Positive Disruption in Real Estate?

Catchy title, right? Well, this new product launch by Clozip (from the creators of AgentZip) is actually going to deliver. There will be plenty of news covering the things we will be rolling out in the next few months so I'll keep it brief.

"There's money in real estate!"

Want to know who made the most consistent money during the Gold Rush in the 1840s? It wasn't the minors, it was the people selling the mining equipment. Fast-forward to today, real estate is the new Gold Rush. I've been a successful recruiter for the last 3 years and have seen people flocking to the industry in record numbers. Each one looking to strike it rich in the Real Estate sales game.

There is plenty of money in Real Estate sales. If you were to become an agent, you'd also learn that there is a huge market for selling to agents as well. From must-have technology to name tags, there is a company out there looking to sell to real estate agents. In 2013 this became apparent while I was at a real estate software company. Granted, we had a product that actually solved a relevant problem and added tremendous value, but there are plenty of shiny objects out there that get sold to agents that don't actually need.

As agents have been distracted by all these shiny objects and fighting one another for clients, innovative tech companies with VC backing have swooped in and captured the eyeballs of the consumer to dominate the lead generation game. In case you didn't know, agents are now at the mercy of these companies to find and engage with potential clients. It is now the norm to pay these platforms 35%+ of the gross commission! In most cases, that is more than they pay their actual broker!

This model has created a problem for both the agent (diminishing commissions and perceived value) as well as the consumer. Statistics show 50% of consumers visiting the major sites never get contacted and those that do, only get contacted 1.5 time on average! That is a great recipe for a terrible customer service experience. Think about that! I was trained to believe that every inquiry from a consumer represented a dream, a hope, an aspiration.

Enter a new type of agent-centric product

The guys over at CloZip are taking a completely different approach. Much like Gary Keller (Founder and CEO of Keller Williams), they've sided with the agent in the battle for online lead supremacy. Uniquely, they've also added a flare of the other startups that are totally consumer focused. The CloZip system is a Pay As You Go lead generation system (learn more at clozip.com) that allows the agent to have complete control over their lead quality and how much they spend. It also has a component that tracks the agent's performance on the aforementioned pain points (low contact rate and low contact attempt) and incentivizes the agent to reach out quickly and consistently while updating the system with where they are in the process with servicing the consumer. If the agent proves not to be making the maximum effort to give the best service, they will be removed from the program.

This will all add up to a process in which the agent has more control and flexibility and the consumer will have a much more responsive agent, resulting in a better customer service experience. With a few beta tests and small batch releases, the program is showing promising results. Keep an eye out for this team to add more functionality and services to help the agent compete in the ever-changing landscape of the real estate industry.