I was an advocate of keeping REALTOR.com and not spinning off the asset. I was a vocal advocate of keeping listings exclusivity on REALTOR.com...having MLSs and brokers display their listings only on REALTOR.com, and then selling ad space on REALTOR.com to the many advertisers already advertising on the many venues offered by NAR. I believed then (and still do) that if the listings were organized, easy to search, and branded...that consumers would learn that there is on place to go to look for real estate for sale, and that place would be REALTOR.com...100% owned and operated by NAR.

Attempting this would be a financial risk for NAR...and here is an e-mail that I sent to the then Executive Officer of NAR, Bud Smith on July 12, 1996, about 6 weeks before the Special Meeting of the NAR BOD in Chicago at the Airport Sheraton. As this was very controversial, and much was at stake, you may note a conciliatory style in my e-mail. Emotions were running high and wanted a hearing and  did not want my e-mail to be dismissed out of hand:

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July 26, 1996

Hi Bud,

Please forgive me if I am stating the obvious or if I am being presumptuous. That is not my intent. I would like to share with you certain concepts and ideas as they appear to me, someone who has been a very keen observer of RIN, the people associated with RIN, and the members and their perceptions and expectations of RIN. Again, I apologize if I am being to basic or covering ground you may have already handled.

The first one that came to mind is advertising on REALTOR.com.

If it is determined that the sale of ad space can be a net revenue generator for RIN (REALTOR.com), a sales team will be needed to market the various advertising packages. I believe that team already exists at NAR. You have in Advertising and Conventions, experienced people selling ad space, convention space, marketing, etc. and they are managed by your very capable senior staff. Advertising space on RIN (REALTOR.com) could be one more product they offer to their advertising clients, many of whom would probably love the opportunity to purchase electronic ad space on RIN (REALTOR.com) through NAR. You build a revenue share into your business plan. An opportunity to increase the revenue of the Advertising Department, and provide revenue for RIN (REALTOR.com).

You have no doubt already thought of this and either ruled it out based on your sound evaluation of the current circumstances, conditions, and restraints, or have decided that it is an option to further pursue. I am sorry if I have needlessly taken your time.

Saul
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So...in a nutshell...I would have incorporated REALTOR.com into the operation of NAR and used NAR resources to build the brand and traffic...that is what I believed at the time and what I would have done.

As for Google...I think that if REALTORS nationwide understand what is happening, and had a longer term vision and outlook, they could effectively counter the Google threat...which I truly believe is a threat and will change real estate sales forever within the next 10 years.

It is not, in my opinion, "just information" in the future. Artificial intelligent, virtual worlds, and more will be nothing less than a paradigm shift and all those with money invested in the "old ways" will lose their fortunes. Remember, when a paradigm shifts, everyone goes back to zero...your past success guarantees NOTHING when a paradigm shifts. As a matter of fact, your past success may blind you from seeing the future.

MLSs will disappear and the role of the REALTOR will be forever changed.

Saul

Original Post

Hi Saul:

The other day I posted and you were straight out responding to others.

I know that many are keeping you busy defending REALTOR.com. and NAR, I am not one of them. I personally believe that the site needed the for profit element to succeed.

I am curious though if you think NAR could have done anything differently way back when, that would have avoided some of the issues that we read about today?

Also, your concerns regarding Google. I feel that all of this is just information and that today more than ever, buyers and sellers are looking to Realtors to guide them. Do you feel any internet site with any amount of information can replace this?

I am in the process of making technology decisions for myself and my company. Yours and others thoughts on these are helpful.

Thanks,

Art Ferrara