I can’t help but look at these announcements from the perspective of the Move team… And the fact that two large brokerages companies (Prudential and Realogy), representing a substantial portion of US listings, appear to have made the mental leap of faith that they are best off syndicating their listings as widely as possible, should serve as one of the clearest warning signs yet that the clock is ticking for realtor.com. My take is that Move and NAR will need to agree to do something interesting with realtor.com soon or risk loosing significant market share going forward.
…Kelly Roark. With her experience as a VP at both Inman and Trulia, she’ll be able to bring some great industry insights to the FrontDoor team.
One of the things I really like about Kelly is that she’s not afraid to get into the trenches… A great example is when she came up to Seattle with Sami to meet with the RCG community. The agent community was extremely skeptical about Trulia at that point, so I think it is appropriate to attribute at least part of Trulia’s success to Kelly’s ability to reach out to the broker/agent/blogger community.
It started with the real estate coach and spread to Joel before hitting 4realz. And it all seems so believably that no one is really doubting the story.
However, I think it is worth nothing that there’s a bit of confusion over the total number of listings that Prudential would be giving Trulia… and I’m pretty sure the the confusion stems from the fact that Yahoo ran their real estate site as it if was an IDX feed from Pru so that Pru was “sending” all the MLS listings (Pru and others) for most MLS’. However, if Prudential is sending listings directly to Trulia, this would no longer be the case and I’m almost positive Pru doesn’t have anything close to 4M US listings as reported by the various sites.
Either way and any way, this would be another big win for Trulia, but as Joel notes, Michael agrees, (and I’ve said before), it is not self-evident that at the end of the day, the consumer wins with broker-fed listing sites.
Despite our best efforts to be prepared, the day started off a bit rough with a nearby mudslide taking out power in our building in the morning (meaning no hot coffee and no projector) and a 9-car pileup on a nearby freeway slowed me down tremendously. AHHH
So, to say it started rough would be an understatement… But once it started, things seem to get on a roll quickly.
I started with an overview of consumers expectations in a web2.0 world to set expectations for the day… Jim followed up with presentation on optimal features and design for a real estate website. Then it turned back to me for a presentation on social networking… lunch… then another presentation by me on creating value through blogging about communities. And we returned for the day’s finally with Jim giving a engaging presentation on measuring and tracking marketing results to ensure a positive ROI.
All around, it was a wonderful day! And, maybe they were just being nice, but the attendees who talked with me said only good things about the education.
Because I promised attendees I would give them a list of all the sites I mentioned in my presentations (so that they wouldn’t have to ask me to spell out each URL), here is the list for everyone’s benefit.
Consumer Expectations in a Web2.0 World:
- Expedia, Travelocity, Kayak, Trulia, Rain City Guide, RealCentralVA, Amazon, Netflix, del.icio.us, Firefox, Zillow API, MySpace, LinkedIn, Altos Research, Property Shark, Market Snapshot, Homethinking, Redfin, Realtor.com, Zillow, Google PageRank
Engaging in Social Networking to Earn Clients
- MySpace, Facebook, LinkedIn, Inman News Community, Zillow Discussions, Trulia Voices, ActiveRain, Google Reader (feed reader), AnnaLuther.com (RSS feed of listings), Mobile Reader
Using Blogs to Build Communities
- WordPress.com, Top Producer Blogs, Yahoo Mail, moving to seattle post, Real Estate Tomato, RealCentralVA, 4realz.net, Notorious Rob, Grow-a-Brain, Northern Virginia RE Guide, Altos Research blog, NELA Live, REagent in CT, St Paul Minnesota, FOREM, Blog Calabasas
I wasn’t tracking the sites that Jim mentioned, but there were not nearly as many of them in his presentations…
And thanks again to all the bloggers who have helped spread the word about the event, the sponsors who helped us keep the price low and all the attendees who made the day possible!
I received some incredible feedback from all three groups, which is going to lead me to make some changes to the upcoming events (I’ll announce those early next week!). Great stuff all around. Thanks again to everyone!
As I said to when I started the 4realz interviews, I reached out to four players in the real estate technology space and asked them a similar set of 9 questions. I purposefully picked four people representing four different companies at different stages of development and different types/levels of funding. First was Marty Frame of CyberHomes, then Alex Chang of Roost, and, today, I’m fortunate to publish this interview with Pete Flint of Trulia.
I first met Pete thanks to an introduction from Paul Rademacher before Trulia had launched (and they were going by the name RealWide!). Thanks to my experiment with gHomes, I had started up a conversation with Paul and he knew I was looking to get out of transportation engineering and into the wild world of online real estate.
During this initial conversation with Pete I was immediately impressed because he was doing exactly what I wanted to be doing: starting up a consumer-oriented real estate search site. However, he was way ahead of me… Whereas I was still in idea-mode, Pete had teamed up with a fellow Standford MBA grad, Sami Inkinen, to get the funding and team in place necessary to build a top-notch website.
During that first conversation with Pete, we chatted about all kinds of opportunities in the industry and I developed a tremendous respect for him because I could tell that he “got it.” I’ve always, always enjoyed my encounters with him since. He’s a true professional and after only a few years in the real estate space, he’s proven that he has all the necessarily executive skills to create a product that has already had an undeniably huge impact on our industry.
Dustin: Can you briefly tell us a little bit about the products and services that your company offers for real estate professionals?
Pete: At Trulia we have a great selection of free and premium tools for real estate professionals to drive more online traffic to their listings and to expand their online audience. With approximately 4 million monthly unique users, Trulia.com is second to Realtor.com as a leading residential sites site for agents to get in front of an active audience of home buyers and sellers.
Trulia Voices: Join the Conversation. Answer questions. Engage directly with active home buyers and sellers and share insights. Learn from other real estate professionals. How? Set up your profile for free, upload your picture and contact information, and sign-up for email alerts to find out when consumers ask questions in your area!
Listings submission: Get free exposure to your listings and significant traffic back to your own Web site. How? Build your feed, submit your site to be indexed, work with our listing feed partners or get your brokerage to send a feed to Trulia.
Trulia Tools: Add value. Get free, easy to install maps or charts for your Web site.
Agent Featured Listings: Get around 3x the traffic and exposure for up to 10 listings for $50 a month, email traffic reports and your photos on listings.
Banner Advertising: Buy banners in your neighborhoods or ZIP codes to enhance your personal brand.
Who do you view as your main competition and how do you differentiate yourself?
Other real estate sites that are supported by advertising dollars are our most obvious competition. Ultimately we think there will be a couple of big sites with a comprehensive set of tools that compete for traffic and advertising dollars. Competition is healthy which is spurring innovation that in the end will help both consumers and home buyers and sellers.
At Trulia, we think that to be successful you have to both attract a large audience of consumers by providing useful tools delivered in a great user experience and be a trusted and cost effective marketing partner for the real estate industry. Our strategy from the start was to do both. Other sites have either alienated the consumers by not delivering a great online experience, or they have alienated the real estate industry by attempting to marginalize their role. Establishing personal relationships on a broker and agent level helps us understand their needs. We are always listening. You’re seeing the big sites wake up now and change their strategies.
Between Move getting $100M, Zillow getting $87M, Redfin at $20M, Trulia at $18M, Terabitz at $10M, and NAR looking to invest approximately $30M through their 2nd Century Fund, there’s a lot of investment money floating around the real estate space at the moment. Do you see this as a good thing for the industry?
The VC and private equity money is a great thing for both consumers and the real estate industry. All these dollars flowing into the industry will ultimately lower the marketing costs for agents and also drive competition for consumers by delivering a great online experience. The online real estate industry is still in its infancy and may seem a little confusing right now, but the combination of capital, advertising dollars and ambition is a powerful combination and will move the industry forward for the better.
That said, I’m a little bit skeptical about the NAR fund, seems like given the current climate and their history of technology investments the NAR members might prefer those dollars to stay in their wallets.
Besides the venture capital money mentioned in the first question, there are also a few big players from related industries who are jumping into the listings game… Such as Fidelity with CyberHomes and HGTV with FrontDoor. Why do you think there are so many companies chasing the listing side of this industry?
Homes for sale are the number one thing that consumers search for in the real estate industry. Hence it’s natural that these companies with some existing real estate assets are moving into this space. They see the innovation and opportunity and are working to catch up. We all know that the online advertising dollars in the real estate industry are significant and so we’re all chasing a piece of that.
I don’t think it is a stretch to say that the big brokerages are only just beginning to use their websites to create a compelling consumer experience that competes with REALTOR.com. Why do you think it has taken the national brokerages so long to complete on this front?
Building a great site is REALLY tough and it is hard for large brokerage to attract the engineering and design talent to do all this effectively. Brokers should be building strong online experiences, but they shouldn’t be distracted from their strengths and core competency— selling homes!
ActiveRain, Trulia, Zolve, Realtor.com and others have created social networks that use real estate professional content in order to better inform consumers and (theoretically) drive more business to these online professionals. Does your company have any plans to either create your own social network or engage in these existing networks? If so, how?
At Trulia, we believe that the real estate transaction is the ultimate social transaction, in that you speak to more people before during and after the process for longer than any other purchase I can think of. As consumers and professionals have become more comfortable with sharing and socializing on the web, it is natural for social networks in the real estate industry to pop-up which take some of the normal offline conversations and activity online. We think that Trulia Voices is the best example out there of a consumer real estate site delivering a compelling user community for consumers and agents. And having an active dialogue with the community helps us understand our users’ unique needs. The Q and A format is just the beginning.
To date, many of the most successful real estate professionals do most of their marketing off-line. If one of these experienced real estate agents wanted to jump-start their online marketing, where would you recommend they begin?
Reading and watching are two of the best things someone new to the scene can do. This will help them understand the culture of social networks and blogs. Then start with the free stuff to learn how the online tools work. Participate in Trulia Voices and other online social sites or blog networks. Make sure you work with sites that are near the top of search results in google, as they will get the most traffic to you. I would hold off on launching your own blog due to the technical complexities and time involved. As you get more comfortable you can decide whether or not a blog is for you, sign-up for premium services, buy advertising on Trulia, Google and others.
Would it be different for an agent who is just starting out in the business? If so, where do you recommend they begin with their online marketing?
I would recommend pretty much just the same, but clearly new agents will have to work harder as they don’t have the existing contacts and reputation. Read and watch first. Then participate.
What do you see as some of the biggest changes coming to online real estate in the next two years?
Social networking will start to deliver an increasing portion of business for agents, it will take time, but these efforts will really pay off as consumers will increasingly use these services.
It is natural there will be some consolidation of the consumer audience and probably 2-4 major large online sites will exist, plus another 2-4 specialized sites serving specific, but large niches and then some large national franchise/broker sites. Competition among these sites will be fierce and innovation will continue to accelerate.
We don’t see the real estate transaction changing that much, but the consumer research and agent marketing will be permanently changed.
Thanks, Pete, for the fascinating interview!
…to start sending all their listings to Trulia at some point in March.
Considering the rough relationship between Realtor.com and Windermere, that would be a huge win for Trulia and would probably give them the most comprehensive listing coverage in the Seattle area of all the national real estate search sites (and in Zillow’s backyard!).
…Move, I landed a 30-minute meeting with Dan Rosensweig (COO of Yahoo at the time), where I tried to convince him that I should lead up a team for Yahoo to build a platform that would help real estate professionals market themselves at a local level using the various tools Yahoo had in-house (at the time, it was something like Yahoo 360, Flickr, upcoming, local business reviews, maps, listings, etc.).
Dan’s strongest argument against such a platform was that I should prove out the concept first by doing it myself since almost all of these platforms had APIs (and theoretically, he was right, but I was looking for a regular paycheck!).
Even two years after my call with Dan, the market for providing a free, quality, and local marketing platform for agents is still largely undeveloped… and while one of the real estate focused verticals like Trulia or Zillow could theoretically fill this niche, it still seems like such a no brainer for one of the big guys like Google, Microsoft or Yahoo to take a page from Seth’s playbook and create a niche-specific platform for their various tools!
Seth’s platform is a great idea… but it is still missing the one thing that could really make a platform like this work: an abundance of consumers!
…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.)