Predicting the future is easy – but predicting it accurately is really hard, according to futurist Daniel Burrus. While I can’t predict the future of your association, it’s important for you to prepare for what’s to come.
This is a part of the presentation I gave yesterday at the Pennsylvania Association of REALTORS Business Meeting in Harrisburg.
To me, I’m pretty clear about where organized real estate is heading and I’m happy to share my thoughts with you. That said, today I can help you take the next step by preparing for your future, whatever it brings.
7 years ago, I met my wife Sue through an online dating service. We were each looking for that “right person”. Sue had been looking for the right guy for a few years on other sites and had all but given up. Then she received an invitation to a new approach for a matching service called Chemistry.com. The site facilitated a series of next steps that ultimately brought us together. Chemistry.com was our match-maker. We met one Saturday afternoon for a glass of wine and now we are married and living the life of our dreams together.
How many of you would like to live the life of your dreams?
I’m here to tell you that I want to be your match-maker, by facilitating a series of next steps that results in a much better outcome for you and your association. Imagine what it would be like if your members appreciated what you do for them. Imagine that!. That is my intention for you today.
So getting back to the future of your association, the one thing we know for certain is that your survival is all about the value you deliver to your members. Would you agree that it’s mostly about the value you bring? Everyone has been talking about their “value proposition” and “relevancy”, but I believe, coming soon, there will be two camps – associations that deliver value and those who don’t.
It used to be about the data – you know, all real estate is local and we are the only source of the data. Does that apply anymore? Now we are syndicating the active listings everywhere around the Internet. Data is not local anymore. And it used to be that Associations and REALTORS were the only source of the comps. Now Zillow and Trulia purchase public records in mass and make them available directly to consumers for free.
And how about technology? Technology is not local – it never was. But the combination of local data and local systems and technology was a big part of the historical REALTOR association value prop. Things have changed. Do you believe that 900 local MLSs are sustainable?
As a result, your association value prop is changing, just as it is for REALTORS. The problem is that it is hard to change and for many, you are not quite sure what to do or how to do it. None of this is easy.
That’s why I’m here – to help you surface some new ideas for preparing for your future. After working with 144 REALTOR associations over the past two years and thousands of association directors, execs and staff, I believe each of you has 3 options or 3 choices to prepare for your future and the future of your association:
You can work together with others who share your values, priorities and concerns. I call this collaboration and feel that for many, collaboration is your best solution for preparing for your future.
Or you can merge your associations – and many of you will. A Good Merger occurs when everyone comes out a winner, a lot like a good closing. A Good Merger is when you get most of what you want. However, with 1400 local associations in the US, I know there will be a lot of associations and MLSs that won’t end up with a WIN. That’s because they put off getting prepared. They will choose the last option – the one behind door #3.
This last option is to simply continue doing what you are doing now. Some of my colleagues believe that a majority of local REALTOR associations will pick this one. Lets prove them wrong.
So to re-cap – you can collaborate with other associations, merge with another association, or do nothing? You are the decision-makers. There are no mandates. These are all choices that you can make. Can you think of other options available to you?
Today, I want to focus on collaborations. I think I’ve heard all of the excuses for not working together:
- Our market is unique
- We have special rules
- We’ve tried to work with them in the past and it didn’t come together
But after working with 400 associations in this great business over the past 30 years, I know for sure that you all have a lot more in common than you do differences. … And I know it’s not easy. That’s why I’m here.
So what is stopping you? – what’s stopping you from working together going forward?
(Money – Politics – BOD – EGOS – It’s hard … I know)
Would you like me to share my best ideas with you by way of a few examples?
The 13,000 REALTORS in S. Carolina wanted the best public records including Foreclosure and Pre-foreclosure information. There are 20 associations – 8 of them had separate contracts with tax data providers. 7 of those were with the same vendor. None of them had the best information, which included data about the coming shadow inventory, but they all wanted it. Zillow and Trulia have a lot of it and they make it available to consumers and REALTORS. But this group of REALTORS wanted it integrated in their local systems as a valued member service.
Well there was only one way for them to get what they wanted and increase their value and be more competitive. They did it by working together. My role was the match-maker and facilitator. I was responsible for taking inventory of the current situation, including contracts. Next we negotiated a one contract for the best and most complete information at a much lower cost. In the process, the associations saved several hundred thousand dollars AND the vendor that won the business was rewarded through a longer-term commitment and additional new customers. This was a WIN-WIN. If you are interested in learning more about this, I’m happy to talk with you about how to do this tonight or by phone.
I’m currently working with 31 associations to create bigger and better MLS solution for their members in 4 different states. You should see how this makes it much easier for associations to balance their budgets. Boards paying $12 or $15 dollars for just average systems are thrilled to see $6-$7 system costs instead. For REALTORS, this makes it easier for members to conduct business. While there is incredible opportunities to reduce associate expenses, the overarching purpose was to make it easier for members to conduct business and make money. How simple is that!
MLS is about data, technology plus local management and compliance (that’s the piece that Zillow and Trulia don’t want to do). Your association delivers maximum value when you work together on these things – not by going it along anymore. You simply cannot deliver the same results on your own when it relates to technology.
If you question that, Trulia and Zillow spend tens of millions each year. How about you? What do you or your vendors spend on technology improvements?
This is whats most important – all 4 of these initiatives value and respect the rich heritage of the REALTOR associations. In fact, in every one of these, the association sets their own local MLS fee and keeps the MLS income while sharing a database and system with common rules, uniform enforcement and one-stop shopping for data feeds.
They will leverage their co-op to provide better association and listing websites too. This is another great example of what happens when leadership works together. I always say that the power to change and improve your reality is with the Board of Directors. It starts there for each of you today.
This stuff is not easy for local Boards. In fact, every one of these required a neutral party to bring it home – the one without a dog in the fight. An objective voice is required to overcome the politics and the loud voices in your boardroom who don’t want anything to change. Do you know what I mean? 2 of these new regionals are already up and running – in Michigan and Indiana. They will co-exist with the other existing regionals in their state, who will continue to do a great job of delivering value by leveraging their own strengths and buying power. As an industry, we have created a very difficult situation for the small and medium associations around MLS income. But I’m here to say that there are proven solutions.
The difference is how you get started and then how you get there.
Another great example of collaboration that works started at a state association meeting and a conversion just like this where I met with the directors and staff from the 30 associations to discuss their needs to provide real value. The REALTORS understood the importance of working together to increase their buying power, strength and staying power, but they didn’t know how to do it. They wanted to buy the latest technology including mobile apps without boundaries, websites that were as good as Trulia, shared buying power for lockboxes, public records, showing appointment solutions, CMAs and more. 13 leading associations got started by creating something new and unique. I am flying to meet with the their BOD tomorrow. The next measurable step for them is to deliver high-quality public records for every member in the state later this year. Now that’s real value!
For example, the mobile solution for a local association was about $5.00 per member per month. For the larger group, it was 80 cents. Public records were not available or affordable to the smaller associations. The new model will save REALTORS in one state about $1 million over 4 years. Plus it delivers services that the local couldn’t offer on their own so the members can’t get it any other way.
If you have ideas about how your association can provide significant value and you want to talk about it, see me tonight or call me. It doesn’t cost anything to explore your ideas. Th best way is to schedule a private 30-minute call with you and if you want, your staff and officers. My personal phone number is (720) 556-5923. For more ideas, go to my website and blog. kevinmcqueen.com
So let’s get ready for your breakout discussions. When you break-out, I want each of you to think about ONE THING you believe your association must do to make it easier for you and your members to conduct business and make money. We are looking for BIG value items here. Lets not think and play small today.
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