* Redfin, a real estate brokerage, has announced that it will be ditching the ‘Your Listings, Your Leads,’ model adopted by Homes.com, aiming to change the game with a new business strategy.
* Glenn Kelman, CEO of Redin, cited that this fresh approach allows agents to interact with customers directly, ripping off the middle-man, thus aiding the whole buying and selling process.
* Redfin’s newly adopted ad-free model is set to provide a straightforward home-buying platform, making things easier and less confusing for potential home buyers.
* Kelman, advocating for Redfin’s cause, slammed the Homes.com model, stating that it doesn’t serve agents or consumers effectively and is merely a marketing technique for brokers to advertise their listings.
* The brokerage has high hopes that Redfin’s autarky will prove beneficial. This change aims at making the home buying and selling process more transparent by eliminating ads, which can often distract or mislead users.
* The industry experts have mixed opinions about this new strategy with some lauding it as a game-changing move, while others remain skeptical considering the dependence on advertisement revenues in the real estate business.
* Redfin’s recent strategy signifies a crucial shift in real estate’s traditional business model, which primarily depended on Sea of Ads real estate platform for generating revenues.
* Kelman clarified that Redfin doesn’t intend to demonize ad-funded models; instead, it wants to provide a better user experience which Homes.com’s model failed to deliver.
Redfin Says ‘Game Over’ to ‘Your Listing, Your Lead’
CEO Slams Model’s Effectiveness, Vows for Better User Experience
A Bold New Strategy or A Risky Business Move? Industry Experts Weigh In
Now, here’s the funny bit. Redfin came out of the blue, very much like an overexcited bee, decided to shuck off real estate’s old skin and gleefully dive into a new one. And while they are busy buzzing about the ‘principal-agent problem’, one can’t help but wonder, was the old model really a dud or is this another smoke-and-mirror antic to just stir up the monotonous sea of bricks and mortar? Whatever the case, their brave move has indeed given a fresh twist to the forever monotonous saga of real estate narratives.
And what about the ‘Your Listing, Your Lead’ model? Well, it’s been shoved off to the corner like a bad kid on the naughty step. It’s been labelled as a wicked fairy, casting confusing ads-spells on innocent folks in the market for their dream home. While Kelman’s disdain for Homes.com’s approach is evident, not all are ready to give up on the ad-funded cinder-fella just yet.
So, will this be the Faberge egg that gets Redfin the golden ticket in the Willy Wonka’s real estate factory or will it unintentionally invite wrath from the disenchanted munchkins (read other real estate agents)? Only time will tell if this bold move will pay off in a heavily ad-reliant industry. Whether this plot twist will end in applause or tomatoes, we’ll be front and center with the popcorn.
Original article: https://www.inman.com/2024/01/25/zillow-president-susan-daimler-defends-long-gestating-super-app/
