Trulia, Zillow shown the door at Prudential Real Estate convention

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Services for Real Estate Pros with Zillow

As a Zillow employee, I am not going to comment on this.  But it would be interesting to hear other's reactions. 

http://www.inman.com/hstory.aspx?ID=62591

Trulia, Zillow shown the door at Prudential Real Estate convention

Internet leaders turned away after showing up to exhibit in San Diego

Thursday, March 22, 2007

By Matt Carter
Inman News

To the dismay of some of the company's brokers, Prudential Real Estate apparently barred two of the biggest names in online real estate -- Trulia and Zillow -- from exhibiting at the company's annual convention in San Diego this week.

Both companies had booked booths at the show and flew executives to Southern California to rub elbows with Prudential brokers, only to be told at the last minute they were not welcome.

Trulia co-founder Sami Inkinen said that 20 minutes before the company's exhibit booth was scheduled to open, Russell Capper -- president of Prudential's e-commerce subsidiary, Prudential Real Estate Services Co. -- told the company to "pack up and leave immediately."

Writing on his company's blog, Inkinen said Trulia was told the company's business model is in direct competition with a partnership between Prudential Real Estate Affiliates and Yahoo! Inc.

Yahoo! and Prudential in 2004 reached an exclusive agreement through which Prudential brokers supply property listings for display at the Yahoo! Real Estate site.

Prudential brokers familiar with the agreement said they pay a referral fee when leads generated through the agreement with Yahoo! lead to a sale. Trulia and Zillow invite brokers to feed listings to their sites and do not charge referral fees.

Capper, the founder of eRealty Inc., a real estate technology company that Prudential acquired for its technology in 2004, did not respond to requests for comment from Inman News. Sheila Bridgeforth, vice president of global communications for Prudential Financial Inc., did not return a phone call, but provided a one-sentence statement via e-mail.

"Prudential Real Estate is committed to the needs of its affiliates and to providing them with the highest level of service and support," the statement said.

Prudential brokers who spoke to Inman News, however, said the company seemed to be acting in its own best interests, not those of its franchisees.

Ed Krafchow, president of Prudential California/Nevada/Texas Realty, said Trulia and Zillow are "good business partners, and I'm not going to stop using them."

Krafchow's company sends listings to Trulia under a partnership made in 2006. Trulia also indexes listings supplied by a number of prominent Prudential brokers from around the country, including Prudential Florida WCI Realty, Devon, Penn.-based Prudential Fox & Roach, Prudential New Jersey Properties, Prudential Preferred Properties in Chicago, Prudential Arizona Properties, and Prudential Gary Greene Realtors of Houston. Each of those companies has provided testimonials lauding their partnerships on Trulia's Web site.

Krafchow said he took Zillow executive Ben Clark out to dinner in San Diego because "I'm always uncomfortable when someone is invited to a party, and then they are turned away."

Krafchow said he'd also recently met with Michael Yang and his team at Yahoo! Real Estate.

"My job as the owner of a company is to develop as many resources for my agents as I can get," he said. "That's my job, and I don't want a franchiser interfering with that job."

Krafchow questioned the wisdom of the decision to bar Trulia and Zillow from the convention "because these are things that should be tools for brokers; they help develop knowledge in the broker community" on how to make the best use of the Internet.

Rory Siems, a Prudential California Realtor in Orange County, said he sees Yahoo! as a better resource for sellers, while Trulia offers more tools to buyers.

"The worst thing would be for Prudential to say we don't want brokers to have a relationship with Trulia," Siems said. "I like having both."

Siems said Prudential Real Estate may view Yahoo as an affiliate. "Prudential guards their affiliates because it's the only way they can make money," he said. "There's nothing wrong with it ... but I think choice just makes the whole thing better."

In his blog post, Trulia's Inkinen said that despite being barred from exhibiting at the convention, the company was still able to meet with dozens of Prudential brokers in San Diego.

There were "no hard feelings" over being shown the door at the conference, Inkinen said. "Russ wasn't aware we were coming. Business is business."

Kelly Roark, Trulia's vice president of industry development, confirmed that Inkinen authored the account of events in San Diego on the company's blog, but would not comment further.

Roark said Trulia refers 2 million visitors to external listing sites each month, and does not charge referral fees or redirect listing traffic to anyone other than listing brokers or agents. A basic service that directs traffic to listing agents and brokers is free, although optional paid advertising is available.

Zillow spokeswoman Amy Bohutinsky portrayed the company's absence at the Prudential convention as the result of a mutual decision made after consultation with the event's organizers.

"We did have plans to exhibit at the Prudential show," Bohutinsky said in an e-mail. "However, after a conversation with conference management, we both decided the time was not right for us to participate. Perhaps next year."

Bohutinsky said Zillow draws 4 million visitors a month, and that agents can place an unlimited number of listings on the site for free. They also have the option of purchasing advertising.

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Rainmaker
42,137
Darren Kittleson
Keller Williams Realty - Madison, WI
CRB, SRS, RENE-Madison WI

Thanks for posting this!

Makes me wonder who Prudential is in business for.  Seems it must be simply for the profits they can generate for shareholders vs. the 1000's of agents who choose to work for them. 

Don't get me wrong, I'm all for owners of brokerages making money but there has to be a balance between profitability and allowing your agents to grow their own businesses.

Mar 23, 2007 12:44 AM #1
Rainer
13,459
Sam Dodd
Re/Max Velocity Cedar City - Cedar City, UT

They did this because they know that Trulia and Zillow are really just scams aimed at being the middle man in Real Estate Transactions.  

Apr 11, 2007 01:36 AM #2
Rainmaker
182,040
Sara Bonert
Zillow - Atlanta, GA
Real Estate Internet Marketing

Actually Zillow and Trulia were initially invited to exhibit their convention.  I don't think the invitation would have been extended if Prudential thought the two companies were "scams". 

Zillow has always been 100% behind the fact that we are a media supported website.  Meaning that we will make our money by selling advertising on the site, not by getting involved in the transaction or selling leads.  I think the introduction of EZAds this week proves this point even further.  http://activerain.com/blogsview/69504/Zillow-Launches-New-Functionality

 

Apr 11, 2007 01:47 AM #3
Rainer
4,982
Kenneth Fach
Amerisave Mortgage Co - Tallahassee, FL

I am for whatever makes the consumer's experiences better, more comfortable and user friendly. I encourage buyers to use Trulia, and Zillow in their research of the market because I myself as a real estate professional use these tools regularly. I use Trulia before I even use the MLS, mostly because, it is much more user friendly, intuitvie, and has that mapping feature that multiple listing services do not have. If I find it a great service, think what buyers or sellers think about it. As far as accuracy is concerned, I have compared the data with over 100 homes in my market, and found absolutely no errors. Doesn't that say something. Why are so many agents threatened by competition? Are we so unsure of ourselves that we have to speak unfairly of Trulia, Zillow and others trying to bring real estate out of the trees, into the hands of the consumers. We are in the era of knowledge, are we not. Everthing it seems is about getting more knowledge. We are also consumers, not just agents.

Aug 06, 2007 05:29 AM #4
Rainer
6,950
waey wyqw
wyq34y - Dell, MT
This is "Old School" and dinosaur thinking that will soon be extinct.
Sep 16, 2007 01:12 AM #5
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Rainmaker
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Sara Bonert

Real Estate Internet Marketing
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