Real Estate, Marketing, Software

by Saul Klein
CEO, Point2 Technologies Inc.

Have you ever been interviewed by the press, then read the article and wonder how the writer got the message they wrote about instead of the message you were intending to convey?

If you haven’t, take my word for it (someone who has been interviewed by the press multiple hundreds of times over the years), this sort of thing is not an infrequent occurrence.  An interview can sometimes last 30 to 45 minutes, and what might appear in the article are a few quotes from you and the assumptions and summation by the author of the article. So, the quotes are part of a larger conversation, a larger context, and quotes out of context can be misinterpreted, and sometimes worse, misleading. I am always reminded of the words of Jesse Jackson in this case…”Text without context is pretext.”

Many of you in Canada may have read the article about listing syndication in The Globe And Mail on May 19. The author and I had a very nice conversation of about 30 minutes in duration, and from that, I am quoted twice in the article.

The writer stated:

Only a small amount of search traffic ends up at the industry’s official portal, he says, and everyone else ends up on sites such as Craigslist or Kajiji [sic]. By pushing one feed to every site that wants to advertise listings, Web traffic is ultimately heading back toward the real estate agents.

Not exactly. What I said was that the industry was fractured and according to HitWise .com, the US real estate industry portal, REALTOR.com, as dominant as it is, receives only 6% to 7% of the total real estate website traffic. I surmised that even in Canada, people look for real estate on sites other than REALTOR.ca, which it turns out, according to Hitwise, to garner about 30% of the real estate website traffic. Where does the other 70% go? Wouldn’t you want your listings displayed on those sites as well? I have been a broker for over 30 years and my answer would be “absolutely”. If you feel differently, don’t syndicate your listings. You have that choice. I think not doing so is shortsighted. That’s just my opinion of course.

I went on to say that because of the convenience of the Internet, people often look at real estate, whether they are in the market or not. Searching for real estate on the web has become a recreational sport, lots of people do so and I would want my listing to draw as much attention to my name (my brand), as possible, whether the viewer is in the market today or not. The secret to success in marketing is repetition. A listing is a marketing asset and the value brokers and agents receive for their work on a listing can and should go beyond just the commission earned.

The writer then quotes me as saying:

“We think it’s about getting the information out there to as many places as possible and letting people find it,” Mr. Klein said.

I did say that and I believe it. There is a buyer for everything somewhere in the world; you just have to reach them. If you have not read The Long Tail by Chris Andersen, I highly recommend it.

The writer then said:

Competitors such as Point2 are emboldened by organized real estate’s battle with the federal Competition Commissioner, who is taking CREA to a tribunal because it believes the association prevents new companies from setting up alternate services.

An unfortunate choice of words. Point2 in fact, believes in the benefits of organized real estate and MLSs and has partnered with over 100 Associations and MLSs in North America to bring them and their members this service. We are partners, not competitors. As I mentioned, I am a broker. I was president of one of the largest REALTOR® Associations in California, I was a member of the California Association of REALTORS Board of Directors for 20 years and I wrote extensively on the antitrust case in the US a few years back, defending the industry and our brokers and agents.

Based on things I have read and discussed lately on the Competition Bureau agenda, I believe that the government is out of touch with reality. An MLS is a B2B network, not a consumer network. Consumers have lots of other ways, besides talking to a realtor, to find available property for sale. The alternate services issue is always confusing to me when stated by the government. The government sets up license law to ensure that consumers are protected, to ensure that the relationship between broker and principal is a fiduciary relationship…and then the government attempts to remove the obligations of a broker who enters a listing into a B2B network to act as a fiduciary…this to me is a contradiction, all in the name of “new businesses and new competition.”

The writer then states:

…Mr. Klein said the debate stirred by the case has made it easier to expand his business and sign up new partners for his service.

I do believe that syndication takes some of the wind out of the government’s sails. The best example that brokers do not “hoard” the data is the fact that they themselves place listing information in many places to be found by consumers. Syndication thwarts the “hoarding” argument. Yes, I said that for some of those who fear the actions of the government over listing data, syndication can be seen as a defense and so the conversation to convince someone that syndication of listings is in the best interest of their business and their customers.

I am then quoted:

“MLS is still going to be important because it provides governance and policing and that’s what makes its information valuable,” Mr. Klein said. “We just think realtors should give people more access to data – we know that distribution is more important than any one single website when people are looking for real estate.”

I believe MLS is very important. I also believe that MLS must use the strength it has today to position itself in the future. For more on my thoughts about the future of MLS, go to: http://MLSofTheFuture.com

Watch a video of Saul Klein and local Saskatoon real estate broker Norm Fisher discuss issues facing the Canadian real estate industry.  The Globe And Mail article is addressed.

2 Responses to “Point2 CEO Saul Klein’s Response to Globe & Mail Article”

1. Baton Rouge Houses says:

   January 11, 2011 at 8:14 pm

   It has almost always been my opinion that it was the lack of government over sight of the mortgage/banking industry that caused the problem. For those that are calling for the breakup of fanny/Freddy, I think you are miss guided. Both Wall Street and the GSI’s were greedy, nothing more. Wall st via fees and the GSI’s via yield. Both have strong lobbyist arms which have deep and troubling influence. The public was, at the highest levels of government and wall st miss lead. This is not giving the public a pass on being stupid, but the piper played and everyone went along. You will never have a strong consumer advocate government while you have over whelming corporate lobbyist influence over our elected officials. To those of you who still subscribe to laissez-faire capitalism, until you control greed and ignorance, you will continue to doom us to these cycles of boom and bust. Ayn Rands mind set will continue to fail.It is a mess no doubt and with any luck our current government will make good decisions to do the “right” thing and teach people how to fish again so we can get out of this mess!!! They no doubt will hold the largest influence in the solution as it continues to unfold. I know one thing is for certain and that is to get informed and VOTE!!
2. Baton Rouge Houses says:

   January 11, 2011 at 8:36 pm

   I’m impressed, I must say. Really rarely do I encounter a blog that’s both educative and entertaining, and let me tell you, you have hit the nail on the head. Your idea is outstanding; the issue is something that not enough people are speaking intelligently about. I am very happy that I stumbled across this in my search for something relating to this.