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Competitive Threats

Competitive Threats. Keeping your friends close, But your enemies closer. The Center for REALTOR ® Technology. CRT – we like acronyms ... serves REALTORS ® and REALTOR ® associations as an industry advocate, implementation consultant and technology information resource

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Competitive Threats

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  1. Competitive Threats Keeping your friends close, But your enemies closer.

  2. The Center for REALTOR®Technology CRT – we like acronyms ... serves REALTORS® and REALTOR® associations as an industry advocate, implementation consultant and technology information resource CRT is a member resource!

  3. A Journey to Discovery

  4. 1st Law of Physics Sir Issac Newton English Physicist 1642-1727 “Things in motion tend to stay in motion, things at rest tend to stay at rest”

  5. Internet: in motion or at rest? I say: 77% of buyers searched for a home (41% in 2001) 24% found their home (8% in 2001) You Say: “Internet makes FSBO selling easier….Help” Source: NAR Survey of Home Buyers and Sellers

  6. REALTOR Extinction? FSBO market share is 13% (20% in 1987) Agent-assisted average sale is $230K FSBO average sale is $199K Source: NAR Survey of Home Buyers and Sellers

  7. Still feel threatened? YES! Because: • Listing Aggregators • Search Engines • Content Portals • Strategic Alliances

  8. Whats really to Fear? Jean-Baptiste Say French Economist 1767-1832 “The value of goods are derived from its Utility to the user, not the labor spent in producing it”

  9. Misunderstanding • Who’s the user? • What do they expect? • What Service do I provide? • How do I reach them? • How do I get myself in front of them and stay in front of them?

  10. The Audience Douglas Coupland Canadian Journalist 1961- “Generation X: The accelerated Culture”

  11. The Internet User • Not like yesterday’s client • Expects instant gratification • Time scales exponentially • Has less ‘perceived’ time • Has/Wants more ‘perceived’ knowledge

  12. Information is the new gold Adam Smith Scottish Economist 1723-1790 “Efforts to promote Social good are ineffectual compared to unbridled market forces”

  13. Data Access • Almost anything can be found • Upset when ‘hand cuffed’ • Migrate to the path of least resistance • Someone else will do it • better or not, as long as its easier

  14. Lesson Learned Steve Gillmor Author 1950- “Consumers have rights and reaching them needs a new Paradigm”

  15. The Industry is lagging • Technology initiatives • Control of data too extreme • Listen to consumers • Understand the audience • Each have own timeline

  16. Change is Inevitable Rudolf Clausius German Physicist 1822-1888 “Without artificial constraints, all things tend to disarray”

  17. The New Breed is Born • Lead Generators • Data Aggregators • The monolith is dead • Exploit the net (Web 2.0) • Their value is gained from your content. • Use your content to get in front of you.

  18. Lead Generating Website Consumer Unqualified Lead MLS or Aggregator Broker

  19. Lead Generation • A blend of IDX and advertising • Can blur the focus of the business • Caused the “scraping” stir

  20. Lead Generators • HomeGain • RealEstate.com • Lending Tree • Houe Values

  21. Aggregating Unqualified Lead Consumer Aggregator MLS Broker

  22. Aggregation • Centralizes audience building • Provides a brand • Centralizes content control • Unifies the consumer experience • Generates unqualified leads

  23. Aggregators • Google Base • Trulia • PropSmart

  24. Where’d They Come From? • 2nd rule of Thermo • “…Things tend to disarray” • Technology • “…New paradigm” • Consumer Rights • “…Market Forces” • Expectations • “…Accelerated Culture” • The Product • “…Value Derived from Utility”

  25. No Fear…… “So, first of all, let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.” - Franklin D. Roosevelt

  26. Leverage Resources • “Resistance is futile” • Alternative marketing mediums • Understand the pay model • Merge strategies • Don’t fall victim

  27. Common Misconceptions • You have to give in to survive • Pay to Play • Better SEO through syndication

  28. What can We Do? Edward Tufte American Designer 1938 – “Respect your Audience, they are precious”

  29. What would you want? • Provide value • Functionality over fun • Less is more • Instant Gratification • Don’t make the visitor think • Gently guide them • Give a reason to return

  30. Self Promote • Offline • business cards • Word of mouth • Email • Blogging • Create authoritative perception

  31. Reinvention • Follow the leaders • Intuitive usage • Involve the visitor • Comments, forums • K.I.S.S. • Avoid too much dialogue • Update content

  32. Question Everyone • Speak with your MLS and Association • Understand their technology growth plan • Work with them in defining objectives • Exploit ‘The Enemy’

  33. CRT is a Member Resource • At your disposal • http://www.crt.realtors.org • Info@crt.realtors.org • http://blog.realtors.org/crt/ • AskATech@crt.realtors.org Chris McKeever <cgmckeever@crt.realtors.org>

  34. The Players

  35. A national real estate search site • Aggregate 1M listings from hundreds of on-line sources & private sellers • Promotes their on-line community & discussion forums • Launched Dec 2005 • Headquarters in Kansas City, MO • Mapping tool features a "marquee zoom" that allows a user to draw a rectangle on the map and zoom in • Ron Hornbarker is CEO

  36. Propsmart - perception • Web crawling • “Spidering” MLS & broker sites • Unauthorized banner ads

  37. Propsmart - facts • Number of properties listing are inconsistent in many markets • Map-based searching over Google Maps, exports to GoogleEarth • RSS feeds for each search • 10 Metro areas • Comments on listings • Forums for general discussions

  38. Propsmart - stance “MLSs and the large brokers who control them try to restrict access to their listings by anyone they view as competition to their highly profitable business model. This strategy has worked in their favor for decades. But 2006 is shaping up to be a sea change year, what with the DOJ's actions against the NAR and a growing realization by home sellers that their broker or broker's association is actively preventing widespread access to their home listings.” source http://www.propsmart.com/forum/post/2184

  39. Based in Seattle, WA • Founded in 2005 • Privately Held • Consumer Tools

  40. Zillow - perception • Will replace REALTORS • Will drive down commissions • Have joined the MLS • Unreliable infrastructure • They did it to travel agents

  41. Zillow - facts • A consumer play • Travel agents were intermediaries • Working to improve ‘Zestimates’ • Will create consumer interest

  42. Based in San Francisco, CA • Founded in 2004 • Privately Held • Vertical Search Engine

  43. Trulia – perception • Scraping REALTOR® listings • Will cause flight from MLS • In bed with Google

  44. Trulia - facts • Scraping not widespread • Broker posted • Advertising model • Excellent interface • Dropped FSBO Listings • National Coverage

  45. Founded in 2005 • Based in Seattle, WA • Uses aerial maps to supplement MLS, past sales and public records • Executives from publishing, ERP and real estate • Venture capital backed ($1.25M)

  46. Redfin - perception • Is an Internet-based discount broker • Working to replace agents via Internet • Requires listing agent/broker do all the work • Undercuts commissions • Only in Seattle**

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