Tag Archives: agent

Brokers and Agents – a perplexing business model

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For those who aren’t agents let me explain how many of the larger brokerages (eg., in this area – Windermere, John L. Scott, Coldwell Banker Bain, etc) operate. As an agent you are an independent sub-contractor usually paying a monthly desk fee to associate with a particular company, plus variations of splitting your commissions with the broker. For that you get office space, administrative support, access to training etc.

What you do NOT get is client leads from the company. (except for Relo clients if you last long enough). For that you do your own marketing and/or sink to using the sourcing companies like house values, home gain and others of those ilk whose business model Ardell summed up so well long ago.

So here’s the part that I just don’t get. As an agent, there is no way I can come up with the marketing dollars to compete against House Values online. But my brokerage (Coldwell Banker Bain) spends millions in advertising, development of their website and overall branding. Yet for all of that they have no pro-active lead capture system or method of distributing leads to field agents. Certainly any of the larger brokers could compete better for the internet business and yet they don’t. Plus, if there are agents willing to pay for lead sources why not capture that revenue back into their own company.

It seems to me that the logical thing to do would be develop a virtual brokerage office.

  • Create a staff of salaried agents for an inside sales team
  • Implement a product like LivePerson to monitor web traffice and engage potentinal clients online
  • Capture those leads and turn them to field agents in the local office for a percentage of the commission (you have to pay for that inside sales team somehow)
  • Quit making your agents rely on 3rd parties for additional lead source generation

I’m going to propose this idea to my company but thought I’d run this by everyone for some feedback.

Website Owners Not Liable for Comments

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Considering this issue comes up every time Russ and I speak in front of an audience (including yesterday), I thought it would be interesting to share that the courts have been consistently ruling that blog owners are not legally responsible for the comments on their site, even if they moderate…

It happens all too often that some website owner in the US is sued with claims of libel over comments on that site in an open forum. We usually point to Section 230 of the Communications Decency Act, and note that it’s pretty clear that service providers of such forums are not liable for content they didn’t write themselves. We also like to point to a 9th Circuit ruling, noting that, even when such comments are moderated or approved, the site owner or moderator isn’t responsible. While the Supreme Court later refused to hear an appeal on the case, meaning the ruling really still only covers the 9th Circuit, the ruling is so reasonable, you’d have to hope other courts would agree with the logic. It appears some already are. Tech Law Advisor points us to a few different sources covering a District Court ruling (outside of the 9th Circuit) that comes to similar conclusions (even if the article is improperly headlined). The case involves the somewhat infamous TuckerMax forums, which are known for being a bit on the… free wheeling side of things. Apparently, a bunch of anonymous commenters there were upset about a party thrown by some publicist, and posted some relatively mean comments about him in the forums. The publicist then sued Tucker Max, claiming that he was liable for the comments, even though it was clear they weren’t made by him. The actual court ruling (warning: pdf) is an enjoyable read, as the judge clearly explains why he’s throwing out the case. He even cites the ridiculous number of censors China employs to filter the internet to explain why it’s not reasonable to expect internet site owners to police their forums more carefully — even as he notes that Tucker Max clearly admits to moderating comments on his site. The ruling also refers back to an older ruling pointing out the importance of protecting free speech, even when vulgar. It’s another reasonable ruling concerning these issues. Hopefully, once enough of these pile up, most lawyers will know better than to file such lawsuits.

Inman asks – Not Allowed to Blog?

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3/23/06 “Hi Ardell — I was reading the RCG today and noticed a comment of yours under Russ Cofano’s blog entry that I thought was really interesting and something I’d not given much thought before. You mentioned about joining the big brands and said they won’t let you blog so you’re not jumping on board right now.. is that true? Do brands really dictate stuff like that? If so, I think Inman News might look into this more. With all the push for blogging in the industry lately, this seems peculiar..Just wondering.. thanks! Jessica Swesey, Inman News.”

While I told Jessica almost a month ago that I would do a blog post on this topic, I have to admit I thought the question was a little naive. Almost every truly vocal person in the industry is either a designated spokesperson for a company or a “one man show”. The people I know who have been on Good Morning America or quoted in the paper, are usually the owners of the company. This is true in every industry. If you are an employee of a large company, you are told that if anyone from the press contacts you, you have to refer them to the one person in the company who is designated to speak with “the press”. There are exceptions, especially if your are spouting out only GOOD things, like “There has never been a better time to buy a house!”

So the question isn’t can everyone blog, but who can pull your plug? This goes back to blogging being public and in many ways a form of adverstising. Under State Law, in every state in the country, an agent must have the name of the broker/company on every “advertisement”. Consequently an agent either has to have an anonymous blog where the agent’s name does not appear, or a blog with both the agent’s name and the broker’s name. An agent, though an independent contractor, cannot be a “cowboy” and do things on their own without supervision. The broker retains the right to both see anything that the public can see, usually in advance, and also retains the right to veto its printing.

So how do you blog everyday if the broker doesn’t have time to review and OK your content every day? You can have an insipidly bland blog that simply backlinks to other news items. Even then, many companies do not want you to “advertise” their “competition” or “discounters”, by mentioning them by name. So all of the HOT news on Zillow and Redfin and Lending Tree, could be off limits, because they don’t want one of “their own”, boosting the popularity of these other companies by mentioning them at all.

In real estate forums, when agents want to talk about Zillow, they call it “Z”. Theory is that by even whispering their name in private, you send out spiders into the search engines that cause Zillow’s name to be spread and the website’s popularity to be expanded exponentially.

Anyone who wants to truly discuss the future of the industry in a way that does not simply spout out accolades and full service fees, cannot blog via first person in a blog unless they do it anonymously. But is this NEWS? Can an AT&T employee blog about the future in a way that points out that there are improvements to be made by their employer? Can even a Microsoft Employee be quoted in print that they think Google should win the Inman Award for Innovation? Very naive of someone to think that the First Amendment applies to the little guy who has a “BOSS”.

Back around March 23rd, I interviewed with a company that treats their agents as employees. They weren’t sure if I could blog, but they were sure that I couldn’t “talk to the press” ever. Since your blog entries can be lifted and quoted by the press…they felt that it was possible that blogging activities would be limited or possibly even prohibited.

So the question isn’t whether or not you can blog, the questions is what are you allowed to say in the blog? I’m sure even Jessica has to run her content by someone to be approved, before it can be “printed” and available in the public eye.

INBOX: Best Brokerage in Seattle to Work For?

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I just received an email from a Seattle investor who has recently earned his salesperson license and is now interested in finding the best place to hang his license. I began by sending him to the list of brokerages I’ve compiled on the wiki, but I imagine there are some readers who could do a better job focusing his search.

I know him well enough to say that he has more than a little bit of experience investing and he is interested in focusing his energy helping other investors.

Is there a brokerage that does better with this segment of the market?

What questions should he be asking as he interviews brokers?

Agent? Broker? Realtor? What’s the Difference?

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[photopress:409_0991_IMG_1.jpg,thumb,alignright]The Motley Fool has a nice article explaining the different between a real estate agent, real estate broker and a realtor:

Ever wonder whether a real estate broker and a Realtor are the same thing? Well, they’re not. Not exactly, at least. Someone with a real estate license is a licensed real estate professional, or an agent. This person may also be a Realtor but isn’t necessarily one.

We often think of any real estate agent as a Realtor, but to be one, he or she must be a member of The National Association of Realtors, which has trademarked the word “Realtor.”

A real estate broker, meanwhile, has had additional training and holds a different license. Don’t think that you need a broker and not an agent, though. Either can serve you very well. Although many people casually refer to those who show and sell homes as brokers, they’re often actually agents. Most people use the terms interchangeably.

If you’re curious, I’m a real estate agent (not a broker) and a Realtor.