…the Zillow machine, but I seriously doubt it…
I 100% agree that someone could seriously improve on the existing CRM products for agents… During our after-lunch conversation this past week, I mentioned that if Trulia really wants to reach marketing dominance some day, they should offer a free, high-quality CRM to agents. But first, they’d need to start thinking of themselves as a company that provides marketing tools to agents, not just as an advertising platform (and interestingly, I get the impression that Rudy is already thinking this way!).
However, I don’t think Rudy is enough to make it happen for Trulia.
Why? Because to call either Trulia or Zillow a “marketing” platforms for agents would be to confuse marketing with advertising. The core DNA of both companies is to build consumer-oriented products and then find a way to integrate agent-advertising into those products. Other than the (very valuable) service of getting agents in from of consumers, I’m yet to see either company make the mental leap toward thinking what should they do to make the day-today business of agents easier or more efficient.
Just as it is in TP’s DNA to build products for agents, T and Z still live in a world of consumer-oriented products. My guess is that some of the executives at T or Z would view the development of pure agent-centric products (like a CRM) as selling-out the consumer experience of their core sites.
Nonetheless, if T or Z (or Roost!), decided to build some agent-centric projects, I’d argue that they’d likely open up some interesting business opportunities and potentially do a much better job endearing themselves to their core advertisers.
And a quality CRM is only one way they could go… CMS, market intelligence, and transaction coordination are three other (obvious) areas where existing agent-centric products are either seriously lacking features or the market is seriously under-served.
But just because the market is starved, doesn’t mean T or Z have any interest in coming to the rescue. As a matter of fact, inertia suggests to me that they are not even thinking about taking on this market and TP executives are right not to worry about Zillow.
(Are you having a hard time translating this post? A key can be found here.)
I’m somewhat of a night owl, so I thought I’d have no problem waiting out the U.S. launch of the UK site DotHomes. But it is getting pretty late and the U.S. version of the site still hasn’t gone live. 🙁
However, TechCrunchUK published their story (with the not so promising comment: “The question, is will the US – packed to the gunnels with property search engines and in a sub-prime slump – actually notice?“), so I thought I’d give my analysis based on what I learned from a good, long conversation with one of their co-founders, their press release and a bit of playing on their UK site.
Let’s start with the good stuff:
- They have slick crawling technology that does a great job indexing home listings from a variety of listing sites
- They have a well developed one-box search that allows for all kinds of inputs and actually delivers decent results
- They have a healthy sense of flair as demonstrated by their “I’m feeling wealthy” button
Whereas the recently released search site Roost.com appears to be going for the “kayak of real estate”, DotHomes is clearly going after the “google of real estate”. Like Google, they display only the teaser information on listings before sending you back to the original source (the crawled website) for more information. So far, so good!
However, I’m a bit skeptical this site will generate much interest or buzz in the U.S. for a number of reasons (none of which are fatal, but…):
- DotHomes is following less than a week after the release of the Roost.com site, which got some great buzz around the RE.net for having a listings aggregation approach that made sense (i.e. get all the MLS listings!).
- Besides entering a crowded space, DotHomes is also opting for a crawl approach to get listings, which will never compete in either comprehensiveness or timeliness with direct MLS feeds.(although it does allow for more freedom to add other listing types).
- And finally, I didn’t get the impression that the DotHomes team really understood oddities of the existing US real estate market. Some of the background material they presented made me think they hadn’t really done their homework in terms of really understanding the complex dance of agents, brokers, brokerages and MLS organizations that allow listings to get placed on the internet in the first place.
With all that said, I’ve been following the cofounders of this site for quite some time (including back when the site was called Extate.com). Artemi Krymski and Douglas de Jager are extremely smart guys and I’m sure that after they get some U.S. experience with this launch, they’ll regroup, adjust their tactics a bit and continue to produce interesting products that will keep us talking.
(some names left anonymous to protect the innocent)
- There’s a hell of a lot of VC money floating around this industry. I was surprised at how many people there were with lots of VC funding. Joel seemed to notice the same thing: “a whole new crop of real estate search sites that are going to be hitting the market”
- Reporter from the REALTOR Magazine was in the audience of our presentation. (thanks to Ines for pointing out the story: NAR is opening their eyes to blogging.)
- Zillow dropped their beta tag.
- Zillow’s big press release (picked up by many others) was a case of “make-news”. I’d be worried for their business if they weren’t making the improvements they announced (adding more listings, improving the quality of Zestimates, dropping beta, etc.). Joel doesn’t write much about of the improvements, while Greg quotes it extensively and seems to gush about their RETS announcement, which even the Zillow team pulls back from in the comments.
- Trulia was profitable for at least one month last year expects to be profitable at some point this year.
- According to comScore, Trulia had more traffic than Zillow in December! (Congrats Mike on the awesome prediction)
- comScrore and Hitwise are measuring traffic on two different internets. (Hitwise shows Trulia with 1.45% of category traffic and Zillow with 2.28%).
- Also interesting from the Hitwise report is that Move.com moved from #2 to #5, while RE/Max moved from #2 to #5. That’s big enough news where I would have expected to see a Press Release. Realtor.com at #1 and Move.com at #2 is huge for Move, Inc., even if it is only for December. (Oddly, I’m getting all the Hitwise numbers for December from an Inman Blog article on my feedreader. The actually article was removed from their site for some reason, so maybe the numbers are butchered!)
- Vast.com acquired Adaptive Real Estate Services (ARES). (That answers one question, although it does not give me any confidence that Vast.com has thought out their listing content acquisition strategy)
- Lots of neighborhood projects coming out. Here’s my (unsolicited) advice to anyone looking to build a successful social network in this space. If you really want consumer adoption, you’ve got to have a clear answer to this question: “What’s the consumer benefit?” So, so, so many of the “social networks” I saw this week were focused around real estate professionals. ActiveRain was an anomaly. Be able to explain your consumer proposition clearly, or don’t expect success.
- With that said, VillageMaker from RealProSystems will likely be a success… in that agents will the product, not in the sense that consumers will use it. This is the ultimate social network with the real estate professional at the center of the transaction in that a real estate agents must invite consumers to this platform. Sounds great, except it won’t work for all but a few agents.
- I am now the owner of “all the marbles”.
- Google staff really don’t like it when you take pictures inside their offices. (Jay noticed this too!)
- Saul Kline is still the same great guy even after becoming CEO of Point2. (Frances has photos). His stated approach for moving Point2 forward is sound, although I’ll let him explain that approach when he’s ready.
- Lots of start-ups are twisting and turning to think how they an make their products more REALTOR friendly in the hopes of catching some Second Century funding! Mark Lesswing is a popular man at these conferences.
- I was surprised how many tech start ups get funding with only the roughest plans to get listings. Teresa gets that this is a mistake!
- Trulia launched their Publisher Platform. Robbie loves this! I can’t tell what Joel thinks… and Greg pans the service. I don’t follow Greg’s logic that it weakens overall traffic to Trulia… Mainly because nobody in the online real estate space has enough market penetration to think there are a finite number of users for their services. Trulia needs more listings. If this helps convince more brokers that they need to send their feeds to Trulia, then it is a good move. (Joel has an example of what the branded service looks like on FOREM)
- I really liked one startup and can’t wait until they launch in a little bit because I want to see how they market themselves. The product is an (solid) incremental improvement on search, but I don’t think it is enough of an improvement to go viral on its own.
- The beer for bloggers event is a great way to start off a conference. (photos on the Zillowblog and Sellsius).
- Teresa has some great photos from the week, including this action shot of me. Dito for Jeff.
- The WellcomeMat boys are quite the fun crowd. I really want to see them succeed because the technology is top-notch. Next step for them is figuring out a way so that their users don’t have to do their own marketing. If uploaded listing videos were getting hundreds (or even dozens), I think they’d be well on-their-way to being a a must-have product for most agents.
- I’m more bullish after RE Connect on Altos Research.
- Drew found a way to work at RE Connect. I’m not sure how he pulled it off.
- Professor Nouriel Roubini didn’t show up to RE Connect with the idea of making a lot of friends. He was consistently vocal in his belief that the downside to this market is going to be HUGE. He made Noah look like a moderate! (Here’s the video!)
- While I didn’t plan to go to many of the sessions, I surprised myself by going to only one session (see previous comment).
- I LOVE NYC.
- While I enjoy writing the occasional update, I’m simply not a good twitterer. On the other hand, Daniel is the twitter man.
- Apparently, there is a $15B dollar opportunity in the online real estate space since I heard multiple people throw that number around.
- Rumor has it that Cyberhomes is going to spend a LOT of money on advertising this year in order to reach out to consumers. This is a change from my take on their original approach in that they were going to focus on reaching out to agents by offering them a “white-label Zillow”. I like Marty Frame a lot, but I don’t think ads will do the trick. I hope they have one-more thing up their sleeve.
- Kris Berg is always lovely. Offline or online, she is one of my favorite people in the RE.net.
- Jay Thompson is another one that I found to be just as great in person. Networking with people like him is the reason to travel to NYC.
- The business mind of Damen Pace doesn’t stop moving.
- Rudy has some mad video editing skills.
- Daniel is the video man! It’s obvious he loves this stuff.
- As one would expect, Lockhart is quickly growing his team at Curbed and it was a lot of fun to meet them at the NYT party. From what I saw, Lockhart tried to dampen expansion rumors. He would only talk about Chicago at this point.
- BofA bought Countrywide. Lots of commentary on Jillayne’s post on RCG and Brian Brady’s post on Bloodhound.
- Redfin’s PR about returning $10M to consumers didn’t do much for me. I’ll be more interested to find out when they start making business model changes in order to get profitable.
- People have begun calling Rain City Guide “Ardell’s Blog” behind my back! LOL!
- Inman will soon be launching a new website with new features and a new design.
- Up Yours! Video TV war! Intothebox.tv rips on BrokerIPtv.com (around second 40). Not to take sides, but I was interviewed by the BrokeIPtv team at RE connect, and will be interested to see what comes out of that. On the other side, Rachel of Intothebox is oddly interesting… In watching, I just keep waiting for something to fall or break.
- I could never repeat linkation too many times. I keep repeating myself and people continue to act like it is new information. Please tell me if and when I need to stop with the linkation bit. 🙂
- ActiveRain introduced a few new people from their team. Rumor was that they have some funding that they will announce soon.
- Brendan King and other ex-Point2 folks were passing out business cards with the company name VendAsta. My guess is that the name is only temporary.
- Greg Tracy has branched out the BlueRoof brand to start doing consulting and website building for other real estate professionals. He “gets it”, so I can only imagine further success ahead.
- I really do enjoy just about everyone in the RE.net and real estate tech communities. 2008 is going to be fun!
Phew! Now I think I’m caught up so that I can get back to regular updates!
The way I read the press release, RISMedia has adopted InternetCrusade’s RealTown blog platform as their social networking interface. I think this is something akin to an official endorsement, but there could also be an understanding that RISMedia will integrate the RealTown’s community content on their site. However, I didn’t see any details suggesting what this partnership will look like.
I first heard about it from Maureen, but it is Jonathan who has the first bit of analysis. His take is that the announcement is really no big deal and I tend to agree. Nonetheless, I can see how this would make sense to both companies and really plays to both companies strengths, which is in their connection to the industry. I think the idea behind the partnership is that they can use their connections to encourage real estate professionals to engage more deeply on their sites.
But as with another recent InternetCrusade-related announcement, I’m a bit skeptical that the two companies really understand the types of innovation that will be necessary to attract consumers. I believe that focusing on the benefits to the real estate professionals first is going about it backwards. I strongly believe that the next round of social networks that will be adopted by real estate professionals are the ones that get massive consumer adoption. Without consumers, the benefit to participation is simply too low for more agents.
It seems relevant to reiternate a comment I made a few weeks ago (thanks to Jim for reminding me of it!): “I really don’t care if its a new CMS, new listing tool, new social network, new blogging tool, new MLS backend, or new analysis reports… If you can get enough consumer eyeballs, the real estate agents will follow.”