REA Hit Hard at MyHome

Recent comments by REA CEO Simon Baker to Neil Shoebridge try to demonstrate that REA are not atall concerned with MyHome’s launch. Simon was quoted as saying, that MyHome had no impact on his business (which is true as it is been a little bit of a fizzer)

But what has confounded me somewhat was an email I received that seemed to be a press release from REA that read “MyHome is embarrassing“, so visit realestate.com.au.

MyHome Spoof from REA

Now, I am sure that breaking it up it has a double meaning, but for anyone in the industry with the slightest sense would see that it is a direct right hook into the PBL MyHome gut followed by a swift knee into a place that makes us squeak. I really do not know why they have bothered, to me it shows that they are indeed a little worried and maybe offering up a challenge. I would have thought that they would have not stooped to this level of marketing, but a lot of your money is at stake.

MyHome, REA

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About Peter J Ricci

Peter Ricci is the Director of Agentpoint.com.au, Business2.com.au, Ginga.com.au and ZooProperty.com and has been involved in designing and developing real estate systems and websites since 1997. In July 2001 Peter founded Business2.com.au to help real estate agents better understand the power of the Internet and the real estate landscape in Australia and New Zealand. Since then he has penned over 300 articles on a variety of subjects in the real estate technology industry. Business2.com.au is now the leading real estate technology site in Australasia.

20 Responses to REA Hit Hard at MyHome

  1. Elizabeth March 31, 2007 at 5:57 pm #

    Peter,

    surely you must see the humorous side of this?

    Then again I am biased as this hits hard against the Franchisors who plan to take a cut of my Independent Business.

    E

  2. Chris March 31, 2007 at 6:59 pm #

    Hi Peter

    I’m sure I saw those banners last year. I think you could win $10,000. In fact I just had a look at REA and that was from last Novemeber?

  3. Elizabeth March 31, 2007 at 7:06 pm #

    Good afternoon.

    On the subject of winning competitions regarding myhome, we never did find out who the winners were of those ACP magazines which myhome were awarding to winners of the ‘Why I love my home’ competition.

    Or did I miss the announcement? Nothing on the website.

    Are there protocols for running competitions and ensuring that those that entered are notified?

    Maybe this is something to look into?

    E

  4. Robert Simeon March 31, 2007 at 9:36 pm #

    A typical campaign by a worried and arrogant portal. Last years, campaign was actually MyHomeSucks !!

    REA – should run a campaign on MyHomePageSucks !!

  5. Peter Ricci March 31, 2007 at 9:52 pm #

    Hi E

    I did see the humour, but these boys are not playing with a minnow. If MyHome wants to make a difference it can, but it first has to understand all of its owns flaws before it can even begin to make inroads. Judging by the lack of change to the site, I still think they are still in denial.

  6. Sam March 31, 2007 at 9:52 pm #

    A stupid ad not worthy of the market leader and shows the weakness of their CEO.

  7. max March 31, 2007 at 10:31 pm #

    mmmm.. it does seem to be a ‘mine is bigger than yours’ at head office levels..

  8. Robert Simeon March 31, 2007 at 10:36 pm #

    Peter,

    You hit the nail on the head – as they remain in denial. They continue to upload old listings and we then cop the flak from the public as a result of this.

    I agree that they have the potential to gain market share. However, under the current business plan they are getting more agents off side than on.

    MyHome – could develop a smarter business plan in five days if they knew who to talk to. Which they obviously don’t.

  9. Nick Buick April 1, 2007 at 4:37 am #

    Microsoft and Packer – seriously – I wouldn’t write myhome.com.au off just yet.

    these guys could afford to sit around being an embarrassment for the next 3 years before they pull out some bad-ass syndergies with their existing media-base and flatten realestate.com.au.

    Perhaps I’m just being an alarmist… maybe these guys haven’t got a freak`n clue… but I remember Realestate.com.au was a pile of rubbish for many years – They just happened to have a very good domain name and partnerships with a whole lot of agencies… but that’s basically it… and even today, that’s still basically all they got. They lack a lot of the opertunities afforded to MyHome for rapid growth.

    Think of the product placement PBL can pump into MyHome. Think of the traffic NineMSN can deliver. Think of the leverage microsoft can offer them with integration into MSSearch, Messenger, Hotmail, etc. Jesus, with friends like that, and scrapped listings removing the reliance on agency partnerships (they all hate it, after all), MyHome could swing open its doors to become a global property website tomorrow.

    RealEstate.com.au has none of this on its side.

    PBL haven’t even cleared their throat to start singing yet I’d be just a little nervous of REAs exposure if PBL do fire up.

  10. Paul D April 1, 2007 at 2:18 pm #

    Good point Nick.
    The only thing that keeps REA in the race are the agents that pay their fees monthly. That is a fairly tenuous hold by REA. We all know how agents have a herd mentality, a bit like the annual wilderbeast migration. You only have to have a couple of the more prominent agents change sides, and advertise the fact, and there could be a wholesale migration. REA needs the agents more than the agents need REA, and the whole landscape is continually changing.
    Realestate world is another well and truly on the playing field and warming up. The REI and EAC have direct contact with their 1800 members and that could make a big hole in someone’s income.

  11. Elizabeth April 1, 2007 at 5:54 pm #

    Paul D,

    So let me understand you, REA and domain need me more than I need the leads that Realestate and domain give to me?

    Paul, leads are what I need! This is how I make sales and employ 7 full time staff and 5 part time staff.

    I do not think that content is the be all and end all when it comes to portals, look at homehound. This site has all the listings of the franchises, plus a fair few independents, myself included. The other obvious entry is myhome which has come in with a flurry of advertising and hype, yet once again appears to be faltering. Both of these examples tell me that content and appeal to consumers need to be finely balanced in order to produce leads.

    As a business operator, I NEED a portal which drives leads to my listings. I then take these leads and build my own database.

    As a member of the industry, I am nostalgic in my contemplation that a major corporation needs me more than I need them.

    My reality kicks in now, and it just seems to me that everyone now wants to be a ‘portal’. More portals means more dollars I need to spend, and a greater risk that my listings will be scrapped or otherwise misrepresented.

    I want competition, but I do not want the added headaches of having to check my listings on a myriad of websites to make sure they are representing my business in the best possible light.

    As for this realestateworld, they will need to prove themselves before I participate. At the moment I just see this as an attempt for the REINSW to skirt around the issues they need to be addressing, and for EAC to earn more money from agents.

    With a name like realestateworld, I have a feeling that the slogan will be something rather cheesy. Say, “It is a whole new world” or “It’s a whole new world in real estate”.

    Interesting times ahead.

    E

  12. Paul D April 2, 2007 at 12:22 pm #

    Elizabeth
    “As a business operator, I NEED a portal which drives leads to my listings. I then take these leads and build my own database.”

    I’m sorry Elizabeth, if you can’t see that REA need you to pay your monthly subscription, then you must be one of the herd. I’m not going to get into an economics lecture on marginal utility theory, but obviously REA could price themselves out of the market as long as there is a viable alternative. The reason that Domain (Newspaper) is so outrageously priced is that there are huge barriers to entry in the field of newspapers. You don’t suddenly see half a dozen newspapers springing up to share the newspaper revenues. The barriers to entry in the online business are far less, hence the proliferation of competition.

    Domain ( Newspaper) need the up market agents who are convinced that seeing their ads big and bold and glossy makes the property sell quicker and for a higher price. These upmarket agents then tell you that the REALLY up market properties never grace the pages of the advertising, they sell without advertising. I’d REALLY like someone to explain that one to me. I think it’s all one upmanship, and we’ve got a bigger ad than you stuff. They are competing against themselves and each other, at the expense of the poor old vendor. Tell me what you think would happen to Domain (newspaper) if all these agents didn’t advertise in it for a month?

    Your comment that more portals mean more dollars, is exactly the herd mentality. “I better advertise in all of them in case I miss out on something” There will never be just one portal, so all the agents can put all their listings on it. If that became the case, it would be a monopoly and the price would skyrocket. Do you understand supply & demand ? Competition is what keeps a lid on price. And even though I hate the saying that Mr Adelaide Town uses, I will use it just once – BRING IT ON !!

  13. Dave Platter April 2, 2007 at 4:52 pm #

    (I work at realestate.com.au/the REA Group)

    Peter, that’s not a press release. It’s an advertisement.

    This ad campaign plays off of our blog campaign mentioned by Chris above and which was titled “My Home Sucks.” The idea was people write in why they think their home sucks, and the person with the best story wins $10,000.

    The winner was Mr Mark Wootton of Kellyville Ridge, Sydney. Here’s what he wrote.

  14. Robert Simeon April 2, 2007 at 5:00 pm #

    Too funny Dave – and REA would never think to call it My House as against My Home ??

    Sometimes I think REA suffer greatly from small mind syndrome !!

  15. Anthony April 2, 2007 at 6:15 pm #

    And i just flashback to the Seinfield episode

    “Master of My Domain”

    Can’t wait for that campaign

  16. max April 2, 2007 at 7:10 pm #

    Dave, wasnt this comp run well before myhome.com.au was launched? so how many of these 1800 people new the ‘joke’ to find it funny in the forst place?

    I dunno Dave, if I was an REA share holder I would be to happy with you spending my money in a ‘mine dads bigger than your dad’ comp.

  17. max April 2, 2007 at 7:10 pm #

    Dave, wasnt this comp run well before myhome.com.au was launched? so how many of these 1800 people new the ‘joke’ to find it funny in the forst place?

    I dunno Dave, if I was an REA share holder I would be to happy with you spending my money in a ‘my dads bigger than your dad’ comp.

  18. Tom S April 2, 2007 at 7:26 pm #

    Is there an echo in here?

  19. Robert Simeon April 2, 2007 at 7:40 pm #

    Would that echo be – MyHome Sucks and MyHome is embarrassing ??

  20. Damien McDonald April 4, 2007 at 3:17 pm #

    In response to Elizabeth.

    Interestingly, between the REINSW and EAC, we currently represent the majority of real estate agents in the state. Realestateworld will be packaged with other services and it is the view of David Crombie, CEO of Estate Agents Co operative that in the long term pricing should come down, not continue to rise. To this end as time goes on we will be looking to reduce pricing, not increase it.

    This point is highlighted by the fact that in NSW since 2003, when we started to provide a more cost effective property data service, this forced our competitors to reduce their prices. This was a win-win for the industry and the agents.

    Once again it should be remembered that EAC is a Co-operative, owned by the real estate agents of which its members are the shareholders and the margins on our goods and services are minimal.

    EAC is not answerable to shareholders of publicly listed companies as opposed to many other players in the arena.

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