Baron Briefs

RealtyBaron made a strategic pivot in 2009 with the launch of not one, not two, but three web service APIs.   That decision paid off for us in 2010 in the form of three new strategic partnerships.   Our first partner implemented a pay-per-lead model using our Auction API to introduce consumers to agents.  Our second partner — a licensed broker — is using the same Auction API to introduce consumers to agents based on a referral fee at closing.  Our third partner is launching a real estate Q&A service using our Answers API.

Of those API uses,  the success of the pay-per-lead model was most surprising in 2010.  To be fair, it was the first and had time to undergo several iterations.  In fact, it was a downright rocky start last January when it first went live.  However, the pay-per-lead model had a strong finish.  Here’s a sampling of what agents said after paying for leads from our first partner in the final quarter:

• “It is nice to work with referral partners that make it a win win for everyone.”
• “It seemed like a serious lead. Yes, I liked the quick bid response and the quility [sic] of the lead seemed good.”
• “I am still new to this but I have been able to meet two excellent sellers in my market area. One resulted in a short sale listing and one meeting is today.”
• “The qualty of the leads are good. Better than any I used in the past. All the info wth the leads was correct.”

I expect an even better 2011 as we continue refine the process.

Happy new year!

Imagine your parents are retiring, moving to Florida, and have asked you for help with “meeting a nice Realtor®” in Naples. Unlike the client referral I sketched in scenario #1, this referral is very personal. A referral fee is your least concern. Your parents are aging and they need to be handled by the best. However, you don’t have contacts in or near Naples, Florida. Here’s how a ReferralAuction™ can help:

#1 – Like I said above, a referral fee is your least concern. Therefore, all three bids—opening, reserve, and stop—remain at 0%. Basically, the first agent who meets the minimum required AgentRank™ gets your parents’ business.

#2 – But submitting a bid in this scenario is easier said than done. The minimum AgentRank™ in this case is 10—the highest ranking available—which means unless an agent has an impeccable sales history and glowing client reviews, he or she will be unable to bid for your referral.

Any questions?

Imagine you have a client who is moving to Dallas. You have the listing in California but the client has not yet made a connection with a buyer’s agent. The client asks for a referral, but you don’t have any contacts in Dallas. You want to ensure your client is handled properly, but you also want to fully monetize a client referral that will almost certainly result in a sale for the buyer agent. A ReferralAuction™ can help you achieve both objectives. Here’s the play call:

#1 – The auction opens bidding at 0%, but the “Reserve Bid” ensures a bid of 20% is received before the client’s contact information is revealed to a buyer’s agent. If the auction ends with a bid less than 20%, your identity and that of your client remains hidden from any potential buyer’s agent.

#2 – Assuming the “Reserve Bid” is satisfied, the “Stop Bid” ensures bidding doesn’t exceed your idea of “fair value”. When bidding reaches the “Stop Bid” amount, the referral auction immediately closes and the referral is awarded to the highest bidder.

#3 – The “Minimum AgentRank™” guarantees bidding is available only to agents who have a proven history of closing sales and pleasing clients. In the scenario above, only agents with a ranking of 8 or above are allowed to bid for your client referral.

Any questions?