Connect with us

Opinion Editorials

If it walks and talks like a brokerage, it might be Zillow

Zillow is one of the largest real estate media companies in America, and they have recently made bold expansion plans many are praising, but one industry leader tells AGBeat that these moves are competitive, not praiseworthy.

Published

on

Zillow’s expansion plans: compete with brokers?

Real estate media company, Zillow has recently made several big moves, some are being called game changers as they add value to their offering with the goal of better serving real estate practitioners and consumers. Not everyone sees it that way, however, including VHT Chairman, Brian Balduf, who is no stranger to controversy, recently taking on black hat SEO tactics of real estate media sites.

Balduf sees Zillow’s expansion plans as anti-broker and in a statement to be released later today, Balduf outlines why. The statement is featured in full below.

“If it walks and talks like a brokerage, it might be Zillow,” by Brian Balduf, VHT Chairman:

Zillow’s new Agent Hub tool

When Zillow rolled out a new CRM tool for real estate agents on Friday, it hit a nerve with brokers who are already offended by big aggregators’ controversial tactics to get in between them and their customers.  Now it looks like Zillow is also trying to get in between them and their agents.

Zillow describes Agent Hub as a key step in moving Zillow beyond advertising with a suite of tools and services giving agents a central hub for marketing and managing their businesses and becoming more productive.

Agent Hub is said to provide agents with analytics dashboards to monitor listing and agent profile metrics, as well as marketing and social media training and industry news updates.

All this prompted industry observers such as Geekwire to suggest that Zillow’s agent strategy is targeted at competing with Market Leader and other industry outsiders that are aggressively pursuing the billions spent annually by real estate professionals on marketing and advertising.

Brokerages are in Zillow’s crosshairs

But there’s more going on here than competition between two companies in the same space. In this battle, it’s real estate brokerages who are in the crosshairs of Zillow’s ongoing expansion plan.

Understanding why that’s the case requires understanding how the Internet has changed consumer buying habits. Once upon a time, agents were the source of clients for brokerages. But now, consumers have direct access to MLS listings and they’re spending weeks or months shopping for homes on the web without help from agents.

Today, agents have to pay Zillow and other third parties to help them find these online buyers. And these savvy third parties are investing big bucks in developing a range of CRM, lead management and other support services that are easy for agents to access and free or low-cost to use. (Zillow’s plan, the company disclosed this week, also includes opening a new California office and adding 100 employees to its sales force to promote the Agent Hub offering.)

An interesting comparison

Here’s an interesting comparison.  If you look at some advertising by brokers trying to attract agents, and at what these industry outsiders like Market Leader are marketing to agents, you’ll see some interesting similarities:  

The broker’s message in the above ad — about providing the “best tools, training, support and lead generation” to agents — has been borrowed by third party companies like Market Leader. Its brochure ware says it offers agents “integrated websites, contact management, a marketing center, and lead generation services that generate a steady stream of prospects plus provides the systems and training for converting those prospects into clients.”

The only difference in the services is that these third party players aren’t restricted by all the rules and regulations that a brokerage must adhere to.

Zillow undermines brokers’ value to agents

With Agent Hub, Zillow is helping to undermine brokers’ value to agents and eclipsing their role by providing services directly to agents – services that traditionally have been provided by brokers. Like Market Leader, they’re taking money out of brokers’ pockets, undermining agents’ loyalty to brokers, and basically competing for the low hanging fruit – agent marketing dollars.

No wonder agents are questioning the role of traditional brokers and demanding a larger share of commissions.  If the trend continues, will agents need brokers at all?

Brokers CAN actually strengthen their relationship with agents and increase their value proposition. But they need to spend less time trying to recruit more agents and more time using their resources to get leads for the agents they have. They should be helping agents nurture buyers through the sales process so they can close more sales.

This battle is all about trying to help agents generate leads and close deals more effectively. Whoever does it the best, wins, period.

AGBeat is not affiliated with VHT and the above comments expressed do not necessarily reflect the opinions and position of AGBeat officers and employees.

The American Genius (AG) is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

Continue Reading
Advertisement
47 Comments

47 Comments

  1. Ken Brand

    April 18, 2012 at 3:44 pm

    “This battle is all about trying to help agents generate leads and close deals more effectively. Whoever does it the best, wins, period.” Absolutely spot on. The odd thing, at least for now, in this simmering competition stew, brokers are providing their ZTR competitor with gunpowder (property data) which is used to sell ads to the brokers agents, which generates money, which ZTR use to manufacture more tools (bullets) to shoo the gunpowder-providers (brokers) in the head. Awareness on all fronts is rising and will rise as the market rebounds and (hopefully) smart brokers move from a survival-mode-mindset to a kick-ass-and-take-names-mindset.

    “But they need to spend less time trying to recruit more agents and more time using their resources to get leads for the agents they have.” I believe to thrive you must do both impressively. Half-assing on lead gen, developing new talent, quality control and attracting new talent will have a broker chasing and lagging instead of leading and reaping.

    I don’t believe a middle ground is possible due to TRZ’s shareholder/investor demands and expectations, growth can only come from disintermidiating brokers. What I’m encouraged by is the fact that (for now anyway – wake up brokers TRZ is a Trojan Horse) brokers can (if they have the will) pull the life support plug on TRZ. In will be interesting to see how brokers react in a surging rebound market.

    Thanks for sharing.

  2. Benn Rosales

    April 18, 2012 at 4:02 pm

    The entire old guard needs to be pushed – if you’d told me 3 yrs ago top producer would be html5 I’d have called you insane and asked you to step away from the crack.

    IMO this is more threatening to old vendors and new vendors with old tricks – read that again.

    This is a snap in the face to NAR – wake up, we’re taking the reigns as the leader in the real estate industry, and Trulia just solidified my belief last week.

    The fact is, Zillow is a threat to everything that was once normal in real estate, and there isn’t a damn thing wrong with that. The arrogance of the old mans club is coming to a head – mark my words.

    • Bruce Lemieux

      April 19, 2012 at 4:00 pm

      Benn – Definitely agree that other RE service providers like Move, etc should worry about Zillow, but how is “Zillow is a threat to everything that was once normal in real estate”? It seems to me that Zillow does two things: sells web ads from listing data, and provides web services to agents. This may bring about some industry consolidation in these markets, but I don’t see how this affects much else. This doesn’t seem that revolutionary/disruptive to me. What am I missing?

      What would be very interesting – and cause quite a stir – would be if Zillow setups up brokerages ala Sawbuck — ‘brokerages’ that have access to MLS data and build an agent referral business. This would be a lot more disruptive to traditional brokerages than anything else they’ve done recently.

      • Benn Rosales

        April 19, 2012 at 5:34 pm

        Bruce, got your question, and I’m going to see if I can help paint a better illustration of what I mean than stuffing it into a comment. I don’t think Z will be sticking signs in yards, I think it’s a lot more macro than that and not speculative, but what’s actually happening in real time.

        • Bruce Lemieux

          April 19, 2012 at 6:22 pm

          “I think it’s a lot more macro than that and not speculative” – I have no idea what that means.

  3. Rich Jacobson

    April 18, 2012 at 4:31 pm

    Spot on, Benn! Things are desperately in need of a shake up. Local brokerages (and parent companies) have failed to provide meaningful lead gen systems for their agents. Zillow and Trulia are simply fulfilling the need/demands that Realtor.com has failed to provide.

  4. Robert Drummer

    April 18, 2012 at 10:50 pm

    If *any* agent puts their client information in Zillow’s AgentHub, they are an absolute idiot.

    Zillow’s ‘Terms of Use’ let them do anything they want with your client list including sell it to any third party.

    I blogged about here:
    imapp.com/blog/2012/04/zillows-dirty-little-secret/

    • Jay Thompson

      April 19, 2012 at 12:40 pm

      Jay T. from Zillow here!

      Thanks for pointing this out Robert. The TOU you cited in your posy was never intended to include info agents and brokers upload to the CRM / Agent Hub. Zillow will not harvest anything from the contacts that agents input into the CRM, and the language of the TOU is being been updated to explicitly state this.

      • David G

        April 23, 2012 at 8:54 am

        Thanks for the clarification Jay T. 😉

  5. Thomas Johnson

    April 19, 2012 at 2:06 am

    Tsk tsk. What would David Gibbons do?

    • David G

      April 23, 2012 at 8:55 am

      He’d probably do exactly what Jay T would do. Good to see you Thomas.

  6. Paula Henry

    April 19, 2012 at 6:10 am

    Agents and brokers woke up too late.

  7. Bruce Lemieux

    April 19, 2012 at 3:43 pm

    All this hand-wringing over Zillow is so tiring.

    So Zillow is providing services to agents just like Market Leader and Move. So what? Agents aren’t forced to use any of this. If Zillow provides compelling products with good value to agents, how is this a bad thing?

    And this incessant worry that Zillow will become a brokerage — ugh, enough already. If Zillow’s evil master plan is to setup brokerages, then let them. Running a profitable brokerage is hard work. If it were simply a matter of turning on a website, Redfin would have taken over the entire industry years ago. And if they do setup brokerages, do it better than everyone else and make tons of money, then good for them. Seriously – what *is* the problem?

    There’s a lot of zillow/trulia/redfin/r.com haters on the REnet who would be better off focusing on how to provide more value to their buyers and sellers – and less time griping about everyone else.

    • Benn Rosales

      April 19, 2012 at 5:37 pm

      I’m not a hater, like I said, competition in the market place especially for associations and vendors is a great great thing.

      • Bruce Lemieux

        April 19, 2012 at 6:16 pm

        Benn – sorry, didn’t mean to infer that you were in the ‘hater camp’. If I understood the original article correctly, you reported on Mr. Balduf’s thoughts on Zillow, not your own. I think we both agree that a more competitive RE service marketplace is all good.

        • ken Brand

          April 20, 2012 at 10:16 am

          I’m not wringing my hands Bruce, I’m speaking up, speaking out, wagging a finger, shaking a fist.

          Fortunately I’m capable of expressing my self and focusing on my business at the same time. A part of business is keeping abreast of competitive forces, listening to opposing views and formulating a positon current issues. Expressing myself in writing is helps to crystalize my beliefs.

          What I’m not doing it sitting quietly in a corner, deaf, dumb and mute. If I did that I wouldn’t be “doer”, I’d be a dud. imo

      • David G

        April 23, 2012 at 8:59 am

        Was Zillow contacted for comment on this story?

    • Drew Meyers

      April 20, 2012 at 7:02 am

      “There’s a lot of zillow/trulia/redfin/r.com haters on the REnet who would be better off focusing on how to provide more value to their buyers and sellers – and less time griping about everyone else.”

      Spot on. Unfortunately, this world is full of “blamers” aka those who will bitch and moan about what everyone else is doing that is so “unfair” but refuse to actually do anything themselves to improve their business. I’ll stick to hanging with the doers of the world..

    • Robert Drummer

      April 20, 2012 at 9:54 am

      It seems there are just as many zillow/trulia/redfin/r.com apologists on the REnet who also would be better off focusing on how to provide more value to their buyers and sellers – and less time griping about everyone else.

      • ken Brand

        April 20, 2012 at 10:01 am

        This is what makes the internet great. It allows us to bitch and moan, even when we want bitch and moan about the bitch and moaners. We can hate on the haters, we can point how unfair and misguided the unfair and misguided are.

        Thankfully because most of us who read and share on AG can walk and chew gum, we can laser focus on growing our business, be a doer and still find time to add to the conversation, even when the haters, moaners, bitchers, unfocused and undoers disagree.

        • ken Brand

          April 20, 2012 at 10:03 am

          PS. I think Redfin is an awesome brokerage. ZTR, not so much, they aren’t a brokerage yet.

      • Bruce Lemieux

        April 20, 2012 at 10:11 am

        @Robert – So we have the Hater Camp and Apologist Camp. How about the Agnostic Camp? Either way – I agree with your point.

Leave a Reply

Your email address will not be published. Required fields are marked *

Opinion Editorials

If Reddit goes IPO, will it have to shed its soul?

(EDITORIAL) Reddit is known as a firebrand, a bastion of free speech, but if they go public, will they be able to remain as they are now?

Published

on

reddit

Reddit, the eighth-most popular website on the Internet, is reportedly considering an IPO. As a site valued at over 1.8 billion dollars, this is great news for the company itself – but how much of Reddit will remain if the IPO goes through?

Reddit’s history is steeped in controversy, from minor incidents such as invasion of privacy and a few creepily quirky community members to allegations of child pornography and egregious hate speech. While Reddit’s policy has allowed it to tighten posting restrictions regarding the latter two, the fact remains that Reddit – for all its usefulness – is viewed by many as a ticking time bomb.

An IPO would certainly lend back to Reddit a degree of credibility not seen since its inception, but the problem is that Reddit itself (the haven of free speech and original content that made it so popular in the first place) might not survive the offering. Given the platform’s controversial past, many believe it likely that stakeholders would move to tighten further the restrictions on the platform, ultimately ending a significant era in Reddit’s history.

Admittedly, Reddit has come a long way since its early days of supporting user-created content regardless of persuasion: this past year saw entire subreddits shut down for violating the terms of use regarding hate speech, and the platform certainly has cracked down on illegal and abusive content. Unfortunately, the history might be too much to shake off going forward, which is why we think that Reddit’s branding won’t be a part of the final IPO.

The platform’s developers’ dedication to free speech and truth-seeking is what makes Reddit so fantastic, and that’s not liable to change – it’s the most marketable aspect of the site, after all – but perhaps the rationale behind going public lies in a sense of duty rather than routine. 2017 has seen some of the most reprehensible instances of false reporting and deliberate misguidance in recent history; maybe Reddit’s team feels that they can provide a stable news platform at the cost of some personality.

At any rate, the IPO itself isn’t set in stone, and is unlikely to take place for quite some time. As the situation develops, it will be interesting to see if Reddit embraces its past, or sheds it altogether.

Continue Reading

Opinion Editorials

‘Follow your passion and the money will follow’ is bulls**t advice

(EDITORIAL) Following your passion can create success, though it may not be financial. So should you really just “do what you love” and hope for the best?

Published

on

follow your passion

If you asked anyone who knows me, they would tell you that I’m a strong advocate for people following their passion. However, when I encourage people to pursue their dreams, this comes with a big asterisk.

I recently heard someone use a phrase along the lines of, “if you do what you love, the money will follow.” Um… no.

While it’s great that you’ve found something you’re passionate about, that’s only a trillionth of the battle. You need to be willing to work your ass off and be willing to sacrifice everything in order to make that enthusiasm into a success.

Most people that have started their own business will tell you that it took a while into the process to begin paying themselves. Again, if it truly is your passion, this is all worth it in the end. But if you like food and shelter, it might not be.

Say, for example, your passion is acting and your goal in life is to become a famous movie star. Now, you can’t pull a Tobias Funke and simply say, “I’m an actor” and then expect everything to miraculously fall into place.

Like any other passion, you need to invest in yourself. You’ll need to get headshots, take acting classes, and find a flexible day job that allows you to go on auditions. Cutting corners on any of this in order to expedite the process or save a few bucks will end up hurting you in the long run.

For the sake of this article, let’s define “passion” as loving something so much you couldn’t imagine doing anything else… you would even do it for free. And, as there is no correlation between having passion for something and money, you just might.

While doing what you love is admirable, be aware that it may take an incredibly long time to see results in the form of numbers. Because of this, it’s wise to always have a back up plan to support yourself financially and pursue passion with a strong business plan in tact.

It is never wrong to want to follow your passion. I personally think that everyone should give it at least something of a shot during the course of their career so that you never ask “what if?” But following passion because you read a cliche statement can lead to major financial and emotional losses, so put on your business hat before blindly chasing dreams.

Continue Reading

Opinion Editorials

Tech CEO tweet ruins years of a young designer’s hard work

(EDITORIAL) With a tweet here and there, thoughtless questions have potentially bullied a young Asian woman in tech out of her career.

Published

on

naomi wu tweet

It’s hard enough for women, particularly women of color, to make it in the world of tech, without rude jerks questioning if you literally exist.

Sadly, that’s what happened to Naomi Wu, also known as “SexyCyborg,” a 23-year old cyberpunk superstar from Shenzhen, China who has amassed a huge following for her 3D printing experiments and other techie pursuits. Wu has 140,000 followers and millions of views for her YouTube channel, where she shows off her experiments and provides educational tutorials.

Unfortunately, some rude dudes from America can’t seem to imagine that a young Asian woman is capable of the feats that Wu has accomplished.

Dale Dougherty, CEO of the DIY magazine Maker (and an official schmuck), has cyberbullied Wu so badly that it is said to have damaged her career. He tweeted, “I am questioning who she really is. Naomi is a persona, not a real person. She is several or many people.”

This despite the fact that Wu says that she has actually spoken to Dougherty, and that he knows she is real. “For Westerners who don’t understand the important of reputation in China it seems like a very minor thing,” says Wu, “it is everything here and there’s no repairing this.”

Wu has even lost a sponsorship deal from a 3D printer company over the accusations that she isn’t who she says she is.

Dougherty eventually apologized, but Wu says that “the damage had been done” at that point, and that Dougherty knew the accusations would be “devastating” to her “reputation and professional prospects.”

Wu says that the attack is motivated by white male entitlement to tech spaces.

She says that she can’t imagine Dougherty attacking “a white lady from San Francisco.” Wu has been an advocate for diversity in tech and maker spaces. “I kept pushing for more inclusion – not just me, other underrepresented people,” she says. “They didn’t like being pushed. This is payback.”

We stand behind Wu as she continues to push the edge in tech spaces, and say shame on you to bullies who won’t make space for women and racial minorities. Sorry you’re not as cool as SexyCyborg, but that’s on you and you need to get over it.

Continue Reading
Advertisement

The
American Genius
News neatly in your inbox

Join thousands of AG fans and SUBSCRIBE to get business and tech news updates, breaking stories, and MORE!

Emerging Stories