Milwaukee Metro MLS, a Realtor.com Gold Alliance member, had a listings agreement grandfathered with CyberHomes, but after reviewing the listing service's traffic and revenue stream, the MLS decided that CyberHomes wasn't a good deal for its brokers and agents. But is that what really happened? Did Homestore's pending IPO and sweeter offers give the MLS a good reason to give CyberHomes the boot?

What happened in Milwaukee is an important lesson for Realtors everywhere. Is it better for a Realtor's MLS to enter an exclusive agreement with a national listings aggregator or to put their listings on multiple sites?

"We were looking at the traffic and we were disappointed," says Peter Shuttleworth, executive vice president with the Milwaukee Metro MLS."It didn't compare to Realtor.com. When we compared the revenue streams," continues Shuttleworth. " I told John Mosey (president of CyberHomes) that they were embarrassing."

"I go back to the days when we were paying companies to post the listings," says Shuttleworth."I'm happy its going the other way. There should be some consideration, because the data does have value and it brings value to the web sites who display it. That's why there's all this fighting over who's got the data and who doesn't."

Money isn't the issue, insists Shuttleworth. "The bottom line objective is to inform the consumer and direct the consumers back to the listing broker."

Under seige by Internet competitors offering more traffic and lucrative stock incentives, CyberHomes discontinued its links to the MLS data.

Shuttleworth says the MLS membership was informed through its newsletter and an FYI to brokers to make sure that none of the members would be hurt by the action. But, a few fell through the cracks.

Some agents and brokers had paid CyberHomes $100 to $150 to be linked to their listings through the company's agent and broker Web page programs. When the links were discontinued, these licensees were simply out of luck.

According to brokers Jim and Nancy Mireck, Cyberhomes made no effort at either informing them that their web pages would no longer have links, nor did CyberHomes offer any restitution for agents who had paid for the webpage/link back services.

The Mirecks, who had just opened their new brokerage at the beginning of October, are border state brokers on the cusp of Wisconsin and Illinois. Brokers and agents in a border state situation find they have to pay twice for many support services, to join two or more associations and MLSs, as well as pay twice to such organizations such as Realtor.com and CyberHomes for their web page and links back to their own listings - once for Wisconsin and once for Illinois.

Paying twice for everything makes a broker a little more sensitive to costs and perceived value.

Jim Mireck had negotiated a multi-agent cost savings with CyberHomes to get Web pages for each of his 18 agents and link them back to their listings. For $100, instead of the usual $150, the agents and their listings would have exposure in both Wisconsin and Illinois.

One day, cruising the Internet, he noticed that none of his company's listings were on Cyberhomes anymore. Thinking it was a technical error, he emailed the technical support at CyberHomes but did not get a response. Then he called the sales office and was transferred to Ann Long, a company service representative.

When Mireck complained, Long said she couldn't prorate the Wisconsin portion, but she did come back with a proposal to extend the renewal date by six months on the Illinois agent web page contracts. Mireck points out that while his agents aren't out that much money, there are others who paid the full $150 and aren't getting any money back.

Shuttleworth says he is unaware that any agents or brokers may not be getting services that they paid for.

"This is a tough one for all of us," says Shuttleworth. "I don't know who is in the field selling what. CyberHomes, Homeseekers and Homeadvisor hold seminars, and we can't be at enough seminars to find out who is telling the agents what."

John Mosey, president of CyberHomes, says that any agent is welcome to email him personally if they have a problem and he will look into it. "Our goal is to do the right thing, I can't imagine a situation where it is not worth it to us to make things right."

For Wisconsin brokers and agents like Mireck who want more exposure for their listings than one source, CyberHomes leaves a void. There are other alternatives, though; Homeadvisor and Homeseekers offer free Web pages and free broker direct listing uploads, and they will seek permission from the MLS to access brokers' listings who are under contract. These are options that CyberHomes has declined to do on principal.

Shuttleworth says that the MLS would not stand in the way if that's what a broker wants to do. "We don't restrict what our brokers can do.That would be a business service we would negotiate with the broker, and I already have companies who participate with Homeseekers. We also ship data to RE/MAX International.We have a strategy we are pursuing with regard to the Internet and we are waiting to see how Realtor.com performs."

But one question remains - What happened in Milwaukee is an indicator of more listings wars to come. If an MLS can sign an exclusive alliance and then let other listing aggregators milk the cow through the fence, how can a company like CyberHomes make bets with its farm? What exactly is CyberHome's strategy anyway?

Read John Mosey's exclusive response to this article tomorrow in What Really Happened in Milwaukee? Part II - CyberHomes Responds

Published: October 25, 1999

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