Some of my fellow REALTORS would say that HomeStore is already running a sex shop of sorts because they're screwing us with their overpriced virtual tours. ;-> Both the difference and the problem that arises with HomeStore vs. Yahoo is that HomeStore's REALTOR customers also control and supply the content that attracts visitors and that is our 1.4 listings www.realtor.com advertises. If the REALTORS take their listings and go home what reason would there be for anyone to visit www.realtor.com? Their argument that quality is an issue is simply not true. HomeStore now gets the main photo of Realtor.com listings along with the listing description from the various REALTOR MLS systems around the country and a high percentage of these photos are made by the listing agents or assistants, the remainder are made by hired photographers which for the most part are not professionals. I happen to know that my Association pays our photographer $2.80 per photograph. For that price you don't get top quality you just get a picture and if you're lucky most of the house is in it. So we know it's not a quality issue. We know it's not a technology issue. That only leaves the revenue issue or "it's all about money". I remember some recent financial information I read about HomeStore and it said that REALTOR subscriptions to iLEAD web pages and other enhancements made up 52% of HomeStore's revenues. Simple arithmetic reveals that the remaining 48% are then ad revenues. If ad revenues are declining then something else must take up the slack and that leaves us REALTOR customers who have been described as a "high margin, recurring revenue stream" or as some have said "just suckers". But there are also some deals being cut by HomeStore on their flagship agent product, the iLEAD package. Normal retail base pricing for this product is $349 per year. However my franchise, Realty Executives International, worked out a discount and bought all 8,000 Realty Executives agents the base iLEAD Silver package for $60 a year by agreeing to pay with one check instead of letting HomeStore handle the billing for 8,000 separate accounts. Since Cendant, which operates the Coldwell Banker, Century 21, and ERA real estate franchises, bought a huge block of HomeStore stock I feel sure some deals are in place or in the works there as well. There were some recent rumors that some Century 21 franchises were furnishing their agents iLEAD pages free for the first year. Finally, and to further exacaberate HomeStore's problems; the REALTOR.com trademark and web site address and the REALTOR trademark are owned by NAR. The NAR licenses these trademarks to HomeStore's RealSelect subsidiary under a license agreement, and RealSelect operates the REALTOR.com the REALTOR.com web site under an operating agreement with the NAR. This agreement is a lifetime agreement but there are a number of reasons that allow NAR to terminate it. There are no provisions for HomeStore to terminate the agreement. Just a few of the NAR favorable provisions in the agreement include: " . we must make quarterly royalty payments of up to 15% of RealSelect's operating revenues to the NAR and the entities that provide us the information for our real property listings, which we refer to as our data content providers; . we are restricted in the type and subject matter of, and the manner in which we display, advertisements on the REALTOR.com web site; . the NAR has the right to approve how we use its trademarks, and we must comply with its quality standards for the use of these marks; . we must meet performance standards relating to the availability time of the REALTOR.com web site; . the NAR has the right to review, approve and request changes to the content on the pages of our REALTOR.com web site; and . we may be restricted in our ability to create additional web sites or pursue other lines of business that engage in displaying real property advertisements in electronic form by the terms of our agreements with the NAR." So there's the whole story in a large nutshell. HomeStore needs more money and we don't want to give it to them. In closing I would advise all my fellow REALTORS that might read this to be sure and follow up with your local Boards and Associations to find out what sort of arrangement you have with HomeStore. If you're really interested in keeping up with this issue which you should be and I hope you are since your interests are at stake here too, the best place to keep in touch with no filtering or spin, is the the RealTalk forum which is made up of about 4,000 REALTORS from all over the world. To subscribe just send an e mail to saul@internetcrusade.com and tell him to sign you upfor RealTalk, it's FREE.

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