Understanding Change

Understanding Change

                 Those of us involved in the Real estate industry are going through a time of change. There is a lot of misunderstanding and resistance to that change and reasonably so. We feel threatened and our livelihoods are at stake. I am going to attempt to explain from my perspective what is taking place .
                All industry goes through 5 phases which include
(1) Invention- Some one comes up with the idea for a service or product.
(2) Proliferation- The idea takes off. Money is being made and everyone gets in on the action.
(3) Regulation (Rules to govern the industry by government.)
(4) Consolidation (Monopolies are created and competition is eliminated)
Note: At one time there were 100 car manufactures in the US There are only a few left.
(5) Innovation (Means to renew or change) somebody comes up with a way to survive and compete that is different and innovative.
              I believe if you analyse just about any industry or consumer product or service you will find it in one of these 5 phases. Cable is eroding the TV networks and GPS is replacing maps are a couple of examples. Even the internet is changing. In 2003 the top 10% of websites had 31% of the traffic. In 2008 they had 42% of the traffic. In 2010 up to 72% and are predicted to have 82 to 85% by 2012. Imagine how that will impact or is impacting internet marketing.
            Where do you think the real estate industry is positioned right now in relation to these 5 phases? Who do you think the innovators are or are going to be? One company in Canada is obviously Property Guys. Love them or hate them they have managed to trade in real estate out side of regulation. They avoid all those costs associated with being a REALTOR ® and with less overhead can offer consumers a better deal. I agree it is only a perceived better deal but if the consumer perceives it to be better in business it is better and the company with the best perceived solution to the consumer’s problem makes the money. Our industry has done everything in its power to stymie this innovation. These efforts have backfired to the point regulation has increased for us and been reduced for the innovators.
          Two things to consider “Change well scary can be good.” and “Wealth never disappears it is just transferred.” In the future the innovators in our industry will be receiving that transferred wealth. The big question is who will be able to make the transition ?

Larry Matthews