The Internet poses a very real opportunity for REALTORS® to raise the performance bar. Although the costs of doing business are allegedly cheaper on the Internet, the reality is that the Internet poses an expensive learning curve for all industries, not to mention the individual practitioners of real estate.

Already, netizens have learned some valuable lessons. Take Christmas of 1999, for example. The good news was that more people shopped on the Internet than ever before. Net commerce for the season was a staggering $4 billion, estimated Forrester Research. Yahoo! reported a 385 percent increase in traffic from the year before. The bad news? By one report, over 25 percent of online e-tailers had problems with server traffic, inventory and stock control, and/or deliveries. Online buyers quickly learned that waiting until Dec. 15th to shop was not a good idea. They may have saved money on taxes, but they often paid twice to three times as much for shipping, and many failed to receive the right item, in the right size, or in time for Santa to slide down the chimney.

The result? Next year, consumers will shop earlier and demand in-stock guarantees. E-tailers will feature free shipping and possibly free gift wrapping to gain a competitive edge.

Realtors aren't e-tailers, so what's the point? The point is that people learn from their mistakes - on both sides of the transaction.

The Internet evolves in dog years and things have changed dramatically in the last year almost too quickly for the Realtor to comprehend. Competition is keen, not just among the franchises and independent brokers, single and dual agents, but now it is coming from directions that are blindsiding the traditional practitioner. The skill set that it takes to do business on the Internet has produced a lower-cost, paperless transaction any time of the day or night.

At most risk of being disintermediated will be Realtors who stubbornly hold on to business models which no longer serve the consumer. The Internet-empowered consumer simply has higher expectations and the mobility to shop elsewhere for services. Those who are either disillusioned with traditional real estate services or who simply prefer the Internet medium will gravitate toward the new services being offered by third parties, including online brokerage services complete with customer service agents (on salary), fee-for-service, and offer and transaction management.

These new competitors will beat the traditional Realtor on points of difference, unless they are backed by large companies which are dedicating to keeping their associates in the thick of the transaction. Consumer-friendly ideas like Personal Retriever(R) and Virtual Open House(r) originated by Coldwell Banker, for example, take a corporate bankroll to come to fruition. RE/MAXdemonstrated foresight, not surrender, when it partnered with a third-party, Realtor.com, to power the listings section of its site, giving RE/MAX the most listings of any franchise on the Internet. Completehome.com promises to give a like competitive edge to the Cendant brands.

The individual real estate practitioner whether backed by a franchise or not is going to face some enormous challenges in the months and years ahead, primarily from new companies who are betting on the consumer, not on the traditions of the industry. The only way to beat back this competition will be in the restructuring of fees, the clarification of agency relationships, and improvement in services. In order to do that, the Realtor must employ ongoing education, and not content themselves with meeting the minimum continuing education requirements.

That's where the e-PRO certification will be a tremendous first step, because one of the curriculum's messages will be that the Internet is never stagnant and that agents must continuously seek to keep abreast of new ways to serve consumers as well as challenges from new business models.

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Published: January 4, 2000

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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. For more articles by Blanche, click here.