An Internet survey taken by Michael "Mr. Internet" Russer is showing that
while the fee-for-service business concept is getting mixed reviews, some 85
percent of those responding to a poll said they are interested enough to take
a course on the subject.
The results are a tacit victory for educator Julie Garton-Good and the Coldwell Banker franchise, each of which have launched initiatives aimed at developing the unbundled service model.
Russer, based in Santa Barbara, Calif., said he was surprised at the high level of interest found by the survey, saying it was one of the largest responses ever to a real estate online survey.
Educators who attended Garton-Good's inaugural meeting of the National Association of Real Estate Consultants in Orlando say they have received mixed feedback in their hometowns.
"A lot of people simply don't understand it," said New Hampshire educator Roger Turcotte. "You say 'fee for service' but what the brokers are hearing is 'discount' services.
"They are not the same thing.
"With unbundled services, the consumer pays full price for each of the services they want. When you do something, the consumer pays for it. That's not a discount."
Turcotte also wonders if some the anger at the so-called discount Internet brokerages may be misplaced. "They just discount their service up front and announce it. A lot agents will offer to discount their commissions when they're trying to get the listing. The only difference is that one guy is being open and honest about it and the other guy is doing it through the back door."
Russer's survey found that 55 percent of those responding were either "excited" or "somewhat interested" in unbundled services, while only 7 percent indicated its "the most stupid thing I ever heard of."
The notion of being a salaried employee, however, was a substantial loser. Asked, "If offered a modest salary, insurance and retirement plan, and a bonus ($30-$500) for each closed deal (that the company handed to you) would you consider working as a licensed employee?
More than 54 percent responded "no way," and only 29 percent said they would even "consider" it.
Nevertheless, when asked, "If available, would you be interested in taking a course about how to incorporate a profitable "fee-for-service" model within your current business?" the answer was an overwhelmingly positive.
Some 64 percent said they would be interested in taking a class and only 14 percent said "no."
Published: October 17, 2000
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