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Zillow & Keller Williams: Why the "Death Star" Partnership Changed Everything · This Week in DFW Real Estate

0:00
Speaker 1: We were both with Keller Williams for a long time
0:02
Speaker 1: and went to megacamp with the family re unions, went
0:04
Speaker 1: to everything, and I remember sitting in those conventions, sitting
0:09
Speaker 1: in those masterminds and basically hearing how Zillow was going
0:13
Speaker 1: to take us down.
0:15
Speaker 2: There was a very much a death star aspect to
0:18
Speaker 2: the way that kW always talked about Zillow.
0:20
Speaker 1: Yes, and now they got in bed with them, and
0:25
Speaker 1: so is that you know it's better to join your enemies.
0:29
Speaker 1: Gary Ve said that you'd be putting out thirty to
0:32
Speaker 1: fifty pieces of content on social media.
0:34
Speaker 2: A day, yeah, or you're basically a ghost. Yeah. People
0:37
Speaker 2: won't even know who you are, so our parents will
0:38
Speaker 2: forget your name. We need to get Gary V on
0:40
Speaker 2: this so he can just yell at usus. It's like
0:42
Speaker 2: way more of an existential moment than I thought we
0:44
Speaker 2: were going to have on this show today. I think
0:46
Speaker 2: we just uncovered.
0:47
Speaker 1: It, and that third party could easily just flip the
0:51
Speaker 1: script on all of it and say, screw you guys,
0:54
Speaker 1: we're now doing this.
0:55
Speaker 2: What does our ecosphere look like if we continue to
1:00
Speaker 2: bring in third party players that aren't based, that that
1:04
Speaker 2: don't derive their revenue from keeping the agent at the
1:07
Speaker 2: center of the transaction. Turn it up this week your
1:17
Speaker 2: Real Estate Weekly podcast tuper agents who actually can pay
1:24
Speaker 2: party moved listing, heat, colding streets. Damn any Way, Lessen.
1:35
Speaker 1: Definitely don't edit this out. This is the beginning of
1:38
Speaker 1: the SHI is definitely the beginning. All right, welcome back?
1:41
Speaker 1: What is this episode seven? You're just holding your hands
1:45
Speaker 1: up and.
1:46
Speaker 2: I think I accidentally put eight there, but you were
1:48
Speaker 2: smart enough to only look at my fingers in the
1:50
Speaker 2: episode seven.
1:51
Speaker 1: We took last week off for spring break. I was
1:52
Speaker 1: out of town, Brian. I don't know what you did
1:54
Speaker 1: spring brook. No, I hung out with my.
1:57
Speaker 2: Daughter, just set it in the most excitement. No, it
2:01
Speaker 2: just wasn't spring break, you know it was you know,
2:03
Speaker 2: I don't do spring break yet. When do they start
2:04
Speaker 2: spring break when they're in kindergarten? Yes, okay, yeah, yeah,
2:09
Speaker 2: I mean technically you could do spring break any time.
2:11
Speaker 1: Kindergarten's like Miami, right, sure, I don't. I mean maybe
2:15
Speaker 1: yours will mine. I decided to go to Tennessee. How
2:21
Speaker 1: were the smokies?
2:22
Speaker 2: It was? It was good. Yeah. Yeah, it's different for you,
2:26
Speaker 2: it's different. Yeah, you're usually a Colorado or a beach guy.
2:30
Speaker 1: Yes, I would say that the kids loved it. I
2:35
Speaker 1: have done it. I don't have to go back. I
2:37
Speaker 1: would go to Colorado and go to Montana, go to Wyoming.
2:41
Speaker 1: I don't need to go back to that part of Tennessee.
2:43
Speaker 2: Yeah, that's fair. That's fair. I have a hot sports opinion,
2:47
Speaker 2: and I know it might offend some people. I do
2:51
Speaker 2: not get the appeal of Broken Bow, but I also
2:55
Speaker 2: know that some people really love it.
2:56
Speaker 1: So let me tell you this. This is the mountain
2:59
Speaker 1: version of Broken.
3:00
Speaker 2: Bo Okay, so it's just a little bit taller.
3:03
Speaker 1: Yes, like you have much better views from your balconies.
3:06
Speaker 1: But it's the same. You're doing the same thing. You know,
3:09
Speaker 1: you're you could do a TV tours, you could you know,
3:13
Speaker 1: you know, go into town, which you know that part
3:15
Speaker 1: of Tennessee is just tourist trap.
3:17
Speaker 2: It just felt like it was just like a Carnie Soirs.
3:20
Speaker 1: Yeah, yep, we did the go karts, Yeah, the putt putt.
3:25
Speaker 2: Yes. So I highly recommend it on your spring break deal.
3:30
Speaker 2: Yeah I'm in sounds awesome. Yeah, welcome back everyone, but yeah,
3:34
Speaker 2: welcome back.
3:34
Speaker 1: And so last week I think it was last week
3:36
Speaker 1: when this came out, I was like, Oh, we definitely
3:38
Speaker 1: need to talk about this on the show. Is you know,
3:40
Speaker 1: there was some announcements that have come that have that
3:43
Speaker 1: that were dropped. You know, Keller Williams came out and
3:47
Speaker 1: they put out in a release that they made a
3:49
Speaker 1: partnership deal with Zillow.
3:54
Speaker 2: Can we educate Brian for a few minutes so he
3:58
Speaker 2: doesn't go down rabbit holes on his own? And so
4:00
Speaker 2: I want to dig into this. I will admit that
4:02
Speaker 2: obviously I've seen all the headlines. I've read some of
4:06
Speaker 2: the stories. They're not they're not deep on details. Can
4:10
Speaker 2: somebody explain to me because it's not just kW We're
4:13
Speaker 2: gonna get do a lot more, right, a lot of
4:15
Speaker 2: the big brokerages you know United as well, where where
4:18
Speaker 2: I am a partner, is utilizing the strategy. Can we
4:24
Speaker 2: just focus on the kW zilo one. What does it
4:27
Speaker 2: entail as far as like the pre market aspect before
4:31
Speaker 2: we break into that.
4:32
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4:36
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5:56
Speaker 1: because Gary Vee said that you'd be putting out thirty
6:00
Speaker 1: to fifty pieces of content on social.
6:02
Speaker 2: Media day, yeah, or you're basically a ghost. Yeah.
6:05
Speaker 1: People won't even know who you are, so parents will
6:07
Speaker 1: forget your name. We need to get Gary v on
6:08
Speaker 1: this so he can just yell at us. But let's
6:10
Speaker 1: go let's go dive into this a little bit more, Jesse,
6:12
Speaker 1: as you pulled this up the Keller Williams, the Keller
6:15
Speaker 1: Williams deal, which as we look and it's the Zello
6:19
Speaker 1: preview right right, and this is this is the coming
6:22
Speaker 1: soon you know exposure correct, So.
6:25
Speaker 2: That's what I was asking about and I just wanted
6:27
Speaker 2: to kind of and Jesse pulled up the details. So
6:28
Speaker 2: this is the coming soon as so Zillo essentially has
6:31
Speaker 2: this new pre market feature that will be available to
6:34
Speaker 2: Keller Williams agents. And then they're not the only ones.
6:37
Speaker 2: We're going to go down the rabbit hole on this
6:39
Speaker 2: and so where I was curious and you just pulled
6:42
Speaker 2: this up is the compliance aspect of this. So essentially
6:45
Speaker 2: am I right in thinking that the genus the general
6:48
Speaker 2: idea here as I can put my home on Zillo
6:51
Speaker 2: coming soon, but it's not on the MLS yet, coming soon. No,
6:55
Speaker 2: But how do showings work if you want to see it?
6:57
Speaker 2: Because can I MLS compliance? I'm not allowed to show
7:00
Speaker 2: it though, right, That's what I was curious about. So
7:03
Speaker 2: if I have my ducks in an order here, we're
7:05
Speaker 2: gonna talk about some of the other you know, like
7:08
Speaker 2: the real trot com and homes dot com thing. But
7:09
Speaker 2: like this, this Zillow pre market feature, I can showcase
7:16
Speaker 2: my listing prior to it going on the MLS. But
7:19
Speaker 2: I still have to adhere to the MLS guidelines. So
7:23
Speaker 2: if I'm not allowed to show it pre market in
7:27
Speaker 2: my in my MLS, then I can't. I still can't
7:29
Speaker 2: show it even though it's on Zilo.
7:31
Speaker 1: Look, this is about getting this is the coming soon,
7:34
Speaker 1: the pre listing, the exposure of it correct.
7:36
Speaker 2: Yes, okay, yeah, I just want to make sure that
7:37
Speaker 2: I understood the program. Okay, yes, And so look my look.
7:42
Speaker 1: The biggest thing that I looked at, you know, I
7:45
Speaker 1: was kind of taken away on this at first, was that,
7:47
Speaker 1: you know, Gary Keller, we have both been at We
7:50
Speaker 1: were both with Keller Williams for a long time. Right
7:52
Speaker 1: went to Mega camp with the family Unions, went to everything.
7:56
Speaker 1: And I remember sitting in those conventions, sitting in those
8:00
Speaker 1: masterminds and and basically hearing how Zillow was going to
8:04
Speaker 1: take us down.
8:06
Speaker 2: There was a very much a death star aspect to
8:08
Speaker 2: the way that k W always talked about Zilo.
8:11
Speaker 1: Yes, and and now they got in bed with them.
8:15
Speaker 2: And so is that you know, it's better to join
8:18
Speaker 2: your enemies, you So the the I was going to say,
8:22
Speaker 2: you know, if you can't beat them, join them to anything.
8:23
Speaker 2: It is funny how how quickly we've pivoted. Was it
8:28
Speaker 2: two years ago we were having a you know, a
8:30
Speaker 2: conversation around UH cooperation and things like that, and then
8:35
Speaker 2: the the the in what you can and can't put
8:37
Speaker 2: on the MLS, and then the big talk there is like,
8:39
Speaker 2: well what if the big broker just go make their
8:41
Speaker 2: own MLS is and and clear quadr cooperation thank you?
8:46
Speaker 2: And then now we've gone the exact opposite direction, and
8:51
Speaker 2: not not only were we not making our own MLS
8:53
Speaker 2: is where some of the big names are partnering Azilo
8:55
Speaker 2: when they said they would never do that? Correct, isn't
8:58
Speaker 2: that crazy? We went from what if Gary just makes
9:01
Speaker 2: his own MLS, what would that do for kW to
9:04
Speaker 2: Gary's partner was Zillo for pre market access. I'm saying
9:08
Speaker 2: this in a completely non judgmental way. By the way,
9:11
Speaker 2: I'm just I just I am an observer of the industry,
9:14
Speaker 2: and I think that that's an interesting turnaround.
9:16
Speaker 1: Well, I think it's also let's look at the people
9:18
Speaker 1: that say they would never do something, they would go
9:21
Speaker 1: out in a very far limit like I won't do this.
9:22
Speaker 1: I won't do that, you know from a as a
9:25
Speaker 1: business leader, and not that I don't think Gary's ever
9:28
Speaker 1: said that. Just Gary has been very vocal in his
9:32
Speaker 1: views and stance of what Zillo is.
9:34
Speaker 2: And how they were.
9:37
Speaker 1: They haven't been there to actually protect the agent, and
9:41
Speaker 1: Gary has so to me the messaging and the visual aspect.
9:45
Speaker 2: Again, this is not a I'm not here to hate.
9:48
Speaker 1: On Kellerwims, the phenomenal agent's, phenomenal brokerage, phenomenal leadership. What
9:54
Speaker 1: I'm looking at is is are we turning our views
9:57
Speaker 1: or do we now believe that Zillo is here to
9:59
Speaker 1: protect the agent? Or is this the sign of the
10:02
Speaker 1: times that the train has left the station and there's
10:05
Speaker 1: no going back and so we need to jump aboard
10:08
Speaker 1: and just find the max exposure for agents.
10:11
Speaker 2: Yeah, I mean I'll throw an interesting caveat in there
10:15
Speaker 2: as well to consider. Is I love having a show
10:20
Speaker 2: where we can just talk about what we think and
10:22
Speaker 2: like we never I don't think we ever say anything mean,
10:24
Speaker 2: but I think we're like willing to say things and
10:26
Speaker 2: ask people to consider things that like maybe people on
10:29
Speaker 2: other shows don't want to touch. Like if you don't
10:31
Speaker 2: like what we say, then like whatever, We're not being
10:33
Speaker 2: rude about it. I wonder how much of this is Uh,
10:37
Speaker 2: there's some other voices in the room at kW now,
10:40
Speaker 2: and not only that a lot of these brokerages. I'm sorry,
10:43
Speaker 2: Stone Capital Partners What what is it? Yeah? I think so,
10:47
Speaker 2: I think I got it right. Yeah, the majority partnership?
10:49
Speaker 2: Now killer what is it again? Can you look at
10:51
Speaker 2: that really fast? South inge? Stonehenge Capital Partner? I think
10:55
Speaker 2: I was just Stone Creek or Stone Capital, but obviously
11:00
Speaker 2: you know Gary is still a massive influence and decision
11:02
Speaker 2: maker in the company, But I just I wonder how
11:04
Speaker 2: much of this is also being driven by stone Point
11:09
Speaker 2: Thank you stone Point Capital. I wonder how much of
11:12
Speaker 2: some of these these decisions are are also being influenced
11:14
Speaker 2: by private equity, you know, and and who has an
11:18
Speaker 2: entirely different viewpoint on on the real estate industry. I
11:22
Speaker 2: mean that's not specific to kW. The private equity has
11:25
Speaker 2: a as a as a massive foothold in residential real
11:28
Speaker 2: estate at the brokerage level. So I just I think
11:30
Speaker 2: it's it's it's an interesting time because I'm wondering how
11:34
Speaker 2: much of these decisions are still made by like real
11:37
Speaker 2: estate purists that have been doing this for a living
11:39
Speaker 2: for sixty years, and how much of it is is
11:43
Speaker 2: some private equity stuff that thinks, hey, we can we
11:45
Speaker 2: can make a small adjustment here, make a partnership and
11:48
Speaker 2: give ourselves an incremental advantage for our listing exposure. And
11:52
Speaker 2: whether or not that actually ends up translating in the
11:55
Speaker 2: real world I think is kind of secondary. I'm just wondering,
11:58
Speaker 2: is our all these decisions really being driven by the
12:01
Speaker 2: decision makers that we assume they're being driven by that's.
12:05
Speaker 1: A great question. I would say, look and again, let's
12:08
Speaker 1: let's take it. Let's I'm going to take the focus
12:10
Speaker 1: a little bit away from Keller Whims for a second
12:12
Speaker 1: exp A couple of days later, made the announcement that
12:15
Speaker 1: they they did a partnership with relater dot com homes
12:19
Speaker 1: dot com and then come home and.
12:22
Speaker 2: So so and to be to pit to just give
12:25
Speaker 2: you a scope on this. So Zillo two hundred million
12:28
Speaker 2: users per month realtor dot com combined with homes dot
12:31
Speaker 2: com one hundred and seventy million users per month, so
12:33
Speaker 2: almost neck and neck relatively similar amount exposure.
12:35
Speaker 1: And do these come about? Because I did have my
12:40
Speaker 1: first experience of this yesterday. I was talking to a
12:42
Speaker 1: potential buyer. Is this is this where we have to
12:47
Speaker 1: start making these deals in these partnerships because of the
12:51
Speaker 1: Redfin Rocket mortgage merger and now you've got Compass, who
12:58
Speaker 1: is you know, technically with everything they owned the largest
13:01
Speaker 1: real estate brokerage in the United States. So do you
13:05
Speaker 1: have to start making these partnerships because of the views?
13:08
Speaker 2: Right?
13:08
Speaker 1: So I had to call yesterday with a potential buyer
13:12
Speaker 1: and she had she had watched one of our videos
13:15
Speaker 1: and when I made the call. She knew who I was,
13:17
Speaker 1: and as I was just going through the process saying hey,
13:20
Speaker 1: why didn't you take the next step, She's like, oh,
13:21
Speaker 1: I'm already working with somebody. I'm going down the process
13:24
Speaker 1: and like who are you working with? She said Rocket Mortgage,
13:27
Speaker 1: Like okay, what about an agent? She's like one of
13:28
Speaker 1: the Rocket Mortgages preferred agents. She couldn't tell me the
13:32
Speaker 1: benefit though. I was like, are you getting any new
13:34
Speaker 1: benefit out of it? And she's like, no, it's just
13:36
Speaker 1: been good so far. I haven't signed anything yet, so
13:38
Speaker 1: we're still able to have them continue on the relationship.
13:41
Speaker 1: But is this something that at the executive levels that
13:45
Speaker 1: they're seeing is that we need to have more eyeballs
13:49
Speaker 1: and more traffic, which is Zillow's got the two hundred
13:51
Speaker 1: million plus, you've got homes dot com, relder dot com.
13:55
Speaker 1: I think, if I remember correctly, the Redfin brokerage site
13:59
Speaker 1: was third or fourth in terms of the amount of
14:01
Speaker 1: traffic that.
14:05
Speaker 2: Yeah, it's huge, Yes, I think it's it's third or fourth. Yeah. Yeah.
14:08
Speaker 1: So so is this something that hey, you know, at
14:11
Speaker 1: the brokerage level, for our for the agents, right, if
14:13
Speaker 1: I'm looking at this from a pros and cons level.
14:16
Speaker 2: From a pros you said.
14:17
Speaker 1: All right, this brokerage that I'm with, I'm with Keller Williams,
14:20
Speaker 1: and I can get this as the the the Zelo preview,
14:23
Speaker 1: and this is going to get you in front of.
14:25
Speaker 2: Hopefully millions of eyeballs right right.
14:28
Speaker 1: The same thing now with the e XP, I can
14:30
Speaker 1: get you on homes dot com, you know, come home
14:32
Speaker 1: and and reeler dot com and get you in front
14:35
Speaker 1: of one hundred and seventy plus million dollars, you know,
14:37
Speaker 1: plus eyeballs as well.
14:39
Speaker 2: Yes, So if that's the case, though, so then what
14:43
Speaker 2: is what is the real opportunity to differentiate? And what
14:46
Speaker 2: I mean by that is we just started off talking
14:48
Speaker 2: about Keller Williams mostly because there you know, for a
14:51
Speaker 2: long time there was there was a leader of Keller
14:53
Speaker 2: Williams that that made a lot of statements around them
14:56
Speaker 2: not doing these types of partnerships, right, So we're not
14:58
Speaker 2: trying to pick on anybody. There's so they're a big
15:00
Speaker 2: brokerage and and they it was surprising to see that
15:04
Speaker 2: partnership because they've mostly been antithetical towards Mozilla for a
15:09
Speaker 2: long time, but not the only ones Berkshire Hathaway, United
15:12
Speaker 2: Real Estate right where I'm employed. We've got a lot
15:15
Speaker 2: of incredibly smart people at United that I trust in,
15:17
Speaker 2: and inherently Right Home Services of America, which which is
15:21
Speaker 2: part of Burksyre Remax side, they're they're they're all partnering
15:25
Speaker 2: with Zilla on this, on this pre market program. And
15:27
Speaker 2: then you've got the homes dot com and and the
15:29
Speaker 2: Realcha dot com. I guess what I'm saying is like,
15:32
Speaker 2: if everybody starts to go this direction, what does the
15:35
Speaker 2: incremental gain at that point? And I and I pose
15:39
Speaker 2: that question in this context. We we went through a
15:43
Speaker 2: radical change a few years ago and how we get
15:46
Speaker 2: compensated as agents and and and in the build up
15:50
Speaker 2: to that, we were talking about it like the world
15:54
Speaker 2: was going to fall apart, I mean truly, and we
15:56
Speaker 2: were talking about it for like a couple years. And
15:59
Speaker 2: now a couple of years removed, and things have changed
16:04
Speaker 2: a little bit. I'm not going to say they haven't
16:06
Speaker 2: that they've been exactly the same, But if you compare
16:09
Speaker 2: the build up to that to where things stand now
16:12
Speaker 2: from a compensation standpoint, do you think there was a
16:16
Speaker 2: little bit too much emphasis placed on what the world
16:19
Speaker 2: was going to look like after that went into effect.
16:21
Speaker 2: As to how it actually showed up in reality, I
16:24
Speaker 2: certainly think so. Nick runs a massive team. It hasn't
16:29
Speaker 2: radically changed the way his agents are compensated. There's been
16:32
Speaker 2: some changes, but it just hasn't been as big as
16:36
Speaker 2: I think people thought it was. And so are we
16:38
Speaker 2: I'm not saying it's much ado about nothing, but are
16:41
Speaker 2: we over considering the impact of what this may actually
16:44
Speaker 2: do to the home selling experience? Yes?
16:50
Speaker 1: Yeah, I mean the more that I think about this,
16:52
Speaker 1: Number one is, let's be real here, unless you have
16:56
Speaker 1: like some outlier of a the house or property, does
17:03
Speaker 1: it coming soon do that much that.
17:05
Speaker 2: You can't see in person yet? Yeah? I don't know.
17:10
Speaker 2: I don't. I'm trying to think of it just a
17:12
Speaker 2: use case where it just gives you a really, really
17:16
Speaker 2: substantial advantage, especially because you know, we just listed all
17:21
Speaker 2: the people doing these types of partnerships. That's like fifty
17:23
Speaker 2: percent of the market right there.
17:25
Speaker 1: Well again, and maybe people can school us and the
17:28
Speaker 1: comments go to YouTube, go to our YouTube channel, go
17:30
Speaker 1: into our Facebook group DFW Realtters, school us, tell us.
17:33
Speaker 2: We're wrong, you know, and we may be.
17:36
Speaker 1: Look, we could be completely off or we maybe we've
17:39
Speaker 1: not used this the way that we should be using it.
17:42
Speaker 1: But at the same time, what I've found in the
17:44
Speaker 1: past is these coming soons and these supposed exposures. It
17:49
Speaker 1: sounds good when you're on a listing.
17:51
Speaker 2: We used to have in the North Texas MLS. Couldn't
17:54
Speaker 2: you be coming soon? For like a month? Two weeks?
17:56
Speaker 2: I think it was two weeks? Yeah? Right? Did anybody
17:59
Speaker 2: sales drastically? Just? I think it was great during the
18:03
Speaker 2: COVID market. It definitely was great during a very unique
18:06
Speaker 2: time in human history.
18:07
Speaker 1: So are we doing coming soons when inventory is at
18:09
Speaker 1: at at one of the highest it's been in decades? Right,
18:13
Speaker 1: and now we're over here focused on coming soons and
18:17
Speaker 1: getting those eyeballs versus I would much rather, I'd much
18:20
Speaker 1: rather be looking at these portals and saying, hey, you
18:22
Speaker 1: know what, actually you get you know what the partnership
18:25
Speaker 1: should be because you're with Keller Williams or with the XP,
18:27
Speaker 1: you're with Compass, you're with whomever. United is that when
18:31
Speaker 1: you list and you join this brokerage and you list
18:34
Speaker 1: with us, you get premier placement on homes dot Com,
18:36
Speaker 1: on zilow, on reeler dot com and you know what,
18:38
Speaker 1: you get the lead back instead of they click on
18:41
Speaker 1: there and maybe they do do some of that. Yeah,
18:43
Speaker 1: I don't think they do. I haven't heard it a
18:45
Speaker 1: lot of I haven't. I haven't seen that as a
18:48
Speaker 1: as a major feature being touted. What I've heard is, hey,
18:51
Speaker 1: you get millions of eyeballs beforehand, which again, unless you've
18:55
Speaker 1: got some very very one off property that's going to photograph, well,
19:03
Speaker 1: that's gonna then maybe be a viral sensation. Right then
19:08
Speaker 1: you're right, is this even that big of a deal?
19:11
Speaker 2: So you just made a really good point. And we
19:12
Speaker 2: always keep this show Brokeer agnostic, so I won't go
19:16
Speaker 2: too deep down the rabbit hole. But like I said,
19:19
Speaker 2: we have some incredibly smart people at United who have
19:21
Speaker 2: made a different type of partnership with Zillow, and it's
19:26
Speaker 2: more in that vein that I think is probably one
19:29
Speaker 2: of the most valuable things they've done for their agents.
19:30
Speaker 2: And it doesn't it doesn't involve the coming soon aspect,
19:33
Speaker 2: and it involves the premier placement aspect. I think that's
19:36
Speaker 2: a better play because if everybody's doing the coming soon,
19:40
Speaker 2: then it's not really coming soon. It's coming at the
19:42
Speaker 2: same time as everybody else. You just can't see it yet.
19:44
Speaker 1: Yeah, and Jesse pulled up here, you know, supposedly want
19:47
Speaker 1: to buyer clicks on contact agent on the preview listing.
19:49
Speaker 1: The leite is often right, it directly to the listening agent.
19:52
Speaker 1: That's great, But what happens when it goes live? What
19:54
Speaker 1: happens when you actually go active and can show it?
19:57
Speaker 2: Yeah, just a revert back to the same. Yeah, I'm
20:00
Speaker 2: sure like the premier age. I will tell you that.
20:02
Speaker 1: Look, Zillo has been calling me to look at some
20:05
Speaker 1: of their other programs and their flex and everything else
20:07
Speaker 1: like that, and to get into that it's still going
20:10
Speaker 1: to it still would cost me ten to fifteen thousand
20:12
Speaker 1: dollars a month in order and like, it's.
20:15
Speaker 2: Just not to me.
20:16
Speaker 1: I have yet to see why it's been worth it.
20:18
Speaker 1: You know, the people that got in and took advantage
20:20
Speaker 1: of it early that are now on the Zillo Flex
20:22
Speaker 1: side that they're paying referral fees and they're able to
20:25
Speaker 1: use that as a as almost a springboard into other
20:29
Speaker 1: things that then make them more profitable.
20:31
Speaker 2: Good for them.
20:32
Speaker 1: Yeah, I just don't see again, maybe I'm too cheap
20:35
Speaker 1: on this. I just don't see the benefit of spending
20:38
Speaker 1: ten to ten plus thousand dollars every single month on
20:42
Speaker 1: on high cost leads.
20:44
Speaker 2: Oh agreed. I think that's why they switched to the
20:46
Speaker 2: flex model. I I if you know they one just
20:50
Speaker 2: personal opinion. I for the things that Zillo has done
20:52
Speaker 2: for their lead programs, I think the flex model is
20:56
Speaker 2: one of the smartest things they've ever done. Because costs
20:58
Speaker 2: were mounting on the paper lead. If you were going
21:02
Speaker 2: to get any sort of foothold, you had to start
21:04
Speaker 2: spending a lot of money in most agents just don't
21:07
Speaker 2: have that upfront, so it was it was really really
21:09
Speaker 2: cost prohibited. But flex is obviously there's a split on it,
21:13
Speaker 2: but you're you're always better off on a lead program
21:15
Speaker 2: where you don't pay until closing. I mean, you're just
21:17
Speaker 2: gonna get more agent adoption. I want to go, let's
21:19
Speaker 2: let's kind of break down pros and cons of this.
21:20
Speaker 1: Right, So, look, if you're a list if as an
21:24
Speaker 1: agent and you can look anything that any partnership you
21:28
Speaker 1: can use and leverage that out too to put in
21:34
Speaker 1: front of your your potential seller client as a major benefit, right,
21:39
Speaker 1: and so that's that's one of the benefits is you
21:41
Speaker 1: can talk with your your sellers, especially the ones that
21:44
Speaker 1: that maybe aren't listing right away. You can do those
21:47
Speaker 1: coming soons so you can build that hype phase. You
21:51
Speaker 1: can build them you know, hopefully massive interests and or
21:55
Speaker 1: create a waiting list. Sure, I haven't seen a waiting
21:58
Speaker 1: list in this market, you know. So I'm not trying
22:01
Speaker 1: to burst any bubbles, but you know, I think that
22:04
Speaker 1: sometimes we may we may set ourselves up for creating
22:07
Speaker 1: it's not over promised false expectations or some or setting
22:12
Speaker 1: a bar and a standard that's hard to live by.
22:16
Speaker 1: But again, you can do that because of the partnerships
22:18
Speaker 1: that whatever brokers you're with has made. It can be
22:22
Speaker 1: zero days on the market, right, You get the benefit
22:25
Speaker 1: of public exposure without having the listing go stale. That's true,
22:29
Speaker 1: because that is a good point because if you do
22:31
Speaker 1: coming soon in the MLS, your days on market start then.
22:34
Speaker 2: Yeah, which I always thought was strange because it's like
22:36
Speaker 2: coming soon, but the clock starts sticking. Now, Yeah, that's right.
22:41
Speaker 1: Supposely again, maybe you get you get a little bit
22:43
Speaker 1: of the direct lead capture. So if you're not paying
22:46
Speaker 1: for Zillo, maybe you know, again, I don't know.
22:48
Speaker 2: How it works all the way. So again, school us
22:50
Speaker 2: if we're wrong. Well, the price testing aspect is really
22:53
Speaker 2: important too. If I put it coming soon at a
22:55
Speaker 2: certain point, at a certain price point, I can monitor
22:59
Speaker 2: how many looks that's got and saves, it's gotten, favorites,
23:01
Speaker 2: it's gotten stuff like that. And so if I know, like, hey,
23:04
Speaker 2: we're going to try to price it at a certain
23:05
Speaker 2: price point we think it might be kind of the
23:07
Speaker 2: upper echelon of what we might get, I can I
23:10
Speaker 2: can have a better conversation with my seller say hey,
23:12
Speaker 2: we're priced accurately, or we were not getting a lot
23:15
Speaker 2: of saves, we're not getting a lot of attention on
23:17
Speaker 2: the coming soon, we probably want to make a price
23:19
Speaker 2: adjustment before we actually hit the market. That I could
23:22
Speaker 2: see that also though that that does beg the question
23:25
Speaker 2: if everybody's doing coming soon and you're making price adjustments,
23:28
Speaker 2: I mean, isn't just like isn't it just like going
23:29
Speaker 2: on the market and making a price adjustment. So and
23:33
Speaker 2: then I guess it won't show on the MLS. Though
23:35
Speaker 2: it won't show on the MLS, but I wonder will
23:36
Speaker 2: it show on zillo O? Good question on the history, right,
23:40
Speaker 2: And then I Also, I guess I wonder this. This
23:42
Speaker 2: is a this has been keeping like keeping me up
23:45
Speaker 2: in mind. This is like popped into my head many time.
23:47
Speaker 2: You have no problems with this, This is right exactly.
23:50
Speaker 2: I got way bigger things keeping me up at night,
23:52
Speaker 2: but this has popped in my head several times since
23:54
Speaker 2: we've been talking about this is like, does anybody have
23:58
Speaker 2: a metric on how many sell are actually going to
24:01
Speaker 2: be taking advantage of this? Like the whole bit is
24:03
Speaker 2: that you can be coming soon for like what a
24:05
Speaker 2: month or something with this program? How many sellers I mean,
24:09
Speaker 2: we are all we've all sold thousands of homes at
24:11
Speaker 2: this point. How many sellers are ready to go a
24:13
Speaker 2: month before they go on the market.
24:15
Speaker 1: But we didn't have, like, we didn't have something like
24:18
Speaker 1: this to really promote, so we don't. I mean the
24:20
Speaker 1: real question is, now that we have something to promote,
24:22
Speaker 1: would you come in and say, all right, you really
24:25
Speaker 1: wanted to list in June.
24:28
Speaker 2: Right, so we're now in April.
24:30
Speaker 1: Let's go ahead and let's go ahead and get your
24:32
Speaker 1: house and show ready condition. Let's go ahead and get
24:34
Speaker 1: in photograph ready condition. Let's take those photos and when
24:38
Speaker 1: we're a month out from you ready to go live,
24:40
Speaker 1: We'll put this up is coming soon. Let's go ahead
24:42
Speaker 1: and sign the listening a paperwork. So there could be
24:45
Speaker 1: I could always find a way to make this beneficial.
24:47
Speaker 2: I think so. I think so if their timeline is
24:51
Speaker 2: is that far out, I just what percentage of listing
24:54
Speaker 2: appointments do we go on where we're signing the listening
24:56
Speaker 2: room and they want to be ready to go in
24:58
Speaker 2: the next few.
24:58
Speaker 1: Weeks, Well, how many listing appointment could you be setting
25:02
Speaker 1: you utilize? You if you were utilizing this to say, hey,
25:06
Speaker 1: actually I actually have a benefit and a feature for you,
25:08
Speaker 1: I'd like to come out and show and talk about
25:10
Speaker 1: it with you.
25:11
Speaker 2: Because I know you said you were June or July timeframe.
25:13
Speaker 2: I think yeah, so so we again, we don't know
25:16
Speaker 2: that metric yet, but I will go back and stay
25:18
Speaker 2: agents will use that. Yeah.
25:19
Speaker 1: The cons of this is the no showing trap, which
25:22
Speaker 1: which which you know you could be bombarded with calls
25:25
Speaker 1: from aggressive agents and buyers demanding to see the house now,
25:28
Speaker 1: because again buyers don't understand the no showings. And and
25:32
Speaker 1: I will say that there was an agent and here
25:35
Speaker 1: locally that had a property coming soon. One of my
25:37
Speaker 1: clients wanted to see it, and she was demanding to
25:39
Speaker 1: see it. And I did try to get in there, right,
25:44
Speaker 1: I'm gonna admit we didn't. So I didn't break anything,
25:47
Speaker 1: but I was trying to get into that house so
25:50
Speaker 1: that that will happen. So the no showings trap, you know,
25:54
Speaker 1: the maybe the clear cooperation stress, if.
25:56
Speaker 2: You have a tight window, I don't you know, don't
25:58
Speaker 2: know if that's yeah, that's going to be specific kind
26:00
Speaker 2: of to your MLS.
26:01
Speaker 1: I think you know, I would, I would, you know,
26:03
Speaker 1: is it double the work because now you're essentially managing
26:05
Speaker 1: two launches, so is your operations team, you know, if
26:08
Speaker 1: your or your TC team, if you're not doing this yourself.
26:11
Speaker 1: They need to understand the nuances and the processes behind it,
26:14
Speaker 1: and then really seller confusion. They don't get this right,
26:18
Speaker 1: the sellers, they don't understand all this. They don't get
26:20
Speaker 1: the look behind the curtain. They just get to hear
26:23
Speaker 1: what you like, all the stuff that you're touting and promoting,
26:26
Speaker 1: and so is there going to be The seller might
26:28
Speaker 1: see that that there's higher engagement on Zilo, but then
26:32
Speaker 1: they might wonder why there's no offer, why we can't
26:34
Speaker 1: do the showings and does this cause stress and frustration
26:38
Speaker 1: for them?
26:39
Speaker 2: That's an interesting point. I certainly haven't like had a
26:43
Speaker 2: conversation with a seller about this yet, but there's a
26:47
Speaker 2: there's a there's a pretty good guiding principle around services
26:52
Speaker 2: for clients and customers when you run a business, and
26:54
Speaker 2: that is, you know, figure out the problem and find
26:58
Speaker 2: the solution, and that's your service right now. You can
27:01
Speaker 2: also take the Steve Jobs approach, where like, they don't
27:03
Speaker 2: know what their problem is until you give them the solution.
27:05
Speaker 2: But unless you're going to invent the Apple iPhone, it's
27:08
Speaker 2: probably better to stick to the former, not the latter, right,
27:10
Speaker 2: And so I guess where I think this may actually
27:12
Speaker 2: cause some confusion is I'm trying to have a conversation
27:15
Speaker 2: with a seller around here's a value add of working
27:18
Speaker 2: with me. I'm with you know, United real Estate. We
27:21
Speaker 2: can do you know the coming soon Zilla preferred. I've
27:23
Speaker 2: got to be really I've got to be really well
27:25
Speaker 2: coached on how to how to have that conversation because
27:29
Speaker 2: the seller most likely has no idea that I couldn't
27:32
Speaker 2: put pictures of my home on the mL or the
27:34
Speaker 2: market and do this like they probably have no idea
27:37
Speaker 2: around regulations or things like that, or how this is
27:39
Speaker 2: really a value add to them until you really explain
27:42
Speaker 2: it to them. And if you're not well coached around
27:45
Speaker 2: how to explain this to them, it might actually create
27:48
Speaker 2: more confusion than if you were to just to list
27:50
Speaker 2: the home. Yeah, so you you got to be pretty
27:53
Speaker 2: well well versed in how to describe this as a benefit.
27:56
Speaker 1: I will also say, like, there's something that keeps coming
27:59
Speaker 1: up when we kind of run this through some of
28:00
Speaker 1: our programs and just to kind of nail down, you know,
28:03
Speaker 1: part of this podcast is through our ai AI portions
28:06
Speaker 1: of this is it keeps bringing up referral fees that
28:09
Speaker 1: there could be some of these ZELO preferred coming soon.
28:13
Speaker 1: Deals may come with a successful success fee or referral percentage.
28:17
Speaker 1: I don't know if that is that means that the
28:19
Speaker 1: lead converts and eat which could eat into your commission.
28:22
Speaker 2: I won't dive into that too much.
28:23
Speaker 1: Is we don't know that we don't know the full
28:25
Speaker 1: details of the partnership, right, but the final verdict when
28:29
Speaker 1: you run this through any AI program as well, the
28:33
Speaker 1: final verdict says these programs are best for highly photogenic
28:38
Speaker 1: homes and in low inventory markets.
28:41
Speaker 2: This would have murdered in twenty twenty one, right, So
28:45
Speaker 2: why couldn't we done this deal back then? Should have
28:47
Speaker 2: done the deal back then? You know what I would
28:49
Speaker 2: be interested in, Jesse, is is can this parlay because
28:52
Speaker 2: one of the things I think that one of the
28:54
Speaker 2: Zillo's best products is Zilo Showcase. You see showcase listings
28:57
Speaker 2: as opposed to regular Zillo list because they show up
29:00
Speaker 2: above everyone. They yes, one you get priority replacement and
29:03
Speaker 2: two they they pop. You have to work with the
29:05
Speaker 2: specific like basically certified photographers like Snapley and stuff that
29:11
Speaker 2: that follow their guidelines, but they look really good, really
29:15
Speaker 2: really good. I think it's worth the money to do
29:17
Speaker 2: Zilo Showcase on most on most listings above maybe a
29:20
Speaker 2: certain price point, right, because you pay per you pay
29:23
Speaker 2: per listing. And again we're broke agnostic. But some of
29:26
Speaker 2: the really smart brokers out there are cutting partnerships that
29:29
Speaker 2: make those types of products, you know, a better get
29:32
Speaker 2: for their agents. I'm wondering if you could do Zilo
29:35
Speaker 2: Showcase coming soon, that might be you parlay those two
29:40
Speaker 2: now you might have something otherwise. I just kind of
29:43
Speaker 2: feel like you're coming soon. But if everybody else is
29:45
Speaker 2: able to as well, but how many? All right?
29:47
Speaker 1: So so again as I look at the pros and
29:49
Speaker 1: cons as like, all right, from the agent side, there's
29:51
Speaker 1: some pros like smart agents and you can still use
29:54
Speaker 1: this to their advantage on listings right in converting listings
29:58
Speaker 1: right again, the maybe not that many many cons about it,
30:02
Speaker 1: a little bit of extra work, et cetera on that.
30:04
Speaker 2: But from a brokerage.
30:05
Speaker 1: Level, right there, there's you know, if you're a brokerage owner,
30:09
Speaker 1: maybe you're a team leader that runs a brokerage, or
30:11
Speaker 1: you just want your you're an agent that just loves
30:13
Speaker 1: your brokerage and you want them to be successful, which
30:15
Speaker 1: hopefully most agents do. You know, there's there's the the
30:20
Speaker 1: advantage that hey, there's a stronger value proposition, uh for
30:24
Speaker 1: maybe recruiting and retaining agents. Yeah, one hundred percent, right,
30:26
Speaker 1: you know, there's hopefully there's an improved listing conversion rates
30:30
Speaker 1: by giving these agents so they can tell their clients
30:32
Speaker 1: better stories, yep, and and really help them visualize that.
30:38
Speaker 2: Jesse, can you pull up zillo? Will you? Will you
30:40
Speaker 2: try to find obviously we can't put this on the
30:41
Speaker 2: screen on the fly, but I want to see what
30:43
Speaker 2: a showcase listing looks like coming soon, and just we
30:46
Speaker 2: could just see how like different the product looks than
30:49
Speaker 2: just a regular Zilo listing, because that that's something that
30:51
Speaker 2: I think is actually you could just go to Zilo, like,
30:54
Speaker 2: go to Zilo and just do it search in Dallas.
30:56
Speaker 2: You see what I'm saying, and the showcase ones do
30:59
Speaker 2: do Dallas filter by coming soon and then we'll look
31:02
Speaker 2: at the showcase ones at the top. If you guys
31:05
Speaker 2: have not seen this yet, like this is actually a
31:06
Speaker 2: pretty big difference, and I think it's one of the
31:09
Speaker 2: best products that Zilo has kind of ever put out.
31:11
Speaker 2: So if we just go by so for every showcase,
31:17
Speaker 2: so there you go. So now can we do Okay,
31:19
Speaker 2: sore you go, so we can do so do that
31:22
Speaker 2: one with the patio there, that's cool. So they do
31:26
Speaker 2: these cool they do the floor plans, virtual staging, three
31:30
Speaker 2: D home tours, everything, So there's showcases. It's like you're
31:33
Speaker 2: able to walk through the entire property, you have a
31:36
Speaker 2: floor plan, all that type of stuff. I can see
31:39
Speaker 2: parlaying this with coming soon and now you probably have
31:43
Speaker 2: a pretty big advantage because if I'm able to do
31:48
Speaker 2: the three D tour, you've got the virtual staging. Isn't
31:50
Speaker 2: that cool? Dude? You could do the virtual staging with
31:53
Speaker 2: different styles of furniture, So you can do that.
31:55
Speaker 1: You can swipe to see how it's vague ways bacant,
31:58
Speaker 1: it's not.
32:00
Speaker 2: They've done a great job on that. And again, so.
32:03
Speaker 1: One brokerages if they cut a better deal because it
32:06
Speaker 1: is expensive. Yeah, it costs money. It costs a good
32:09
Speaker 1: amount of money. I mean I would love, I would
32:11
Speaker 1: love to be able to do that. And but again
32:14
Speaker 1: it's it can be cost prohibit prohibit hibit. Yeah. But again,
32:18
Speaker 1: so you look at this from from the brokerage side
32:21
Speaker 1: of things, it's like and and even agents. Now we're
32:24
Speaker 1: so we're increasing our dependence their dependency on third party sites.
32:29
Speaker 2: Yeah. The aspect of this conversation we haven't even dug
32:32
Speaker 2: into yet is why why are the major real estate
32:38
Speaker 2: tech companies like the Zillows and the realtors at homes
32:42
Speaker 2: dot com and reference. Why are they able to just
32:45
Speaker 2: snap their fingers and do things that the mls won't
32:48
Speaker 2: let us do and just make us more dependent on them.
32:50
Speaker 2: Is it that hard to just let us do coming
32:53
Speaker 2: soon listings on our own mls? And just you know what,
32:55
Speaker 2: I mean, like.
32:57
Speaker 1: But what what why can't the brokerages? Look, Compass will
32:59
Speaker 1: be the is the largest by agent count, so they
33:02
Speaker 1: could do this. Why can't Why why can't they come
33:06
Speaker 1: together as a conglomerate and say, hey, you know if
33:08
Speaker 1: you had Compass, Exp, Keller Williams, and then you start
33:12
Speaker 1: throwing in the others that I mean, you know they're
33:15
Speaker 1: over one hundred thousand. I don't even know after that
33:18
Speaker 1: Compass has bought so many that there's not many more
33:20
Speaker 1: over one hundred thousand.
33:22
Speaker 2: I think it's only kW and Exp. Well Exp's at
33:25
Speaker 2: eighty eight eighty okay, so the lost of you. So
33:27
Speaker 2: I don't think there's another brokerage over one hundred thousand
33:29
Speaker 2: that Compass doesn't own Remax? Right, how many is Remax? Remaxes? Now?
33:33
Speaker 2: Can you google Remax agent? I think they're only sixties.
33:35
Speaker 1: But if you look at that, why can't Why can't
33:37
Speaker 1: the brokerages We'd rather go and depend depend on the Zillos,
33:42
Speaker 1: thehomes dot coms, thereeler dot coms. When could you go
33:45
Speaker 1: and pool money together? Because I'm assuming this costs the brokerage,
33:48
Speaker 1: it eats into their margin. Two, Yeah, they're not just
33:51
Speaker 1: cutting a deal.
33:52
Speaker 2: I don't think it's free. Yeah, I agree, So yeah, Remax,
33:57
Speaker 2: Oh no, you're right. I was totally wrong. Remax is
33:59
Speaker 2: a little over a hundred thousand.
34:00
Speaker 1: Remax hundred and the Home Services of America forty four plus.
34:04
Speaker 1: So when you look at why can't you get these
34:06
Speaker 1: top ones, and then you can start you can start
34:08
Speaker 1: finding ways to get traffic away, you can start designing
34:13
Speaker 1: where you have these platforms that you know, homes dot
34:17
Speaker 1: Com didn't just pop out of nowhere. They've built it
34:19
Speaker 1: over several times. Now co Star owns them. You know,
34:22
Speaker 1: I don't know what come home or come Home is.
34:26
Speaker 2: Them.
34:26
Speaker 1: But when we look at now we're becoming more dependent
34:31
Speaker 1: on these third party platforms. We lose control over how
34:34
Speaker 1: listings are distributed. Right, there's pressure on margins due to
34:39
Speaker 1: we need more tech involved and the tech is not cheap.
34:43
Speaker 1: So do we run the risk as a brokerage and
34:46
Speaker 1: as anent as agents? Again, the long term risk is
34:49
Speaker 1: the platforms are the ones that gained the influence over
34:52
Speaker 1: over anything else.
34:53
Speaker 2: So it is what you you mentioned something just a
34:55
Speaker 2: little earlier about you know, the big brokerages coming together,
34:58
Speaker 2: is that you feel like the solution is to get
35:02
Speaker 2: the brokerages that have seven hundred thousand licenses to all
35:08
Speaker 2: come together and build something on their own, because I
35:10
Speaker 2: see the pros and cons there that I mean, it's
35:12
Speaker 2: kind of like a common enemy in Zilo. For them
35:15
Speaker 2: to all have to come together, they have they have
35:17
Speaker 2: to admit that they're sacrificing some sort of competitive advantage
35:20
Speaker 2: that one could potentially have over the other if they're
35:23
Speaker 2: all coming together to create a value piece that they're
35:26
Speaker 2: all sharing. Does that is it? Is it more advantageous
35:31
Speaker 2: for the biggest guns in the room to go make
35:34
Speaker 2: better partnerships with third parties that they feel that the
35:36
Speaker 2: people the brokerages of a smaller size can't compete with.
35:41
Speaker 2: It's a great question. It's it's look I look at
35:44
Speaker 2: it this way.
35:45
Speaker 1: I look at it from a because we're as a brokerage,
35:50
Speaker 1: you're competing against the other brokerages. You would rather go
35:54
Speaker 1: do the deals with the third parties, and you're building
35:58
Speaker 1: the third party brand at a much higher level where
36:00
Speaker 1: the third party has no loyalty to that brokerage.
36:04
Speaker 2: I think we just uncovered any.
36:05
Speaker 1: And that third party could easily just flip the script
36:09
Speaker 1: on all of it and say screw you guys.
36:11
Speaker 2: Yep, we're now doing this. This is like way more
36:15
Speaker 2: of an existential moment than I thought we were going
36:17
Speaker 2: to have on this show today. I think we did that.
36:19
Speaker 2: The fundamental question to uncover is at at a large
36:23
Speaker 2: enough scale, our brokerage is better off acting as collaborators
36:27
Speaker 2: or competitors because if they act as competitors, then they
36:32
Speaker 2: have a vested interest in trying to outdo one another,
36:36
Speaker 2: even potentially at the expense of themselves over time. Meaning
36:41
Speaker 2: if I'm big enough and I can go form a
36:43
Speaker 2: partnership with a third party company that no other competitor can,
36:48
Speaker 2: while I'm also empowering that third party company, let me
36:51
Speaker 2: ask hold on, let me ask you this.
36:53
Speaker 1: Are we saying that the only value add that a
36:57
Speaker 1: brokerage has is through the exposure through these third party
37:00
Speaker 1: sites are creating their own Because if that's the only
37:03
Speaker 1: value they're saying they have, then then all brokerages are
37:07
Speaker 1: there's no value in the brokerage. So does this actually
37:10
Speaker 1: make the brokerage better if they come and collaborate together
37:12
Speaker 1: on something like this to gain exposure where there's no
37:16
Speaker 1: actual different competitive advantage on that, But they can then
37:18
Speaker 1: go build a better competitive advantage on better training on
37:21
Speaker 1: their agents better X y Z, And then now they're saying, hey,
37:25
Speaker 1: come join me, because we're going to be able to
37:27
Speaker 1: get you this, this, this, and this, We're going to
37:29
Speaker 1: be helped like whatever that may be.
37:31
Speaker 2: Yeah, So I think you just you just kind of
37:33
Speaker 2: outline my question pretty well, right, is is put the
37:37
Speaker 2: Coming Soon Listings aside? I'm just talking on a very
37:40
Speaker 2: general sense. Our brokerage is better off acting as collaborators
37:45
Speaker 2: and instead of competitors in some regards to protect their
37:48
Speaker 2: ecosystem so that their ecosystems continues to thrive and they
37:53
Speaker 2: can create their own distinct value propositions. Right, So what
37:56
Speaker 2: I mean of that is, whether it's Coming Soon Listings
37:58
Speaker 2: or or any other pe value if the largest, most
38:02
Speaker 2: influential and deepest pocketed brokerages go and essentially start to
38:07
Speaker 2: outsource their value proposition to a third party, then eventually
38:12
Speaker 2: you give so much power to that third party that
38:15
Speaker 2: they could essentially influence the entire ecosphere and maybe start
38:18
Speaker 2: to cut agents out and things like that. So it's
38:20
Speaker 2: almost like a take you know, I guess Europe's a
38:23
Speaker 2: great example, right, Take Europe right. Are European countries better
38:27
Speaker 2: off collaborating with each other economically or trying to outsource
38:30
Speaker 2: and compete with one another? Most of the time, collaborate.
38:34
Speaker 2: It creates a better ecosystem, right for most of Europe. Right,
38:39
Speaker 2: Otherwise it may cease to exist eventually, you see what
38:43
Speaker 2: I'm saying. And so our brokerage is better collaborating on
38:47
Speaker 2: some things to insulate themselves from essentially, I don't call
38:53
Speaker 2: hostile takeovers, but outside influence that eventually could threaten their
38:57
Speaker 2: They're essentially their way of life, which is their licenses
38:59
Speaker 2: and their agent's ability to be at the end of
39:01
Speaker 2: the transaction so that they can actually go and compete
39:06
Speaker 2: on a more level playing field and and create their
39:08
Speaker 2: own distinct advantages within that ecosystem instead of outsourcing their
39:12
Speaker 2: value propositions. I think that's a really powerful existential question
39:18
Speaker 2: because in some level, I think it Behooves, I think
39:21
Speaker 2: it Behooves broke just to collaborate, not just compete all
39:23
Speaker 2: the time. Yeah, but again, has the train left the station?
39:29
Speaker 2: We keep asking this question around when is when when
39:31
Speaker 2: as Zillow and Redfinn and all these all these companies
39:34
Speaker 2: going to start to cut the agent out, and so
39:36
Speaker 2: far it hasn't happened. The agent is still at the
39:38
Speaker 2: center of the transaction. And I think these things always
39:43
Speaker 2: become more obvious in hindsight. The inflection point of where
39:47
Speaker 2: we strayed from the path is usually crystal clear, like
39:51
Speaker 2: ten years later. I don't know if this is it,
39:54
Speaker 2: but I think we're we're We're definitely having the right
39:56
Speaker 2: conversation around what does our e ghostphere look like if
40:02
Speaker 2: we continue to bring in third party players that aren't
40:06
Speaker 2: based that that don't derive their revenue from keeping the
40:09
Speaker 2: agent at the center of the transaction, what does that
40:12
Speaker 2: do for the industry long term? I think it's like
40:14
Speaker 2: a really simple first principles question we should be asking
40:18
Speaker 2: is how do we always keep the agent at the
40:20
Speaker 2: center of the transaction, even if it means we have
40:23
Speaker 2: to cooperate with one another.
40:26
Speaker 1: Let's look at this, assuming that there's no collaboration, how
40:31
Speaker 1: does this have an impact. Let's take an independent brokerage. Okay, right,
40:34
Speaker 1: there was an agent. Actually it was with DPR for
40:37
Speaker 1: a long time. I just saw a post that he's
40:39
Speaker 1: going out on his own and starting his own brokerage.
40:43
Speaker 1: And I always wonder about the starting the own broke
40:45
Speaker 1: their own brokerage. Like, especially in today's world, it's hard
40:48
Speaker 1: depending on what what your your the visual is and
40:50
Speaker 1: what you believe that brokerage can be. It is hard
40:54
Speaker 1: to compete with these these these big brand and big
40:57
Speaker 1: box brokerages. And so how does that how to making
41:02
Speaker 1: these partnerships because I'm assuming these independents aren't able to.
41:06
Speaker 2: Make these types of deals. Yeah, I mean, I don't
41:09
Speaker 2: know what it takes to make these types of deals,
41:11
Speaker 2: but but a lot of these independence it until you
41:16
Speaker 2: get a lot of traction. In the brokerage world, it
41:18
Speaker 2: can be pretty lean to run these things. Right, So
41:20
Speaker 2: even if they are able to make these partnerships now,
41:23
Speaker 2: it would probably be pretty easy if if the big
41:25
Speaker 2: box brokerages wanted to overpower them, they can at any
41:28
Speaker 2: point to say we'll pay you more to exclude small indies.
41:31
Speaker 2: You know, so you're vulnerable there.
41:33
Speaker 1: Yeah, because and this start does this start eating into
41:37
Speaker 1: their recruiting. You know, they don't have a recruiting advantage
41:40
Speaker 1: in right, they maybe have a retention problem. After this
41:43
Speaker 1: It's like you know, every agent, especially when times are tough,
41:46
Speaker 1: they start looking around and saying, oh is the is
41:48
Speaker 1: the grass greener at this brokerage?
41:50
Speaker 2: What what secret sauce does this?
41:52
Speaker 1: I mean, I'd be like the team leader is making
41:54
Speaker 1: the sound amazing over here, that I could easily build
41:56
Speaker 1: a million dollar business and not have to do really
41:58
Speaker 1: any real work. And then you get over there and
42:00
Speaker 1: you realize it's all the same stuff work. Yes, it's
42:03
Speaker 1: still work, but we always start to look at, you know,
42:07
Speaker 1: who's got a better lead generation system, who's got a
42:09
Speaker 1: who's got that secret you know, honey hole, and they're
42:13
Speaker 1: able just to you know, you know.
42:15
Speaker 2: I think it's going to be really interesting to see
42:18
Speaker 2: what the next ten or fifteen years looks like in
42:20
Speaker 2: this industry, because when we think about indie brokerages, I
42:27
Speaker 2: think in the current state of affairs, it's very difficult
42:33
Speaker 2: for indie brokers to compete with some of the firepower
42:35
Speaker 2: that that the big box brokerages have. The deals they're doing,
42:40
Speaker 2: the partnerships they're making, the tech they're building, all of
42:42
Speaker 2: that kind of stuff. And so I do see in
42:44
Speaker 2: the short term that indie brokers are going to really
42:47
Speaker 2: have to consider their value proposition. Who they are, you know,
42:52
Speaker 2: what they're what they're what they're you know what they're
42:55
Speaker 2: what their unique selling proposition is and whether that's cold
43:00
Speaker 2: sure community, Like, there's agents out there that have different, different,
43:03
Speaker 2: different philosophies around how to build their business. And I
43:05
Speaker 2: don't think that the indie world is going away, But
43:07
Speaker 2: what I think is going to be interesting is I
43:09
Speaker 2: think it might be harder for indie brokers to compete now.
43:12
Speaker 2: But just like high finance and Wall Street, when high
43:19
Speaker 2: frequency trading became the norm, technology becoming so fast moving
43:27
Speaker 2: and easier and easier to build and cheaper and cheaper
43:30
Speaker 2: to create new things, exciting things, industry changing things. I
43:36
Speaker 2: wonder if you're going to start seeing maybe five years
43:38
Speaker 2: from now that's just a random kind of number, Like,
43:42
Speaker 2: do you actually see indie brokerages that have created tech
43:46
Speaker 2: that other big box brokerages are a little bit too
43:50
Speaker 2: slow moving to build now or to adopt because they've
43:53
Speaker 2: got to tear down so much of their infrastructure, almost
43:56
Speaker 2: like we call them garage band Hedge funds are able
43:59
Speaker 2: to take massive market share even though they don't have
44:02
Speaker 2: like six people that work there because they've got really
44:04
Speaker 2: smart people building really smart things, and all of a
44:07
Speaker 2: sudden they've got a unique selling proposes and that didn't
44:09
Speaker 2: exist at all anymore. So does the future for any
44:12
Speaker 2: brokerages actually look really promising in a whole different way.
44:16
Speaker 2: But we have to stop looking at any brokerages like
44:18
Speaker 2: their mom and pop shops like you know what I mean,
44:20
Speaker 2: They might look totally different in the future. Yeah, if they,
44:24
Speaker 2: you know, and the ones that are utilizing the AI
44:26
Speaker 2: technology in the air, yeah, they might be building like
44:28
Speaker 2: totally amazing indie platforms that nobody else has even thought of.
44:33
Speaker 2: That just like take you know, take the market by storm.
44:37
Speaker 2: It was you know, exp didn't grow really quickly right
44:41
Speaker 2: in the beginning, but they did have a relatively revolutionary
44:44
Speaker 2: idea with the revenue share platform, and that's where they
44:46
Speaker 2: gained a lot of traction. Imagine that same type of
44:48
Speaker 2: thing with technology. You know, you could build a brokerage
44:52
Speaker 2: that looks totally different than anything anybody's ever seen before
44:55
Speaker 2: and you don't need to have a billion dollars in
44:58
Speaker 2: the bank to do it. That might be that might
45:00
Speaker 2: shake things up in a way we can't even really predict.
45:02
Speaker 2: Right now, Let's do it. Let's do it. We don't
45:04
Speaker 2: know what the idea is yet, but Claude knows yeah.
45:06
Speaker 1: Just whatever claud has Claudsed the CEO. We got to
45:10
Speaker 1: see about revolutionizing property management, which I know Homeward is
45:14
Speaker 1: already doing that. They're doing that with launching some AI
45:18
Speaker 1: agents and their business. I know that Duncan and Dana
45:21
Speaker 1: or kicking butt, and I would highly recommend sending referrals
45:25
Speaker 1: over that, right because what I've seen with agents, especially
45:29
Speaker 1: when they're putting leases, when they're putting their client's houses
45:32
Speaker 1: up for lease, is they actually don't know what they're
45:33
Speaker 1: doing and just take photos of it, put it on there,
45:36
Speaker 1: and then they wonder how to screen tenants, how to
45:39
Speaker 1: you know, how are they doing it correctly? Get it
45:40
Speaker 1: over to home to Homeward, Homeward DFW dot com, Duncan
45:43
Speaker 1: and Dana.
45:44
Speaker 2: What they'll do is they'll pay you a referral fee.
45:45
Speaker 1: And I'd highly recommend having that landlord have it professionally managed,
45:50
Speaker 1: because they're not professionally managed.
45:51
Speaker 2: People, right, So they're not good at that, right.
45:54
Speaker 1: So if someone's not paying they take really really offense
45:57
Speaker 1: to it, They get emotional about it and they don't
45:59
Speaker 1: know what to do. And so Homeward at DFW does
46:02
Speaker 1: homework DFW dot com and then Like we said in
46:05
Speaker 1: the beginning of the show, your clients need to have
46:07
Speaker 1: their house remodel. Maybe they got some deferred maintenance, maybe
46:10
Speaker 1: they they want to do some updates. Gover to pro
46:13
Speaker 1: Care Home Solutions procredfw dot com. They've got some great
46:16
Speaker 1: financing that Chris will set them up with if they
46:20
Speaker 1: need that financing option, and your sellers could do one
46:22
Speaker 1: hundred percent where they can.
46:23
Speaker 2: Pay it off at closing. Oh man, what a deal?
46:26
Speaker 2: Love it? What about to our studios? You're gonna EO
46:29
Speaker 2: R E Studios dot com. I realize I haven't spelled
46:32
Speaker 2: it in a while. T O R E Studios. Jesse'll
46:34
Speaker 2: hook you over there and make you look amazing on camera,
46:37
Speaker 2: whether it's doing your own podcast, editing your YouTube videos.
46:40
Speaker 2: Jesse's got the entire suite of services over at tour
46:43
Speaker 2: studios dot com. Make sure you go check out the
46:46
Speaker 2: YouTube channel for this show and give us some feedback.
46:49
Speaker 2: We love hearing what you guys' thoughts are on this.
46:51
Speaker 2: This is literally just our minds from the experience that
46:55
Speaker 2: we have of sharing our opinions and thoughts in the industry,
46:57
Speaker 2: so we always love to have conversations. Well, you read
46:59
Speaker 2: the comment because you don't. I try not to.
47:02
Speaker 1: Somebody commented on there about how it was mine. It
47:05
Speaker 1: was one of my YouTube shorts about how I'd go
47:07
Speaker 1: back in time and talk to my friends and family
47:10
Speaker 1: and ask for referrals. He's like, oh, so you'd go
47:11
Speaker 1: back in time just spam them. I'm like, if providing
47:15
Speaker 1: value and asking my friends and family for support of
47:19
Speaker 1: my businesses spamming, then yes, yes I would.
47:21
Speaker 2: My fragile heart is too nervous to read the comments s.
47:24
Speaker 2: I can't do it. I just and this is a
47:27
Speaker 2: side note, I don't know what compels people to write
47:29
Speaker 2: mean stuff on the Internet. I don't know. I just
47:32
Speaker 2: don't have the constitution to do it. I think a
47:34
Speaker 2: lot of mean stuff, probably when I scroll and wat's reels,
47:37
Speaker 2: but I just don't have the constitution to pick up
47:40
Speaker 2: my thumbs and actually type it. People are wild.
47:42
Speaker 1: The only main thoughts I have is in our dofw
47:44
Speaker 1: real Relators group, go check it out.
47:47
Speaker 2: All the spam. Stop spaming, guys. The self promotion spam
47:50
Speaker 2: crap needs to stop. We're going to need to lower
47:52
Speaker 2: the threshold of warnings that you get from five to zero.
47:56
Speaker 2: Jesse's a moderator in there now and he just loves
47:58
Speaker 2: to ban people. We're going to give Jesse uninhibited decision
48:02
Speaker 2: making power on who stays and who goes, and he's
48:05
Speaker 2: gonna rule it with an iron fist. That's right, all right.
48:08
Speaker 1: We've got our our monthly realtor meet up to go
48:11
Speaker 1: to make sure to go to the next one.
48:13
Speaker 2: It's the last Thursday of every month at a Mexican
48:15
Speaker 2: bar company.
48:16
Speaker 1: We are looking for ambassadors to start hosting these meetings
48:20
Speaker 1: and other locations because everyone that isn't near the Plano area,
48:24
Speaker 1: maybe Great Vine, maybe Terran County. We would love to
48:26
Speaker 1: have people who are here to help support This is.
48:29
Speaker 2: A call to action. Everyone's like, well, if you did
48:31
Speaker 2: them is closer to me, I'd come step up and
48:34
Speaker 2: partner with us to host it and you organize it
48:37
Speaker 2: and we'll get to people there.
48:38
Speaker 1: Absolutely all right, give us a review. We'll see you
48:40
Speaker 1: next time, and a happy opening day to you and yours.
48:47
Speaker 2: Churn it up this week your Real Estate.
48:56
Speaker 1: Now Weekly podcast TUPA agents who actually get paid.
49:00
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