Social Networking Pays Off…But It’s Not The Only Thing

June 27th, 2008 by roostblog in Industry News

Bernice Ross, CEO of RealEstateCrunch.com wrote an interesting article on Inman News today titled “Social networking pays off“.  One of the key points that Ms. Ross made upfront in the story was that “Social networking may soon overtake virtually every other source as being the most important strategy for lead generation”.

As I was reading that statement I heard myself question it and was surprised upon perusing the comments I was not alone.  John Rowles, Managing Director of MainRhode LLC, questioned that statement also.  Now Mr. Rowles was a little more critical than I am stating that “Not to pour sour milk on your social networking cheerios, but Search is the necessary killer app for real estate and the web in general”.  

Now I find it interesting because separately I don’t necessarily agree with either statement 100% but combine the two and I feel you have something very powerful.  If you can successfully marry your social networking skills and platforms and search engine optimization (SEO) enhancements, you have a chance to hit a Grand Slam.

Another statement that Mr. Rowles made was “It is not about you.  For 94% of the audience it’s about the listings, but many agents still want to believe it’s about them, and the focus on social networking in Real Estate plays to that ego”.  1000Watt Consulting had a similar take on this with their clever video.

While I agree the listings are vitally important (I work at a real estate search site for Pete’s sake) I also think the agent is still very important in the process too.  Now maybe their role as keeper of the information has subsided, I still feel their role as a trusted advisor or consultant during the offer to close of escrow process cannot be discounted.   

Derek Overbey
Senior Director of Partnership Strategy
Roost.com
2008 Inman Innovator Award Finalist

Comments Tagged in: , , , , , , , , , ,

  • Random Man
    Of course you "think the agent is still very important". Thats your business model.

    I personally thing their commissions they take are too much. And we are seeing that correction from your competitiors who offer agent-services at reduced commission.
  • Random,

    I guess I was just stating that fact because Mr. Rowles seemed to be discounting agents altogether. I was just trying to get across that they are still needed.

    As for the commissions they receive, we have already seen the traditional 6% come down to about 5% in the Bay Area. It is even lower on average in certain specific regions. Do they deserve 6%? It is hard to justify with the availability of information and consumers doing a lot of the research upfront but I do believe they deserve something because the transaction side of real estate can be very complicated,

    Derek Overbey
    Sr. Director of Partnership Strategy
    Roost.com
  • georgeselix
    You're both right, or wrong, depending on how you look at it. Search is the killer app - for the right-now-want-to-buy-or-sell-a-house person. But social media is the vehicle for staying in contact with people so that when they decide to buy/sell, they come to you first b/c of the relationship. Over 90% of consumers want to use their agent again in the next transaction, only 17% do (NAR stats from 2007). Why? Because the pile of calendars and refrigerator magnets doesn't build a relationship. So, when it's time for the next transaction, consumers look for new referrals. Value is created (pretty easily, BTW) on web sites that support, educate, help, nuture, and guide the consumer. But social media is emerging as the best way to maintain relationships that drive value and subsequent business.
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