Primary marketShould A Broker Reciprocity Solution Be Fair To All?
The NAR"s IDX guidelines on how MLSs should implement the sharing of listing data between participating brokers is open to interpretation. Now, some MLSs Broker Reciprocity solutions are open to controversy. The question is: Who gets the lead?
While some area MLSs serving Dallas/Fort Worth, Raleigh-Durham, and Southern California, among others, are allowing agents to put broker reciprocity listings on their Web sites (with the brokers" permission,) they are also allowing them technology solutions that enable the agent to capture the customer. After all, it may be the agent"s Web site that brings in the lead, so why shouldn"t they be able to reap the rewards? And doesn"t the broker stand to benefit with a split that didn"t cost him or her anything?
Those are questions some agents are asking who belong to boards of Realtors with MLS solutions that do not allow agents to buy or have their own Broker Reciprocity solutions unless they either frame in their broker"s site, or in some cases, frame in Realtor.com.
On the surface, getting listings from the broker or Realtor.com seems reasonable. But if you are the agent doing the framing, how do you collect leads? If you are paying for your own Web site to attract business, why in the world would you want your leads to go offsite to your broker or to other agents?
Opponents say that brokers own the listings, and they have every right to use the listings as a lead generation tool for their agents. Many brokers are charging referral fees for Internet leads that turn into transactions. Broker Reciprocity then becomes a solution that benefits brokers with a fresh revenue stream by driving business to agents who either don"t have their own Web sites, or want the broker to supplement their business with additional leads.
The irony of this reasoning is that many brokers are only passing their Web leads to Web-savvy agents, those who are trained in Internet marketing and communications, and have the skill set to service the leads and turn them into closed sales. Why hobble Web-savvy agents with a broker reciprocity solution that demotivates them to bring in new business to the broker?
That"s a new Catch-22 that is being discussed by brokers and agents. When the MLS allows only framed solutions for brokers to pass on to their agents, the law of unintended consequences is invoked. Brokers may find that in creating a referral tool for themselves, they have increased their costs or cut down on revenue streams elsewhere:
Agents could no longer be incentified to spend money on the Web to bring in business
Brokers could find themselves with rapidly increasing costs as MLSs turn Broker Reciprocity into a revenue bonanza.
Brokers could find that the costs of attracting leads online is greater than they think.