Comments on: REA Profits Surge http://www.business2.com.au/2007/09/rea-profits-surge/ Real Estate Agent News and Information Technology Tue, 16 Mar 2010 11:55:46 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Graeme http://www.business2.com.au/2007/09/rea-profits-surge/comment-page-1/#comment-3095 Graeme Thu, 27 Sep 2007 09:33:21 +0000 http://www.business2.com.au/2007/09/03/rea-profits-surge/#comment-3095 REA has sewen up the W.A and possible the Australian market, however the great thing about free enterprise is that it will always pull back the peaks and level the playing field in some way or another over time. Go Go google maybe it will realy be FREE enterprise. Graeme REA has sewen up the W.A and possible the Australian market, however the great thing about free enterprise is that it will always pull back the peaks and level the playing field in some way or another over time. Go Go google maybe it will realy be FREE enterprise.
Graeme

]]> By: Robert Simeon http://www.business2.com.au/2007/09/rea-profits-surge/comment-page-1/#comment-3094 Robert Simeon Thu, 27 Sep 2007 02:15:52 +0000 http://www.business2.com.au/2007/09/03/rea-profits-surge/#comment-3094 First and foremost the successful real estate businesses rank their own website(s) ahead of all property portals for delivering results. In recent years there has been an enormous transition to database mining which is linked back to the individual agents websites. The property portals are simply back-up. Secondly, if everybody already uses Google as their preferred search engine one would think that searching for real estate is simply a natural progression. They seem to have a successful habit of getting these things correct ie earth, mapping etc !! Just because REA and Domain got it right eight or so years ago does not mean that in years to come their respective business models could become out dated and irrelevant to the wider consumer. Google keep referring to their search engines which are the online encyclopedia of today. What remains to be seen is how Google can propel search over portal which simply comes down to navigation and speed. Their Google alerts are outstanding which is probably the clue !! First and foremost the successful real estate businesses rank their own website(s) ahead of all property portals for delivering results. In recent years there has been an enormous transition to database mining which is linked back to the individual agents websites. The property portals are simply back-up.

Secondly, if everybody already uses Google as their preferred search engine one would think that searching for real estate is simply a natural progression. They seem to have a successful habit of getting these things correct ie earth, mapping etc !!

Just because REA and Domain got it right eight or so years ago does not mean that in years to come their respective business models could become out dated and irrelevant to the wider consumer.

Google keep referring to their search engines which are the online encyclopedia of today. What remains to be seen is how Google can propel search over portal which simply comes down to navigation and speed. Their Google alerts are outstanding which is probably the clue !!

]]> By: Peter http://www.business2.com.au/2007/09/rea-profits-surge/comment-page-1/#comment-3093 Peter Wed, 26 Sep 2007 23:37:03 +0000 http://www.business2.com.au/2007/09/03/rea-profits-surge/#comment-3093 Hi Patrick and thanks for your comments. I doubt Google would ever use their powers to promote their products above others. Their whole company is based on trust. Without that everyone would ditch them - including myself. They would however have an intricate knowledge of how to make their sites rank well. As for FREE being degrading, I also doubt this is the case as so many Internet models are free and built around other revenue models, just like the Google Search Engine, free to list, free to use! Glad to see you here and please keep contributing. Hi Patrick and thanks for your comments.

I doubt Google would ever use their powers to promote their products above others. Their whole company is based on trust. Without that everyone would ditch them – including myself. They would however have an intricate knowledge of how to make their sites rank well.

As for FREE being degrading, I also doubt this is the case as so many Internet models are free and built around other revenue models, just like the Google Search Engine, free to list, free to use!

Glad to see you here and please keep contributing.

]]> By: Patrick http://www.business2.com.au/2007/09/rea-profits-surge/comment-page-1/#comment-3092 Patrick Wed, 26 Sep 2007 21:45:42 +0000 http://www.business2.com.au/2007/09/03/rea-profits-surge/#comment-3092 Hi all, Pete, i love your blog and beleive it is the best real estate international forum. Google will have Free content, but it does not mean they will have the right formula to succeed or get the agents to follow them. First, i see a major problem between owning a search engine that works marketing OTHER real estate portals, and wanting to compete with them. if they do real estate, will they still fairly rank MY real estate website? Second, a free website is to my point of view ranked as a less serious one. real estate is a serious business and subject. Don't degradate it and compare it to any other cheap product. third, I want to taget a selecti Hi all,

Pete, i love your blog and beleive it is the best real estate international forum.

Google will have Free content, but it does not mean they will have the right formula to succeed or get the agents to follow them.

First, i see a major problem between owning a search engine that works marketing OTHER real estate portals, and wanting to compete with them. if they do real estate, will they still fairly rank MY real estate website?

Second, a free website is to my point of view ranked as a less serious one. real estate is a serious business and subject. Don’t degradate it and compare it to any other cheap product.

third, I want to taget a selecti

]]> By: Elizabeth http://www.business2.com.au/2007/09/rea-profits-surge/comment-page-1/#comment-3091 Elizabeth Thu, 20 Sep 2007 20:27:40 +0000 http://www.business2.com.au/2007/09/03/rea-profits-surge/#comment-3091 Good morning, Adam, what you just stated interests me. "They want to own the worlds information and how you view it" Very interesting. From conversations here, I was lead to believe that Googles focus was based on Search. However if they now want to own the information, as in owning my listings data, then this changes things a little. E Good morning,

Adam, what you just stated interests me.

“They want to own the worlds information and how you view it”

Very interesting.

From conversations here, I was lead to believe that Googles focus was based on Search. However if they now want to own the information, as in owning my listings data, then this changes things a little.

E

]]> By: Adam http://www.business2.com.au/2007/09/rea-profits-surge/comment-page-1/#comment-3090 Adam Thu, 20 Sep 2007 09:27:55 +0000 http://www.business2.com.au/2007/09/03/rea-profits-surge/#comment-3090 I quote Andrew... "therefore, from an agents point of view, they would be more inclined to list the property on the website that will have the most views by potential customers, and not necessarly the website which offers the cheapest listing?? Agreed... but how long did it take Google to become the NO.1 Search engine ? They want to own the Worlds information and how you view it. If they have their minds set on this, and their money committed.......... they will win. I cannot wait ! :) I quote Andrew…

“therefore, from an agents point of view, they would be more inclined to list the property on the website that will have the most views by potential customers, and not necessarly the website which offers the cheapest listing??

Agreed… but how long did it take Google to become the NO.1 Search engine ? They want to own the Worlds information and how you view it. If they have their minds set on this, and their money committed………. they will win.

I cannot wait !

:)

]]> By: Paul Krayven http://www.business2.com.au/2007/09/rea-profits-surge/comment-page-1/#comment-3089 Paul Krayven Thu, 20 Sep 2007 01:53:37 +0000 http://www.business2.com.au/2007/09/03/rea-profits-surge/#comment-3089 Personally I think those lead generation tools are a waste of money and they should vanish off the face of the earth until someone comes up with a decent proven tool. I'm approached almost weekly by some new lead generation tool that will revolutionise our business. Yeah sure, if I haven't heard of it how will buyers? Personally I think those lead generation tools are a waste of money and they should vanish off the face of the earth until someone comes up with a decent proven tool. I’m approached almost weekly by some new lead generation tool that will revolutionise our business. Yeah sure, if I haven’t heard of it how will buyers?

]]> By: Mark http://www.business2.com.au/2007/09/rea-profits-surge/comment-page-1/#comment-3088 Mark Thu, 20 Sep 2007 00:02:06 +0000 http://www.business2.com.au/2007/09/03/rea-profits-surge/#comment-3088 Not all REA business make a motza. Although not widely publicized - they own 60% of a lead generation service for agents - homeguru. According to the financial that came out (page 40) homeguru lost $431,473 to the end of June 07. Link to Aug 20 audited financials. http://investor.rea-group.com/irm/content/newreports.html It doesn’t matter how big you are or how much money you are making, nobody likes to lose close to $500,000 in a year. If I was an agent using homeguru as a lead generation service I’d be concerned. Who knows they may not be there this time next year... just my view though! Not all REA business make a motza.

Although not widely publicized – they own 60% of a lead generation service for agents – homeguru.

According to the financial that came out (page 40) homeguru lost $431,473 to the end of June 07.

Link to Aug 20 audited financials.
http://investor.rea-group.com/irm/content/newreports.html

It doesn’t matter how big you are or how much money you are making, nobody likes to lose close to $500,000 in a year. If I was an agent using homeguru as a lead generation service I’d be concerned. Who knows they may not be there this time next year… just my view though!

]]> By: Stellabella http://www.business2.com.au/2007/09/rea-profits-surge/comment-page-1/#comment-3087 Stellabella Tue, 04 Sep 2007 00:04:03 +0000 http://www.business2.com.au/2007/09/03/rea-profits-surge/#comment-3087 Glad Peter started off this topic, because it finally gave me a reason to post! I can't quite agree that listing fees for online media are "about right." With online out-performing print, the pricing is completely at odds with the results being generated by online vs print. It's like charging $50 a litre for mixer and $2 a litre for the alcohol. In all likelihood (and I could be wrong, but rarely am) consumers will continue to value the service factor that online classifieds provide: intuitive navigation and seach functionality; save features, calculators, etc. Secondly, it would appear that Google are growing dependency on their non-core products, like maps, which may eventually develop into a revenue stream in one way or another. And lastly, as Andrew correctly states, what agent is going to promote a free, yet under-performing medium when he can make a commission on paid media placements? Glad Peter started off this topic, because it finally gave me a reason to post!
I can’t quite agree that listing fees for online media are “about right.” With online out-performing print, the pricing is completely at odds with the results being generated by online vs print. It’s like charging $50 a litre for mixer and $2 a litre for the alcohol.
In all likelihood (and I could be wrong, but rarely am) consumers will continue to value the service factor that online classifieds provide: intuitive navigation and seach functionality; save features, calculators, etc.
Secondly, it would appear that Google are growing dependency on their non-core products, like maps, which may eventually develop into a revenue stream in one way or another.
And lastly, as Andrew correctly states, what agent is going to promote a free, yet under-performing medium when he can make a commission on paid media placements?

]]> By: Andrew http://www.business2.com.au/2007/09/rea-profits-surge/comment-page-1/#comment-3086 Andrew Mon, 03 Sep 2007 04:07:00 +0000 http://www.business2.com.au/2007/09/03/rea-profits-surge/#comment-3086 thanks Peter. you touched on the fact that you think REA's subscription costs per agent wont work out, and that the free service of a Google or Yahoo would eventually outperform REA. this is only my opinion (and im wrong at least 15 times a day!!) but wouldnt the cost of listing the property online ultimately be paid for by the seller, not necessarily the agent? therefore, from an agents point of view, they would be more inclined to list the property on the website that will have the most views by potential customers, and not necessarly the website which offers the cheapest listing?? in the end, for a prperty that cost for example $500,000 would an agent really be concerned about a $15 listing fee that will potentially give them access to 90% of the market?? and at present, that site is REA?? not to sure if my thinking is correct in terms of who pays for the listing fees (the agent or the seller?) or whether the listing fees for agents is a major concern or not? any thoughts?? thanks Peter.
you touched on the fact that you think REA’s subscription costs per agent wont work out, and that the free service of a Google or Yahoo would eventually outperform REA. this is only my opinion (and im wrong at least 15 times a day!!) but wouldnt the cost of listing the property online ultimately be paid for by the seller, not necessarily the agent? therefore, from an agents point of view, they would be more inclined to list the property on the website that will have the most views by potential customers, and not necessarly the website which offers the cheapest listing?? in the end, for a prperty that cost for example $500,000 would an agent really be concerned about a $15 listing fee that will potentially give them access to 90% of the market?? and at present, that site is REA??
not to sure if my thinking is correct in terms of who pays for the listing fees (the agent or the seller?) or whether the listing fees for agents is a major concern or not?
any thoughts??

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