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Opinion Editorials

The questionable timing of Errol Samuelson’s departure from Move, Inc.

(Editorial) A key figure at Move, Inc. resigned without notice last week, leaving many wondering how his move to Zillow will have an impact on the real estate industry.

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goodbye

goodbye

The difficulty of quitting

In my life, I can count the number of times I’ve quit a job with no notice and a “shove it” note on one finger. I was accidentally included in an email from a boss who made a cruel comment about me. It was one in a long chain of abusive statements toward me and everyone else. I had worked enough 90 hour weeks for this man, so I printed out the email, circled his statement, wrote “ADIOS” in red Sharpie, handed it to him, and walked out that minute. I was immediately hired to be the Marketing Director at a real estate firm, and then began working here, so it all worked out for the best.

I have no regrets. If you’ve ever seen The Devil Wears Prada, you’ll understand my plight. He deserved it. But not all bosses deserve a nasty red sharpie note, but it happens regardless.

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When Errol Samuelson, former president of realtor.com and Chief Strategy Officer at Move, Inc. left to become Zillow’s Chief Industry Development Officer, it appeared to me to be a red Sharpie note to the ol’ boss, but instead of handing it to him personally, he called it in. I’ve been pondering the timing of the departure and what it means for the industry.

The timing of Samuelson quitting

We had known for some time that Move would be in an investor’s meeting all day on Wednesday, an event that everyone knows does not permit interruptions. Steve Berkowitz, CEO of Move, Inc. told us that while Samuelson was not expected to be in the day-long meeting, he was aware of it. Additionally, Berkowitz said that he had a standing appointment with Samuelson on Thursday in person to go over his 2013 objectives and review his 2014 goals. In other words, he quit the day before he had to meet with the boss to discuss his performance.

These two facts confirm to me that the timing was choreographed purposely. Was this designed to hurt Move’s chances with investors or hurt their stock? “That can’t be determined,” Berkowitz told us. He tells us that while in the investor meeting, he ignored a call from human resources, then the legal department, and realized something was afoot when his Chairman rang his cell phone – he stepped out, learned the news, and called Samuelson.

In less than a minute, Berkowitz says he congratulated Samuelson, asking only that they hold off on announcing the departure for 24 hours. Within the hour, Zillow published a well crafted press release on the subject. Berkowitz is keeping a positive outlook, noting that “business is business,” but quitting in this manner is nowhere on par with my red Sharpie note, and it seems to violate basic business ethics, particularly given the fact that every Move, Inc. strategy in Samuelson’s brain has gone to Zillow who one Move, Inc. insider opined is “known for their drama,” particularly with the timing of press releases, lawsuits, and the like.

A slight change in tone

Berkowitz’s statements have been extremely courteous so far, but we noticed a slight change in the tide when he asserted to us that Samuelson “was privvy to the strategy, but was not involved in the day to day operations. We won’t miss a beat at all.”

Although the feeling inside of Move, Inc. seems to be that Samuelson burnt a bridge, the overriding feeling is that it was completely unnecessary.

Berkowitz echoed a feeling we had here at AG, noting that Samuelson was one of the most outspoken critics of Realtor.com competitors, and to see that change overnight is like a Republican becoming Democrat with no explanation.

Moving forward, Berkowitz noted that their “direction is solid,” their “value is strong,” and that they will continue to live up to the promises they make. He opines that their current team is extremely strong, and that combined, they have more industry experience than any of their competitors. They have restructured Samuelson’s role, and recent promotions will take care of the company strategy, which Berkowitz notes he has always driven, no matter who reported to him.

“People’s actions define them.”

Berkowitz says that this departure has him concerned for the industry. “Remember this: people’s actions define them.”

One topic Berkowitz sidestepped was the reaction of the National Association of Realtors, simply leaving it at the fact that Samuelson was privvy to their strategies as well (which we can imagine they’re likely somewhat annoyed by).

My interactions with Samuelson have always been positive, so I was surprised at the choreography of this departure, and I do think that Zillow has one hell of an industry leader in their midst, but climbing the wall and kicking down the ladder behind him seems unnecessary, and although Berkowitz wouldn’t say it, I will – this feels designed to hurt Move, Inc. in favor of Zillow. From where I stand, it didn’t have to be that way, and it actually hurts Zillow’s relationship with NAR, informed brokers, and informed agents who butter their bread.

Lani is the Chief Operating Officer at The American Genius and sister news outlet, The Real Daily, and has been named in the Inman 100 Most Influential Real Estate Leaders several times, co-authored a book, co-founded BASHH and Austin Digital Jobs, and is a seasoned business writer and editorialist with a penchant for the irreverent.

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4 Comments

4 Comments

  1. andreageller

    March 10, 2014 at 5:42 pm

    I think in this day and age there is no graceful way of going from one competitor to another for either party. As with all things it’s timing.

    • agbenn

      March 11, 2014 at 10:33 am

      In some ways I agree with you Andrea, but in this case when discussing two publicly traded organizations, timing is everything. The timing and rush are certainly questionable. Big businesses do this everyday, but the cloak and dagger style of leaving is suspect when you put it with a publicly announced investors meeting. The move was designed to at minimum embarrass Move, but even that failed because although he had a title, he wasn’t involved in execution according to the article, and Move.

      Funny thing about real estate, most R’s spend a lot of time avoiding these types of individuals, so the role he was hired for will only place more distrust on Zillow for the foreseeable future. I have good friends at Zillow, but the ethos is gone and seems it could be a top down problem.

  2. basic_business_ethics

    March 11, 2014 at 12:46 pm

    I agree that the timing seems to have been designed by Zillow to damage realtor.com, it is shocking to me that Errol went along with it.

    Getting poached is one thing, but giving zero notice and being announced as starting a job at a top competitor that same day is another.

    Samuelson should have resigned, and then later re-emerged at Zillow.

    Zillow and Errol may have just made the already treacherous waters of securing MLS feeds and favor with NAR even more turbulent.

    It may hurt realtor.com in the short term, but I doubt this is a long term win for Zillow.

  3. BawldGuy

    March 11, 2014 at 10:23 pm

    We all have a choice when it comes to how we unilaterally end any relationship. We can be a real man or woman, or we can be less. Grace is a choice if we’re the ones making the decision to leave any relationship. Class too is a choice. To believe otherwise is unfortunate.

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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?

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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.

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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?

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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.

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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.

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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.

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