News You Can Use - Monday
Real Estate News
And Advice


November 30, 2009
Find an Agent

Find a Home

Find an Apartment

Find a Mortgage

AGENT NEWS
INTERACTIVE
Response To: Should Listings Be Free On The Internet? (Blanche Evans - 05/04/2001)

Reality Check
Posted By: Bonnie Clark - 05/06/2001 02:10 PM

Interesting article, Blanche, but I have to take issue with a few of your statements. I don't think it's the fact that Realtors won't pay for advertising (electronic, print media, or otherwise). It's paying for something that has not produced the desired or guaranteed results. We Realtors were promised one thing and delivered another - sold a bill of goods - baited and switched, as it were. We don't like being lied to or exploited; and that, Blanche, is the reason why we're complaining.

Look at it this way. I make widgets. Everyone needs widgets. Since people can't live without widgets, I want to sell them so I decide to place my widgets in all the department stores across the country for maximum exposure. But to my dismay, the biggest of these department stores tells me I have to sign a contract that disallows me from placing my widgets in any other stores. They also insist on taking a percentage of my proceeds as well as charging me normal placement fees. If I sign, I can't place my widgets anywhere else until my contract is up. (Sound familiar - Gold Alliance?) So I decide to open my own store, offer widgets globally on the Internet and live happily every after!

Ok Realtors. Let's pick this "advertising" on Homestore/NAR/Realtor.com/Cendant thing apart rationally. A large segment of the population moves every year. Agreed? That segment of the population will eventually need some of the goods and services offered by Homestore and it's affiliates. Agreed? Homestore needs this segment of the population to "click" into these goods and services to keep their advertisers happy. Agreed? Homestore must show profits so that their investors are happy. Agreed? And from where does Homestore generate its profits? THE REALTORS! The consumer "clicks" keep the advertisers happy, but the profits keep the investor happy. Who do you think Homestore wants to keep happiest?

Well, I don't know about you, but when I did my first quarter balance sheet, my profit margin didn't reflect anywhere near the business I was lead to believe would be sent my way as a result of my e-expenditures!

By convincing Realtors that we need them, Homestore is able to show numbers that make sense to their investors. Let's do some math just for fun. Say 30% of 760,000 Realtors sign up for the basic $349 program. That generates almost $89 million for Homestore. And let's say another 10% sign up for the $1,000 program. Here is another $76 million. Hmmm, with only 40% of the Realtors signed up Homestore is looking at $165 million in potential earnings.

Wake up folks! We have what the "moving" consumer wants: LISTINGS! Once the consumer contacts us we can offer them what they need to complete the purchase of a home. And it doesn't take a rocket scientist to figure out that we don't need Homestore and it's affiliates to dilute the transaction. If the consumer wants the "added value" products like neighborhood info, mortgage info, maps etc, then we could offer our own link to Homestore instead of them linking the consumer to us!

Here's the deal. To realize our full commissions, all we have to do is provide a way for the consumer to access our listings. Frankly, you know as well as I do, when the "move" bug bites, homes for sale are the only things buyers and sellers want to focus on. If they could log onto one site where all available homes are listed, and click on your e-mail,or website or pick up the phone and call you directly, why would you need the middleman? Homestore wants us to believe we need them, but the reality is WE DON'T. They need US!


Back to Previous Post Printer Friendly Version | E-mail This Article to a Friend


Copyright © 2009 Realty Times. All Rights Reserved.

Terms and Conditions | Privacy Policy | FAQ | Home


Powered By







Front Page Agent News Commercial News Interactive









Site Of The Day Movers and Shakers Companies Agent Advice Agent Concerns Seminars Product Announcements






Back Issues Full Text Search Contact Us Subscribe


  Site Map

  Newsletter Sign-up
  Subscriber Login

  
Put Realty Times Content On YOUR Web Site!