Bob joined Zillow as VP Partner Relations in March 2012. Previously Bob was Chief Executive Officer of Arizona Regional MLS from 2007 to 2012. Prior to that he was VP of Customer Care at MRIS, Rockville, MD.
Brad, Thanks for taking time to frame a debate that I'm sure will continue through much of 2012. But I must take exception to a couple of the metaphors and the way you have mixed them in the presentation. You compare the market value of Zillow to Prudential and find Zillow’s is 5-6 times that of Pru, so you conclude that, “…this reaffirms that over time, property listings aggregators devalue the business of being a broker-owner, all the while growing their own stature in the industry.” This conclusion presumes there is a direct and inverse relationship between the two companies and that somehow Z’s increase in value depressed Pru’s valuation. I don’t see how these are connected. As Sarah rightly points out, they are two completely different industries, different business models, and not competitive in any way. To the extent that Pru agents who advertise on Zillow receive leads (value) for their investment (ad$$’s), one could conclude that a more prosperous Zillow actually increases the value of the Prudential brand. The analogy between Expedia and Zillow also is flawed. I don’t know of one airline or hotel chain that was put out of business by Expedia. But there are a bunch of travel agents pushing brooms today because of Expedia. Indeed, my loyalty to United or Southwest Airlines has not diminished. But my use of a travel agent has. I don’t need to use someone with a proprietary database to book my airline tickets. I go to Kayak.com and compare prices, schedules, non-stops, but I also check Southwest’s site (since they aren’t included on Kayak) and pick the flight that is the best combination of price and convenience. I pick the best overall value, factoring in bag fees, change fees and on-time track record. I compare prices on multiple websites to make sure I’m choosing between competitively priced tickets, just the way a home buyer might compare house prices using a Zestimate® or an eappraisal® both of which appear side-by-side on Yahoo!. I still rely on the Professionals (pilots in this case) to get me to my destination safely, just as buyers who shop on Zillow or Realtor.com or any other aggregation site eventually seek a professional pilot (the agent) to get them through the journey to home ownership. If one thinks that national listings sites jeopardize the brokerage business, then one is at the same time conceding that agents do nothing more than print lists of homes for sale. The travel agents who survived Expedia were the ones who concentrated on service, not searches. I agree with you that the value of the brokerage brand is totally dependent upon the level of service the consumer perceives from the agents that affiliate with that company. But first access to the consumer is a factor only if the broker is playing a numbers game – grinding out meals like a McDonalds. The value of the broker brand is influenced more by what that broker’s agents do with and for the buyer after they’re through the door. That’s what makes Morton’s or Ruth’s Chris more valuable than Ponderosa or Outback. It’s not just the steaks. It’s the SIZZLE. Let's keep the conversation going. Bob Bemis, CEO Arizona Regional MLS
Don't stop with just barbecue chicken and Milkbones. You wouldn't go to the neighbors for dinner without a bottle of wine. Toss in a few bottles of wholesome, nutritious, non-alcoholic beer made just for the pooches and you'll be the hit of the listing presentation parade. See www.bowserbeer.com for more details. Great house warming and post-closing gifts as well.
