Lead Generation Transparency - It's Not Transparent, It Is Just Full of Holes
Sorry AgentMatch, beta disclose.
Reading through Jessica Swesey's article in Inman News, AgentMatch Aims to Add Transparency to Lead Generation, the word "agent" keeps appearing. This is interesting because the Broker owns and is accountable for their buy and sell contract information.
TRANSACTIONAL DATA: (excerpt from article)
..."to put transactional data in front of consumers, which the creators hope will enable agents to better explain their value and commission rates. Some of the data consumers will be able to see includes number homes sold, average list-to-sale prices, average days on market for a particular agent's listing, percentage of transactions that were listings versus buyer representations, and bios and profiles of agents.
As we all know stats can be tweaked and have been tweaked. (The old "Cooking The Books")
Story:
A few years back, a real estate corporation I previously worked for had a huge gala for its Top Agents. Lots of big write ups (local and statewide), loads of promos for agents that did extremely well.
... Just before the party, another associate manager confided to me that he had manipulated an "older agent's stats" who came up short in production. She attended the party, got loads of FREE recognition and gifts. He said the reason why he did this was because he didn't want her going to another company.
Sadly, the real "top drawer" agent got sided. He was someone who had worked only two years and did exceptionally well. I heard rumblings, but I don't think he ever knew for sure. He did join another company.
That said, I know life is not fair.
QUESTIONS REGARDING "DISCLOSURE" on transparent transaction data:
- Commission? Disclosed?
- Agent or Broker Concessions? Disclosed?
(If you are buying referrals, you are already making a concession in your commission.)
- Transactional history is supplied by who?
- Verified by who?
- Is the information supplied by a Multiple Listing Service?
Have you seen an MLS's disclaimer?
"Listing Information comes from various sources and may not always be accurate. No representation or warranty is made as to the accuracy of this information. You should verify any information that is important to your buying decision". ---Consolidated Multiple Listing Service Connecticut
AN INTERESTING THING TO CONSIDER:
Brokers have changed the name of agents on the MLS, giving the production to someone else. My company was involved in an incident like that. It is great for the agent to receive the free production perception, but it doesn't make for a truthful transaction history.
- What about information on For Sale By Owners? Agents do find Buyers for those.
THERE IS NO SUCH THING AS "FREE" (there is always an agenda)
..."membership is free, but exclusive and by invitation only. Membership is limited to agents who are
nominated by an existing member.
- How many agents are really going to nominate "good competition"?
The article does admit that there will be fewer agents to compete with. (Ya think!)
Exclusive (A Country Club Community?)
I love the word "exclusive". Everyone wants something they can't have.
Putting your name in the hat at AgentMatch adds choices. Now consumers have something that they can compare, which I am sure is going to benefit top agents, UNLESS YOU ADD ENTICEMENTS. (Which a top agent can do more readily because they get a bigger split...of course that is confidential.)
Another thought:
If a top agent had a team, is it possible to put in every team agent's name? Talk about dropping fishing lines in a pond!
AgentMatch's Advice Page does link back to Activerain and Trulia.
It is my opinion:
Real estate agents (of like-minds) form their own exclusive groups (social networks) to get leads. Agents can form these groups for FREE (there is that four letter f-word again), or you can create your own dot com. It is not that hard.
I do not recommend buying leads unless payment is reasonable and only due at closing.
"In closing", there are several resources out there to grow business without growing your local competitor. ---Author of this blog is agent/consumer-centric, and as usual is writing too much.
My sincerest respect to Ms. Swesey. There was no use linking back to your story that I faithfully printed. You need an Inman subscription to read previously posted articles...unless, of course, they have been cut and pasted somewhere on the web.
My regards to AgentMatch's initiative. The 20% referral fee at closing is less than what a relo and real estate company would charge for a referral (which has approximately 30 or 40% at closing). But for the sake of agent choices, the fee is more than hungryagents.com which is $750, flat fee.
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