In the rapidly changing world of ecommerce, real estate is desperately racing to catch up to consumers. But most franchisers don't see the forest for the trees. More interested in property searches, recruiting, and promoting their ancillary services, most overlook their single greatest source of revenue - the agent.

Let's keep the REALTOR® at the center of the transaction...on the third page

How many times have you heard that from industry leaders? National franchise organization leaders talk about the importance of getting ewired, even while maintaining the virtue of agents as being the high touch factor in a high tech world, yet many don't put their Internet sites where their mouths are. Just take a look at the front pages of the largest real estate companies in the nation. What you will find is information on everything but how to find an agent. The exceptions are the 100% commission companies who promote their agents proudly on their front page.

This rant isn't about endorsing a 100% commission organizations, but they do seem to "get it" where others don't. They seem to understand that a search feature for agents is useful to consumers and good exposure for the agents as well as the company. What could be wrong with that?

Of course companies have different business models, and some may feel that it is a breach to promote individual agents, but if all agents have the same opportunity to be included on the Web site - where's the harm? Regardless of how they make money, these companies all depend on one primary source of income - they all depend on agents selling real estate. The office franchise owner may be the customer of these large franchise organizations, but it is the agents who make them successful. Second, if you think about the way people search for homes, just having office listings may not be the most expedient way to put customers and closings together. Without agents steering transactions to closing, those precious property listings aren't worth much.

If you think about the typical customer who drives by a home and takes information off the signage, which do you think s/he will write down - the office name or the agent's name? Let's say a customer casually sees a property of interest, but doesn't stop to take information. S/he plans to search on the Internet later for more information at home. Many times this customer will want to contact the agent for more information about the listing after office hours. If s/he has the agent's name and can find him/her on the Internet, s/he can email them to initiate a dialog. But without an agent search, it would take a pretty determined customer to dig through three offices in the same city to find the agent s/he wants. Chances are, s/he will move on to the next home of interest, seek information from whomever possible, and the chances are good that this second listing will be listed by a competing office and agent.

Is that a chance these franchise/large broker organizations really want to take?

Clueless

Here is a list of the companies who could be promoting the importance of agents much better than they are doing.

Published: September 17, 1999

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