Notorious R.O.B.

Rawr!

On Marketing, Technology, and Real Estate

It Ain’t the Technology

The second post ever on Notorious R.O.B. was entitled, “More Silliness from Real Estate Connect” and contained this passage:

The Real Estate industry has gone tech-crazy.

Here’s a wakeup call: all that technology does is make your existing processes more efficient. If what you do is crap, it makes crap more efficient. If what you do is valuable, then it makes that more efficient. Microsoft Word is an amazing piece of technology, but it can’t write the next Great American Novel for you. You have to actually write the damn thing yourself, and if you suck as a writer, then Word isn’t going to solve that problem for you.

If only sloganeering created reality...

If only sloganeering created reality...

By the way, I would like to note that I have broken through some sort of dork continuum by quoting myself from a year ago.  The only thing I could think of that might be dorkier is singing She Bangs on American Idol.  (Click on that link at your own peril; I will take no responsibility for brain meltdown and queasy feelings.)

A couple of recent experiences reminded me that plus ca change, plus c’est la meme chose.

Evidence: Oh, Canada!

First, we get this announcement from Coldwell Banker Canada:

Coldwell Banker Canada Operations ULC today announced the launch of the brand’s customized real estate application developed for Microsoft Surface™.  The dynamic new real estate interface was unveiled during a live interactive demo at the Coldwell Banker® Canadian Broker Meeting and Awards Gala being held today in Toronto. The new Microsoft Surface home search application allows users to interact with thousands of home listings, real estate maps and other www.coldwellbanker.com features in a way that is familiar, by using simple hand gestures. Similar to the intuitive technology featured in the futuristic film, “Minority Report”, this exploration on the use of Microsoft Surface represents yet another way in which Coldwell Banker is working to harness innovative technologies to benefit home buyers and sellers.

Um.  Okay guys.

So the Canadian real estate market was down17.1% i n2008, and the Canadian Real Estate Association is predicting a 16.9% drop in 2009, but one of the largest brokerage companies in Canada is excited about Microsoft Surface?

Is this really the thing that’s going to turn things around for CB Canada?

YouTube Preview Image

Maybe.  But I submit that the real estate industry has gone tech-crazy if folks really believe that Surface is where dollars need to be invested.

By the way, compare what CB Canada put together with this from Perceptive Pixel, the company founded by Jeff Han who pioneered multi-touch interfaces:

YouTube Preview Image

If you’re going to do multi-touch, then by golly do it right.  Putting a website that we’re all familiar with on Surface and calling that a “dynamic new real estate interface” doesn’t pass the laugh test.

Evidence: Ubiquity of Social Media

I don’t hate social media.  Nor do I think it’s useless.  If anything, I believe the opposite: it’s damn useful, and quite likely groundbreaking in lots of ways.  But I do think the industry is focusing on absolutely the wrong thing as it comes to social media.

People are focusing on the technology of social media, rather than on the meaning of social media.

Past two weeks, I’ve been on the road, first at RE Tech South and then at the Leading Real Estate Companies of the World Conference.  I’ve sat through hours of seminars and panel discussions and lectures on how real estate professionals and companies can survive, thrive and even improve in the current market conditions.  And it seemed that every other word being uttered was “Twitter” or “FaceBook” or “Blog”.

The emphasis on technology leads to realtors using the technology in all sorts of unsuitable ways: spamming their friends, endless twitterstreams of listing after listing, advertising after advertising, and blogs that are nothing more than digitized billboards.

All that technology does is make your existing processes more efficient.

When your existing mode of engagement is “NOW IS A GREAT TIME TO BUY OR SELL!” (And by the way, how does that work, exactly?) then the technology is just going to make you be more efficiently annoying.

To be sure, there are people like Jeff Turner who are trying to preach the meaning of social media, rather than the technology.  We need more of him, and less obsession about how to create a dozen groups on TweetDeck to keep track of all of your social networks.

It Ain’t the Technology

If I believe in nothing else, I believe that marketing post-Cluetrain is authentic, open communication between human beings.  Technology assists in the transformation, makes some of the interaction possible even, but it is not the interaction.

I firmly believe that a realtor who doesn’t know how to use a computer, but send personal, authentic, and no-bullshit handwritten notes will beat the pants off of the realtor who has thousands of Facebook Friends and barrages them with digital versions of “Just Sold” postcards.  I really do.

Because it ain’t the technology; it’s the person behind the technology.

I'm still Jenny from the block, yo.

I'm still Jenny from the block.

What realtors need isn’t a newfangled technology to be a thousand times more annoying than they are today, but a transformation into the kind of trusted advisor that so many claim and so few achieve.  Companies need to be investing in technology (and processes!) that help realtors become true experts in their local market, the real estate transaction, the financial elements, and client service, rather than in gadgets that win cool points then fade away.

Show people that you care about them as people; that you will work hard for them; that you are a professional with pride in your training, knowledge, and expertise; that you won’t lie to them or bullshit them; that you will advise them to the best of your abilities for their benefit and not your own; that you are neither a huckster nor a servant; that you too are human… and people won’t care if you message them through Facebook or through smoke signals.

They will trust you.

-rsh

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Tribus Cometh: Gehenna or Anarch Revolt?

I have come to hunt the antitribu!

I have come to hunt the antitribu!

At the recent RE Tech South conference, I had the opportunity to meet Eric Stegemann — a self-described 25-year old going on 40 — who is the founder and CEO of a company called Tribus as well as the “Head Honcho” of River City Real Estate, a brokerage in St. Louis.

Eric is really one of the brightest guys in the next generation — the Millenials — with a singleminded focus on real estate, technology, and improving the former with the latter.  That he makes terrible drinks (some sort of Cherry-Nyquil tasting concoction with a bitter aftertaste) really can’t be held against him.  He’s 25-going-on-40; he’ll learn by 30 to savor the mysteries of fine cognac and single malt scotch.

In any event, Eric and I got into conversation and it turned out to be tres interessant.  It appears that Tribus is the “un-Franchise” that aims to eradicate the big real estate brands from the industry.  The idea essentially is to offer brokers and agents everything they need to operate a real estate brokerage, except for the brand itself and any rules associated with the brand.  So, for example, Tribus will give its “affiliates” a CRM system, a listings distribution system, a website, social media tools, accounting package, and so on.  But there won’t be a brand like “Century 21″ or “Keller Williams”, and no brand identity guidelines.  Nor will there be service standards at the Tribus level or any such thing.

Eric believes that the value of these franchises lies in the backend systems and tools, and not in the brand.  In fact, he believes that entrepreneurial broker-owners want the freedom to run their business as they see fit, without the baggage that national brand franchises impose on them.  They, however, want the support of a national entity for technology and backend processing.  So Tribus will provide everything the broker-owners want, and nothing they don’t want, and charge anywhere from 3% – 6% of GCI for those services.

<Geek Detour>

In the World of Darkness fantasy setting, published by White Wolf, an antitribu is a vampire (or Kindred, or Cainite) who has turned against his clan.  Since Eric’s company’s name is Tribus, the notion of Anti-Tribus comes naturally to mind if one wishes to poke holes in the concept.  But then, that leads to the thought that either Tribus will bring about the end of real estate as we know it (Gehenna = end of the world) or that Tribus is just another rebellion against the existing power structures (another Anarch Revolt).

</Geek Detour>

Read the rest of this entry »

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The Difference Between 1.0 and 2.0

Whee! Web 1.0 vs. Web 2.0!

Whee! Web 1.0 vs. Web 2.0!

So I ask an innocent question recently on Twitter: “What’s the difference between Web 1.0 and Web 2.0?”

And I got a number of interesting responses.  So of course I have to blog about it, heh.

Heather Elias (@heatherflynn) wrote: @robhahn interruption marketing versus permission marketing.  Actually, I take that back. More like broadcasting versus engagement.

Stacey Harmon (@staceyharmon): @robhahn I think Realtors should have 1.0 websites, but participate in web 2.0 communities. I don’t advise agents to create web 2.0 site …although there is an element of “dynamicism” that Realtors should use on their 1.0 websites which make them more 2.0 like…

Derek Massey (@derekmassey): @robhahn 1.0 is push, 2.0 is push and pull. 1.0 is presentation, 2.0 is discussion. 1.0 is looking big, 2.0 is acting small

And of course, @matman had the best observation: If my math serves me correctly, Web 2.0 is Web 1.0 x 2!

The profound simplicity of Matman’s formulation aside, all of these quotes suggest something without going so far as defining anything.  What is an observer — and more importantly, a practitioner — to do?

[Now, to be fair, let's be clear that the above people were responding via Twitter with its 140-character limits.  So by necessity they had to be general; therefore, none of what is below should be seen as criticism.  In fact, I rather hope they'd come and participate and expand on these thoughts.]

Left... Right... Umm...

Left... Right... Umm...

Imprecision Indecision

Let’s put ourselves in the shoes of the typical real estate agent who is discovering the wild and woolly world of online real estate.  She goes to a conference, like RE Tech South or Inman Connect or perhaps a RE Barcamp.  She hears everyone talking about Web 2.0, about social media, about leveraging the most powerful form of marketing ever invented.

She’s got herself a website from one o’ dem website vendor fellas, and she figures she needs to get with the program.  She desperately desires to join the Web 2.0 world and the rest of it.

What is she to do?

Her current site is ‘broadcast’ whereas she wants to go to ‘engagement’.  Rather than presenting stuff, she wants to discuss them.

In practical terms, what does this mean for our newbie realestista?

The picture gets cloudier still when she realizes that the sites usually brought up as exemplars of the Web 2.0 movement are sites like Flickr, YouTube, and Wikipedia.  YouTube is literally broadcast for our newbie — she goes there to watch videos.  Flickr isn’t much different — she goes there to check out photos from other people.

Blogs are said to be the quintessence of “Web 2.0″, but she visits most blogs to read stuff other people have written.  Sure she can see that some folks comment and such, but hasn’t ever done it herself.  How is this different from people coming to her site to read her market reports page?

Her site allows users to search for listings, then returns results to them.  It’s all rather one-to-one in her view.  So what’s so Web 1.0 about her basic search site, and what would she have to change to make it a Web 2.0 site?  Just add a blog, or let users comment on the listing?

What does “dynamicism” mean anyhow for her?

The Disservice of Vagueness

Every time I go to a real estate conference where newcomers are introduced to the heady concepts and la revolucion sweeping their industry, I come away thinking that they all have the somewhat happy-but-dazed look of people who sat under a waterfall for a few hours.

They all go away feeling that they have to do something, and that they have heard the key to future success, but with precious few concrete action items.

The problem, I think, is the very imprecision of the terminology we throw around.  The vagueness performs a disservice to newbies.  Unfortunately, the imprecision and vagueness is built-in to the whole “Web 2.0″ meme/movement.

This seems a good place for a digression of sorts: What is Web 2.0?

In our initial brainstorming, we formulated our sense of Web 2.0 by example:

Web 1.0 Web 2.0
DoubleClick –> Google AdSense
Ofoto –> Flickr
Akamai –> BitTorrent
mp3.com –> Napster
Britannica Online –> Wikipedia
personal websites –> blogging
evite –> upcoming.org and EVDB
domain name speculation –> search engine optimization
page views –> cost per click
screen scraping –> web services
publishing –> participation
content management systems –> wikis
directories (taxonomy) –> tagging (“folksonomy”)
stickiness –> syndication

The list went on and on. But what was it that made us identify one application or approach as “Web 1.0″ and another as “Web 2.0″? (The question is particularly urgent because the Web 2.0 meme has become so widespread that companies are now pasting it on as a marketing buzzword, with no real understanding of just what it means. The question is particularly difficult because many of those buzzword-addicted startups are definitely not Web 2.0, while some of the applications we identified as Web 2.0, like Napster and BitTorrent, are not even properly web applications!)

The post by Tim O’Reilly — I suppose the father of the term “Web 2.0″ — goes on to make claims like “Web 2.0 doesn’t have a hard boundary, but rather, a gravitational core.”  And then O’Reilly supplies us with a helpful “meme map”:

Gravitational Core And Then Some!

Gravitational Core And Then Some!

If the “gravitational core” of Web 2.0 is “The Web as Platform” then every single real estate website in existence today — including the original Realtor.com circa 1996 — is Web 2.0.  If the key to Web 2.0 is “You control your own data” then not one real estate website today is Web 2.0.  Because not one real estate website controls its own data — nor does any user of any real estate website.

Look at some of the other “core competencies” like “Harnessing the collective intelligence”.  Whatever this might mean in Web 2.0, I think it’s safe to say that few real estate websites today are Web 2.0 under this scenario.  And the ones that might be able to make that claim are all portals aggregating the “wisdom of the crowds” of thousands of individuals — Trulia Voices, Zillow Advice, ActiveRain, and the like.

In other words, NOT an individual broker or agent website.

Then look at the peripheral concepts, such as “Trust your users” and “Hackability”.  In some ways, real estate web is almost defined by not trusting your users and not being hackable.

You can (and if you’re really interested, you probably should) read the whole article by Tim O’Reilly.  But for those who want to get to the meat, the conclusion brings the juice:

Core Competencies of Web 2.0 Companies

In exploring the seven principles above, we’ve highlighted some of the principal features of Web 2.0. Each of the examples we’ve explored demonstrates one or more of those key principles, but may miss others. Let’s close, therefore, by summarizing what we believe to be the core competencies of Web 2.0 companies:

  • Services, not packaged software, with cost-effective scalability
  • Control over unique, hard-to-recreate data sources that get richer as more people use them
  • Trusting users as co-developers
  • Harnessing collective intelligence
  • Leveraging the long tail through customer self-service
  • Software above the level of a single device
  • Lightweight user interfaces, development models, AND business models

The next time a company claims that it’s “Web 2.0,” test their features against the list above. The more points they score, the more they are worthy of the name. Remember, though, that excellence in one area may be more telling than some small steps in all seven.

While Tim O’Reilly is speaking of “Web 2.0 companies” rather than “Web 2.0 websites”, if we apply the same checklist to websites especially in real estate, confusion reigns.

Based on the above list, for a savvy agent to transform her website from “Web 1.0″ to “Web 2.0″, the following would have to occur:

  1. Leave the MLS and institute a proprietary listings database, with direct input from users of the website.  How else to get ‘control over unique, hard-to-recreate data sources that get richer with usage”?
  2. Listings without pricing — fully auctionize (is that even a word?) the real estate process.  Let buyers simply bid what they would pay for a particular house, rather than list a price for a home.  How else to “harness collective intelligence” or to “trust your users”?
  3. No more “contact me” forms, but a “here’s the password to the lockbox” forms.  How else to enable “customer self-service”?

I am, of course, being just a wee bit facetious.  It would be impossible — or nearly impossible — to do any of the above, nevermind all of them.

It may be that Web 2.0 simply cannot apply to real estate sites that are of interest to the newbie realestista.  They’re not interested in starting a wholly new business model premised upon consumer self-service, wisdom of crowds, and control over proprietary data.  They’re simply interested in marketing themselves and their services (and the listings they are marketing) better.

So how do we do that?

You can only come to the morning through the shadows. - J.R.R. Tolkien

You can only come to the morning through the shadows. - J.R.R. Tolkien

Dispelling the Shadows: Getting Specific

First step, I think, is to get away from vague exhortations and move towards specific action items.

Rather than “engage the consumer”, perhaps the recommendation should be “Have a blog”.

Rather than “push and pull”, perhaps the recommendation should be “Put a RSS feed on your listings”.

Whatever it is, ye legions of web designers, social media experts, and Web 2.0 evangelists need to get much more specific than you have been to date.  There needs to be concrete differences between a “Real Estate 1.0″ site and a “Real Estate 2.0″ site of the sort that can be put into an actionable format.

And those concrete differences have to be meaningful and measurable in some way.  There has to be a reason to put in a blog on a website, or to incorporate user comments onto listings.  The expert who is recommending a course of action should be prepared to deliver performance metrics.

Newbie Academy

What might be a great step forward is for conference organizers to consider creating a whole separate track for newcomers to the modern real estate web.  This “Newbie Academy” track would eschew broad statements and grand gestures and focus on action items with specific things they can do.

For example, rather than telling real estate agents that they need to make their websites more engaging, the expert instructor might step through different modes of engagement:

  • Professional Resume: Since the consumer is seeking a professional to provide services, you will want to engage the consumer with a clear statement of your professional qualifications, track record, and accomplishments.
    • Action Item: About Me section on the website, with a detailed professional resume, including education.
    • Action Item: A link to your LinkedIn profile which duplicates your detailed professional resume.  Do not assume that users will click over, but make it an option.
  • Personality: Because real estate is an intensely personal affair, consumers will want to feel comfortable with their agent.  And you will want to feel good about working with a consumer.  Showcase your personality in various ways.
    • Action Item: Make sure that the overall design of your website, from the homepage to the font selection, matches your personality.  Do not settle for a template site you haven’t even looked over much.  Work with a designer if you must to express yourself through the design of your site.
    • Action Item: Put a list of your favorite books, or books you are reading, in the sidebar of your website.  You can use websites like WeRead or Shelfari.
    • Action Item: Put your favorite movies on your site with Flixter.
    • Action Item: Put your favorite musicians and songs on your site with iLike, or create a streaming radio station with blip.fm.
    • Action Item: Create some movies of yourself talking about yourself, your family, your hobbies, or your interests with a webcam or similar and post them on the site.
  • Expertise: Consumers expect real estate agents to be experts on the whole home buying and selling process, as well as the local market.
    • Action Item: Put together a detailed market report for your market including inventory, last sold, median listed price, median sold price, price trends, and days on market.  If you can’t put it together yourself, at least get a pre-packaged tool from sites like Altos Research or Zillow.
    • Action Item: Offer consumers a detailed look into your market with both statistical data about population, median income, employment, etc.
    • Action Item: Provide consumers with information about the schools, both public and private, in your market.  [Of course, if it were me doing this Newbie Academy, I would have to mention my employer....]
    • Action item: Etc. and so on, and so forth.
  • Whatever Else: Yadda, yadda, and yadda.

And so on.  In this manner, the newbie walks away with a specific action plan to improve her website from its current sad state to a modern Real Estate 2.0 website.  She doesn’t need to get confused with all the vagueries of theory about what principles constitute Web 2.0 vs. Web 1.0, or whether social media encompasses video or not, or what-have-you.

Those topics are for the illuminati who already know the basics.  And typically, we just argue about them and debate them in an effort to boil down the misty wilds of imprecision to a more coherent set of understanding.

We Know Stuffzorz!

We Know Stuffzorz!

For the Illuminati

And those of us who are the Web illuminati… I think we have to get better at our craft.  We have to get better at understanding what the hell we are talking about, so that we  can put things into the sort of precise language and specific courses of action that a newbie can follow.  If we can’t speak of things in precise and specific ways, then we probably don’t understand it well enough to advise anyone else on it.

This is partially why I like to say that I have no answers, only questions.  Because Web 2.0, social media, and the like are so seriously ill-defined at times that I have nothing specific to recommend.  Categories seem arbitrary — e.g., what makes Flickr “Web 2.0″ and Ebay not?  Metrics seem invisible at times.  Evidence is always thin.

Under those circumstances, I suppose being circumspect, hedging bets and statements, and freely admitting ignorance are strategic advantages.  Something for the illuminati to consider…

-rsh

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The Local vs. Localism: Hyperlocal Media Wars

I’ve been meaning to check out The Local — New York Time’s foray into what they’re calling ‘hyperlocal’ media but only got around to it just now.  Imagine my surprise and pleasure to discover that my neighborhood (Millburn, Maplewood, and South Orange) is one of the two trial neighborhoods for The Local.  (The other one is Fort Greene & Clinton Hill area of Brooklyn.)

Of course, I’m not quite sure why the blog address has to be maplewood.blogs.nytimes.com rather than millburn.blogs.nytimes.com but I chalk that bias up to my L-Dub Lower Wyoming hood mentality.

The Local

In any case, it appears that The Local is written primarily by journalists or people who want to become journalists.

Tina Kelley, NYTimes reporter & Maplewood resident

Tina Kelley, NYTimes reporter & Maplewood resident

The primary poster is Tina Kelley, who is a reporter for the NYTimes and a resident of Maplewood.  There are, as of this writing, three other writers (bloggers?) for The Local including a journalism college student, a grad student in “politics and journalism” which sounds like a particularly horrible combo, and a Columbia Journalism student.  It is not immediately clear that the three student intern-types have any connection to Millburn/Maplewood/South Orange.

And the topics of The Local are a mishmash of police blotter news, cute promotions of local residents, and information about local political or community events.  But it is precisely the sort of thing that I, as a local resident, find interesting and even useful.

For example, I didn’t know that Maplewood is receiving $200,000 of federal money, but that the money can’t save the jobs of three cops who are being laid off due to budget problems.  Interesting info.  That’s actual news.  Maybe now that cops are being laid off in Maplewood, the township might consider promoting greater gun ownership among the residents?  Or maybe not.

In any case, while I find the overly-cutesy tone gratingly condescending, I can see what New York Times is trying to do with this experiment.  If these hyperlocal sites can turn a profit, then that might be the way out for the newspaper industry that is dying off, one by one.

The response from the community has been somewhat mixed.  Tina Kelley posted an initial “Why We’re Here” post and the comments have been a mix of support, brutal criticism, and a wait-and-see attitude.

A “Jay” wrote:

I don’t understand what this is supposed to be. I don’t see any solid mechanism to include content related to news items of pressing interest. Are you tied in with the Times and your wire service to dump stories related to our towns in here as blog entries?

A “MCH” commented:

If this is supposed to be a blog (a new thing), you need to stop modeling it after a newspaper (an old thing.) So, lose the datelines. The bylines. And the take-yourself-too-seriously tone. Surely the old gray lady can learn some new tricks. If not, then it’s buh-bye!

In contrast, people like “John X. Kim” are far more supportive:

I’m glad to hear that the foundation of The Local will be local news, considering every time I pick up the local rag I shake my head in disappointment.

There are tremendous opportunities for stories here in Maplewood/Millburn/South Orange…stories of local significance but also of national resonance. The unique demographics of Maplewood/SO make the towns a bellweather for larger cultural currents on politics, education, race relations, to name a few. (No doubt you and your editors know this already.)

As such, it’s my hope that the site will shy away from fluff and tackle difficult questions that often are NOT asked for the sake of keeping the neighborly peace, community boosterism, and other vagaries of small-town exigency. We can certainly heed Eric Holder’s admonishment about our collective cowardice about race and apply it to other pressing public conversations.

So welcome, and I look forward to joining!

[Now, one sidenote here.  The link address for John Kim's comment above is: http://maplewood.blogs.nytimes.com/2009/03/02/why-were-here/#comment-43.  Comment-43, got that?

On the thread, his comment is #10Where are the other 33 comments?

It seems that even in the blogosphere, the newspaper folks can't resist picking-and-choosing which "Letters to the Editor" see the light of day and which do not.  So I will be posting on my own blog, rather than trusting my "comment" to the tender mercies of the "editors" of The Local.]

Localism: Maplewood

Being that I am in the real estate industry, I couldn’t help but compare The Local to Localism, the ActiveRain project that Jonathan Washburn, CEO of ActiveRain, has said will pull more traffic in 24 months from launch that Trulia and Zillow combined.  That was July 28th, 2008.  So I figure we got sixteen months to go to see whether J-Dub was right or not.

So I went to Localism and searched for Maplewood.  And got to this:

Localism Maplewood's home page

Localism Maplewood's home page

It’s probably an unfortunate coincidence that the very first post on Maplewood’s Localism on the day I write this is an ad for a listing.  But then, that’s sort of a feature, not a bug, considering that Localism is written entirely by realtors and sold to realtors as a way to “connect with the community”.

My initial impulse is frankly to click “Back” simply because I am not in the market to buy anything in Maplewood, and being hit with a listing as the first piece of actual ‘journalistic content’ is enough to make me believe I’m at a spamsite.  But in the interest of science — science I tell you! — I soldier on.

If you do scroll down, and give the site a chance, it does appear that the realtors who write (at least for Localism Maplewood) do provide information and news that is not real estate specific.  For example, here’s a post about an artist who will be coming to do a presentation about animation careers at the Maplewood library.  It’s just the kind of info that local residents might care about.

Except… that I see no evidence of any local residents at Localism Maplewood based on the comments.  The place has the feel of a bunch of local brokers talking to each other, and providing market reports to each other, and out-of-market realtors coming to comment on listings and such.  It’s all so… I don’t know the term… artificial?  Like a circus being put on for the benefit of clowns and acrobats.  I just can’t imagine a local resident wanting to spend any time at Localism Maplewood, since the news and info are sporadic at best, and are completely self-serving advertorials at worst.

Localism features lots of content about the local real estate market.  House prices are doing this, house prices are doing that, here are the past X closed transactions, and so on and so forth.  The “community news” stuff seems really like an afterthought add-on, as if to say, “Hey, we uh… we live here too.”  It’s somewhat like the worst possible agent blog possible made that much worse because it’s a sort of forced group-blog.

Which makes sense.  I mean, I assume most of the people writing for Localism have their own blog.  I know Perri Feldman — a contributor to Localism Maplewood — has her own blog, and her own website, and an active social media marketing thingamajig.  (And she’s a member of the Lucky Strike Social Media Club — woohoo!)  I guess in the time that’s left over, sort of as an afterthought (it seems), Perri must recycle a post or two from her blog onto Localism Maplewood.

And everyone else does too.  So no narrative, no coherent flow, no personality, just a bunch of market stats and listings, with little bits of local info thrown in there like raisins in a peculiarly chintzy loaf of raisin bread.

Perhaps other communities’ Localism pages are far better.  I don’t know.  But comparing The Local: Maplewood to Localism: Maplewood feels somewhat like comparing, well, the New York Times with all of its haughtiness and enforced cleverness to AutoShopper.

Apples and Oranges?

To some extent, I suppose you’d have to cry foul at the comparison.  After all, The Local is a venture by the New York frikkin Times, with a professionally-trained reporter who is getting paid to blog about three small towns.  And she has three interns to help her.  And she has nothing to sell you, so she’s free to just do hyperlocal content.

Localism, in contrast, is a hyperlocal blog put together by realtors who have a vested interest in selling someone a home.  The goal isn’t to provide local news and info to local residents; it’s to educate out-of-towners on what it might be like to live in Maplewood.  Right?

Well… not so much:

Localism is the valued point of connection, a place of meaningful interaction. It’s where neighbors and local merchants share what’s happening in their community. It’s people collectively communicating the unique flavor and nuances of where they live, work, eat, and play.

As long as Localism is run mostly by realtors, this vision is pure fantasy.  In reality, the best that Localism can aspire to is to become a place where local realtors give consumers an excellent rundown of the local real estate market, local listings, and service providers.

Because there is no incentive at all for “neighbors” to share anything whatsoever with the folks at Localism.  If you’re not a blogger-realtor, then you have no way to enter content or to participate, except in the comments.

The Local has a better shot at becoming the hyperlocal media channel, but it too has enormous issues to confront and overcome.

One issue is that Maplewood already has a hyperlocal media channel: Maplewood Online.  The notion may be that the New York Times and its talented journalists can do hyperlocal just better than the gimps over at Maplewood Online, but… I got news for ya (get it? I got news… oh nevermind).  There ain’t much skill involved in copying police blotters and posting up cartoons and pictures of local residents.  Sorry.

If Tina Kelley were to post a piece of investigative journalism where she risked life and limb to expose the decisionmaking behind Millburn lawmakers’ screwing of taxpayers with a $10m boondoggle giveaway to the Paper Mill Playhouse, why that might be the kind of news I would find absolutely indispensable.  But copying and pasting police blotter reports requires a graduate degree in politics and journalism?  Right then.

And The Local really has to drop its authoritarian approach and its condescending tone to local news.  Bigtime journos might think that stories about local police layoffs should be filed under “News By the Slice” with photos of a pizza, since it isn’t about war, famine, or national politics.  We get that you think what you’re doing is “cute” and beneath your many years of reportage, and the tragedy of your having to cover local news instead of the latest Supreme Court ruling or the pronunciamentos of Barack Obama is overwhelming us too.

But those of us who live here are deeply impacted by local laws, local policies, and local businesses.  We happen to think it’s pretty damn cool that Maplewood restaurants are having a “Restaurant Week”.  So have a little respect.  Or expect us residents to stay the hell away in droves.

Hyperlocal Media

For what it’s worth, hyperlocal media may very well be the future of media.  Seriously, while the current march towards the worker’s paradise will affect me and (more importantly) my children in a few year’s time, what the Millburn School Board decides to do at the next meeting might affect me this year in a far more personal and immediate way.

It would be great to have a single source that fills the role that newspapers and these journalism degree-havin’ folks like to fill at the national stage.  I would read that site religiously.

Localism ain’t it, unless it undergoes a total transformation of focus away from trying to sell real estate.  The Local ain’t it, unless it too undergoes a transformation and embraces the community on which it is reporting — and in fact, actually does some, you know, reporting.  The answer may be in social media, like MaplewoodOnline and Baristanet, as more and more journalists leave the newspaper business (by choice or not) and end up having to learn whole new skills in web-based, local, community-powered media.

It’ll be interesting to watch.

-rsh

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Thoughts on Blogging: The Craft of Writing

Blogging Is Storytelling...

Blogging Is Storytelling...

Sometimes I’ll get a really nice comment or praise from various folks who read this little blog of mine.  Like this twitter I got recently:

@robhahn haha, you always have some of the best reads. Will spend the necessary time. Keep up the forward thinking.

In those moments, because I am human and subject to the Seven Deadly Sins, I can almost feel my head swell.  And that’s when I have to go read Mark Steyn.  Or Bill Simmons.  Or Gregg Easterbrook and learn me some humility.

Here’s a passage from Mark Steyn, simply the best writer of the English language of this young century:

If you’re feeling a sudden urge to “invest” in a gallon of tequila and a couple of hookers and wake up with an almighty hangover and no pants in a rusting dumpster on a bit of abandoned scrub round the back of the freight yards, it may be because you’re one of that dwindling band of Americans foolish enough to pursue his living in what we used to call “the private sector.” You were never exactly Giant-Man, more like Average-Sized Man. But you have a vague sense that you’re gonna be a lot closer to Ant-Man by the time all this is through.

I could write for a solid week without rest and never come up with that passage.  I’m a fair writer, but not in the same class as these gents.

Quite simply, the best writer of the English language working today.

An Artist of the English language.

There is a craft to writing.  There is a different craft to blogging, I think, but that there is artistry and skill involved in putting one word next to another is indisputable.

When folks are kind to me, and tell me what a great writer I am, I go and read the really great writers and get back down to earth.

A while back, I read On Writing by Stephen King, who is a truly underappreciated talent by the East Coast Intellectual Illuminati.  I maintain that when my grandkids learn about American Literature in High School, they will be studying the works of Stephen King.  Anyhow, I found this blog with some excerpts that are worth considering.  Check them out.  For example:

Talent renders the whole idea of rehearsal meaningless; when you find something at which you are talented, you do it (whatever it is) until your fingers bleed or your eyes are ready to fall out of your head. Even when no one is listening (or reading, or watching), every outing is a bravura performance, because you as the creator are happy. Perhaps even ecstatic.

Writing for Blogs

At the same time, I also believe that the craft of blogging is different from the craft of writing.  As I am trying to get more people around me to blog, I’ve found myself repeating some things.  This is not a “how to blog” type of thing here; more of a, “just some things to think about” type of thing.  And do keep in mind that your scribe may actually know nothing about writing, or blogging.  You have been warned.

Read, Read, and Read Some More

James Kilpatrick, the longtime columnist who penned The Writer’s Art, once wrote that to learn how to write, one should “read everything. Read matchbox covers, read labels on cans of cleaner; read the graffiti on lavatory walls. Read for information, read for style, read for instruction, read for the sheer love of reading.”

More and more, I believe this to be true.  Reading naturally leads to an improvement in writing.  We somehow absorb cadence, style, phrasings, imagery, and language itself from others.  While it’s best to read as many great writers as possible, it is also instructive to read not-so-great writers.  At least you learn what you don’t like, and what to avoid.

I believe any serious blogger should read books, columnists, and other bloggers — in that order.

Read books, because these are the finely honed examples of the writer’s craft.  They’ve also gone through the most rigorous editing for content, pace, and style.  For what it’s worth, I average about a book a week.  (Don’t be impressed — most of them are trashy paperback novels I read on the train.)

Read opinion columnists, because blogs by their very nature lend themselves to editorializing.  The best editorial columnists are tight with language, and know how to construct a narrative that drives their point home.  That these have been edited for clarity, content, and style also helps to keep the writing tight.

And read other bloggers, especially the stronger writers.  I’m a big fan of reading Kris Berg because of her natural voice and general narrative flow.  But there are others — particularly not in real estate space — whose writings are always a pleasure to read.  Read them, and often.  The blogs are usually unedited, but that gives you a sense of how blog writing differs from other types of writing.

Don’t Censor Yourself

The most important lesson for blog writing, I think, is to avoid the temptation to censor oneself.  The biggest obstacle I see new bloggers struggle with is how long it takes for them to write something.  I have to constantly remind them, “You’re not writing for the Economist; just get it out there.”

The best feature of blog writing is the spontaneous openness of the voice.  Mistakes will be made; some sentences won’t be as elegant as possible.  Grammar mistakes may abound.  But done well, there’s a freshness to the voice and an openness that conveys authenticity.  The art is, if you will, to be artless.

Plus, the nature of the medium is that corrections are always possible, and retractions and clarifications are not only possible, but perhaps desirable.  If you write something stupid, then hopefully the audience will point that out in the comments.  Which lets you respond in the comments, clarifying things, or admitting you got it wrong.  Then you can go back and edit the original post, appending the correction right there on the original post.

Again, blogging is part of conversation — not an oratorical holding forth.  Don’t censor yourself too much; don’t edit yourself while writing.  You’ll find it easier to write, and eventually settle into a routine and a voice you are comfortable with.  Just shut up that little editorial voice inside your head.

Write A Story

While there are certainly exceptions in blogging — for example, if your post is simply a compilation of interesting posts you’ve read that week — I do believe that if you are creating original content, you need to be telling a story.

Tell a story! Its fun!
Tell a story! It’s fun!

There needs to be a beginning, a middle, and an end.  There needs to be a plot of some sort that moves the narrative along.  Character exposes are fine, but I think the best blogposts have a narrative flow that is naturalistic and effective at exposing the ideas and the voice of the blogger.

Advice blogs (like this one) usually suck because they lack that flow of narrative and often read like a bullet list of rules.  Since realtors are writing a lot of advice blogs — “How to stage a home!” or “What to look for in a REO sale” or some such — I think it’s particularly important to realestistas that they give a thought to the narrative they are presenting.

Link, Link, and Link

The advantage of the Interwebs is in its reference-ability.  If I say “unemployment is X”, you don’t have to take my word for it — you can go check the source yourself.  But only if I provide the link.

This is, in a sense, the counter-balance to the open and freewheeling nature of the Web and blogs.  We don’t have editors and factcheckers; what we have, instead, is the ability for our readers to check the source for themselves.

As a general rule of thumb, if you think it’s something you reader might want to check for himself, then provide a link.  Every single time you quote someone else, you should be providing a link.  The goal is to provide the context, the framework, around your blogpost’s own narrative.

Hit “Publish”

The final piece of advice, and perhaps the most important, is to actually publish the damn thing.  I know I have had dozens of nascent blogposts just sitting in my queue waiting to see the light of day.  Some of them never will.

All of the narrating, the writing, the linking, and all of that won’t mean a thing if you don’t actually publish it.

Keeping in mind that all blogposts can be revised, and any mistakes corrected via the comments or by editing the post, go ahead and publish that post no matter how nervous you are about it.

Chances are, you are your worst critic, and your audience will love it.  (And when they don’t, they’ll let you know, and that’s how conversations start.)

Happy blogging!

-rsh

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The Fundamental Misconception of Social Media

Unless you have been living under a rock, you’ve heard of this “social media” thing. But if pressed to define it, you — like the rest of us — would stammer out a few words about Twitter, Facebook, and blogs and then… realize that the term is more or less undefined.

Well, here’s the Wikipedia definition of “social media”:

Social media are primarily Internet- and mobile-based tools for sharing and discussing information. The term most often refers to activities that integrate technology, telecommunications and social interaction, and the construction of words, pictures, videos and audio. This interaction, and the manner in which information is presented, depends on the varied perspectives and “building” of shared meaning among communities, as people share their stories and experiences. (Emphasis mine)

And the entry goes on to note things like World of Warcraft is social media. Okay, then so is internet gambling.

Furthermore, the highlighted portion suggests that email is also social media. So is a fax machine. Or that cutting-edge (for the 19th century) device, the telegraph. They all “integrate technology, telecommunications and social interaction.” In theory, so do messenger pigeons and smoke signals. In other words, “social media” doesn’t actually mean anything.

And yet, it does. The real meaning of “social media” may be difficult to define, but everyone knows what it is — and more importantly, knows what it is not. Stories in the New York Times is not “social media” despite being an activity that integrates technology (the printing press), telecommunications (the Associated Press wire service), and social interaction (the reporters write, the audience reads).

Some might say that “two-way communication” is the essence of social media. This too is wrong. There are blogs that don’t allow comments — yet they are very much “social media”. YouTube is considered “social media” but it’s hard to call what goes on in the comments section to be “two-way communication” in any meaningful way.

The Internet is not “social media” since mobile applications can entirely bypass the Internet and still become social media. Meetups and Tweetups often fall into “social media” categories, but it’s hard to see how people sitting in a room together talking can be conceived of as web-based simply because they arranged to meet via the Web.

So what the hell is “social media” in its essence?

Social Media Defined

My personal definition of social media is this:

Communication channels that enable the authentic and personal engagement of one human being to another.

Admittedly, my definition is heavily influenced by Cluetrain principles. While each and every one of you needs to go read the whole thing (free, online!), this passage from the Introduction speaks most eloquently to how I define social media:

The Cluetrain Manifesto

The Internet became a place where people could talk to other people without constraint. Without filters or censorship or official sanction — and perhaps most significantly, without advertising. Another, noncommercial culture began forming across this out-of-the-way collection of computer networks. Long before graphical user interfaces made the scene, the scene was populated by plain old boring ASCII: green phosphor text scrolling up screens at the glacial pace afforded by early modems. So where was the attraction in that?

The attraction was in speech, however mediated. In people talking, however slowly. And mostly, the attraction lay in the kinds of things they were saying. Never in history had so many had the chance to know what so many others were thinking on such a wide range of subjects. Slowly at first, a new kind of conversation was beginning to emerge, but it would achieve global reach with astonishing speed.

For those of us grizzled old dinosaurs who got onto the pre-Netscape Internet, and were absolutely floored upon discovering IRC know the feeling. The strange combination of utter freedom and complete anonymity brought out levels of authenticity in many people — while others invented online personas with a wild variety of roleplaying.

What makes a blog a blog and not an online magazine is the authenticity of the voice, and the personal engagement of the blogger. I’m a big fan of Instapundit, where Prof. Glenn Reynolds holds court on a variety of political, kitchenware, photography, and nanotechnology topics. There are no comments on Instapundit. Yet, it is social media because Prof. Reynolds never fails to speak in his voice. He never fails to be personal.

Another great example is contrasting the National Review Online (an online magazine) with The Corner on National Review Online (a group blog). [So sue me, I read conservative websites. The point is on social media, and these came to mind.] These are two sections of the same website, yet the flavor, the tone, the feel is very different. The NRO proper has articles that have been edited, written to professional standards. What it lacks in personality and authenticity, it makes up with authority and seriousness. The Corner, in contrast, is full of the authentic voices of the bloggers — many of whom are also writers and editors of the National Review — and a personal human engagement exists there that is lacking in NRO itself.

I believe, therefore, that social media is not defined by the tools or the technology, but by the authenticity and the personalness of the engagement.

The Corruption

Trouble is, marketing departments worldwide in every major and minor corporation could not see (and in some cases, have never seen) what the big deal with the Internet was, and what is so important about Cluetrain, and about social media. To far too many marketers, “social media” was just like “any other media”, but “more social” — whatever that means.

The same strategies and the same models for putting ads on magazines were used to put ‘banner ads’ on this newfangled World Wide Web thingamajig back in the late 90′s. When Facebook became the flavor du jour, companies regarded it as just another place to have a branch office. And as Twitter starts to take off, we are finding more and more companies regarding it as something like a streaming billboard:

@XXXXXX You kin’ buy DD coffee online: http://bit.ly/4lwB65 … see drop down menu for whole bean options. Cheers!

That tweet is from @DunkinDonuts. Cheers! Sounds just like a micro-ad! Gee, thanks!

Is this social media? Or it is just a variant of email spam, TV spam, mailbox spam, and billboard spam we have to live with in our commercialized world?

And now, we apparently have a “directory of brands” on Twitter: TrackingTwitter.com. First, the Yellow Pages, then the Web (and Google), and now Twitter. Cheers?

The Fundamental Misconception: Social Media = Media, Social

The fundamental misconception about social media — held mostly by marketers — is due to that word “media”. We understand “media”. Many of us have frikkin graduate degrees in media management, public relations, and communications. We come out of advertising agencies where dealing with various forms of “media” was a settled practice. So we apply those same principles to “social media”.

“Hey, we really need to get a corporate Twitter account!” likely passes for innovative thinking inside many corporations today. “That way, we can really engage the audience with our brand message!”

Trouble is, the audience doesn’t really want some faceless, identity-less brand to ‘engage them’ with their brand message. What the audience really wants is for a human being that works at your brand to engage them in an authentic, personal way.

Once again, Cluetrain:

In the market, language grew. Became bolder, more sophisticated. Leaped and sparked from mind to mind. Incited by curiosity and rapt attention, it took astounding risks that none had ever dared to contemplate, built whole civilizations from the ground up.

Markets are conversations. Trade routes pave the storylines. Across the millennia in between, the human voice is the music we have always listened for, and still best understand.

So what went wrong? From the perspective of corporations, many of which by the twentieth century had become bigger and far more powerful than ancient city-states, nothing went wrong. But things did change.

Commerce is a natural part of human life, but it has become increasingly unnatural over the intervening centuries, incrementally divorcing itself from the people on whom it most depends, whether workers or customers. While this change is in many ways understandable — huge factories took the place of village shops; the marketplace moved from the center of the town and came to depend on far-flung mercantile trade — the result has been to interpose a vast chasm between buyers and sellers.

I don’t want to twitter with @DunkinDonuts. I want to twitter with Amy, who works in marketing or customer service or sales or whatever for Dunkin’ Donuts, and is allowed to communicate openly, honestly, authentically, in a human voice with me.

Social media is not media; it is conversation. Theses 62 to 65 of the 95 Theses of Cluetrain Manifesto read as follows:

62. Markets do not want to talk to flacks and hucksters. They want to participate in the conversations going on behind the corporate firewall.

63. De-cloaking, getting personal: We are those markets. We want to talk to you.

64. We want access to your corporate information, to your plans and strategies, your best thinking, your genuine knowledge. We will not settle for the 4-color brochure, for web sites chock-a-block with eye candy but lacking any substance.

65. We’re also the workers who make your companies go. We want to talk to customers directly in our own voices, not in platitudes written into a script.

I have learned so much more about what the real estate community thinks, what its needs are, its pains and joys, and so on simply by being myself on this blog, on Twitter, and in personal conversations. They are all the same to me. In some cases, individuals who have decision-making authority at clients or prospects for my employer share their issues with me, not because I’m trying to sell them something, but precisely because I’m not. I think I do a better job of marketing Onboard simply by being myself, speaking in an authentic voice, and engaging in a personal way.

Could I really do that hiding behind a @onboard persona? No, not really.

The fundamental misconception about social media is that it is media, just more “social”.

The Beginning of the End

If companies and marketers continue to treat social media as just another variant of media, then it spells the beginning of the end for social media.

What makes Twitter interesting is not that I can get bombarded with offers from Dunkin’ Donuts, but that I can have real conversations with real people thousands of miles away.

Once misguided marketers and brand chieftains start to corrupt Twitter with fake-personas, with brand twittering, and so on, it will become just like blog comment spam. People will begin to retreat further and further into smaller and smaller niches where they can be left alone to have the conversations they are craving.

And companies who do not understand social media as authentic human engagement will lose out on the opportunity to empower their people to converse with those consumers.

There lies the beginning of the end.

Real Estate & Social Media

For whatever reason, social media has been a buzzword in real estate for years. Blogs, blog networks, twitter, Flickr, Facebook, and all these social media tools have been enthusiastically embraced by our industry with varying degrees of success.

The first wave of pioneers — people like Todd Carpenter — did social media as individuals. They blogged, they emailed each other, they linked up, they facebooked, and they twittered and so on. People got to know each other as people, as authentic human beings first and foremost. This early adopter group used (and still uses) social media primarily as a platform for socializing and making connections.

The second wave saw how much fun that first wave was having, and was starting to hear various ideas being floated about how these new communication technologies might be used to drive more business, sell more homes, do more transactions, and the like — and jumped on the bandwagon. Most of these people are also having a blast networking with people, meeting new and interesting folks, and having great conversations… but they’re a little concerned that all this social media stuff isn’t throwing off much cash. Because this group looks at social media as some newfangled innovative way of marketing — predictably, for realtors, that means marketing homes, listings, and themselves.

The third wave either has arrived, or is coming. This is the “professional marketer” brigade, and the future of social media in our industry depends on what happens with this group.

If the numerous newly-minted social media directors, and the VP’s of Marketing who oversee them, overcome the fundamental misconception about social media, then we may be the industry to drive change in how people who work for companies relate to other people who want to buy from those companies. If the social media directors become, in my formulation, “Cluetrain conductors“, then we have a chance to alter the relationship between consumer and service provider in a profound way.

If, on the other hand, the third wave consists of folks who think that Twitter is just another marketing channel, that blogs are just a new way of publishing listing brochures, and that branded corporate identities (which are both opaque, and speaking in that stilted “corporatespeak” we all have learned to detect) online are the answers to the challenge of “social media”… then it’s just a matter of time until these communication technologies also become just another spam-filled cesspool of fakery.

And we all, consumers and professionals alike, will move on to our next fix.

I know which way I’d like things to come out.

Markets are conversations.

Commerce is a natural part of human life.

Markets do not want to talk to flacks and hucksters. They want to participate in the conversations going on behind the corporate firewall.

-rsh

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Be the Virus, Todd (Three Thoughts on NAR Social Media Manager)

“Forward, the Light Brigade!”
Was there a man dismay’d?
Not tho’ the soldier knew
Someone had blunder’d:
Theirs not to make reply,
Theirs not to reason why,
Theirs but to do and die:
Into the valley of Death
Rode the six hundred.

- Alfred Lord Tennyson, Charge of the Light Brigade

Todd Carpenter (@tcar on Twitter) has been named as the first ever Social Media Manager for the National Association of Realtors.

After an extensive search, we hired Todd Carpenter, a founder of RE Blogworld and of mariah.com, a network of real estate and mortgage web sites including lenderama, REMBEX, and Denver Modern Homes. Many qualified candidates, both inside and outside of the real estate industry, applied for the position, and I asked a small set of finalists to prepare assignments detailing what they would do during their first 90 days in the role and how they would handle a challenging issue leveraging the power of the RE.net and the blogosphere.

We loved Todd’s ideas, his easygoing manner, his reputation and how knowledgeable he is about social media. We also really valued his relationships with so many REALTORS® who are using blogs, Twitter, Facebook, LinkedIn, and other social media channels to connect effectively with one another and with potential clients and customers.

As I have recommended Todd for this job way back when — albeit layered with concerns — I am of course thrilled for Todd, and wish him the best of luck.  I have also been privileged to be invited to converse with NAR leadership about their social media strategy, with an emphasis on what the NAR Social Media Manager’s role ought to be, and have given them further thoughts on that.

Here, I want to expand with three further thoughts.

1.  Yours Not to Do and Die / Yours But to Reason Why

With due apologies to Alfred Lord Tennyson, I’d like to stress what this role cannot become: the voice of NAR for “social media”.

Becoming the “voice of NAR for social media” does two disservices: one to NAR, and one to you.

For NAR, it ghettoizes social media as “just another marketing channel” just like print, TV, radio, or email.  What is needed is not another “marketing channel” but a wholesale change in approach to how NAR connects with its members, with the public, and with policymakers.

For you, the disservice is that rather than becoming a change agent able to drive cultural change from within NAR, you become yet another communication channel — of which NAR has plenty.  I likened the proper role of the Social Media Manager to be something like a “cluetrain conductor“.  And I think that remains the case.

Yours is to reason why NAR does or does not speak to its constituents and the public on a particular topic, in a particular way.  And to force the organization itself to ask “Why?” or “Why not?”

2.  It is the Valley of Death

Well, perhaps “Valley of Death” is a bit dramatic — but it fit with the whole poetry theme!  Let’s rather call it the “Valley of Slowly Getting Co-Opted”.

What you know already is that the people at NAR are delightful.  They’re smart, dedicated, professional, and truly cares about the industry, about their members, about consumers.  Contrary to some of the portrayals of NAR in the media and RE.net, I have found that everyone I’ve met at NAR is just wonderful.  There isn’t a person who works at NAR that I’ve met personally who I wouldn’t want to go have a beer with, or talk policy with, or even just talk about our favorite movies with.

This is a danger to you.

Because it is far too easy to become “one of them”.  JeffX’s twitter joke is actually profound:

@JeffX: Hey TNar, i mean @tcar will the NAR allow you to maintain your Ninja rights?

It isn’t simply NAR allowing you to be the person they hired; it is also you staying the person they hired, instead of slowly transforming into “one of them”.  You can’t stop the blipstreams, now that you have this “important position” in the real estate world.  You can’t stop blogging, can’t stop Twittering as @tcar, and can’t suddenly become “respectable”.

Of course, NAR can’t try to stop you — that plainly defeats the purpose of bringing you inside the fold.

3.  Be the Virus

The remedy, then, is to internalize that one of the biggest values you are bringing to NAR is to be the “virus from without”.  Your task is to make NAR more like you: open, authentic, honest, and constantly in touch.

Just as you have been transparent to the RE community over the years, so you must “infect” the rest of NAR to become transparent.  Just as you have always been one of the most authentic human beings on RE.net over the years, so you must infect the rest of NAR, the state associations, the member organizations, and indeed the NAR members themselves to be more authentic, be more human, and be more connected.

Through those efforts, I know you can bring in the fresh voices, the new perspectives from the RE.net and realestistas everywhere to the mainstream of the industry.  And you know that you have friends and allies who support you in those efforts.

So once again, congratulations to both you and to NAR.  You have my best wishes, and my pledge to support your efforts to become the Cluetrain conductor we so desperately need.

-rsh

(PS: I posted this publicly because many of the thoughts here are applicable to any large organization that is starting up social media initiatives, and to anyone working at those organizations.  And because some of these things are worth discussing.)

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Redfin Transforms: The End of the Beginning?

Now this is not the end. It is not even the beginning of the end.  But it is, perhaps, the end of the beginning.

- Sir Winston Churchill

.

One of the true pioneers of the new generation of real estate companies, Redfin, has launched a new partner program:

Redfin released a sprawling, glorious update to our website last night that changes Redfin in two fundamental ways:

  1. We built data-driven agent profiles, showing every deal our own agents have done and every customer review, even on deals that failed.
  2. We opened up our business to partner agents and we published all their deals too, surveying old customers for reviews.

How does this change Redfin as a company? Well, when we upgraded our own service last November to offer unlimited home tours and a choice of agents, everyone said we were becoming less virtual. And now that we’re connecting consumers with partner agents, folks will say we’ve become more virtual.

Actually, I think the change to Redfin as a company is far deeper and far more subtle than what folks will say.

The Peanut Gallery

A hint of what’s changed comes from Gregg Swann of the Bloodhound Blog:

If Redfin can make five figures a day on what may not even amount to a single full-time staff line, that’s a killer business.

Maybe even such a killer business that it will replace client-representation altogether. Implausible? One of Redfin’s planned expansion cities is Phoenix — where our numbers are worse than Kitsap’s. Of the RE 2.0 players, only Estately.com does anything like this, but Redfin could go into the referral business virtually anywhere, virtually overnight.

And Louis Cammarosano of HomeGain said with maximum succinctness, over Twitter: “It means they are becoming like Homegain.

John Cook at TechFlash took Redfin to task:

The concept is not new. In fact, Seattle area companies such as Estately and HouseValues.com also earn money through agent referrals. But the program is a big switch for Redfin, which has always touted the customer service focus of its agents. Kelman said he was “terrified” that the partner program “could screw up the brand.” That’s why the company interviewed all of the partner agents and implemented an agent review system on the Redfin Web site. It also reserves the right to remove partner agents that are not living up to customer service requirements.

Kelman downplayed the possibility that Redfin would move entirely to a partner model. “There is something in Redfin’s blood that we like having direct relationships with the customer,” he said.

This change is a fundamental one.  This is not a mere extension of the Redfin model and philosophy.  It’s something else.

What Was Actually Done

TechFlash post above actually has a pretty good brief description of what Redfin actually launched:

Starting today, the company has aligned itself with 35 real estate agents from 13 different brokerage firms in nine counties. The agents, which receive a profle page on Redfin and must have completed 15 transactions, pay Redfin a 30 percent referral fee on any completed deals. Redfin then refunds 15 percent of that fee to home buyers, keeping the other 15 percent.

But Redfin has more info on this front:

Every single one of these partners committed to our consumer-friendly values as a prerequisite to joining the program:

  1. Technology: the partner refunds part of his commission to the client because the client asks for service online using our tools.
  2. Service: the partner is not allowed to do any of the funny-business around forcing someone to use him when buying a house; the partner earns more when the client is satisfied.
  3. Transparency: the partner publishes information about all his deals, and all his reviews; the partner provides the service requested by the consumer and nothing more unless asked.

Furthermore, rather than sending the “leads” to the agent (or multiple agents), the Redfin model places that power in the consumer’s hands.  The consumer sees the deals, failed deals, activities, etc. of the partner agent, then actively chooses to contact that particular agent.

So, the major differences between Redfin and other models are:

  • Power to choose in the hands of consumer
  • Transparency on agent quality metrics
  • Refund back to the consumer

But all of that, still, fails to address the central, subtle, and fundamental change.

The Change

Basically, by going to a ‘partner’ model, Redfin is no longer responsible for the consumer service experience.

Now, Glenn Kelman and others at Redfin vigorously dispute this:

The story said that we had been “terrified” about potential problems in our partners’ customer service without explaining that we said that to introduce the steps we took to avoid those problems. (emphasis added)

And

We planned for Redfin’s partner program in a financial model built in 2007. We experimented with it earlier than that, canceling the program in 2006 after it became clear that we had no way of being accountable for good service to the client.

We could have offered a year ago the referral programs typical in the industry, selling the client out to multiple unnamed agents for a fee. There was ample financial pressure to do so. We stuck to our guns to create something much better, building an entire accountability system and a set of tools for a client to ask a particular agent to perform a particular service, interviewing every partner agent in person, and checking each agent’s references over a year back, so we could offer a partner program consistent with our values. These values are why we radically cut the profitability of the program by offering half our fee back to the consumer. (Emphasis added)

For what it’s worth, I completely believe Redfin.  And furthermore, Redfin might very well be successful.

I'll Show You the Money!!!

Redfin's Ambassador of Kwan

However, there is a large gap between “building an entire accountability system” and actually being accountable.

Redfin is a brokerage in the markets in which it is active.  The agents who work for Redfin are employees of Redfin, and Redfin as an entity is accountable to the actual consumer for the service experience.  In fact, while I don’t know for sure, I’m going to guess that Redfin has a certain “Redfin Way” of “Redfin Service Standards” or whatever that it enforces on its agents.

If I’m a Redfin agent, and I don’t live up to Redfin’s performance standards, then Redfin has a variety of tools and methods at its disposal to enforce standards.  With these partner agents, no matter how well Redfin screens ‘em, Redfin only has one way to enforce standards: remove them from the program.

If I pick a partner agent, and have a terrible experience, who do I get to blame?

The Liability Question

A way to crystallize the issue is to consider legal liability.

Suppose that some unhappy consumer sues the partner agent after a deal goes south.  (Not saying this would happen, but thinking about lawsuits help clarify some issues.)

Im blind for a reason...

I'm blind for a reason...

The agent’s actual broker would be named in the lawsuit, since legally, the agent is just representing the broker.  The broker’s E&O insurance would come into play, and the lawsuit would then focus on whether the agent’s acts/omissions rose to the level of professional malpractice.  The broker’s processes, standards, training, screening, etc. would all become relevant as to establishing liability under respondeat superior theory.

Where does Redfin fit into this?

On the one hand, the consumer would absolutely sue Redfin.  After all, Redfin supposedly screened all of its partners, and built an “entire accountability system”.  That a crappy agent slipped through resulting in a big loss for the consumer means that the consumer has a reason to sue Redfin.  After all, he went to Redfin to find an agent, and relied upon Redfin’s representation as to quality, professionalism, and ethics.

On the other hand, Redfin’s defense would presumably be along the lines of, “We ain’t the boss”.  They would presumably assert that respondeat superior does not apply in their case, because the agent doesn’t work for them.  They don’t control the agent’s actions.  All they’ve done is made an introduction between the consumer and the partner agent, and the consumer chose to work with that particular agent.

(I suppose, in theory, Redfin could choose NOT to fight liability and embrace it wholeheartedly in order to preserve their ideal of customer service… but I doubt that very much.  Lawsuits focus the mind in interesting ways.  Plus, does Redfin’s E&O insurance even cover these ‘partner agents’?  Would Redfin’s insurer really agree to that without a substantial hike in premiums?)

If the agent’s broker — the actual “boss” in theory — is held liable, would they not consider bringing Redfin in as a third party defendant?  Or bring an indemnity claim that goes something like, “Your program caused our otherwise ethical agent to do bad things, so now you owe us money”?  I know I would advise the broker to bring such a suit, were I representing them.

With the other lead-gen sites, like Homegain or HouseValues, these issues never arise.  All that those sites promise to consumers is that someone will be in touch, and they pass the lead on.  They’re merely a marketing conduit.

Redfin’s program goes far, far beyond that… but they’re not ultimately accountable to the consumer client from what I can tell.

The Brand and Ideals Question

That Redfin would disavow responsibility for a poor consumer experience through Redfin is, to say the least, a sea change.  As Glenn says quite passionately:

We will always, always fight for the consumer: exposing information about agent performance the world has never seen, offering the best value we can, paying our agents based on customer satisfaction, negotiating with Realtor associations to publish more data.

This is an emotional issue for us. We are less interested in proving TechFlash wrong, or even in convincing you that Redfin will succeed or fail — which is still an open question — than we are in establishing what this company stands for: making the real estate industry better for the consumer. Maybe nobody else cares that this company actually stands for something. But we do. We always will.

Does that include accepting legal liablity for the actions of your ‘partner agents’?  If it does, then in what way are those ‘partner agents’ different from your own employees — except that they’re not really subject to discipline/training/enforcement by you?

If it does not, if Redfin’s program stops short of accepting legal liability for the misconduct or negligence by partner agents, then that is a fundamental change in the Redfin brand.  And I daresay it represents a change of the Redfin ideals in a subtle, yet profound, way.  Sure, Redfin can still work to make the real estate industry better for the consumer.  But it won’t do it directly, by training its agents, by implementing its policies and procedures, and by serving the consumer.

That might be fine; might even be great.  Maybe Redfin overcomes some of the acrimony built up over the years this way.

But it is a fundamental change.  He who pays you is your customer.

This is perhaps the end of the beginning...

This is perhaps the end of the beginning...

The End of the Beginning

For the industry, I think Redfin’s move represents the end of the first wave of Real Estate 2.0.  The implication appears to be that new companies cannot implement new business models for real estate.  Trulia and Zillow are not real estate companies; they are media companies in the real estate space.  They make money from advertising.

Homegain, HouseValues, Estately and so on are also pseudo-media companies, but with a pay-for-performance type of ad model.

Redfin was the pioneer of a new model, centered around a fantastic website, direct consumer engagement, and a novel refund concept.  Their obsession with transparency, truly excellent user experience online, and “freakish depth” was the precursor to what the brokerage of the future might look like.

That chapter, I think, now comes to a close.  The new real estate companies have found that they cannot make money directly from consumers.  Okay, fine.  What does the next chapter look like?

No one knows of course.  But it does seem to me that the battle lines are getting drawn as follows:

On the one hand, the new entrants must find ways to derive revenues from real estate agents; on the other hand, the existing brokerages must find ways to make consumers happier and provide more value to its agents.  The midgame, then, represents a struggle on the one hand over consumer service/experience coupled to value delivery to agents, and a struggle on the other hand over getting money out of agents.

We are living through interesting times in real estate.

-rsh

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Multi-layer Brand & Social Media

Last week, I had an opportunity to attend an extraordinary meeting with some of the most senior people at NAR, on the topic of social media.  I have to thank Jim Duncan for putting the meeting together, and of course, I am grateful to the leadership at NAR for being willing to listen to a bunch of blogger types.  I finally got the chance to meet Jim in person, and it was absolutely fantastic to meet and converse about social media, web, real estate, and marketing with some of the best and brightest in our industry.

Quick shout-outs then to: Dale Stinton, Frank Sibley, Mark Lesswing, Pamela Kabati, Hilary Marsh, and Keith Garner from NAR.  And to my fellow realestistas Jim Duncan, Ben Martin, Jay Thompson, Joe Ferrara, Eric Bryn, and via telephone, the redoubtable Benn Rosales, a tip of the ole hat.

However, this is not a post about that meeting.  It is, rather, about a concept that was brought up that has really intrigued me: multi-layer brand, and how that interacts with social media.

Multi-Layer Branding

The notion is that all working realtors (or REALTORS, more precisely) have what one might call a “multi-layer brand” and that this will have enormous impact on social media (indeed, on all marketing efforts) for real estate services.

Let me illustrate:

Multi-Layer Branding, Badly Illustrated

Multi-Layer Branding, Badly Illustrated

So the idea here is that every single REALTOR has multiple brands.

First, they are a REALTOR, a member of the National Association of REALTORS.  Presumably, this distinguishes them from the non-REALTORS, who I understand are referred to as “licensees”.  Those non-REALTORS are nonetheless real estate brokers and agents, fully licensed to help people transact business.

Then they are often members of large franchises or networks, such as Coldwell Banker.  Again, this distinguishes them from people who are not CB agents and do not carry the CB brand.

Then you have brokerages — in our industry, many/most operate under their own brand name as an extension of the franchise brand.  (Those that are not franchised operate under their own brand.)  So presumably, being with Coldwell Banker United is different from being with Coldwell Banker Joe-Blow Realty.

Next tier down may be either Teams or Offices.  Now this brand is trying to distinguish the realtor from others who are not part of the “Jill Smith Team”.  It’s trying to say, “Sure, those people are also CB United REALTORS, but we’re better/different because we are the Jill Smith Team.”

And finally, you have the agent’s personal brand:  “That Joan Cartwright is a real expert, and so friendly too!”

As the graphic attempts to illustrate, brand awareness (or breadth of brand) is higher towards the top and drops as you go down the layers.  More consumers have heard of REALTOR than have heard of Jill Smith Team.  Conversely, and interestingly, brand value (or power) is lower towards the top and higher towards the bottom.  For example, you may be referred business because you’re Joan Cartwright, super-agent, but only rarely (if ever) will you have a consumer say, “I’m giving you this listing, because you’re with Coldwell Banker, instead of those Keller Williams people.”

Hey, I got another follower on Twitter!

Hey, I got another follower on Twitter!

Born of Marketing, Growing Up on Social Media?

What I find interesting about this is that the multi-layer brand is the inevitable result of past marketing strategies focused around mass communications media.

It is much easier — and more effective — for national organizations to leverage TV, radio, and national print campaigns to create a national brand than it is for a local agent team to do so.  In fact, it probably makes no sense for Jill Smith Team to buy a Superbowl ad, but it may very well make a lot of sense for NAR to do so.

Since traditional marketing had a more-or-less direct correlation to the amount of spend, awareness is inevitably tied to size.  At the same time, over the past decade or so, the erosion of brand value not just for real estate brands but for almost all brands has been accelerating as consumers become more and more networked, and more and more skeptical of advertising.  As the Wired article says:

A study by retail-industry tracking firm NPD Group found that nearly half of those who described themselves as highly loyal to a brand were no longer loyal a year later. Even seemingly strong names rarely translate into much power at the cash register. Another remarkable study found that just 4 percent of consumers would be willing to stick with a brand if its competitors offered better value for the same price.

And,

The single biggest explanation for fragile brands is the swelling strength of the consumer. We’ve seen a pronounced jump in the amount of information available about goods and services. It’s not just bellwethers like Consumers Union and J.D. Power, established authorities that unquestionably shape people’s buying decisions, but also the crush of magazines, Web sites, and message boards scrutinizing products.

Hinted at in the Wired article is the growing power of “social media”.  New-school web-heads might look at “message boards” and laugh at it as being so Web 1.0.  But Facebook is really just a message board, which are in turn just a prettier face to the old Usenet newsgroups.  Plus ςa change

One of the observations I made about social media at the meeting is that no matter what else social media might do, it definitely does one thing: bypass traditional media.  Brands that were born from traditional media, and sustained by traditional media plays (like mass advertising and PR) need to look at social media with some care and even trepidation.  Because social media allows other players to bypass traditional media, one of the implications is that the higher-awareness brands (whose value is already weak) start losing awareness to boot.  If you’re a consumer getting most of your information from Twitter, blogs, and Facebook, you may never have even heard of Keller Williams as a brand.  You’re certainly not going to have any impression or emotional connection to the KW brand.

The Challenge

The conundrum of the higher-awareness brand owners then, such as NAR, is what to do about social media.  There are three available strategies:

  • Alienate
  • Ignore
  • Embrace

Alienate

An organization (such as NAR) can try to alienate social media.  It can prohibit its members from blogging, from using Twitter to talk about the organization, and the like.  It can leverage its power in traditional media to denigrate these “upstart know-nothing bloggers”.  Traditional news organizations have tried taking this tack in the past, with disastrous results.

For real estate, at this stage of the game, I believe that trying to alienate and denigrate social media would just make an organization look out of touch and stuck in the past.

Suffice to say, alienating social media is not recommended as a strategy.

Ignore

You can try to pretend that social media doesn’t really exist, or if it does, it’s not something to be taken all that seriously.  While not prohibiting involvement, you can choose not to promote involvement either.  Have a website, even a blog, but don’t expend a lot of effort beyond that.

A variation on the theme is to do social media as a ghettoized niche of marketing.  Far too many companies that have “social media” also have “corporate communications” and “public relations” and so on.  Only those people who work in “social media” are allowed to be the voice of the organization, and blog posts have to be approved by the Director of Social Media or some such.

The trouble with this is that “social media” is just a channel; that isn’t really important.  What is important is the attitude that makes “social media” workthe natural, authentic, human voice.  When you have segregated social media into a small corner of the overall marketing effort, then what you are really trying to do is ignore it, hoping it’s a fad that will go away.

Depending on the organization, this very well may be the ideal strategy.  If you’re Apple, for instance, I don’t know that it pays for you to let your people blog freely or twitter away.  So much of Apple’s brand image, and therefore its power, is a creature of traditional media that is tightly controlled by some very talented marketing people.  Why mess with it?  Sure, have a blog; but make sure it’s controlled.  Have an Apple Facebook page, but make sure that it’s tightly controlled.  If traditional methods are working, then why mess with it?

Embrace

The final strategy is to really embrace social media as an organization.  The challenge here is that social media at its heart is not a tactic, but a culture.  It means adopting Cluetrain principles of lowering barriers to communication between the people within your walls to consumers, interest groups, and stakeholders outside of those walls.

Social media isn’t just a corner of marketing; it becomes marketing.  Corporate communications & PR are subsumed into the social media culture of openness and authenticity.  There ain’t nothing to spin, if your culture is about openness and honesty, is there?  Everyone from the CEO down to the janitor become voices of the organization, for good and bad.  There is no “funnel” of engagement into the organization, anymore than there is a “megaphone” of the Corporate Voice out to the public.

Understandably, this state of affairs would make most marketers and most corporate executives extremely nervous.

Let me see that detialed marketing plan for a second...

Let me see that detailed marketing plan for a second...

Enter Chaos

As if wholesale organizational cultural change were not nerve-wracking enough, now we add multi-layer brand effects to the mix.

If a higher-order (in terms of awareness) organization starts to engage in social media — meaning, relaxing the barriers between its people and the public — what impact does that have on downstream brands?

So for example, say Coldwell Banker really embraces social media.  All of a sudden, you have corporate executives from CB national blogging openly and freely about real estate, about brokerage, about what’s going on inside 1 Campus, and so on.  They’re providing a lot of direct interaction with consumers, agents, and whatnot.  They start going on Twitter and engaging with individual agents of CB, even individual consumers.

While this may be wonderful, there will be a sort of a “flattening effect” that takes place.  The national Coldwell Banker brand starts to be defined by the open conversation that takes place directly with consumers and with agents.

So if you are the director of marketing for CB United, what does that do to you and your plans for the CB United brand which you are trying to differentiate from other CB-branded companies?

What if you’re Jill Smith, and you’re trying really hard to enforce a certain way of doing business in an effort to differentiate yourself from the rest of the CB agents out there?  What if your strategy was to use social media to convey to your clients that you “get it”, that you’re “authentic”, not like those other CB agents?  And here comes CB corporate essentially granting that brand image of authenticity to all CB agents by virtue of their social media efforts.

While this impact of top-level brand on lower-level brand has always been in place for any multi-layer brand, social media exacerbates the problem because of its global reach, combined with direct interaction.  Jill Smith Team can overpower traditional media in its local market by focusing the ad spend in local channels, and public relations strategies focusing on local publications.  But with social media, it takes the same (low) effort for the local consumer/agent to follow @jillsmithteam on Twitter as it does to follow @coldwellbanker.

And Coldwell Banker’s blog is likely to have far higher SERPS on various search engines, and have huge multiples of readers/subscribers than Jill Smith Team’s blog.

Now what?

Many Questions, No Answers

One of the reasons why I wrote this is that I have no answers.  It’s a new area, a new conundrum.  The amount of spend — higher but broader at the top, lower but more concentrated at the lower end — has little impact on social media.  Conversely, those lower-down on the pyramid can get completely swamped and silenced by those higher up.

I’m sure there’s a way out of this maze, and that we’ll all figure it out together.  But right now, there are far more questions than there are answers.

I have a feeling that the solution will involve something like a cascade of value via cascade of content, with a coordinated — rather than a commanded — social media effort from the top-down, bottom-up, and in-between.  The solution might involve one or more of the layers simply atrophying away to meaninglessness as openness becomes the norm, rather than the exception.

We’ll be returning to this topic in the future.  In the meantime, what are your thoughts?

-rsh

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In Which GaryVee Entertains, But Does Not Convince

Gary Vaynerchuk, of Wine Library, is a tremendously entertaining speaker. And he spoke at Inman NY this past week. While we wait for the official video from the good people of Inman, I found this… what do you call it, bootleg conference speaker video? on this blog post by Sue Adler, a realtor who actually works my market. (*wave* Hi Sue!)

Watch the whole video — I’m not going to embed it here, since you can view it on that site.

Gary Vaynerchuk — known more colloquially as GaryVee (his Twitter handle) — is an incredible speaker. He’s full of passion, full of entertaining stories, and definitely has the gift of gab. He is a superstar in the making. I found his Inman talk to be spirited, tremendously fun, and inspiring in many ways.

Unfortunately, for realestistas who must toil in the real estate industry, I felt that he ultimately failed to convince. Well, at least me. Which might be a good thing for GaryVee and his acolytes.

What is especially unfortunate is that Gary’s charisma and natural storytelling skills pose a danger for realestistas trying to figure out what’s what with all this social media stuffzorz. He makes points that are, on the surface, extremely appealing, and makes them in a very appealing way. If he had been a worse speaker, perhaps the seduction would be less.

Ah, but that’s where I come in, playing the killjoy party pooper. Let’s get into it.

Read the rest of this entry »

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