A New World of Platforms for Brokerages

The difference between closed and open platforms exposed

By Mike McHenry, VP of Channels and Partnerships, Moxi Works

 

Takeaways:

  • A platform is like a power strip; it lets you plug and unplug tools
  • An open platform differentiates a broker’s tool set, aiding recruiting and retention
  • The difference between a closed and open platform is monumental

 

A “Platform” is whatever you want it to be

Platforms have existed in technology for ages. Most industries have already adopted them, but it’s a relatively new idea for a residential brokerage. I’ve noticed that the word “platform” is being thrown around heavily right now – it’s the 2017 buzz word and because of that, it’s starting to lose its meaning.

Some of these vendors that are calling themselves “platforms,” however, don’t actually do what they should and because of that, you’ll need to know what to look for. There are five basic services that a proper platform should have and offer:

  1. Property data that can be shared across all tools eliminating redundant entry
  2. Brokerage and agent data that’s up to date
  3. Consumer data so technology can help agents manage their SOI
  4. Integration with both Microsoft and Google cloud environment to easily and securely share data across tech companies
  5. An API (it allows other tech companies to integrate and share common data)

Let’s also put some rumors to rest. Just because you use a platform doesn’t mean you need to embrace the entire platform. It would be insane for a single brokerage to use every single one of our 30 integrated partners. A platform is whatever you want it to be for your brokerage.

Also, Security isn’t an inherent problem in open platforms just because a system is open, doesn’t mean it’s insecure. YouTube for instance, is an open platform site. No one is afraid to use it.

Closed vs. Open Platforms

I have to shed light on how important the distinction between a closed vs. open platform is. Many vendors that call themselves “platforms” are just products that sit on a database with no API – meaning they have no way to communicate effectively with one another. Here are some examples:

Open platform: Microsoft Windows. Windows is an operating system that allows you to download whatever you want, whether that’s QuickBooks for your taxes or Adobe Photoshop, and delete the apps you no longer want or use. If apple is more your speed, think iPhone and the AppStore.

Closed platform: Video game consoles. If you buy a game for Xbox and you get a Sony PlayStation, you have to buy your games all over again. The choice is not up to you if you ever decide to switch.

As a broker, this means with a closed platform you have to go with whatever tools the vendor chose to work with OR the vendor built it all themselves and can’t afford to evolve it over time at the same speed as competitors. Either way, it can be a disastrous future for a brokerage.

The reality is, no one can be great at everything. An open platform allows a brokerage to get all of the best tools out there, have them work together, and can change tools at will – hassle free.

Open Platform Benefits

If you’re a broker and you’ve already invested in some tech solutions over the past three or four years like a digital transaction tool, gifting, or lead partners, you don’t have to change them to get on an open platform; you integrate them and preserve your investment in agent training. That’s why an open platform is so dominant: the power and tools stay in the brokerages hands. They help companies retain the tools they love and find replacements for the ones they aren’t jiving with.

If you choose a platform provider for those benefits today, that provider can help you flawlessly transition as new tools come online in the future. At the end of the day that’s what everyone wants right? No headaches and a shorter list of items for a brokerage to worry about.

If those are not good enough reasons to use an open platform, then how about this: money. Maintenance and support are cheaper on an open platform because it leverages the entire community that makes up the cloud. Development time also decreases. Boeing doesn’t make aircrafts, they assemble them.

What’s an Ecosystem?

This is another term used in the platform realm. An ecosystem is a collection of complimentary applications all working together, sharing data, that make the whole greater than the sum of the parts. Each platform has its own ecosystem that makes up the cloud.

Again, think of your iPhone. You can have all of your applications together so that the device becomes an indispensable business tool. You get to pick à la carte whatever applications you need and don’t have to worry about how they work together. If you find later you don’t like an application, you can delete it and install a different one.

Why a Brokerage Should Care

It’s no secret that the pace of change for real estate technology is accelerating. We know that there are hundreds of companies making technology for residential real estate, which makes for thousands of applications available for use today.

What this means to a brokerage owner is that there’s no way to predict which companies and applications are going to succeed or even to envision what technologies will come into the market in the future.

Having a platform and ecosystem of applications that run on it is the key to agent productivity and retention. If you don’t think that having a complete integrated technology platform and applications to offer your agents is important, talk to a broker that just lost an agent to Compass.

If you choose the right platform, you’re going to get most of the benefits that Upstream promises for your brokerage today and will future-proof your brokerage for what’s to come in the future.

Posted on May 24, 2017 at 4:11 pm
Tam Nguyen | Category: Moxi Works, Open Platform | Tagged , , , , , , , ,

What “Free” Websites Mean for Your Brokerage Value Proposition

We all heard the roar coming from NAR (National Association of Realtors) yesterday, who announced they will now be offering free
Placester websites. In the past, these have been offered for $5 bucks a pop, but now are completely “free.”
The problem is, free doesn’t always mean free, and this news puts a big dent in the brokerage value proposition.


Moxi Works CEO, York Baur, weighed in saying, “It’s not good for the industry to have the NAR leveling the playing field for technology. The brokerage is the sun in the real estate solar system and should be allowed to create their own unique value proposition – we don’t need the NAR meddling in that.”

 

It’s important to note that none of these websites will carry brokerage branding. We believe it’s essential for brokerages to encourage agents to include brokerage branding, and although these sites can add your brand, it is not entirely automated. These sites are great for agents to create their own brand and image, but it also creates an extra step for the brokerage to maintain their brand and therefore becomes a headache.

 

“I hate things like this and brokerages should too. It’s not right that they’re taking away the brokerages ability to generate their own unique value proposition. Brokerages should be able to do that without NAR giving away tech,” said Baur.

 

Finally, there’s the upselling factor. This is a “freemium” play as everyone is saying. Freemium models are intended to get something in front of people for free in hopes of upselling them to paid products and services later.

 

Like all startups that raise incredible amounts of money (Placester is somewhere around $100 Million), there will be unbelievable pressure from their investors to get a return. That means they’ll be upselling agents like crazy, which only dilutes a brokerage’s value proposition that much more. “We’re in the business of helping brokerages, so this is unsettling,” said Baur. “The NAR might as well have knocked on the door of the brokerage and slapped them across the face.”

Posted on May 18, 2017 at 5:31 pm
Tam Nguyen | Category: News | Tagged , , ,