In my first post in this series titled Should your MLS consider consolidating, I introduced some of the drivers forcing change and some of the questions leadership needs to ask. 

In this my second post, I will address the obstacles to consolidation and how to overcome them. This is based on my experience working closely with 45 progressive associations that consolidated in the past few years, creating a bigger and better MLS for their members.

IMPORTANT NOTE: This is not about association mergers. It is about bringing the listing data together in a common database, which benefits brokers, subscribers and the consumers whom they serve.

Common obstacles to MLS Consolidation:

Pride, fear of the unknown, egos (let’s be frank here). Most of the people who lead successful associations and MLSs are very passionate and proud of what they have created. Problem is, what they have built will not last much longer, unless they create something new and improved.

Fear of job losses. I run in to this all the time. Sometimes it’s the staff that is afraid and sometimes, it is the leadership who are afraid to lose a loyal employee.

Fear of loss of control or power. And what’s most interesting about this one, is that when we ask the right questions like, “What do you and your organization actually control?” we come up with a rather short list. Furthermore, what associations and MLSs DO control, doesn’t mean very much to the average broker or subscriber who is paying the bill.

Don’t know HOW to do it. This is very common. After all, staff and leadership have most likely never done this before. It’s a lot like listing your own home for sale – it’s complicated and requires an expert with experience.

Money. Oh yeah, there is that! Especially since the majority of associations benefit from MLS profits.

Typical Excuses:

  • We don’t have a problem
  • Our members are not asking for it
  • I don’t see how they would benefit
  • Our vendor contract doesn’t expire for two more years
  • My leadership would never go for it

 

How to overcome the obstacles

  1. Educate leadership that MLS consolidation isn’t synonymous with Association consolidation or job loss. Someone has to lead and take an interest in exploring the available options and potential benefits of MLS consolidation. Others will follow and they will take an interest in what you are doing to study the possibilities.
  2. Gather information by asking the right questions. There is a proven successful process – so you don’t have to figure out how to do it on your own.   This can begin with just your board – or even better, you can sponsor an informational luncheon with your closest neighbors and be seen as leaders. This is how we begin to see the bigger picture and the actual marketplace from 30,000 feet.
  3. Share specific and named examples of how consolidation has worked well for others. Discuss exactly how they went about it, talk candidly about the challenges, downsides, costs and how long it took. It can be accomplished in 90 – 180 days and we have dozens of success stories to talk about and learn from.
  4. Shift the focus from fears and concerns toward the possibilities and the greater good for brokers, subscribers and consumers.

“It’s amazing what you can get done if you don’t care about who gets credit.” Bill Bradley

  1. Involve all stakeholders in the exploration and decision-making process.
  2. Let all voices be heard during the process – the staff, boardroom, influential brokers and members.
  3. Multiple MLS technology platforms are almost always involved. Delay the vendor discussions and system selection until the team has clearly defined their business needs.  Then pick the technology that best supports the business model.

How to get started – what’s next?

It’s easy and takes less than one hour of your time. Schedule a confidential call with Kevin McQueen to discuss your situation. Whether you are an AE, MLS executive, board officer or director or an influential member of your organization – it’s begins with a 45-minute phone call. Schedule yours today.  Or send me an email

My next post will focus on the Benefits of MLS Consolidation

Kevin –

Related post I wrote for Inman News about MLS Consideration

View a related video (#1 of 3):

 

About Kevin McQueen and Focus Forward Consulting

Over the past 30-plus years Kevin McQueen has worked with more than 380 MLS and REALTOR® associations, helping them implement best practices and positioning them for future success. His firm Focus Forward Consulting provides professional services and creative solutions for MLSs and the REALTOR® associations that own and operate them. Prior to launching the company in 2000, McQueen spent 17 years as an MLS vendor (BORIS) and as CEO of Realcomp, Michigan’s largest regional MLS, providing him with a 360-degree insider’s view of the MLS industry and its current mounting challenges.

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