Mobile technology provider Goomzee Corp. has shed some light on what it costs multiple listing services to license mobile apps by publishing a pricing schedule for its latest product, Mobile MLS Apps.
Goomzee’s tiered pricing structure ranges from 40 cents per user per month for MLSs with 50,000 or more members, up to $1.25 per user per month for MLSs with fewer than 5,000 users.
The company is offering 25 percent discounts to MLSs that put down a $10,000 "sponsorship" deposit before the rollout of its Mobile MLS Apps, and a 50 percent discount to those willing to make a $25,000 initial deposit.
"I believe that if we’re open and honest, it will help us get deals done," said Mike Sparr, CEO of Goomzee. Sparr hopes the transparency will help establish trust and streamline negotiations, he said.
Sparr said it was important to give MLSs, who are now preparing next year’s budgets, a heads up for the price of the new product, which integrates MLS search with tax data, neighborhood information and other information, so they can plan accordingly.
Pricing of site licenses has traditionally been "more of a behind-the-scenes negotiation," Goomzee said in publishing the pricing schedule, but the company is seeking to break out from the norm by publicizing its pricing model and incentive opportunity.
Mark Flavin, director of information technology at the Pleasanton, Calif.-based Bay East Association of Realtors, wrote "Hoorah for the transparency and courage to share this information," in a Facebook comment on Sparr’s timeline.
Goomzee, which offers lead capture services using QR codes, text messages and mobile IDX websites, will probably release the pricing structure for all of its future products, Sparr said.
"I have to say this is a bold move by Goomzee and something I applaud Mike Sparr … for doing," wrote Greg Robertson, co-founder of MLS vendor W&R Studios, in a blog post on Vendor Alley.
While Goomzee’s decision to disclose its pricing is "indeed bold, and I’m sure will have a few of us sharpening our pencils, let’s be honest, we all have a ‘rate card.’" Robertson added. "As we all know, prices on that ‘rate card’ immediately go out the door when negotiations begin."
On the topic of transparency, Robertson noted that it’s likely that third-party MLS vendors will also be expected to provide real-time reporting of sign-ups and usage.
Goomzee Mobile MLS monthly per-user site license pricing
|Users||Price per month|
|0 – 4,999||$1.25|
|5,000 – 14,999||$1.00|
|15,000 – 24,999||$0.70|
|25,000 – 49,999||$0.50|
As for Goomzee’s pricing structure, Victor Lund, co-founder of real estate consulting firm WAV Group Consulting, noted in a blog post that only California Regional Multiple Listing Service Inc. (CRMLS) has a membership larger than 50,000.
"Perhaps this tells the story of why CRMLS is able to provide smaller associations in California the ability to offer more MLS services for lower prices than they can negotiate on their own," Lund said. "This is not only true of mobile, but true of all site-licensed products. In this illustration, CRMLS would pay one-third the price of the Santa Barbara Association of Realtors or even the San Francisco Association of Realtors."
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