Here’s what REALTORS get when they log on to RPR when they don’t have a cooporating MLS provider. Note the provoking “Are you seeing RED? headline and copy.
Then they are given this email template to fill out.
Stay classy RPR, stay classy.
As you may know NAR announced that on November 1st 2012, like it or not, everyone gets access to the RPR system.
If you are wondering how we got here I present to you an oldie but a goodie…..
You might have to skip an ad at the beginning of the video.
The news of Bob Bemis joining Zillow had the industry buzzing yesterday. But a small tidbit at the end of the announcement, ARMLS CEO Bob Bemis, IMAPP, and Realist, from ARMLS’ blog caught my attention.
“Under Board direction, Bob Bemis will remain at ARMLS to negotiate with IMAPP, as an ad supported tax system, to run alongside the Realist system within MLS. Subscribers can be assured that the accuracy of the tax data they depend on remains ARMLS’s highest priority.
As the details become available, we will keep you informed.”
Did ARMLS just say they are bringing back their tax system vendor, IMAPP? Is that really happening? When have you ever heard of an MLS provider switching back (albeit offering both solutions) to their old vendor? I’ll tell you,…. NEVER. It just doesn’t happen.
Shades of Fresno. And not a ringing endorsement for the new Realist either.
Side Note: Remember when Dale Ross from RPR famously told all MLS executives not to renew their public records data provider contracts (RPR would provide their solution)? Now it looks like ARMLS will be paying for 2! Actually if you count RPR it would be 3 public records systems members have access to. And how sad is it that all this angst from ARMLS members about IMAPP and not a nary mention of RPR? This could have been RPR’s shining moment. They could have parachuted in RPR reps (dress appropriately) to Phoneix and start doing demos of RPR and showing ARMLS members that they didn’t need IMAPP or Realist, that RPR was really THE SOLUTION. Not!
But I digress. Basically the Mob has won. And what does this mean for future MLS conversions? I’d would have a rock solid plan together, along with strong emphasis on social media, if I want to convert vendors anytime soon. (I can hear the keyboards in Arroyo Grande and Scottsdale typing away now!)
And what does this mean to MLS vendors being pushed out an MLS market. Is an ad supported alternative MLS solution a viable option now? If so why not start launching them now? Might be worth the experiment.
Strange days indeed.
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.
It’s just about the time of year when you start reading “top 10” lists of 2011. I thought I would start a new tradition here at Vendor Alley and rattle off my choices for top companies and people in the real estate industry for 2011.
I call them “The Vendys”.
1. The “Bob Hale” Award
The reason I call this the “Bob Hale” award is that it seems Bob is listed every year as one of the top influencer/innovators in the industry. So think of it as “besides Bob”, who really made a difference this year in the real estate industry. : )
And the winner is….Merri Jo Cowen
I’ve been a part of CMLS for many, many years and while other board presidents have set the stage for CMLS to take a larger role in the MLS community Merri Jo has been the catalyst to make those goals happen. It’s been a pleasure to have a front row seat to how CMLS has changed over the years and Merri Jo has been a huge part of that success.
2. Best new real estate technology/product. –Nest
What happens with the inventor of the iPod focuses his attention on real estate? Magic.
Runner up- I have to say that I really love Realtor.com’s iPad app.
3. Top MLS Provider. – MRED, LLC
All you need to do is take a look at the pressroom of MRED, LLC to see the transformation happening at MRED.
4. Top MLS Vendor – TIED: LPS and CoreLogic.
My basis for this was the CIVIX lawsuit. While I believe NAR painted themselves in to a corner with the settlement it was these two MLS vendors who stepped up and wrote the really big checks.
5. Top Real Estate Portal – Zillow
Their spectacular IPO and recent acquisition of Diverse Solutions only shows they are here to stay and poised to dominate.
6. Best new real estate vendor. – Goomzee
I’ve had many discussions with their CEO, Mike Sparr, and he is one of the new players that “gets it”.
7. Top company to watch – RED -Real Estate Digital
After a bold management buy-out, these guys are just getting started.
8. Most improved company – Inman News
The conferences are better, their site is better, Agent Reboot, InmanNext, the list goes on and on. Tim, Alice, Chris, and Katie and the rest of the team has done a spectacular job and can’t wait to see what’s next.
9. Best industry blog – 1000watt Blog
If I can’t pick VendorAlley.com then 1000watt Consulting gets my vote. Brian, Marc and Joel, offer equal doses of spot on analysis and inspiration all wrapped up in a beautifully atheistic and great writing.
10 Best company blog – RPR
While I have been known to poke some fun at these guys you can’t argue what a great job they do with their blog. One small quibble, I can’t view videos on my iPad.
11. Top MLS Provider CEO – Art Carter
Art Carter turned the fiasco that was California Association of REALTORS failed state-wide MLS effort (calREDD) into in the the largest MLS in country. I don’t think he’s done yet.
12. Best Industry Conference. – CMLS
Like with all my picks I’m a little biased but CMLS’ annual conference keeps getting bigger and better.
13. Best Real Estate Franchise – Keller Williams.
Sure their consumer facing website sucks but in the world of real estate franchisors its all about agent count and these guys are winning.
Well that’s it. Am I a “kiss ass”, “spot on”, “not even close”? What say you?
Yesterday Dale Ross, CEO of RPR, wrote a blog post named “The Future?“. The fact he used a question mark isn’t surprising.
Mr. Ross is a bit perplexed on why many MLS providers have not chosen RPR or continue to use their competitors for what he calls “short-term gains.” He references a widely distributed blog post written by Kim Prior of OnBoard Informatics, called “MLSs Taking Control of Destiny – a Plea, an Observation, a Call to Arms“. (Sound the trumpets!) Her post is a bit naive but does lay out challenges many industries face including the MLS.
When RPR launched Mr. Ross stated their plan was to have RPR break-even in 3 years. It’s been a bumpy road since then as many MLS providers challenged their value proposition. In his post Mr. Ross repeated RPR’s value proposition as this:
“What RPR seeks to offer NAR members is REALTOR® control of property data, analytics and valuations. At the core of the RPR system, the licensed data provided to the MLSs by brokers is aggregated with the additional licensed parcel-centric data. RPR then seeks to return valuable tools to REALTORS® designed to bring national and local information as well as agent and broker support systems directly where they are needed the most, at market level to benefit the consumers, but provided by REALTORS® to reinforce REALTOR® value. “
The linchpin to this strategy is how “valuable” the tools RPR is providing. In a recent blog post Brian Larson asks many MLS providers to consider this before resigning with RPR. Reports have suggested that usage of RPR’s toolset are very, very low even by 3rd party software standards. Recently RPR has refocused efforts to improve this.
I’ve been creating and selling software solutions for REALTORS since 1992 and feel your pain. Based on that here a some suggestions for RPR to consider.
1. Stop complaining. NAR has committed 20 million dollars to you and ponied up another 12 million to buy assets to get you started. Add to that you also have a rock star team that includes Marty, Mona, Reggie, Ohan, Kristen and others. Nobody gives a shit about your problems, implement.
2. Don’t be greedy. I still think that sharing future revenues from MLS data with MLS providers is the right thing to do. Look at it this way, I bet you CoreLogic paid 100 times more towards the CIVIX settlement than RPR and still was able to share revenue back to the MLS via its data deals. In that situation who’s the better “industry partner”?
3. Make a product agents love. This is the hard part. But, I guarantee you if the RPR toolset was something agents actually loved all these barriers with MLS providers would disappear overnight. But so far, other than NAR cronies, I’ve never really hear that agents really LOVE RPR’s tools.
4. It’s NOT the data stupid. Data, data, data is all I ever hear from RPR. It should be User Experience, User Experience, User Experience! I’ve had a few off the record conversations with trainers at MLS providers tasked to train on RPR. The feedback has been the same, it’s “too complicated”, it does “too much”. So how about introducing a stripped down version that offers less flexibility but gives the agents something quick and easy. Your data means dick if nobody can figure out how to get at it or how to use it.
5. If you can’t beat ’em, join ’em. It would be interesting to see what Zillow, Realtor.com, Trulia, and other industry 3rd party software developers could do with RPR data. Hell, Zillow is swimming in money since their IPO. How about striking a deal with them for an API to RPR data? Get them, and others, addicted to RPR data.
You’re welcome. : )
I’ve been a little skeptical about RPR‘s prospects. Other pundits have made the statement that RPR was dead. But, the deals signed with CRMLS, and now MRIS signify a major turning point. The critisims used to be that RPR had a lot of MLS providers but the coverage had a lot of holes. Slowly but surely that’s changing.
I think RPR is doing a decent job of implementing on their vision. As I’ve said I’m sure they would like things to move faster, but this is the MLS business and things tend to take their time.
Major challenges still remain:
1. They still need to get the coverage up. CRMLS and MRIS are HUGE wins but, they need to take advantage of this momentum and keep signing larger MLS Providers.
2. I don’t hear of many agents/brokers using any of the RPR tools. Granted a lot of these tools are new in my area but I just don’t hear about them. Of course their revenue model doesn’t need this to happen.
3. “60 million to 80 million in annual revenue”. And when, and only when, they get their coverage up they have to accomplish this lofty revenue goal. Ouch.
4. Runway. In the Inman article I caught something that I hadn’t heard before. “NAR must first recover roughly $21 million in RPR startup costs before it will discuss a revenue split, company officials have said.” You gotta wonder if/when RPR is going to have to go back to mommy (NAR) for more money.
Things that make me go hmmmmmmm: Does anyone think (despite what the Inman article stated) that Dave Charron/MRIS signed a deal with RPR that didn’t have a revenue share component?
Not me.
I was expecting some bigger numbers from RPR but there were a few MLS providers that they came up with that were quite impressive.
I hear more MLS’ will be announced in the near future, as RPR trys to manage expectations.
SoCalMLS
Orange County, CA
MLS PIN
Boston, MA
ARMLS
Phoenix, AZ
Metrolist
Denver, CO
Heartland MLS
Kansas City, KS
