment. Blanche has been named one of the "25 Most Influential People In Real Estate" by REALTOR Magazine, and has been twice recognized as a "notable." In 2005, she was named "Top Reporter Covering the NAR" by Delahaye-Bacon's. Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. To contact Blanche, email her at . For more articles by Blanche, click here.