jonwashburn: July 2008

As Trulia and Zillow fight for King of the Mountain...

...the real estate industry leaders of old watch from their box seats with nice, cold beers in hand.

On Monday, I published a blog post drawing attention to the fact that the founders of Zillow and Trulia are known for successfully leading companies that dis-intermediate industries.  My intention, by posting in such a sensationalist manner, was to draw attention to my belief that the long time leaders of our industry have not done their part to stay ahead of the innovation curve. Now, because of that lack of new innovation, outsider-led companies like Zillow and Trulia are among the most powerful and influential companies in our industry.

I have always supported the real estate practitioner's use of these outsider-led, venture-backed companies because I believed that the innovation and competition offered by these companies would compel the traditional real estate companies to step up their game and in the process, provide benefit to everyone involved: the consumer, the industry and of course, the businesses involved.

However, the issue traditional companies and leaders face now is that they have not stepped up their game and presented adequate new ideas to compete with these larger, new innovators who are encroaching on their territory.   Instead, they have rolled over to these companies, given up their listings to these "newer and better versions of themselves", and in the process, created a power-shift to those who seek to change the real estate business as we know it.

Do these leaders have a genuine interest in the real estate professionals, or did they choose this industry solely because they viewed it as vulnerable to a major business model change? 

To Trulia and Zillow: Continue what you're doing.  The new empowerment and value you are bringing to the consumer is admirable.

To the Traditional Real Estate Leaders: Step up your game.  Invest in in-house technological developments and force the new generation of real estate innovators to see you as serious competition.  Give them a run for their money!

 

*It's interesting to note that Trulia moved from last place in the group to #2 in less than a one year time-frame.

**I've been working in this industry since I was 14 years old, and have been an agent since I was 18. I've written this post as a plea to my industry leaders, the people I have looked up to for more than the last 10 years, to fulfill their fiduciary responsibility to their agents, and brokers, and re-enter the fight to create the most cutting edge real estate technology that our collective home buying and selling clients deserve.

37 commentsJonathan Washburn • July 30 2008 07:20PM

Match.com the new real estate social network! Huh?

Overheard at the ActiveRain offices:

"Forget the industry specific social networks.  I'm getting my deals off of Match.com."

 

 

 

23 commentsJonathan Washburn • July 28 2008 04:43PM

Travel Industry destroyers now leading the Real Estate industry

Does anyone else see any problem with the fact that the same people who killed the travel agents are now running the largest, biggest financially backed, and most innovative online real estate companies? Or is this just old news?

Rich Barton, Zillow CEO and Founder of Expedia

"The time is quite ripe for the Internet to begin to catalyze a major business model change in the real estate industry,"

Read more of this interview here: Seattle PI blog

 

 

 

Pete Flint, Trulia CEO and former Head of Global Business Development at lastminute.com (Europe's largest online travel company)

"Our strength is that there are a lot of consumers out there who don't mind which airline they travel with, and we provide an unbranded service."

Read more here: Silicon.com

35 commentsJonathan Washburn • July 28 2008 11:39AM

9 things about Localism

1. In 24 months Localism will have more traffic than Trulia and Zillow combined. (That's not an entirely fair prediction since Trulia and Zillow are focused solely on real estate, whereas Localism encompasses everything local.)

2. Where ActiveRain gives real estate professionals a chance to talk to consumers, Localism will give real estate professionals a chance to talk with consumers.

3. Top Neighbor positioning is always free and based solely on a member's contribution to a community.

4. Being the community sponsor does not mean you own the community.

5. Being a community sponsor will give you additional exposure; Just like any good advertising should.

6. We purposely priced the community sponsorships below market value.

7. Localism.com will be backed by a significant advertising campaign.

8. Sponsoring a few communities or small cities should be looked at like an investment in the future.

9. The entire vision for Localism has not yet been made known realized.

98 commentsJonathan Washburn • July 28 2008 11:25AM

No taxes for small businesses

"No taxes of any kind on small businesses with 25 or fewer employees. No employer payroll tax. No state or local taxes. No taxes on earnings. Nada. The business owners will pay income taxes on their personal income they pay themselves, but not corporate earnings"

~Mark Cuban (wiki entry)

Being an entrepreneur since I was 15 years old, I fully support Mark's idea here. It is not the taxes that caused me trouble early on, it was all of the paperwork and red tape. 

This concept is highly relevant to real estate professionals as most of them are independent contractors and are therefore small businesses. The only change to Mark's post I would suggest is that the small business size should be cut-off at 5-10 employees or less; 25 or less is too big.

6 commentsJonathan Washburn • July 28 2008 10:43AM

What happens if someone else sponsors your community on Localism?

I just received this comment in an email and thought it would be good to answer it to the community as a whole:

"We would be very interested in sponsoring the communities we've focused on (listed communities removed) - of course we'd love to have "x city" too but not sure we can "buy enough communities" to get there.

I'm happy you guys are going to make some $$$ - selfishly I hope we still end up with a presence on localism too."

I have heard this sentiment more than a few times over the last few weeks and it needs to be known that the sponsorship portion of Localism represents (much) less than 5% of the total content on Localism.  I think sponsoring a community will provide that member with a benefit, but other members of that community may still develop a major (free) presence as well.

If I was an agent I would sponsor a few of my most important communities or small cities. If I couldn't afford to sponsor them right now I would not be stressed about it as there are plenty of other opportunities to gain a presence on Localism.
14 commentsJonathan Washburn • July 27 2008 10:45PM

Google Knol is a huge tool for RE bloggers

Create a Google Knol account asap and add it to your repertoire of places to contribute content (Mahalo, Squidoo, ActiveRain/Localism and Zillow/Trulia - if you don't care about backlinks).  Early research indicates that Google will rank Knol content very high (also check out this post). Blog here about your local community, similarly to how you would use Localism.

 

 

 

16 commentsJonathan Washburn • July 27 2008 10:29PM

Removing skyscraper ad on Localism

Just a quick note to thank everyone for their feedback on the skyscraper ad. I tend to agree that the mix of advertisers takes away from the user experience. Expect the ad to be removed from the site sometime later today.

         

42 commentsJonathan Washburn • July 11 2008 12:31PM

Localism Q&A: Official Answers

Question: I have invested years creating content for Localism, what happened to all of it?

Answer: All of your content is still there! You, and Google, will always be able to find all of your posts on your personal blog page on Localism. For example this is Deborah Burns page http://localism.com/agents/deborahsseattlehomes

Localism now features new and improved blog pages for every region in the US and Canada.  For a post to show up on one of these pages it has to be approved by one of our human editors.  Right now about 10% of all posts submitted to Localism are being approved.

Current Localism editorial review status:

Total photos: 83,687
Photos reviewed: 44,465
Photos approved: 6,409

Total Posts: 179,526
Total Posts reviewed: 7,400
Total Posts approved: 940

Question: I've created a ton of content for Localism but I'm not showing up as Top Neighbor!

Answer: The Top Neighbor scoring algorithm is based on the amount of approved content you've provided to Localism. We are still only a part of the way through reviewing past content so don't worry if you are not ranking for the next few days/weeks.  If you have worked hard to create good content I will almost assure you that your work will be rewarded with a Top Neighbor ranking.

Question: What does it mean to Sponsor a Community, and do I now have to pay to rank high on Localism?

Answer: All of the ways ActiveRain members got their content onto Localism in the past is still 100% free.  This includes: pictures, blog posts, profile information, and comments. Community Sponsorships are an entirely new type of content that we created specifically for the new localism. We realized that the Localism community and city pages would rank much higher with the search engines if they had some component of static content, and after much deliberation we decided that selling sponsorships for this component would be the fairest and easiest way to get this content created. These sponsored area descriptions will still require the sponsor to write quality information and will be subject to editorial approval.

Question: What are the Top Neighbors, and can I pay to be ranked higher?

Answer: Top Neighbors is a ranking of the top content contributors for each region. The Top Neighbors list is completely based on user content contribution and there is no way to buy your way to a higher ranking.

Question: What is going to constitute an approved article on Localism?

Answer: We are still establishing a written set of guidelines.  Right now I am instructing the editors to accept posts that they would find interesting and valuable if they were looking for information on that particular area.  It is important to note that the more granular the post is tagged the less picky the editors are.  For example, a marginal quality post will likely be accepted on a Community blog, but a very good post may not make the cut for the state blog page.  To have a state level post accepted, it needs to be exceptional.

Question: I have noticed some bugs or other technical issues since Localism went live.

Answer: Check out Jorgen's "issues" post here.  He is the "go-to guy" for technical issues.

Question: The content column is too narrow and is screwing up my content.

Answer: Sorry guys. We had to make a design decision and the narrow column is here to stay on Localism. We felt that for many of the social components we intend on launching in the coming months, more room on the right hand side of the page was going to be important. Currently, only posts that are using HTML (such as tables) that is too wide are being affected. The posts that do not use HTML are being adjusted by an algorithm that attempts to resize images and reformat the posts accordingly. While there will be an adjustment period, you can expect something similar with the blog post creation tool in the not too distant future.

Suggestion: Use plain text and photos.  Don't do html editing. 

Question: Can only people who pay contribute content to Localism

No. Anyone will be able to contribute content regardless of whether or not they wish to sponsor a community. The sponsorship will give that sponsor the right to compose only the static text description at the top left of the community page. All other forms of participation will be open to everyone. You will still be able to be a 'top neighbor', you will still be able to contribute blog posts to your community, you will still be able to contribute pictures.

Question: I am concerned about paying to be an expert instead of writing to be one.

Answer: Don't be concerned! If you don't want to pay, no problem. Your Localism blog posts should still rank very high on Google and you'll still receive significant traffic.  The paid sponsorships are just another option for users to generate business.

Question: Where are listings going to be shown? When are they going to be added?

Answer: We don't want to answer this too specifically, but we are working on something. ;)

Question: How do you define a community?

Answer: We decided to leave this up to our members. My belief is that it will start with users only submitting large neighborhoods as communities, but over time the number of the communities will expand as people choose to submit individual buildings as communities.  For example, I could see a school, church, office building, or apartment complex all receiving great benefit from keeping a community blog on Localism.

Question: We still need some more clarifications on sponsorship. In the city of Henderson, NV there are several master planned communities, and many of these have unique subdivisions within them. If one AR member sponsored the master plan, could others sponsor subdivisions within the master plan?

Answer: Each submitted community will be sponsorable. The two main requirements are that the community have a unique name and reside within the geo-graphical confines of a city.  For example one person could sponsor "Queen Anne" Seattle, and someone else could create and sponsor "North Queen Anne" Seattle.

Question: Should I be reposting all of my old content?

Answer: Yes, under two circumstances: 1) If you had some excellent and timeless posts older than six months, and 2) If you have a bunch of ugly or self-serving marketing material on the bottom of your posts and are open to removing it.

Question: How do i post content to Localism?

Answer: If you are a member of ActiveRain you can post to Localism by clicking the "for consumer" checkbox on the blog post interface and then geo-tagging your post. [Geo-tag refers to selecting the state, county, city, and community of your blog post.]

Question: Are the photos still being editing out?

Answer: Yes.  This will be a never ending process. All photos will be manually reviewed.

Question: What will you be doing to promote Localism?

Answer: We believe that in no time Localism will be ranking very high in the search engines; however we still plan to promote localism heavily through search engine paid marketing.

Question: How do I sponsor a city?

Answer: City sponsorships are free to the member who sponsors the most communities in each city.

Question: What if someone else sponsors a community that I want?

Answer: All sponsorships are sold to only one user at a time. If someone sponsors a community where Localism presence is important to you, you may still capture superb community presence through your submission of compelling blog posts, pictures, and high ranking as a top neighbor.

Question: Are you open to reconsidering your pricing model for the Sponsored Communities?

Answer: Absolutely! Our number one goal is to provide the best service to our members. Of course we are a business and need to make a profit too, but if you have any suggestions on how we can alter our model to serve you better please let us know.

 

Additional Q&A

Question: What do you mean by “If you have a bunch of ugly or self-serving marketing material on the bottom of your posts and are open to removing it.”

Answer: Some of the headers or footers people place on their blog posts look bad on the Localism blog pages.  The editors do take this into consideration when evaluating a post. 

I know how important the call to action buttons are for some of our members, so in the next few days we will be creating and providing some button designs for our members to use that will match the localism design.

Question: The new design format is too small; why are you restricting creativity with it?


Answer: The narrow width on the left column is necessary for future feature initiatives within Localism.  I would argue that creativity is not being restricted.  However, if our members can use plain text in their blog posts it will go a long ways towards making Localism be a consistent user experience for visitors to the site, and formatting issues will be resolved across all platforms.  Please continue to upload pictures and videos to the site. 

Question: Why don’t you make the width on ActiveRain match that on Localism?

Answer: We are working on it.

Question: RealEstateShows do not display properly in Localism.

Answer: I am sorry I wasn’t aware of that. We will start to work on a solution to make them display properly on Localism.

Question: I think it is unfair that I have worked so hard on building quality content for my region and you are going to let someone else have an equal shot at sponsoring my community as me.

Answer: I agree. We are all working on a plan that will allow our most active members a chance to buy some communities in a pre-sale event before the offical "land rush".  It is also important to note that we are keeping Localism in private beta and only available to ActiveRain members until after the land rush. We are doing this partly so that all of the ActiveRain members will get a shot at sponsoring their communities before other local businesses can.

Question: Our team's localism posts had been set up for a viewing pane width of approximately 720 pixels. As an aging Baby Boomer with eyes dimming too quickly, I also like to use a font size of 3 instead of the AR default of 2.

With the new localism's encroachment and adverse possession of about 1/3rd of the previous viewing pane's space, our old blog posts are really messed up.

See: http://www.localism.com/blog/wa/vancouver/posts/547109/Vancouver-Washington-Moving-Resources as an example.

1) Will Localism's encroachment continue? If so, what should I do with our older posts (most of them look bad)?

2) Assuming the encroachment continues I'm considering future localism posts to be teaser text, with the main post back at AR, and all internal linking going to AR pages. Make sense?

Answer: The column width we are using on Localism will nearly certainly be staying the same. Your example post would display nicely if you allowed the picture to wrap naturally and display on the next line. I personally would not make the Localism posts teaser posts, but that is your call.

 

New Question July 11th

Question: I don't like the advertisers being displayed in the skyscraper banner on the right side of the page. Can you do something about it?

Answer: I have instructed Jorgen to remove them. I would expect that sometime today they will simply disappear.

Question: Why have you hired editors to review and approve our content? Isn't that censorship?

Answer: One of the biggest complaints we've had since Day One from many of our members is the concern over poorly written content showing up on Localism. Our editors will ensure that only good quality content shows up on the community pages to be viewed by consumers. In addition, we will be providing our members with very specific critiera for what constitutes good quality content, so you'll be better equipped to publish accordingly.

265 commentsJonathan Washburn • July 11 2008 03:43AM

The New Localism: "Strategies for Sponsorship"

With the unveling of the new Localism BETA version, one of the biggest concerns expressed by our members is how the sponsorship of communities and neighborhoods is going to work.

First, it should be made clear that sponsorship of a particular neighborhood or community won't exclude other members from contributing good, relevant content, photos, videos, listings, market data, etc., to that particular neighborhood/community. Your Localism posts will still show up on the community page. And, if you're a consistent contributor, you can also be displayed as a 'Top Neighbor."

Community sponsorship will afford added visibility to the sponsor. They will be granted a 'static' portion of the community page where they will be asked to author a valued descriptive content on the respective neighborhood/community. Their profile picture and three links will also be provided.

Secondly, the sponsored communities that achieve the greatest amount of success/participation will be the ones where the sponsor champions development and involvement from within the community at large. As I shared in my previous post, "What is Localism?," the whole concept behind Localism is to create micro-social networks where local residents and merchants make meaningful connections and share information relevant to their communities. An effective sponsor would be someone who would aggressively promote and encourage active participation from neighbors and businesses, and solicit their collective contribution of good local content.

How does sponsorship make sense to me and benefit my business?

Imagine if you've been farming a particular development. You may even live there, and be active in the Homeowners Association. What better way to be the chief authority of that development than to create a community on Localism for that specific development. Send out a mailer and solicit involvment on the site for all the residents. Have it become the local community bulletin board to share upcoming events, advertise garage sales, school events, whatever. And guess what? There you are right in the middle of it all!..

It could be a residential development, a downtown condo project, or an older upscale resurgent neighborhood. Perhaps even a commercial development could be created?...the possibilities are virtually limitless!

Some members have argued that their cities or towns aren't large enough to support sponsorship of specific developments and communities. In those instances, it makes more sense to simply sponsor the particular town or city. We have allowed sponsorship of these smaller cities and towns that have a census population size of 40,000 or less.

Again, realize that sponsorship isn't a requirement for your continued involvement and contribution to Localism. As always, there are still plenty of excellent opportunities for you to gain excellent search results and ranking by consistently posting good, relevant articles/information, just as you have in the past.

Community/Neighborhood sponsorship is simply one more optional tool that we've made available to help provide you with more exposure and marketing opportunities for your business.

Here's a few additional helpful links:

https://localism.com/sponsor

All Things LOCALISM

You've Just Sponsored a Community, Now What?

Making the Most of Your Sponsored Localism Community, Part One

Making the Most of Your Sponsored Localism Community, Part Two

Making the Most of Your Sponsored Localism Community, Part Three

Making the Most of Your Sponsored Localism Community, Part Four

Making the Most of Your Sponsored Localism Community, Part Five