When Everyone Gets On The Dance Floor, Real Estate Will Rock
Saturday, April 5, 2008 at 06:37AM Jay seems fairly optimistic that a monetization plan based on advertising will be enough to make places like Zillow successful in the business world, at least I think that's what he was saying in his comment about their new free offering. He might have been simply stating their plan, which would leave the question -- will it be enough? I'll go out on a limb, because that's what I do, and state that I don't think it will be enough, and I'll give some reasons why.
Even if it could be proven that their new offering has set up the structure for focused advertising, it's a static observation in a dynamic 2.0 world. Things change. The field of search was rocking along with great optimism for the players until Google came along and made one big change - through the discovery of the importance of links they created valuable search results, quality results that made them so popular they were able to monetize search. They discriminated to get the BEST results, not just any related results. It was the BEST results that attracted traffic and set up Adwords.
A RE site could come along and, taking the mortgage industry as an example, select the BEST mortgage providers using sophisticated criteria that weights some aspects more importantly than others, then find the BEST (ready, willing and able) consumers needing the service, then monetize the service of connecting the two. This would be different than random, general search, which is free for the searcher, it would be focused, vertical search, more valuable to the consumer and the mortgage broker, so that each would pay for the service. This would be a mortgage market place. Using the principle of Google, not just any search result but the best, placing the best service providers with consumers who have an immediate need and are able and willing. This would draw less traffic, but higher quality traffic that can be monetized in a way that adds to the free services that attract traffic for advertisers turning into ad dollars. It adds the missing link -- service.
The other reason ads won't be enough for RE sites is that unless they find a creative partnership with quality service providers to add service to their monetization plan, large mortgage companies and RE companies will become big players in web 2.0 -- this might happen even if RE sites initially partner with RE service providers. Once RE companies realize the value of web 2.0 and internet business, they will begin creating a presence -- they have plenty of resources to create something special, and they have the candy that is attractive anyway. They might decide to circumvent all the middle-men. It would take a huge image change, but it can be done. The new internet face of RE companies might be a friendlier face -- it might develop a voice of contrition saying -- "We were wrong; we are now players in the Land of The Free" and begin a campaign based on authenticity, backed by websites that offer more than anyone can imagine, and compensation schemes that are more in touch with the new world.
Gaining the trust of consumers will be an arduous task, but it can happen with the right, real changes, reversing everything, making the RE sites, whose investors are banging them to make money, the scavengers of advertising and the RE companies as the purveyors of inexpensive service, oodles of free pictures and information and quality offerings in the new online world. Quality, low cost service trumps advertising schemes.
These are just some initial thoughts -- more later.
Reader Comments (2)
Mike Farmers post about Real Estate on Steroids sounded as though he was describing Webdigs. We are a non-traditional, full service, real estate brokerage which offers tremendous value to our clients. We work a team approach with Master Agents, Showing Agents, Transaction Coordinators and inside Sales/Traffic Agents working together to provide high touch, customer centric service. Our model continues to evolve. We also offer mortgage and will shortly provide insurance and title. Started in Minnesota where we are hiring to keep up with our business. Just opened an office in Florida. Recently licensed in Colorado and in the process in other states. Check us out at www.webdigs.com
Thanks for visiting, Rob. I had not heard of Webdigs, but I'll check it out.