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Opinion Editorials

Trulia acquires Market Leader: more ways to squeeze agents

Trulia makes a $355 million acquisition, and there is much chatter about the implications of this big buy. Below, one broker opines on the topic of how this impacts the real estate industry.

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Trulia makes substantial acquisition

Zillow announced its record-breaking first quarter results yesterday, and at 5 a.m. this morning, Trulia’s announcement, the planned acquisition of Market Leader (which owns ActiveRain) relegated Zillow’s news to “What, did they say something?” in agent circles. Before most of the Left Coast was even awake, real estate agents east of the Mississippi were commenting on Facebook groups and Active Rain’s blog platform about what this could mean for them — agents — and their future relationship with T and AR.

Online comments from the real estate community ranged from “who cares?” to “the sky is falling” to “they’ve sold us out.” Let’s break this news down into digestible pieces and I’ll give you my own (always opinionated, biased towards me-the-Broker) take on what this means to the real estate community.

First, let’s address the ActiveRainers

To those who are tearing at their clothes and opining the “sell out” of a beloved agent blogging platform to the “corporate raiders” — here’s a reality check: ActiveRain is a business. Sure it was started by a handful of computer geeks who developed an idea (hey, let’s get agents blogging online, talking to each other and members of their community, then we’ll leverage that into business for them), sold the idea to the masses, then sat back and watched it take off into a community of its own. As it got bigger and more successful, original founders dropped off to go on to bigger and better things.

Entrepreneurship is about thinking up an idea, selling it to users, and then many entrepreneurs sell the entire company and move on to the next idea. That’s how business works. So the argument that AR is selling users out isn’t valid from a purely business standpoint.

Where the “sell out” argument comes from is the fact that many AR users have been blogging on the platform since 2006-2009. The early adopters built a close knit community of agents (and other real estate professionals) who got to know each other and helped each other, especially through the latest downturn. Back in 2007 when I joined (the same year I opened my own brokerage), it was more an agent-to-agent platform. I found a group of like-minded professionals around the country to bounce ideas off, celebrate successes with, and drink a virtual glass of wine with at the end of a long day.

Thousands of agents built their blogging careers with ActiveRain. We learned about SEO, how to get our posts/blogs to rise up through the search engines, and dominate our local area. Hyperlocalism blogging was taught for years at AR and many agents became top producers thanks to learning how to make their blogs rank — and be read — by consumers. The theory is that by being a curator of local knowledge (not just real estate) consumers will be drawn to our sites, and by extension, we will be the go-to name when a local reader needs our services. I have sold millions of dollars worth of real esate by blogging using this technique and it works. What will happen to the great SEO that agents have built with their AR blogs? When Trulia takes over will that someone hurt our SEO and all the Google juice we’ve built up in our hyperlocal blogging efforts? Of course it will.

Now, let’s talk about Market Leader

When Market Leader entered the picture the same “sell out” cries rallied, and in the past 18 months not a heck of a lot has changed there. With the exception of a few more sales calls (which we always got from vendors) I haven’t noticed too many changes. But here’s the difference: ML was more of a software company (selling back end CRM services and trying to generate/sell leads to agents) than a consumer-facing portal. Despite their best efforts at making a consumer facing site work (RealEstate.com, acquired by Market Leader), I don’t see that’s been a huge success.

That’s where Trulia can be a game changer. As much as AR and ML are agent-focused, Trulia (and Zillow and Realtor.com) are consumer-facing sites. The bulk of their effort over the past few years has been to lure the consumer in to use their site to search for properties/find an agent. The sites are packed with “how to buy” and “how to sell” advice, listings for sale and (recently added) rent.

Here’s where I see the backlash.

These companies take the listings that agents work their tails off to get and re-sell us the very leads that our own listings generate. The sites make money by selling premium advertising to brokers/agents. While they’re courting the consumer on one hand (hey come look at all the houses for sale) they’re courting the agents/brokers out of the other side of their mouths (hey give us your money and we’ll deliver the buyers/sellers to you). They take the fruits of our labor (our listings), display them on their sites, and then charge us to find out who is interested in our inventory. See the irony? It makes me feel dirty just to admit I pay for this whorish advertising.

Not only do they make us pay for leads our inventory generates but these same sites generate “leads” with false data. How many calls do you get for “listings” that were sold six months ago or are not even on the market yet (pre-foreclosures flagged by RealtyTrac)? And my newest gripe is Trulia’s brilliant “recently sold” lead. In this one, I get an email from a consumer who wants information on a recently sold house. The theory is that maybe this lead is a neighbor thinking of selling. So if I email back the sold data maybe I’ll get a new listing.

Except in the trenches it’s not working that way. Buyers are emailing on the house, not understanding it’s sold, and they want an appointment, or wonder why it’s online if it’s not really for sale (since if it’s on the internet it must be true). Telling them it’s not for sale (such as a pre-foreclosure or a recently sold) just annoys the consumer. That’s not a “lead” — it’s a consumer who thinks I am wrong and the internet must be right. It takes up my time to convince Joe Buyer that the house really really is sold and no I cannot show it to him.

But I digress.

Agents know how bad the data can be on the aggregator sites (which is what T and Z are). T/Z argue back: garbage in/garbage out. Meaning, agents get your act together and update that data so it’s correct! Mark those houses sold, enter your status updates promptly and make sure the feed coming in is correct.

As of May 8th, my firm of 6 agents has 85 listings. Perhaps I should hire someone to check the various aggregator sites every day. Or I could cut the feed out completely. That’s the battle cry of some brave brokers who have gone that route. No feed to T/Z, then the consumer must come to our site to find the data! If you are a huge brokerage in control of the bulk of the market, that could work.

But we won’t stop the consumers from seeking out and using T/Z and their nifty little apps (and Realtor.com which in my area seems to be barely used). I ask every buyer who calls into the office who I get to speak to, every buyer I see at a closing table or in person, “Where did you find this property?” The majority are using T/Z and so if the consumer is there, we need to make sure our listings are in front of that consumer. Removing our sellers from the feed reduces their exposure and may harm their chance of sale.

What major platforms have been lacking

But what the major platforms have been lacking is agent-to-agent interaction. That is where Market Leader and ActiveRain come into play.

With ML’s back-office CRM software (already used by some firms such as Keller Williams) and the agent-centric blogging, Trulia made a brilliant play to rope the agents into their platform. I don’t question their business acumen. So why did I want to throw up this morning when I read the news release? Because instead of seeing it as a “yeah we have the whole enchilada now, in one cool place” my gut reaction was “Great, I’ll be held hostage here.” Keep reading for why I feel trapped.

Why agents feel trapped

I pay for TruliaPro status (and Zillow Premier agent as well). Up to three months ago I also paid for a half dozen zip codes in my area for my firm to dominate Trulia in my little world. I spent thousands of dollars in 2012 on Trulia upgrades. In doing the taxes I calculated the ROI on those zip codes and decided to adjust the ads. I wanted to test a few new ones and dial back a few old ones. Easy enough. For years I’ve been doing this all by myself with no “advisor” needed. Add a few cities, subtract a few. Analyze results in three months. Adjust. Except in February I realized my sliders (that control ad percentage of market purchased) were gone. I could not dial back any of my zip codes or adjust.

Trulia took away the sliders/ability to control my own ads, and didn’t even tell their tech support apparently. I had to send a screen shot of what I was seeing to my rep for him to even understand what was going on. Then he promised to call me back when he figured it out. When he did (several days later) he explained that the Powers That Be at T decided only sales reps could change/adjust our ads now as we might “screw it up” and make bad changes. Oh. That explains it. But it was too late. I had already called in, gotten a different rep, and tried to talk through the changes I wanted. The new quote was jaw dropping. The rep explained it would be much easier (and cheaper) to just stick with my old ad plan rather than play with percentages and buy/change zip codes. In reply I cancelled all my advertising.

This control-freak approach also extends to the leads they send me (the ones I pay for). The email I get anonymizes the lead’s email and replaces it with a Trulia-centered email. To get the real email I must log into T’s portal, hit reply to the lead, and then I can see the true email. It’s an extra step, which matters to me because I use a third party portal to consolodate all my leads. So when the portal gets this junky email, I still have to waste time by logging into the T website, copy/paste real email, log into my CRM portal, and replace bad email with real one. Time suck. T say it is to protect the consumer’s data. Really? I think it’s so you control one more aspect of the lead-to-agent flow and it messes with my system.

As a broker and an agent, I don’t like it

I have no problem with the T/ML/AR partnership from a business standpoint. I get it. But as an agent, I don’t like it. It’s just one more blow in the fight to the top of the search engines for these two companies. And while T and Z are duking it out for Top Dog status, it’s the agents who are in the middle getting squeezed.

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Erica Ramus is the Broker/Owner of Ramus Realty Group in Pottsville, PA. She also teaches real estate licensing courses at Penn State Schuylkill and is extremely active in her community, especially the Rotary Club of Pottsville and the Schuylkill Chamber of Commerce. Her background is writing, marketing and publishing, and she is the founder of Schuylkill Living Magazine, the area's regional publication. She lives near Pottsville with her husband and two teenage sons, and an occasional exchange student passing thru who needs a place to stay.

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5 Comments

5 Comments

  1. Missy Caulk

    May 8, 2013 at 5:03 pm

    Excellent perspective, Erica!

  2. Carla E. Muss-Jacobs

    May 8, 2013 at 11:00 pm

    I agree with, and appreciate the post Erica. I get consumer calls all the time and have to explain why the listing isn’t for sale, etc. Consumers do not understand IDX and third party aggregation sites. If the home owner knew how rich and fat they made these third party sites off their listed homes for sale, they would be appalled — talk about feeling like a cheap, dirty whore. All listed property is pimped out by these sites, most agents, let alone consumers, have a clue how they are being used. Anyway . . . I do not agree with this comment: “The majority are using T/Z and so if the consumer is there, we need to make sure our listings are in front of that consumer. Removing our sellers from the feed reduces their exposure and may harm their chance of sale.” Really?!? The exposure has been and always will be MLS. Brokerages that remove their listings from third-party aggregators aren’t affected. Their listings get sold, their clients’ property doesn’t get pimped.

  3. Paceride

    May 9, 2013 at 8:46 am

    I agree 100%. I would add that the reason there is an MLS (other than to indicate cobroking) is so that the data is correct. If I have to check umpty – million websites to make sure my “sold” houses are not there, I’m wasting a whole lot of my time. I’m also wasting a whole lot of my time by checking Z and T’s sites to “claim” my listings, to see if the PHOTOS have come through the feed, or any other TIME WASTING MAINTENANCE I have to do on my own listings.

    On the matter of the public wanting answers right away — TOUGH. I don’t expect Joe to tell me where what aisle the dog food is in at 3AM, Joe can wait till a decent hour to find out what the taxes are on 123 Main Street.

    Consumers think a pre foreclosure “listed” on Trulia by RealtyTrac is for sale and don’t believe us when we say it isn’t? TOUGH. So Joe, email 5 or 6 other agents and they’ll tell you the same thing. What do the public think? That we don’t want to sell houses?

  4. Nathan Froelich

    May 14, 2013 at 5:39 pm

    Thank you Erica to take the time to share your insight. It’s refreshing to hear this perspective from a practicing agent who is actively subscribing to some of these services. Your statement, “These companies take the listings that agents work their tails off to get and re-sell us the very leads that our own listings generate” was well put.

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Opinion Editorials

Funny females are less likely to be promoted

(CAREER) Science says that the funnier a female, the less likely she is to be promoted. Uhh…

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Faceless keyboard warriors around the world have been — incorrectly — lamenting that women just aren’t funny for years now (remember the “Ghostbusters” remake backlash?).The good news is they are obviously wrong. The bad news? When women dare to reveal their comedic side in the workplace they are often perceived as “disruptive” while men are rewarded.

That’s right. Women not only have to worry about being constantly interrupted, receiving raises less frequently than men despite asking for them equally as often, and still making nearly $10,000 less than men each year, but now they have to worry about being too funny at the office.

A recent University of Arizona study asked more than 300 people to read the fictional resume of a clothing store manager with the gender-neutral name “Sam” and watch a video presentation featuring Sam. The videos came in four versions: a serious male speaker, a humorous male speaker, a serious female speaker and a humorous female speaker.

According to the researchers, “humorous males are ascribed higher status compared with nonhumorous males, while humorous females are ascribed lower status compared with nonhumorous females.” Translation: Male workers earn respect for being funny while their funny female coworkers are often seen in a more negative light.

There are, of course, several reasons this could be the case. The researchers behind this particular study pointed to the stereotype that women are more dedicated to their families than their work, and being perceived as humorous could convey the sense they don’t take their work as seriously as men.

Psychiatrist Prudy Gourguechon offered another take, putting the blame directly on Sam the clothing store manager, calling out their seemingly narcissistic behavior and how society’s tolerance for such behavior is “distinctly gender-based.” She says these biases go back to the social programming of our childhoods and the roles mothers and fathers tend to play in our upbringing.

So what are women supposed to do with this information?

Gourgechon’s status quo advice includes telling women to not stop being funny, but “to be aware of the the feelings and subjectivities of the people around you.” While recommending an empathetic stance isn’t necessarily bad advice, it still puts the onus on women to change their behavior, worry about what everyone else thinks and attempt to please everyone around them.

We already know that professional women can have an extremely hard time remaining true to themselves in the workplace — especially women in the tech industry — and authenticity is often a privilege saved for those who conform to the accepted culture. We obviously still have a long way to go before women stop being “punished” for being funny at work, but things seem to be progressing, however slowly.

Former First Lady Michelle Obama shared her thoughts last year on the improvements that have been made and the changes that still need to happen, including encouraging men to step up and do their part. In the wake of the #metoo movement, CNBC recommended five things men can do to support women at work. There are amazing women in STEM positions around the world we can all admire and shine a spotlight on.

All of these steps — both big and small — will continue to chip away at the gender inequality that permeates today’s workplaces. And perhaps one day in the near future, female clothing store manager Sam will be allowed to be just as funny as male clothing store manager Sam.

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Opinion Editorials

Two common business myths that could get you sued

(EDITORIAL) Two misconceptions in the business world can either make or break a small business.

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When you’re an entrepreneur with a small staff, you may be in the habit of running your team casually.

While there’s nothing wrong with creating a casual environment for your team (most people function better in a relaxed environment), it’s wise to pay close attention to certain legal details to make sure you’re covered.

It’s easy to misinterpret certain aspects of labor law since there is a lot of misinformation about what you can and cannot do inside of an employee-employer relationship. And since labor laws vary from state to state, it can be even more confusing.

As an entrepreneur, it might be strange to think of yourself as an employer. But when you’re the boss, there’s no way around it.

Here are two employment myths you might face as an entrepreneur along with the information you need to discern what’s actually true. Because these myths carry a lot of risk to your business, it’s important that you contact an attorney for advice.

1. Employees can waive their meal breaks without compensation

It’s a common assumption that any agreement in writing is an enforceable, legally binding contract, no matter what it contains. And for the most part, that’s true.

However, there are certain rights that cannot be signed away so easily.

For example, many states in the US have strict regulations around when and how employees can forfeit their unpaid meal breaks.

While meal breaks aren’t required at the Federal level, they are mandated at the state level and each state has different requirements that must be followed by employers. While some states allow employees to waive their meal breaks, on the other end of that the employer is usually required to compensate the employee.

For example, in California an employee can waive their 30-minute unpaid meal break only if they do so in writing and their scheduled shift is no more than 6 hours. In other words, when a shift is more than 6 hours, the meal break cannot be waived.

Additionally, when an employee waives their unpaid meal break, they must be paid for an on duty meal break and be compensated with an extra hour of pay for the day.

Vermont, on the other hand, provides no specific provisions for meal breaks and according to the Department of Labor, “Employees are to be given ’reasonable opportunities’ during work periods to eat and use toilet facilities in order to protect the health and hygiene of the employee.”

As you can see, some states have specific regulations while others have general rules that can be interpreted differently by each employer. It’s best not to make any assumptions and contact a labor law attorney to help you determine exactly what laws apply to you.

2. You own the copyright to all employee works

So you’ve hired both an employee and an independent contractor to design some graphics for your website. You might assume you automatically own the copyright to those graphics. After all, if you paid money, shouldn’t you own it?

While you may have paid a small fortune for your graphics, you may not be the legal copyright holder.

Employees vs. independent contractors:

When your employee creates a work (like graphic design) as part of their job, it’s automatically considered a “work made for hire,” which means you own the copyright. An independent contractor, however, is different.

While any legitimate work made for hire will give you the copyright, just because you created a work for hire agreement with your independent contractor doesn’t mean the work actually falls under the category of a work made for hire.

According to the Copyright Act (17 U.S.C. § 101) a work made for hire is defined as “a work specially ordered or commissioned for use as a contribution to a collective work, as a part of a motion picture or other audiovisual work, as a translation, as a supplementary work, as a compilation, as an instructional text, as a test, as answer material for a test, or as an atlas.”

This means that unless your graphic design work (or other work you paid for) meets these requirements, it’s not a work made for hire.

In order to obtain the copyright, you need to obtain a copyright transfer directly from the creator, even though you’ve already paid for the work.

The boundaries of intellectual property rights can be confusing. You can protect your business by playing it safe and not making any assumptions before consulting an attorney to help you discern the specific laws in your state.

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Opinion Editorials

Living as a 7 in the Instagram world of 11s (why hotties rule IG)

(OPINION) Hot people have it, not people want it, Instagram perpetuates it – beauty, and it’s a prime ingredient for success.

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Who runs the world? Girls. Who runs the social media world (read: Instagram)? Hot girls. And hot guys.

Social media has always fascinated me. When I was a freshman in high school I got a Facebook – all you older millennials that had to wait ‘til college can hop off because I wasn’t allowed to have Myspace / Xanga / any other predecessor social sites.

That Facebook allowed me to connect to my camp friends, one of whom lived in a different country, family in other states and the friends that I saw every day.

My story is pretty predictable after that. Social media blew up, I did my millennial duty to help the creation and exposure of new sites and now here we are. Living in a society where hot girls on Instagram selling tea that makes you poo make more money than that girl with multiple degrees.

I’m not gonna blame millennials, but I kind of am, but everyone had a hand in this.

As a society we value celebrity. When I was a child that value manifested into society with tabloid magazines and copying haircuts (hello, Rachel Green). As a teen, that value on celebrity pivoted into the daytime/nighttime / anytime talk show. Now, as an adult that missed the opportunity to make an ascent into stardom via YouTube, celebrity is valued by way of social media.

EVEN CELEBRITIES HAVE THEIR CELEBRITY VALUE MEASURE BY SOCIAL MEDIA FOLLOWERS.

Don’t get me wrong. Several *actually* talented and wonderful people have leveraged social media in niche ways and created a nice lifestyle for themselves. However, I’m also going to assert that 80% of social media influencers / modern celebrities would be nothing if they weren’t hot.

Singers that have worked their way up the ranks with 6 second Vine video snippets and two minute YouTube videos can have insanely gifted voices but it also doesn’t hurt that were nice to look at while they hit that E5 note.

Artists and illustrators that have busted their butts and their hands creating and making stunning visual pieces can create one-of-a-kind masterpieces but it also helps that they throw the occasional full-glam face selfie.

That one guy or gal that posts photos of (seemingly) delectable food can have grown a 100% organic following by creating content that people want to see but it will also never be a negative for them to post a photo of them in their swimsuit on that tropical island they got paid to visit.

And please hear me when I say this: being attractive helps offline too. The amount of times my insanely attractive guy friend has profited from his jawline jaw line is almost as crazy as the amount of times my unfairly gorgeous gal pal has reaped the benefits of having phenomenal facial symmetry. Hell, even I’ve used a hair flip and batted an eye in lieu of twisting arms.

I’m pretty sure there’s some science somewhere that says that its natural for people to be inherently attracted to attractive people. I’m not sure why that is, but at least in my life, I’ve found it to be true. Unashamedly (and slightly shamefully) I’ve listened to authority figures better when they were kind on the eyes, I’ve gone to the cash register with the prettier human, I’ve followed the accounts of people who created an aesthetic I vibed with more.

Sometimes it just feels like that if a quarter of the pictures on a highly followed account – skilled or otherwise — weren’t of the person made up, or shirtless, or provocatively posed, they might not have the same level of following or at least engagement. Honestly, it makes the whole exchange feel insincere (which is a funny thing to say about internet interactions to begin with). Like, even if I buy that gadget / get those clothes / put that makeup on / fill-in-the-blank from that #ad on your Instagram story the exact way you do I still won’t look like you.

Reminds me of that old saying, “you can put lipstick on a pig but its still a pig.” You can buy that stuff off that one hottie’s Instagram but you’re still going to be you.

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