The real estate weblogging phenomenon is catching fire like desert timber in the summer. The Active Rain Real Estate Network, the little engine that could, has grown from less than 5000 members to over 50,000 members in a short period of time. The attraction? Talking about the future around the virtual water cooler.
Long Beach Realtor, Laurie Manny, said, "The beauty of real estate blogging is that it gives agents access, now. Access to people whom we never would have dreamed of meeting a year ago." Ms. Manny was talking about the quick but meaningful connections she made through her participation on the RE.net. Her weblog, Long Beach Real Estate Home, has risen to to the tops of the search engines. Her notoriety on Trulia Voices has given her access to executives at many of the RE.net companies.
The debate about "successful blogging" is underway although the trend is still in its infancy. Should a Realtor or loan originator pursue search engine optimization or build a community? Should they own the technology or use proprietary platforms? How much time should spent on real estate weblogging? Will it generate leads or be used as a "newsletter' to stay in touch with old customers?
As the trend grows, large real estate brokerage firms and lenders are watching their salespeople build their own brand through weblogging. Traditional real estate brokerage firms and banks rely upon the economies of scale to advertise heavily to the consumer. If the sales agents are developing independent marketing communications platforms, the value proposition of a large broker or bank is diminished. As the consumer eschews traditional media for real estate information for the online medium, the sales agents of the large companies are actually more effective than company itself. The efficacy of this "new medium" surpasses the ancient practices of the larger and slower companies.
That will put pressure on the large companies to provide higher compensation to the more effective sales agents. That, will be the problem. Large real estate brokers and banks will severely curb the weblogging efforts of the individual sales agents in the name of "compliance". In short, the behemoths will say that they can not adequately protect the consumer from the unsupervised local messages being offered by its sales agents. That, will be bunk.
The end-game play, the brokerage firms and banks will make, will always be about the money. Control of the customer has always been a competitive advantage for a large broker or bank. If that competitive advantage is lost, the value proposition of a large firm is lost. They won't tolerate that loss.
Many weblogging agents and originators will be faced with a hard decision in 2008; maintain an independent blog or continue to work for the company.
Oh...they won't come at you with an economic value proposition, they'll just say it's illegal or "difficult to supervise".
What will you do?
Brian,
Not sure yet...but I doubt it will hurt since I never really had Internet presence in 12 yrs...but I have gotten business from it so I can't complain...who knows if I'm doing everything exactly right and I do not worry to much about it either.
It a nutshell - NO brokerage will control our marketing efforts or client communication, period. We'll become independent. I'd imagine that a lot of people will do that if this becomes the case.
Frankly, we've been self-branded since the early 90's - brokerage info/logo is insignificant in our marketing materials - present but insignificant.
N.A.R. will be discussing this subject at next months Professional Standards Committee meeting. They will try and incorporate standards of practice when it comes to blogging. This will be interesting to watch.
Monika and I are already ranking higher than our company in some keyword searching. One thing we have found is that our customers have said they feel that they know us well before they meet us. That makes things a lot easier.
BB,
I agree...that is ridiculous.
Jay,
Didn't they talk about this in one on Monika's past posts?
Brian - Your nine finger typing is quite accurate. (You see, I know that you can only type with nine fingers because the other one is obviously on the pulse of our industries.) My personal blog and the platform that supports it were unavailable on my brokers system for a short period of time a few weeks ago.
I called and asked "why"? I was transferred around a bit and was finally told that "using the companies access to the internet to spend time blogging was against policy." So, I asked, "what policy?" No one could pinpoint a policy and the firewall or whatever used was removed.
I have no doubt that the scenario you present will begin to play out next year. I have to have a broker to work, but it will not be a broker that attempts to limit my free speech under the guise of "policy". I am fortunate in that I have continued to produce in our stagnent market. I know market conditions will be favorable for me to find another broker if necessary.
I do not focus on ranking or any of those technical things. My blog is solely for the purpose of sharing me. It has worked. People already in my sphere read it and those that are deciding about an agent have a better opportunity to see more aspects of my personality. It is not about them. It is for them. It is all about me and that is a major point of any worthwhile marketing.
It's singing to the choir, but you'd think that brokers would embrace blogging in the same way they embrace other marketing efforts. If more agents are gaining more market share, more brokers could take more vacations, n'est-ce pas?
I don't know enough about real estate brokerages across the country to know the answer to this one, but: Are there any real estate brokerages that encourage their agents to blog?
Brian,
I don't forsee this as a problem. Anybody with a successful lead generating blog or other lead generating internet marketing platform should immediately take steps to get their brokers license and plan on breaking away in the event of attempted broker control. It would be theft on a grand scale, I would walk out of the meeting and straight out of the door!
With top positions on the search engines it would be unthinkable to give it up.
Interesting question and one I think that people may have some difficulty discussing on blogs because of the possibility of broker censorship at some point.
I know that I try and be respectful of my company broker and its' image, and to not step on any toes. But at some point (and even acknowledging the possibility here could pose a problem) I may cross a line somewhere. My broker is very technology progressive, but I generally keep a low profile about it in the office, I know our PR person reads at least one of the blogs I write on.
Last week I did talk to my office broker about blogging since he brought up that he noticed my blogs. I did talk to him about how he could get involved, so I think overall my company will embrace it OK.
Although I can see it from a company point of view that there may be some wild cards out there that may write things that do not comply with all sorts of laws, rules etc. that could cause embarrassment for a company. For myself, I want to blog, so I would make sure I was associated with a broker who supports my efforts.
Cool answers, here, This is a tenuous topic to discuss, huh? The first three comments are from brokers; independent folks, so with all due respect, guys (and gal)- nobody can touch you.
John and Laurie are firmly entrenched in the independent model; I think you all realize that you are the agents who are changing the business not perpetuating the past practices- Kudos.
Deborah- I get it. What would I do if the President of WWCC said, "No Mas?". I really don't know- I'd fight, rationalize, and probably write on the corporate blog; I like it here that much.
Dan Green is in the house! I think brokers will embrace blogging... if they can control it. Will Wells Fargo ever put out a product as good as The Mortgage Reports? No way. The independence of The Mortgage Reports is what makes it great.
Ricky...
I have honestly been waiting for this topic to surface here on Active Rain.
The legalities of this issue are going to be interesting to watch.
I imagine that RE Broker's will start putting "No Blogging" clauses in their employment contracts.
Ultimately I believe a RE Broker can be held responsible for the actions of a salesperson. Yes? :)
It was just a matter of time before RE Broker's said NO to blogging.
TLW...ROAR!
Ultimately I believe a RE Broker can be held responsible for the actions of a salesperson. Yes?
Absolutely, Lucy. However, I think the issue will be money, veiled in the compliance issue. It's the same with mortgage banking firms, too.
If they ever said stop, I have a back up plan. But, honestly in Jan of this year, they had never heard of blogging. So no worries (yet)
Yet is the key word, Missy. Are the big brokers behind the times? Sure but they will catch up quickly.
Let me give you an example, I wrote a lot about Countrywide this summer and was highly critical of their Chairman. I received a call from our wholesale channel manager, questioning why I did that. He inferred that I may be "violating the brokerage agreement with our company". (hogwash) He suggested that CFC may just decide not to do business with me and asked what I thought about that.
I told him he could read my opinion on Mortgage Rates Report.
We're playing golf together next month.
Soo much CONTROL but isn't it really about the almighty dollar?
Brian,
Another stellar post. Interestingly, I just left a broker who thought that they had all of the rights to the leads that came from our personal website. During the very short time I was with this Broker, I actually got to meet the COO of this franchised branch of the largest real estate company who said they were having "Challenging" problems with real estate agents on the West Coast that advertised their personal names over the company.
Keep in mind he is the COO of a franchised name that is part of the largest real estate company in the world. Something tells me that the sentiments are echoing throughout the multiple franchises under the same roof. Be afraid, be very afraid for we personally witnessed it first hand. It's no secret that their revenues are down due to obvious reasons and regaining that revenue is their main objective.
Traditional brokerages will be worried because their paradigm is broken. They will say "We need to curb your opinion" on one hand while telling you that t be successful, you need to offer opinion to the customer. Confusing, huh?
The answer is to educate your broker. In Jayne's case, she should show her broker about her responsible dissemination of valuable consumer information. The President of WWCC (my firm) was happy about the fact that I own the front page of Google for our firm's name. As he puts it, our old customers (we go back to 1984) Google us and find me. He's happy that someone services them.
You know, I'm not worried about my broker flipping out and trying to put a stop to me. I have a lot of respect for him, as well as his partner in the brokerage. And, actually, I'm not that worried about the franchiser. While both want to establish their brand, attacking me won't line their pockets as much as leaving me be.
I am worried about the NAR though. If I produce $500k in sales or $500m in sales, they make the same money. But, if one says the wrong thing at the wrong time and the wrong people read it, they might think that bloggers are attacking them.
Besides, for the individual companies, if they clamp down, we might wander, but the NAR is in a different position. If they clamp down, the only alternative is for us to leave the NAR. For those that are in areas where MLS usage is dependent on NAR membership, that could be a problem.
Brian, anyone licensed as a saleperson (which by the way is not an "agent") worth their salt will take whatever test is required and become a licensed as broker (a real agent).
Then, in the not too distant future, the regulators will begin the move to single level licensing.
Very interesting post. I also would assume the brokers would embrace whatever lead generation tactics their agents use. If we aren't selling...they aren't making money. Plain & simple.
For You, Christiane:
Benjamin Franklin the Weblogger
Then, in the not too distant future, the regulators will begin the move to single level licensing.
Good! The dual-tiered licensing system is an abhorrent evil, designed to protect a privileged class
Well, the answer has already been given- work for a progressive company and broker who promotes blogging, if that helps bring in business..
and for the record what do you think is the reason for some of us to be on here in the first place!
Don't think all brokers are against blogging for business - so are promoting it... and regret more of there agents aren't pursuing business as well as enjoying the experience and maybe learning a little from others in the process.
As has been said, many today are Self-BRANDed the broker's in their ads, little small just because of legal requirements.
And if as an above comment mentioned NAR decides to overly regulate Realtors ability to solicit and utilize blogging- recognizing the strength of the net and alternative marketing methods- more little 'a' real estate agents may sadly save their yearly dues... there's always been some who've preferred having their own exclusive listings... but hopefully they too will see the benefits... recognizing change happens and if not effective in the long run- new techniques will run their natural course without need for over interventions...
THE FUTURE WILL NOT BE THE PAST.
The larger franchises are already jockeying for listing control and will make their own independent moves soon for their own MLS models. They will also seek to control communities like AR and create their own. It wouldn't surprise me to see the Home offices putting pressure on the individual franchises to cease all out side blogging methods as far to broad to effectively regulate. This must be done for "protection of the broker".
My broker stopped by my office on the way out tonight and I asked him point blank how he would handle it. He would never get in the way. Smart answer, lol.
He will probably stop by tonight and see this remark. I got him addicted here too. If ya can't beat em, join em, lol.
Brian,
Thanks for bringing out of the shadows the monster that lurks in the closet for people like me. I know that I am on borrowed time with my employer. I know of no policy that specifically forbids blogging or having an independent website. However, I cannot use the brand name or other bank information. I blog on my own time and am already careful as if I have to already be preparing a defense for online activity.
You are 100% correct that eventually it will be policed and banned by the big banks as "difficult to supervise" or something with that kind of heading. I've been amazed so few loan officers embrace the online media. At the same time, I haven't developed my own on-line brand since joining the bank because of hesitancy to develop something that they could come back and tell me to shut down. Am I missing the opportunity of being on the front edge? Or am I making a sensible decision by clearly reading the tea leaves on where this will go?
Some people who have responded talk about rights and about just walking out but sincerely the mortgage business is not an easy place for an independent. I know, I owned my own company for 2 years. I love working for the bank and for now will just be cautious. I don't have the desire to build an on-line brand that at some point threatens my job and leave me with the only choices of shutting it down or quitting my job.
great post.....
My broker doesn't even have a website, much less a blog! He knows my website brings in lots of business though, so I don't think he would be objecting, however I bring in business. Wouldn't that be cutting off the hand that feeds you?
I got him addicted here too. If ya can't beat em, join em, lol
He gets it and he's good at this thing of ours.
Some people who have responded talk about rights and about just walking out but sincerely the mortgage business is not an easy place for an independent.
That's true, Ken. I actually think that the mortgage originators will face more challenges than the real estate agents. Faced with a "stop blogging or quit" ultimatum, many originators will have to choose the latter.
Brian, I received an email from a member a couple of weeks ago asking me to go in and delete all of her comments from my posts. It seems her Broker (Prudential) will not allow her to have a blog or post comments on other's blogs. Personally, I'd be looking for another Broker.
I would agree
This almost goes down to a freedom of speech issue
Excellent comment, Nate. I refer you to the CA DRE Broker's Compliance Evaluation Manual
Section One, Paragraph 4, Item 5- Agents have no freedom of speech in advertising; it's dispensed to them by th broker
Of course, that would be wrong to invoke that clause as a reason against blogging . it would be more precise for them to tell the truth and say that they do it for the money but the brokers have the DRE on its side.
I'm not advocating that brokers do this, I just think they'll use the compliance angle to fleece the blogging agents for being superior in marketing communications. That's why a one tier license makes so much more sense than the current two-tiered licensing.
If blogging were banned by a broker what would stop anybody from putting up a stealth site and continuing to drive traffic in?
Nothing, Laurie. How would the stealth site get an IDX listings feed, though ?
I agree there's no "freedom of speech" defense in this case.
Overall, though, first sign of that and I'll be out the door and on to the next. And eventually I'll hang my own shingle and they can all kiss my tuchas.
C21 corporate has sent some info I've largely ignored about how important we are to the brand. Screw that. If the gold jacket helps me get business, great. But that ain't why they want me to wear it now, is it?
Brian,
I used to work for a very large mortgage company and they had a lot of things like this already in place. As I was building my business, and spending a lot of money attracting more clients, it dawned on me that the big box lender was not reimbursing me for any cost to promote our partnership. They made it so difficult for me to build a personal brand around me that I got fed up and left. This is why I did not get too involved with a web presence until recently. They had restrictions on not allowing outside websites and you had to get everything approved by corporate that it became very difficult to run your business. I think agents and lenders alike will need to decide if they want to promote their personal brand and identity or adhere to the corporate nonsense. Big box outfits will probably lose business because we will find better places to work. I just gave this a 5 star rating. Great Post.
No comment, juuust parking to watch. :)
Brian, it's 5:43 here right now and you've given me food for thought for the entire day and the days ahead.
I talked with one of the owners of my company at the beginning of the week about blogging. I showed him AR, my blog, and talked about my plans for a stand alone blog at the beginning of the year. On one hand he's excited about this "medium". On the other hand he has to consider risk.
I don't know how all this will play out in the coming years, but it will be interesting to say the least.
Another wonderful "food for thought" article from you Brian.
I am with a very large broker in my area. The manager and training people are encouraging blogging. I can see your point though - no lawsuits yet to test it.
How can they stop an "independent contractor" from blogging though? I remember years ago the broker wouldn't allow us to use our personal email accounts on our business cards. Well . . . that changed really quickly, after all the complaints, is my guess. Also, my guess that it was a stab at controlling our clients?
Lots of food for thought with your post.
Nice post. My blog has more traffic and gets more leads than the entire company web site for the KW group I work through. I learned a year or more ago that I do not need to work with a real estate company to have a web presence. many agents beleive that they do need a brokerage for this. I don't have to depend upon the whims of any outside network or service but can use them if I choose. In effect I own my web presence. For me the best thing about my blog has been feeling empowered, like I am in charge. . . and I am. it has also taught me that one person can have a huge impact.
Oh . . . . I have been at the top of the search engines since January. :)
Brian -what a great post with a lot to think about for the future of the business. Some brokers check all the "public" marketing pieces the agents send out, such as farm letters, etc. Like you said, the stated purpose is "compliance". So, web-communication is in that sense not any different. If the broker wanted to review all blogging activity, it just physically would not be possible, and the blogging will have to stop.
I am not sure if only big brokerages will want that kind of control, or the smaller ones too. Thanks so much for thinking about the future. Makes everyone more aware and thinking of plan B.
Very astute obsverations as usual Brian.
But to answer your question: What will you do?
Change companies or start my own company. MY CLIENTS do not buy from Maverick Mortgage. MY CLIENTS buy from me.
Brian - this is a really timely article because thinking back on everything Coldwell Banker offered us when we started with them, does not have much value any longer....except of course the BIG NAME, but we'll have to wait and see what type of control they do try to put into place.
Personally, they would be dumb since they would push top producers like us away. Ultimately, it is about the bottom dollar - for those of us that have smarter marketing, it means more money for them - making agents choose would not be a good idea.
Let them do it, I am at a company that does not pull such nonsense. Advantage RE/MAX & Keller Williams Tech Savy Realtors
I won't mention names, but 2 local AR members that I have met have had this happen to them. Blogging caused them surpass the company website and the company told them they had to stop.
One was a big name bank (mortgage blogger) one was a big name title company.
Next thing you know our blogs will need disclaimers.
Large brokerages have always tried to call the shots. However, they aren't so able to these days. They lost a lot of their control a looong way back. As someone fairly new to real estate, I had to ask whether they earned their 50% split that they insist on. Eventually I moved to a smaller office (smaller franchise too). Although I still have the high split to deal with (there aren't a lot of alternatives around here unless you want humongous desk fees) they pretty much let me do whatever I want. In a slow market, if I bring in good paying clients, it would be very foolish of them to bite the hand that feeds them.
However, if a large brokerage felt that it was in their best interests to stop their people from blogging, they will do so. But putting a genie like this back into the bottle? Let's put it this way - they will TRY to do it. In the end it could backfire and create a lot of small startups and also strengthen the position of smaller companies.
MY take: They will probably TRY - and shoot themselves in the foot in the process.
I've already had this discussion at my large brokerage. They are worried about how they can control the content and I know discussing it but haven't heard yet what results will come of it. It will be interesting to see how it plays out.
In reality in MD we should have company branding on all advertising since it's what's required by law, and by extension this is advertising. Seems to me that as long as we meet that the rest should be business as usual, but you've hit a nerve that goes beyond the simple law and into control issues.
I had never before intended to become a broker :)
Brian, Where do I start? You have openned so many cans of worms on this one it is mind boggling.
Firstly, the issue of compliance is real. What happens if the Risk Management Company cancels the E&O insurance? Is the broker supposed to just sit back and "hope" for the best?
Secondly, you are right about the big franchisors. Cendant cannot afford to lose control of their marketing. That is what they get paid for, after all.
Thirdly, One tier or two tier licensing will make little difference. Already in California one-third of all licensees have brokers licenses but many continue to work for other brokers. It is just how it is.
Fourthly, IDX "feeds" will become less of an issue as more "independent" MLSs are created. Brokers will find it necessary to "belong" to several MLSs rather than just the "official" MLS under the control and ownership of the local board of Realtors. Therefore, the "official" MLS will have to be flexible in order to retain listings.
Fifthly, going it alone is not really an option for most licensees. They need the psychological edge of "belonging" to a recognized company. Maybe there is an opportunity for a new national franchise that utilizes blogging to "erupt" on the scene.
Bill Roberts
Brian,
Great article.. I can't see what harm blogging does, providing that you do not drag another brokerage down or give insulting remarks or prey on a helpless consumer.
AR is a great place for agents to learn from each other and give good advice to the consumers. Large companies are always looking into how they can monopolize every industry without anybody restricting them.
If my company said not to blog, I would definitely want to know why. If I am doing nothing but helping to promote my company and myself with good intentions and good advice, what is the problem?
There are some Brokers that are still in the dark ages and think that just door-knocking is the only way to get business. I say, wake up and smell the rose of this century and get with the program. Blogging is here and a good useful tool for everyone.
"I work for a major lender and if I had to choose from blogging or staying with the lender then I would definitely stay with the lender. Remember this that we did not have blogging 10 years ago so it is not a life necessity."
Dear "Anonymous" Lender:
By that same line of thinking... We didn't have the web 15 years ago, cell phones 25 years ago, fax machines 30 years ago, personal computers 40 years ago . . .
For you blogging is apparently not bringing you great leads in addition to traditional methods. For me, blogging is quickly becoming a strong hold for leads in our business and in less than 7 months of consistent blogging, it now represents 25% of my transactions (we average solid 3 fig. transactions each year) and it's growing quicker than our traditional methods. Blogging is more important than the brokerage / name brand.
Thirdly, One tier or two tier licensing will make little difference. Already in California one-third of all licensees have brokers licenses but many continue to work for other brokers. It is just how it is.
Good point, Bill. The abolish the licensing altogether; it doesn't protect the consumer -it protects the privileged class and drives the cost up . Then , consumers will have to perform due diligence on the real estate consultant.
Brian,
I can tell only a few of your readers TRULY understand what you are getting at. This is a great post and with control dressed up as compliance develops over the next few years, the rest of your readers will understand the underlying thrust of your contention.
Most of us that are serious bloggers know how much it helps us. I think most of us would walk rather than stop blogging.
I know I would. A larger part of my business comes from my blog, and it's only 9 months old.
This insightful post and varied comments bring up even more ideas and questions as I read them. What if?
- your broker required you and all other agents "hired" by the firm to have blogging experience and gave you the opportunity to blog on the company site (in addition to AR, your personal blog, .....)
- the broker was a blogger too
- the company blog was one of your main source of your leads because of the abundant local presence created by mutual vision and an abundance of local content
- agents in the firm were clear on their branding, their niches, because of the clarity they developed through blogging
Sometimes I get a bit pollyanna, but it's fun to think about the range of possibilities!
Sometimes I get a bit pollyanna, but it's fun to think about the range of possibilities!
That's not pollyanna, Dru, that's forward-thinking. I think you're on to something, there.
But of course I love this place, am a raving fan and want to see it succeed!!!!
Ditto, Mary
Brian- What a great post and great comments. I have really learned a lot from all of this. I have never been a fan of NAR, thought of them as a necessary evil. I ask, what have they done for me lately? Not much that I can even think of. I would suppose they will side with the ones that grease their palms the most, as you said, it is all about the money.
We own our own company so we will blog and then blog some more. If things ever change, well that is why I have a plan B for income and also have multiple streams of income. I never put all my eggs in one basket. Great post, thanks for making us think. Katerina
Brian:
Excellent post on how the A.R. community can grow and its members prosper because of it.
BB,
It`s time to grab our passports and run!
What do ya think, a broker actually helping instead of hampering?
Possible, probable, and potent. I'm sure you'll do it, Kirk.