Maybe it’s the frustrated business school professor in me, or the memories of sitting in Professor Barry Nalebuff’s classes during business school, but what has fascinated me the most about the ongoing debate about Trulia’s no-follow outbound listings links (started here by Galen Ward, then continued here, here, here, and here) is not the arcana of the no-follow tag, not the dissection of SEO intricacies, and not really even the question of what is or is not appropriate to do with listings online.
No, what really fascinates me about this debate is how it accentuates co-opetition in the real estate industry. Co-opetition is simply the notion that companies compete and co-operate simultaneously. Arch-rivals Northrup Grumman and Boeing go mano-a-mano to get a lucrative government contract … and the winner often subcontracts part of the project to its rival. Microsoft and Oracle have competing database platforms but often sell eachother’s products.
In our industry, co-opetition reaches nearly incestuous levels. For instance:
- Brokers John and Betty compete for the listing at 123 Main Street. Betty wins and puts the property on the MLS. The very next week John brings potential buyer clients to the property. Sure, he would rather have won the listing, but that’s in the past. Now he’s working with Betty to consummate the transaction. No hard feelings.
- Realtor Bob hangs his license with ABC Realty. He puts an ABC Realty sign on the front lawn of all his listings, and the ABC Realty logo is prominent in all his media ads. He’s co-operating with his real estate brokerage to promote their brand, and he in turn benefits from that brand awareness. Co-operation. A phone call from a prospective buyer of one of Bob’s listings, however, may well go through to the agent on “floor duty.” That agent turns this phone call into a client, who goes on to buy a different listing, not Bob’s. That’s competition — Bob would have loved to get that phone call and turn it into another client, but his competitor — the other agent, and to some extent his own broker — snagged that client. Co-operation plus competition = co-opetition.
- A thousand local brokers — each fierce competitors — co-operate to run a local MLS. They put their competing listings up on the MLS, and they compete to bring buyers to each of the listings. At the close of each transaction, we again have co-opetition — competing parties co-operating for the sake of the deal.
- Broker Tom snags a listing and puts it on the MLS. Via the wonders of IDX, that listing spreads its tentacles onto a thousand other sites, including that of arch-rival Broker Sarah. As long as Broker Sarah indicates that Tom is the broker of record, it’s all good. Her site is much better than Tom’s, so she gets more traffic and hence more clients online. The fodder that draws in those visitors? Listings … not only her own, but also Tom’s.
- Broker Rachel gets the listing at 789 Elm Street and puts it on the MLS. She also puts it on Trulia, which, like the MLS itself, exposes the listing to a much broader audience than she could reach on her own. She benefits from the increased exposure, and Trulia gets more inventory to display. It’s a win-win — co-operation at its finest. The next day, a prospective homebuyer passes 789 Elm Street and Googles the address to find out more. Who’s on the top page? Trulia and Broker Rachel’s listing site. Now they’re competing — for web traffic.
There really is nothing new under the sun. This business has always been a co-opetitive one, and we’ve always simultaneously co-operated with and competed against not only every other broker, but many of the third-party advertisers, aggregators, and media companies.
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Tags: Industry, MLS, Real estate, Trulia
