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Opinion Editorials

Blocksy – Real estate’s next big thing or next big bust?

(Editorial) Blocksy is an interesting new startup serving the Big Apple – could they finally innovate the real estate space that has struggled to modernize for decades?

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blocksy edge

blocksy edge

Exhibit one: real estate

We are living in an exciting era where products, services and industries are being innovated at warp speed. The next generation of “it” comes faster and faster. With improved speed, function, and experience comes with it some seriously increased customer expectations, and there are some verticals that can’t seem to keep up. Exhibit one: real estate.

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For the last decade, dozens (if not hundreds) of start-ups have announced big plans to revolutionize the inefficiencies in real estate. Their promises have been to clean up the data, improve the agent-client relationship, open up the information and democratize the industry, save money on commissions, and more.

Looking back over the last ten years, can anyone honestly say that the process of buying or renting a home has dramatically improved? For perspective, take a moment to think back to ten years ago in other areas. What where mobile devices like in 2004? Video game graphics? The TV viewing experience? Mapping/GPS? Bank ATM machines? Even the experience at your dentist? Internet connections? Most people would freak out if they had to go back to products and services of a decade ago. When will real estate finally break through and see this kind of innovation and improvement? Will it ever?

Exhibit two: Blocksy

Will they provide the breakthrough that we haven’t seen in almost a decade (when Zillow was born)? Blocksy is a New York City start-up that promises better content, a cleaner website, more accurate information, and exclusive listings to help people have a much better experience buying or renting a home in NYC.

Have you heard this mission statement before? Me too.

So how is this effort different from its predecessors? For starters, they charge users $15 per month for a premium level of service and content. But let’s dig deeper…

Blocksy is currently focusing only on New York City. NYC is a totally different real estate market versus all other cities and towns across America. It’s part wild west (example: no formal MLS) and part oligarchy (example: a few huge RE brands control the market and seem to make their own rules). So the specific market definitely needs to be factored in any evaluation. Moving on, let’s look at Blocksy’s promises:

  • Better Website. I agree. The site is clean, easy to use and makes it easy to digest data and information. It is easy to search for listings and content.
  • Saving money. A testimonial on their front-page quotes a buyer who says she saved $200k by finding a unit in her desired building that only Blocksy had listed. I’m fairly certain that a halfway decent buyers agent would have done the same. I don’t believe you can count this as “Blocksy saving me $200k.”
  • Exclusive listings. Right in the same testimonial from above, Blocksy is implying they have exclusive listings. Hmm. I have no idea how this can be true. If they do – maybe this is valuable in some rare situations. If they have exclusives on truly great buildings and/or properties, this would have some value. I just don’t believe they do or that they will in the future. If they some how accomplish this, I don’t believe it makes much of a difference for most all users anyway.
  • Better content. They have some good data, especially for the sales market. They could use more information and detail, especially for the rental market (note that NYC is one of the few cities where the rental business can be very lucrative for agents/brokers). The information and charts are modestly better than I am used to for NYC, but it isn’t a dramatic leap forward.
  • More frequent updates (hourly). I’m not sure that hourly updates make a big difference given the reality of the real estate market, but it certainly can’t hurt. This is more of a PR win versus a customer experience improvement, though.
  • Better and more accurate listings and information. When I search the website, I see the same fuzzy, misaligned, and non-standard pictures, and I see the usual occasional typos, missing info, and bad data. If Blocksy can fix these issues it would be enormously valuable. They haven’t yet, though, and doing so will require a monumental paradigm shift. I don’t know how they can do it but I hope they prove me wrong.
  • And finally, the pay-for-service model. Blocksy does offer free use of the site. The premium fee is apparently for faster service and exclusive content. I did not sign up for the premium service, so I cannot evaluate it. I can comment on the model itself, though. When people pay for something, it creates an implied value of that thing (be it a product or service). Perhaps, like a placebo, this will create a user base that values Blocksy more than other RE sites. When one gets past this nuance, though, this start-up is asking users to pay for something that they can get for free in lots of others places. This is a tough sell and I don’t like it.

My (early) verdicts

Consumer perspective: I will give the free version of Blocksy a try, along with a few other leading sites, if/when I need a new NYC home. I would even give the 1-day free trial for the premium service a test drive. I hope these guys are better at this stuff than others, but I’m skeptical.

Real estate agent perspective: If I were an agent, I would focus on already proven websites and strategies for lead generation and client servicing. If Blocksy gets traction and starts to prove itself, I would jump on board.

Investor perspective: If approached I will stay far, far away from Blocksy.

Good luck, Blocksy. I hope that you finally create breakthrough innovation for the real estate industry. But I bet you fall well short. As so does the next one of your kind.

Hoyt David Morgan is an entrepreneur, angel investor and business strategy leader. He is an investor and/or adviser to a handful of exciting and high growth companies, and has been a part of several high-value exits. He is passionate about customer experience, smart business and helping innovative companies grow... and sailing.

Opinion Editorials

The *actual* reasons people choose to work at startups

(EDITORIAL) Startups have a lot going for them, environment, communication, visible growth. So it is easy to see why they are so popular now

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startups meeting

Startups are perpetually viewed as the quintessential millennial paradise with all of the accompanying perks: flexible hours, in-house table tennis, and long holidays. With this reputation so massively ingrained in popular perception of startups, is it foolish to think that their employees actually care about the work that startup companies accomplish?

Well, yes and no.

The average startup has a few benefits that traditional business models can’t touch. These benefits often include things like open communication, a relaxed social hierarchy, and proximity to the startup’s mission. That last one is especially important: While larger businesses keep several degrees of separation between their employees and their end goals, startups put the stakes out in the open, allowing employees to find personal motivation to succeed.

When an employee can find themself personally fulfilled by their work, that work reaps many of the benefits of the employee’s dedication, which in turn helps the startup propagate. Many aspiring startup employees know this and are eager to “find themselves” through their work.

Nevertheless, the allure of your average startup doesn’t always come from the opportunity to work on “something that matters.”

Tiffany Philippou touches on this concept by pointing out that “People come to work for you because they need money to live… [s]tartups actually offer pretty decent salaries these days.”

It’s true that many employees in their early to late twenties will likely take any available job, so assuming that your startup’s 25-and-under employee base is as committed to finding new uses for plastic as you are may be a bit naïve—indeed, this is a notion that holds true for any business, regardless of size or persuasion.

However, startup experience can color a young employee’s perception of their own self-worth, thus allowing them to pursue more personally tailored employment opportunities down the road—and that’s not a bad legacy to have.

Additionally, startups often offer—and even encourage—a level of personal connection and interactivity that employees simply won’t find in larger, more established workplaces. That isn’t symptomatic of startups being too laid-back or operating under loosely defined parameters; instead, it’s a clue that work environments which facilitate personalities rather than rote productivity may stand to get more out of their employees.

Finally, your average startup has a limited number of spots, each of which has a clearly defined role and a possibility for massive growth. An employee of a startup doesn’t typically have to question their purpose in the company—it’s laid out for them; who are we to question their dedication to fulfilling it?

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Opinion Editorials

People saying “I love you” at work casually – yay or nay?

(EDITORIAL) Is saying “I love you” in the workplace acceptable in the current harassment and lawsuit climate? Let’s take a look at the factors.

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love shared

Anyone who works in “The Office” knows sometimes there is a failure to communicate. Per email conversation, context can get lost in translation.

So, why then, in the age of the Me Too Movement, are coworkers saying: I Love You?

I’m guessing it’s thanks to our digital lifestyle?

No, I’m not a Boomer. Thank you very much. That’s a different editorial. But, I’ve been working since way back in the day. A time when we wore tennis shoes with nylons. Wait, that’s still a thing?

Alas, I digress.

If we consider the culture of work, particularly in the case of some start-ups, it’s not uncommon for there to be beer in the workplace, casual dress – meaning you have clothes on – and possibly a more youthful expectation around communication.

So, f*ck yeah, dude, I love you!

With the use of workflow apps like Slack, where people can text you – while on the toilet, no less. I mean, who hasn’t told a colleague, “OMG! You are a f@cking ?” after dealing with a challenging situation/customer/boss/client and that colleague comes to the rescue.

Just me? Oops.

Maybe it started back with the I Love You Man commercial, which also became the title of a bromance.

If the bros can have their bromance, then why can’t we all say those three words in the workplace?

I’m not gonna spoil the party and say never. I’m just going to suggest some things are better left unsaid.

First, words are powerful.

Because this is the era of Me Too, it’s easy for there to be misinterpretation. What if a woman says it to a male colleague. A boss says to a much junior employee.

Can you say harassment?

One of my former managers didn’t even like me saying her name. I can’t imagine what she’d do if I said: “I love you.”

But, here’s a real reason. People are happy with us one day and not the next.

Keeping it chill and professional is important. For example, I once called my co-worker – and very good friend – a nasty Spanish word and it almost resulted in a knife fight. What I learned is one day you are joking around and your friend isn’t.

Second, a laissez-faire attitude toward communication can become second nature. You can’t be accidentally telling your client, you love them, now can you? I mean, beyond being authentic, those words mean a lot to some people, just tossing them about shows a real lack of judgment and can result in an extremely negative response.

Which leads me to my last point.

“Et, tu Cheryl”

One company I worked at hired Gallup to do a survey of staff. One of the questions was about having a work BFF, which is important in the workplace. Often we have our work husband or wife or sister, even. We all need someone we can lean on.

In the workplace, depending on the culture and environment, it may be a good place to keep it 100 or, if too toxic, a better place to fake it. Even people who seem to be on your side might be just waiting to pounce.

Get too close, say the wrong thing and Cheryl gets your office with the window and the red stapler too.

All I’m saying is keep it real, but maybe not too real.

Oh, and btw, I <3 U.

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Opinion Editorials

Audi paves the way for how to thoughtfully reduce a workforce

(BUSINESS NEWS) Audi has a new electric car plan that will eliminate 9,500 employees…but in a shocking twist, we’re not even mad. WATT’s going on here?

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Audi E-tron

12 billion motivational posters/yoga tops/specialty ziploc bags can’t all be wrong: Positive change always comes with loss.

For German Audi workers, the company shifting gears to focus on manufacturing electric vehicles will see employee losses to the tune of 7.5k people being Audi of a job there. In the next five years, another 2,000 jobs are expected to get the axe as well.

So they should be panicking, right? Audi workers should mask up and be out in the streets?

Well, considering the general state of the world, yes. But if we’re isolating to just this change, no!

See, Audi’s not actually shoving people out of the door to make room for younger, sexier, more fuel-efficient staff. The jobs they’re cutting are going to be cut due to employees leaving on their own for different pastures and retirement. As in, no one’s getting laid off through 2029.

Now there’s an electric slide I can get behind!

Audi’s top brass, in an Ohm-My-God twist (see what I did there), actually sat down with worker reps and talked this move out. This kinder, gentler, distinctly NON-assy arangement will save the company over 6.6 billion dollars over the next decade, and all of that cash is going to boogie-woogie-woogie into their ‘lightning car development’ piggy banks.

Yay for them!

And yay for us.

See, Germany has a (recent) history of not being horrible to their employees. It’s why Walmart’s attempt to claw its way into Deutschland went up in so much smoke. And that history is accompanied by a reputation for stunningly positive change for everyone from white tie to black apron.

With a brand as giant, trusted, and drooled over as Audi is managing to conduct massively profitable business without schwantzing anyone over, everyone here in the US has a shining example to point to and follow when making massive company moves.

Notably, Tesla, America’s favorite electric car company is almost cartoonishly anti-union, anti-worker, and anti-running dress rehearsals on expectation/glass shattering exhibitions. The prevailing thought is that it’s a necessity to be some kind of moustache twirling villain to get ahead because so many businesses insist upon it.

But that chestnut cracks here.

No more ‘Businesses exist to make money’ excuses. No more ‘You have to be ruthless to get ahead’ BS. Those selective-sociopathy inducing phrases never made any sense to begin with, but now, we’ve got a shining example of towering projected #GAINZ for a company doing right by its people without a single head rolling on the factory floors or a single decimal point moved left in the ledgers.

Ya done good, Audi.

Here’s hoping more businesses stateside follow in your tire tracks.

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