New web based services are popping up all of the time, some with questionable business models and some legitimate. One I was informed about today, tells us that they save consumers thousands of dollars and the name of the website is refrealestate.com.au. Now if there is a questionable model for business this is it.
The site has a large database of agents names throughout Australia. Basically a potential seller searches their area and contacts an agent via a web form. But no, this email goes to refrealestate and then they contact the agent in question. This raises a few important questions.
- Do they use this information to contact other agents?
- Do they charge agents a fee for the referral? (they have to make money)
- Do agents know that they have a page that they are ranked on?
The savings
It claims that $2000.00 is the average saving. I am presuming they are going off institute fee structures. Now any dummy can save that money in a first meeting with an agent. The best way to save money is to invoke competition. If a vendor wants the most out of the agent, the best way to approach this, is to work out what they are getting first (products, services) and detail this information. This is the best way to rank an agent, then the time will come to negotiate a fee. Then a decision is made.
I must say I am getting sick of all of these new websites just trying to pilfer more money out of agents, so I am going to do something about it. All these services do, is denigrate the actual offerings of the professional agents. If the first step a person takes is wanting to get the cheapest deal, then they have already fallen down the stairs.
I am sure agents do not mind being advertised on various sites, as long as it is complimentary. I doubt many would judge this site as any help at all.
5 Comments
Robert Simeon
We noticed that our business was listed here and we have had no contact what so ever with this operator. Once I threatened immediate legal action we were immediately removed. I have also reported them to the REINSW who have commenced an immediate investigation. They have also been reported to the Office of Fair Trading.
Many real estate offices have called them demanding their immediate removal.
Robert Simeon
I now see that they now removed every real estate agency listed on previously on their website. So for those who may be a bit confused asd what they may be looking for no longer appears.
I understand that plenty of agents phoned them threatening legal action – which explains why all have now been removed.
Peter Ricci
I really don’t know why they do it like this. I just got an email saying that I am always bashing the little guy. That is incorrect. I love it when something new challenges the norm, but this sort of dribble just races my blood.
Glenn Batten
What did they honestly expect.?. Agents to sit back and just accept that rubbish.
Why is it your fault that agents found their business plan worked directly against their interest?s Oh yeah…. you highlighted it so its your fault !! funny how some people think..
Greg Vincent
I don’t think its about bashing the little guy. Every business be it a good or bad business model is open to being scrutinized and this will become even greater in the future. A great book on this is Peter Sheahan’s new book ‘FLIP’ and the example of Ribena and the school girls testing their claims about Vitamin content.
If its a good business model it will prosper. Most times the business simply needs a couple of changes and it can work but not sure what they can do in this case.
To rate an agent as poor without any facts & then asking that same agent to pay you a listing referral fee – I don’t think so. It’s going to be difficult for them to juggle being on the consumers side & on the agents side at the same time. They should re-think it & move forward or do something completely different.