Posted by: realestatewebtrainer | January 30, 2012

No Listing Syndication – The Movement is growing

The Real Estate Industry continuously evolves and I am heartened to hear that more and more companies are embracing their Internet Marketing and taking responsibility for it. It was not always so during the last decade – the way it worked and mostly continues to work is: Brokers are in charge of their Local Marketing and Syndicators swoop in and manage the Internet Marketing; this process is called Syndication.

This process has lulled many brokerages into a sense of defeatism; as in: We have to syndicate if others are syndicating; better yet – I heard this one many times: It is the broker Fiduciary duty to syndicate in order to offer the best national exposure.

But a truth remained – a glaring reality: Syndicators have taken too much power from Brokers and have forced many to start pulling their Listings.

Here is a Video that illustrates this point: (thanks Jason for sending it to me!)

 

 

A few points of interest:

1. The industry must not ignore the message Mr. Abbott is sharing – it resonates with many who understand Internet Marketing.

2. Statistics do bear ARG claim that Listing Syndication Services are at best marginal to their effect on Property Sales – The leads that end up being generated by syndication websites and are sold to other agents reveal that the consumer end up buying properties that have nothing to do with the original one viewed.

3. Property Marketing requires a full integration with Internet Marketing and is the responsibility of the Broker; in this Video ARG is taking that responsibility seriously.

So go ahead and share your thoughts with Mr. Abbott on his Social Media on Twitter @ARG_SD or on his YouTube Channel – this issue is building momentum in the country and deserves to be discussed!

Happy Blogging 🙂 Key Yessaad, Real Estate SEO Trainer

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Responses

  1. Many will not be on board as they feel helpless not having their own internet strategy. Thank you for helping us be in control of our internet marketing. Thanks for helping us create a strategy for myself and my company and agents.

  2. How timely to view this video. I have had numberous calls lately for properties that closed 6 month ago. When I asked the caller where he saw this property he said its all over the internet. I wish I had the time to get in each site such as Zillow and Trulia and figure out how to get them out of there. The caller in this case started to get iritated with me until I could explain that I have no control over these sites and what they put out there. Makes us look bad. I will definitely think twice before clicking that little syndication button. Thanks for sharing.

    • Ann, I certainly hear your concern as I have fielded many of them too with frustrated customers, but rather..look at that as Someone just called you LOOKING TO BUY a house ! While he may have been frustrated, we can spin them properly by say “Unfortunately that property has sold, but if you have a moment to give me some more info, I happen to be a specialist in that area and have others.” Syndication may not be perfect , but it generates leads for Many. How Many homes magazines are floating out there with homes sold and under contract? If we get calls from them, should we turn them away because we cant pull the magazines off the street? Secondly, there are millions of consumers there per month that may never find you or your site no matter how great of a strategy you have..I see it as just another opportunity to be found and generate leads. I know many agents that are great at Blogging and Internet market YET still choose to spend $50-$100 bucks per month to close 5-10 more deals per year to keep food on the table.. My motto is this..While there is NO perfect medium..I say, Where ever you get the Best Return on Invested Time and Money.. But syndication is a Choice along with many other great means to promote and advertise.

  3. In today’s market, that’s a double edge sword. Those syndicators have become THE MARKET to many unknowing buyers and sellers. Surely we can shun then and go about it ourselves, however, it’s tough to ignore them because of the weight they carry as a collective group. My advertising and marketing work well for me, however, I’d be crazy to say I’m ready to give up on the leads from Zillow, Trulia and Realtor.com. It’s an interesting dilemma. Key, you put this out there just to get us thinking about it, but it really does make you question what’s good and bad in our business while weighing that with what’s profitable and unprofitable in our activities.

    Keep on blogging, Key!

  4. If I need Oxygen to breath, I will buy it.
    If I need leads, and can buy them and turn a profit on the process, I will buy them.
    It “currently” makes sense to me to purchase leads or syndicate listings because we have given so much of the business of Real Estate away already. But think about what has happened. You cannot tell me one new buyer or one new seller that was created because of these people using our information, not one. What they have done is to redirect the leads to people who purchase them, ultimately taking a portion of the total revenue away from the brokerage business. They have a noticeable percentage of our net business.

    Some would say that process is no different from any advertiser we all used in the past to generate the leads. I disagree…every advertiser I ever used owned the medium I advertized in, paid for the development of the adds and physical paper, distribution ect. When someone called on the add usually it came to my office phone for me to develop into a client. They owned the medium; I rented space and received most if not all of the inquiries generated. What we have now is different. No one owns the internet except… I guess…. all of us. The difference is some smart, internet savvy, people have found ways to use it to generate gold; they use it more efficiently than we do right now to generate leads many of us will purchase. Remember… the one who has the gold makes the rules.

    So here is the thing, every good business person wants to make as much money as possible from what they are doing every day. It’s the American way. Along with that every good business person will want his income to grow, take more market share, and that process will continue until forces essentially push back, supply and demand forces. Prices will continue to rise until the “forces” push back. These people are just as aggressive as we are about making as much money from their chosen business as we are. They will take as much as possible. Would you expect anything else?

    If I sell all the bread I can produce at $1.00 it makes good business sense to increase my price to $2.00. If I still sell all the bread I can produce at $2.00, then $3.00 or even $10 per loaf will be my price. That is business. I will continue to take as much as possible from my clients until they stop purchasing my product because it is costing them too much. Eventually I will find the correct price to balance my production to my sales. That is the way business is done.

    So the people who are using our data to redirect Real Estate leads back to us will continue to keep taking more and more and more until we stop purchasing their bread because it is priced too high or we do not have any more money to buy it. I do not believe we can effectively stop them at this point but unless we start becoming smarter and generating our own leads they will naturally continue to take as much as we allow them to. Wise up. Learn to use the internet to generate your own leads.


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