READER FEEDBACK: Social Networking Doesn’t Sell Houses

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Dear RISMedia:

Regarding “Real Estate Social Networking Really Takes Off“published on RISMedia.com on Jan. 24, 2008

I took note that one of the goals Active Rain will now seek to achieve is to “achieve profitability.” Ah, that’s the rub with these efforts: where is the money? Everyone tries to follow in Google’s role model, where you give it to them free, then monetize it through selling ads. HouseValues, already facing slumping revenues and disgruntled “lead buyers,” seems to come to the realization that their model of attracting “leads” they can sell to Realtors by offering free house pricing estimates, seeks the mailing list and customer base of ActiveRain, which is substantial. $2.75 million is hardly high finance, and represents about $300 a customer to acquire the data. That’s high, but selling to all those folks has promise. What to sell them, that’s the rub!

I am somewhat in the minority in this, but so far, no one has proven me wrong: I have consistently said that I do not foresee consumers seeking to purchase homes on Facebook, ActiveRain, FOREM, or any other such contrivance. Those sites are for the industry more than the consumer, and “Web 2.0″ is more a creation of the IT folks than anything driven by consumer demand. Just as “feature creep” is a fact of life, so is Web 2.0: you may not need it, but we can build it, so we did!

Yes, gazillions of folks join social networking sites. They do not join those sites to buy things, however, and generally resent attempts to infiltrate their network with crass capitalism, from what my feedback is.

The facts are clear: the CONSUMER wants to find properties with the least amount of work. That means one click, if possible, and while they may utilize social networking for the pleasurable pastime that it can be, I think it is a yet unproven theory that such things are necessary to the agent or broker confronted with the daunting task of selling homes in this marketplace.

That may not sell newspapers, but the vast majority of the agents I speak to daily feel that way. It’s NOT about high tech, it’s about selling homes by proven methods, and until someone can document even ONE sale of ONE home on a social networking site, I think this idea is one whose time has yet to come in the real estate industry.

Profitability. Edgio, Zillow, Trulia, Redfin… Countless blogs have yet to achieve it, and the economy is getting less forgiving of unprofitable enterprises.

Thus, with respect, I do not see this as the milestone but I see this process as a millstone to those looking for a way to survive in this environment: “give us sales, not new technology with unproven benefits!” That’s what agents are saying today.

With apologies to Robert Ludd.

Mike Parker
Compass Internet Systems
info@theblackwatercg.com

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Sent Jan. 22,2008
Dear RISMedia:

I want to express my appreciation for your publication. It is one of my most trusted resources for industry news and trends. The topics are fresh and relevant, and the articles are informative, offering practical advice as well as the opportunity to explore a topic further via links or book recommendations, if desired. The sources of information are provided which lends credibility to article content. The scope of your magazine is very broad and includes most topics of interest in the real estate industry.

Your magazine is a valuable tool in my real estate business. Thank you.

Kelli Crocker
RE/MAX Towne Square
Jefferson, Georgia
678-677-6877
kc@remax.net
http://kellicrocker.com

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Dear RISMedia:

I just wanted to let you know how much I enjoy RISMedia and the Daily e-news. The e-news is an excellent source to keep abreast of the latest in the real estate industry. Again, thanks for all you do.

Maurice Vaughn
The Vaughn Team
Keller Williams Realty
Clarksville, Tennessee

RISMedia welcomes your comments. To send feedback to RISMedia, please e-mail: realestatemagazinefeedback@rismedia.com.

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