The first quarter of 2014 saw approximately $269 million in venture-capital investment in real estate tech companies. In the last nine months, more than $500 million dollars has been invested. This digital disruption of the physical world is creating a "pressure cooker" environment for real estate professionals. On the first day of Mega Agent camp, Gary Keller and Jay Papasan discussed this impact on the industry and challenged the audience to go home and do something about it.
In July, 2014 Zillow announced plans to acquire Trulia for $3.5 billion in an all-stock deal creating a combined estimated market cap of $7.5 billion. There has been a lot of discussion about what the merger of the two largest real estate portals means for the industry. "They are just using your information and selling it back to you," cautioned Keller. "I don't know about you, but I don't want anyone except myself responsible for my leads." Keller challenged the audience to take control of their leads and get out there and knock on 100 doors each day. “You have to go out and get holes in your shoes before you have the right to not have to anymore.”
The online data display business is a reinvention of advertising, Keller said. It is a way of digitally collecting leads and moving around who gets to work with them. Keller told agents if they don't like the way this sounds then they need to get out there and take control over their own leads. Agents need to be their own lead generators and use technology wisely.
Keller talked about using the Millionaire Real Estate Agent (MREA) model to get leads that list and leads that leverage. That is something no online source can provide. Only the agent can form these relationships. “Your personal relationship with a buyer or seller is what protects you against all innovation on the planet," Keller said.
Here are some tips on how agents can survive the digital disruption of the industry and be their own lead generators using technology wisely:
1. Get two leads from one source by asking two questions. The listing- Are they buying or selling a home? The leverage- Do they know anyone who would like to work with you on your team?
2. Commit to the MREA model and work for it by putting emphasis on getting listings.
3. Work with sellers. Buyers want to buy, so if you have the seller and they trust you with their listing, you control the listing. They better job you do helping sellers maximize their opportunities, the less chance the technology disruptors can affect you.
4. Remember, no one succeeds alone. If you need help then look around and ask.