I was at a meeting recently with a lot of MLS executives and the topic of reporting came up quite a bit and the frustration they felt getting accurate usage numbers from their 3rd party vendors.

Now we all know that not everyone will use the products and services offered by MLS providers to their membership. It seems like most industries it really falls more to the 80/20 rule. Where only 20% of a group is doing any real business. In fact I hear that ratio is closer to 85/15 in some MLS markets.

So I’d like to share what my company, W&R Studios, provides its MLS customers (and Broker customers) in regard to reporting to start a discussion on the best practices of offering such reporting.

What defines an “active user”?

To begin with you first have to defines an “active user”. I’ve seen many definitions. Typically this number represents when a member logs in to the service, at least once, in a set time period. Sometimes this is a 30 day period but many times I see an active user measured as a person who logs in to the system, at least once, in a 90 day period. The period is subjective and may have to do with market conditions as well.

At W&R Studios we give all our MLS customers access to an real time dashboard. At anytime they are free to log in to the system and see these metrics as they relate to Cloud CMA. Here’s just a sample of some of the data available:

1. Number of New Users Signups: Today, yesterday, this week, last week, this month last month and total currently active.

2. Number of Reports Created: Today, yesterday, this week, last week, and last month.

3. Report Types Created: CMA, Buyer Tour, Single Property and Flyers. (Including percentage breakdown)

It’s a lot of information, and our MLS customers love it. Below is a partial screen shot from an actual Cloud CMA MLS Site License customer. They have about 3,500 members total.

Having shown these number I do want to say that we look at these and want to improve. And yes, I chose to show you one of our MLS customers that is performing well (duh!), we certainly have others in which we are looking to gain traction. Point is our MLS customers see those numbers too!

Show Me The Money!

In cases where we have a Revenue Share agreement we also give access to a Revenue Share Pipeline dashboard to show what kind of quarterly revenue share they can expect to receive. The screen shot below is from an actual MLS customer:

All of this data is generated in real-time and can be accessed by the MLS executive at any time.

While not perfect we think this is a big step in giving our MLS customers the transparency they have always wished for and deserve.

What are they so afraid of?

In the end we know, as a vendor, that we will live and die by those usage numbers and with the technology available today there is really no excuse not to provide our customers these metrics.

A few things have been written about MOVE’s latest announcement on the creation of the “Real Estate Network” (REN). MOVE’s says REN will “extend the syndication of property listings to highly trafficked websites operate by real estate franchisors and brokerage networks.”

I have to say I think this is a brilliant strategy on MOVE’s part. Here’s why:

1. Zillow and Trulia have already proven quantity (and quality for that matter) of listing data isn’t necessary to operate a highly trafficked real estate portal.

2. This further hedges MOVE’s position. MOVE currently depends upon its agreement with the National Association of REALTORS (NAR) for listings and does not run a national IDX network.

The big question is “who cares?” So I’m going to focus on a few tipping points that would cause a Franchisor or brokerage network to implement a REN feed on their respective websites.

1. SEO benefits
I think this is the weakest case. Most Franchisors running sophisticated IDX networks from vendors like Homes Media Solutions (formerly eNeighborhoods) and RED (formerly LPS Real Estate Group) have already figured out how to maximize SEO benefits using a platform designed to be a launching site for a “network of broker idx sites”.

2. Cost
This is a big factor. As I’ve stated Zillow and Trulia have already proven quantity of listings doesn’t matter. Aggregating MLS data from multiple sources managing all those different display rules and paying those MLS fees have a huge cost associated with it. What if RE/MAX is paying their IDX vendor $70,000 per month and MOVE is offering REN for $7,000 per month. Is it possible that a company like RE/MAX might opt to save the money? Maybe.

3. The MLS Two Step
This is also a potential decision point. Lets say that a particular MLS provider, for the purposes of this example the Houston Associaiton of REALTORS (HAR) has made is very difficult to display listings from their MLS. The Franchisor always has to jump thru a few extra more hoops when dealing with HAR. Will some Franchisors be willing to forego not having all Houston listings as long was they don’t have to talk to Sam Scott anymore? Maybe : )

4. Filling the gaps
The REN might be a great way for new and exisiting Franchisors to supplement coverage in areas where they don’t have a Franchisee yet. According to the rules they would still need a license in the state, but thats relatively easy. This makes Realty Executives participation as a charter member of REN a little clearer.

5. Exposure.
Search traffic to real estate portals is still heavily brand related. Long tail searches are a relative minor piece to the equation. It was announced recently that Century 21 is running a Super Bowl ad on February 5th. Depending on when REN would be implemented how ironic would it be when Realty Executives announced to their agents that all their listings would be advertised during the Super Bowl. Pass the chips!

In a way MOVE, with the announcement of REN, has changed the conversation away from IDX (something they are very weak in) to Syndication (something they are very strong in).

“If you know the enemy and know yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle”
― Sun Tzu, The Art of War, Special Edition

Smart MOVE.

This will be fun to watch!

‘Fort Lauderdale Realtor Group sues Miami Realtor Group’

The South Florida Business Journal reports things are heating up in South Florida.

“Through its false and deceptive advertising and other contact MAR has brazenly sought to drive and has driven members away from RAGFL and diverted new members from joining RAGFL thereby causing damages to RAGFL,” says the complaint, which alleges violations of the Lanham Act.

I can’t believe they cited the “Lanham Act”.

I sent this post out to Vendor Alley Private Newsletters subscribers last week but thought it was worth a re-post today.

I’ve been reading a few interesting perspectives on listing syndication.

Here’s the first one:

‘Think Before You Syndicate’

Jon Colie, President of Champion Realty – Guest posting on MRIS‘ blog, REsource

If you think about it, a national aggregator selling agents leads off of a website becomes less about the quality of the listing database and far more about the quantity. More listings mean more “eye candy” thus more opportunities to sell agent placement.

Champion Realty is a HomeServices Company, natch!

And the second comes from a comment made on a Vendor Alley post about Brookfield acquiring Prudential:

Brad Blumberg, Smarter Agent

Am I the only one who finds it amazing that the entire real estate relo and franchisor business of Prudential just sold for $110 million, and Zillow Market Cap on that day was over $600 million. Has the value of the real estate purchase shifted to the aggregators at the expense of the value of real estate brokerage businesses. Think Edina realty, when they pulled listings from Trulia, was thinking about creating local value in their brand instead of adding value to the aggregators?

Smart!

A few thoughts about what I’ve been hearing and observing about the state of MLS systems and vendors

Flash’s dead, baby.

I’ve written about the problems and issues of some MLS vendors MLS platforms be written in Flash. and now this, Adobe announced they will no longer continue to develop a Flash version for mobile devices. So to me the debate ends here, MLS vendors who’s new versions rely upon Flash have two choices. Develop a separate HTML5 or equivalent version of their MLS system or create separate “native” versions of their MLS systems that run on mobile devices (iPhone, Droid, iPad, etc.). Either prospects are not great, but….

I’ve seen Discover MLS’ offering and now recently got a sneak peak at LPS’s REinsight new MLS system and was impressed (both are built using Flash). They not only look great, from a UI perspective, but there is some real innovation going on. One of things that struck me about LPS’s REinsight was the blending of the LPS public records data along with MLS data. This is great for creating all inclusive CMAs and other reports. Plus from a map search perspective you can see an MLS listing and also click on the property next to it (that might not be in the MLS database) and up pop public records data, which is super cool. One database, no need to exit out of the MLS system and log in to a separate app, the data is all on the same map/listing view.

I haven’t yet seen CoreLogic’s Fusion product (also developed in Flash) but I have to imagine an MLS system integrated with RealList data would be a hit. CoreLogic does have some hurdles, Tempo, doesn’t work on any browser except Microsoft’s Internet Explorer. And now Fusion won’t run on an iPad. Not anyone’s fault, who could have predicted the iPad’s popularity. But some MLS Vendors, like Solid Earth, appear to be heading to an “iPad first” strategy.

One argument I hear a lot from these MLS Vendors is that according to their analytics less than 2% of MLS subscribers are using iPad to access their current MLS systems. This is just whistling through the graveyard in my opinion.

The Octagon

The issues I talk about above really make for some interesting thoughts about the competitive landscape of MLS Vendors. I see a few scenarios.

Innovation. MLS Vendors who have MLS systems that run on multiple devices, won’t have to develop or mange multiple code bases. These MLS Vendors are free to leverage their develop resources towards other innovations instead of solving cross compatibility issues. A huge advantage as I see it.

Less choice. With the recent acquisition of Tarasoft by CoreLogic lowered the choices in MLS systems vendors. And with CoreLogic still dominating the public records side (has anyone really canceled their RealList contract as RPR has suggested?) are they getting “to big to fail”? Put in another way, do MLS Providers want to have a single vendor control so much of their mission critical applications and data?

It seems the value proposition for other smaller (alternative?) MLS Vendors are starting to get more attractive.

1. Don’t put all your eggs in one basket.
2. More innovation
3. More personal service.

Sounds good to me.

New Business Models

The reality is that its hard being a pimp. MLS system sales have always had a long sales cycle and with the down real estate market not many large/medium MLS Providers are in a hurry to go thru a conversion. So some MLS vendors are opting to start new business models. FBS comes to mind. MLS Providers are also branching out. Metrolist’s Marketplace comes to mind.

Focus is also becoming a big factor. I noticed this in two areas recently.

1. LPS sold their broker and agents division (now R.E.D. Real Estate Digital)
2. CoreLogic recently sold their Membership Director product back to MMSI.

Welcome to the 3rd Party

I also see a big boon for 3rd Party Software developers in the future (hooray!) Managed and standardized databases and APIs are all in the near future. The aforementioned Marketplace is a perfect example of a new distribution model for real estate specific web apps to be sold. If MLS Providers and Vendors can successfully change the behavior of MLS members to look to buy these apps through a portal, and that portal is easily accessible through their MLS system, 3rd Party software companies stand to benefit immensely. Talk about “non-dues revenue”!

You are witnessing the rebirth of MLS Vendors

I see in 2012 MLS Vendors hammering out their strategy for the next NAR annual meeting Orlando. At that conference I think we are going to see a lot of new innovative stuff, not just from the product side but the re-invention of what it means to be an MLS Vendor going forward. I’m excited about the possibilities.

Oh Canada!

My sources tell me that the Canadian Real Estate Association (CREA) has selected Point2 as the exclusive listing syndicator for all of Canada’s MLS listings. Word is Point2 beat out other potential companies, including ListHub.

Point2, which is headquartered in the Saskatchewan province of Canada, should announce something soon. While Zillow and Trulia do not operate in Canada at this time there are other sites such as Oodle and Zoocasa that do.

I think that International Real Estate is going to be a big topic in the upcoming years and Point2 is moving in the direction of providing multinational listing syndication services, which could differentiate themselves going forward.

Early congrats to Saul, Walt and their team for the win.

Rob Overman

Looks like Rob Overman is leaving LPS and heading to ShowingTime.  Rumors of this has been out there for a couple weeks.  I did happen to speak with Rob today and confirm the news about his new gig.  He has been working with the ShowingTime team for many years while at LPS, and always thought of them as talented guys.   In his current gig Rob is working remotely from home for LPS. Rob lives in a suburb of Chicago, where ShowingTime is located, and is now looking forward to working in an office with others.

ShowingTime sounds like a good match for him.  Rob was quick to point out that he enjoyed his time at LPS but was looking for a new challenge.  Good to see him stay in the industry.  Congrats!

So freaking cool…

Source: Lightning | Twice – The official blog of W&R Studios

At the NAR EXPO 2011 in Anaheim I had a chance to get a demo from Bill Fowler, from Solid Earth, of their new “Spring“, MLS system. Hope you enjoy.

Nice win for Rich Lull and his team at LPS MLS Solutions. As everyone knows the “take-aways” (meaning taking business from another) are always the hardest. Congrats!

Full Press Release Below:

The Upstate Alliance of REALTORS® Selects Paragon as its new MLS System

Fort Wayne, Ind., REALTOR® Association to Partner with LPS

JACKSONVILLE, Fla. – Nov. 10, 2011 — LPS MLS Solutions, a division of Lender Processing Services (LPS), announced today that the Upstate Alliance of REALTORS® (UPSTAR MLS) selected LPS’ Paragon™ as its MLS system.

UPSTAR MLS, located in Fort Wayne, Ind., selected LPS MLS Solutions after carefully evaluating several MLS vendors and determining that Paragon offers the features that UPSTAR MLS members need to help them become more efficient and competitive. With Paragon’s online multi-tasking capabilities, agents will save time because they have the ability to conduct property searches, create a comparative market analysis (CMA), change listing information and complete other tasks, without having to close and reopen windows on the computer. UPSTAR MLS was impressed with Paragon for a variety of reasons, including its intuitive and straightforward navigation, which will help members quickly learn how to use the system. And, because Paragon works on any browser or any mobile device, agents are able to access MLS information while in the field.

“We want our members to have the best tools to help them succeed,” said Laura Raudonis, CEO of UPSTAR MLS. “Paragon is an excellent fit for our organization because it is easy to use, fast and seamlessly connects agents with their clients. We are confident our members will experience great benefits from this new partnership and are very pleased that the system will be supported by the LPS team.”

Located in northeastern Indiana, UPSTAR MLS serves the Adams, Allen, DeKalb, Huntington, Noble, Wells and Whitley counties, and has a membership of approximately 1,500 REALTOR® and affiliate members.

“We are pleased that UPSTAR chose to convert to LPS’ Paragon, which will deliver enhanced MLS functionality to Fort Wayne real estate professionals,” said Rich Lull, senior vice president LPS MLS Solutions. “UPSTAR was looking for a cost-effective solution with robust features that could also provide a smooth transition from the association’s current system. We look forward to providing innovative tools and responsive service to UPSTAR and its members.”

Serving more than 300 MLSs and 300,000 real estate professionals, Paragon is a dynamic system platform that makes it easy for real estate professionals to manage their businesses and collaborate with clients. LPS MLS Solutions provides market-leading MLS Systems and public records data. For more information, please contact Bob Morse at 650-863-4333. You can also visit LPS MLS Solutions during the National Association of REALTORS® Conference in Anaheim, Calif., Nov. 11-14, at Booth 619 or online at www.LPSMLSSolutions.com.

About Lender Processing Services
Lender Processing Services, Inc. (LPS) is a leading provider of integrated technology, services and mortgage performance data and analytics to the mortgage and real estate industries. LPS offers solutions that span the mortgage continuum, including lead generation, origination, servicing, workflow automation (Desktop®), portfolio retention and default, augmented by the company’s award-winning customer support and professional services. Approximately 50 percent of all U.S. mortgages by dollar volume are serviced using LPS’ loan servicing platform, MSP. LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries. For more information about LPS, visit www.lpsvcs.com.

Media Contact: Micelle Kersch, 904.854.5043, michelle.kersch at lpsvcs dot com
Investor Contact: Nancy Murphy, 904.854.8640, nancy.murphy at lpsvcs dot com