Why a Real Estate Broker is No Longer a MSP4158
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 WGAN ForumFounder & WGAN-TV Podcast Host Atlanta, Georgia |
DanSmigrod private msg quote post Address this user | |
| Hi All, A Real Estate Broker -- that also was a Matterport Service Provider for other Real Estate Agents and Brokers -- sent me this email about exiting the Matterport Service Provider business. Your thoughts? Dan ---------- Thanks Dan for asking and for checking in. No, in fact things did not go well with my 3D operation and I shut down the company as [date]. I now have a camera and iPad and all the equipment for sale and just have not had time to pursue trying to find a buyer. I’ve checked with two folks locally that I thought might be possible purchasers and they both were not in the market for another camera at this time. The most successful of those two, [redacted], agrees that both [redacted] and my initial enthusiasm for the Matterport concept has been dampened by the reality of the real estate industry’s lack of enthusiasm to pay the fees we need to support our operation where we can make a profit when the agents don’t need to purchase our services in order to sell their listings, especially in such a hot market as we are now experiencing in [market] and throughout most of the more populated areas of the [redacted]. Our primary customers are the ‘early adopters’ in the real estate industry and even those agents don’t purchase a 3D scan on every listing. Plus, Matterport actively attempts to sell their cameras to anyone who will buy them, so competition grew much faster than anyone expected, and prices for 3D services went down significantly just because other providers wanted and needed to undercut the competition to get business. And it takes a lot of marketing, mainly online and social media marketing, to get business, not relationship marketing in this situation, because relationship marketing takes too much time for the payback involved. Put that all together and it didn’t make sense for a small operator like us to continue to attempt to compete. We also do real estate and our time is much better spent working on real estate deals than on trying to sell Matterport services. I do appreciate your follow-up [redacted]. [redacted] I can see that you have had to be creative to keep ahead of the curve in Matterport and 3D and VR, etc., just to keep your members up-to-date and attached to your operation. Good for you. I hope your operation continues to flourish. [redacted] |
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Cleveland, OH |
CLE3D private msg quote post Address this user | |
| I can understand this for sure. If that's his only offering, it'll be tough to make it a stands alone business, especially if there's other cameras in the market and those cameras are owned by photographers and not by someone who doesn't do it as their full time... [redacted] | ||
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Rootsyloops private msg quote post Address this user | |
| I'm also a broker and MSP, and it's really interesting to get another broker's viewpoint. I actually agree that I make/made a LOT more money as a broker, but I'm ramping down that business and ramping up my media business due to the life-quality improvement of being able to schedule my appointments, rather than being a slave to my phone. The relationships I developed as a broker have made getting photo/Matterport jobs really easy. I was already doing shooting UAS sessions for other agents, so I also had a bit of an in there. I also shoot stills, though I've found with tweaking, the Matterport photos are passable for all but the high contrast shots (e.g. capturing ocean views from a living room). Right now I'm really trying to do what Dan does, and get to the point where I just offer one package that includes aerials, stills and the Matterport tour (all neatly wrapped up in a single property website, of course!) I know many of you have several operators working in your companies, which is really cool! I've actually chosen to keep my business relatively simple - just me and occasionally my wife or one of my kids to come along and help. I love not having any employees, being able to schedule my appointments, and doing something somewhat artistic. The hardest part has been trying to slowly extricate myself from the broker side of things - sometimes I just can't turn down a listing. I totally and completely agree with cle3d that only offering Matterport tours would have probably killed it for me. Offering multiple services keeps it interesting, and keeps me relevant. Unlike the original poster, I have almost completely stopped advertising as an MSP because I have more than enough business, and with additional advertising I would have to either start turning down work, or adding employees - neither of which fit my mission. Sometimes watching the camera spin is pretty boring, I must admit. But mixing it up and trying to create a competitive package that makes the agent happy is pretty enjoyable - and after the camera is done spinning, I get to go home and spend time with my family; worth taking a pay-cut, in my opinion! |
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 PremiumMember North Palm Beach, FL |
hometakes private msg quote post Address this user | |
| @Rootsyloops Prepare yourself for a huge pay-cut when starting out. I went from Top Producing Realtor and got out in 2005 and 12 years later, am still trying to make a 1/3rd of what I once earned...... My advice is to really make sure that you want to give it a go..... Realize this, you will be working just as hard trying to build your business as you were a slave to your phone. Its not as easy as you think when you say, making your own appointments. Not trying to be a Debbie Downer, but it was a lot harder than I thought it was going to be. You do indeed have to have the latest offerings (HDR photos, Drones, Video etc.) I'm now doing virtual staging to try and offer more services that my competition. This is a cut throat business, way more so than being an agent. |
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Rootsyloops private msg quote post Address this user | |
| hometakes, I think you misread my post. I'm not just starting out, and I've been gradually extricating myself from real estate for a few years. I've actually already got more business shooting photos, aerials and MP than I need/want, and I'm more than comfortable with the income. I've been in real estate for almost 20 years, and cutting out 1/2 of my real estate business and supplementing it with being an MSP has increased my quality of life and time with family. I actually started the transition a few years back with drone photos and interior photos, so I have a very solid feel for how this lifestyle compares to being a broker. My opinion is it's far less stressful, allows me more time with family, and much more controllable. I've been fortunate enough to do very well in real estate and invest wisely, so quality of life is more of a motivator than income. I'm too type A to retire, so this has filled the gap very nicely. I appreciate your advice, but I've lived both lives now for a significant amount of time, and I'm very comfortable with the choice I've made. To each his or her own though! |
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davidpylyp private msg quote post Address this user | |
| Great topic string My camera makes me money at a profit or it sits in the case. I'm ok either way |
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Bale100 private msg quote post Address this user | |
| In Spain becoming an MSP for Real Estate is a waste of time. Brokers generally do not have exclusivity for the properties they are selling or renting i.e. the owner has it listed with multiple agencies. The broker will not pay for 3D as they are fearful that they pay and another broker reaps the benefit. Owners will not pay €50 for photos on € multi million properties let alone €several hundred for a 3D Tour. Same with Yachts and most luxury hotels have an exclusivity issue where they don't want to reveal too much. Restaurants etc. prefer street view as they have been led to believe that they will rank higher on Google searches. Everyone loves Matterport when you first show them, however follow through is practically zero and once they realise they can purchase a camera for DIY 3D models you never hear from them again even after follow up & online campaigning. Matterport are canabalising their Channel / MSPs by offering low barriers to entry along with Matterport branded all over the equipment and although Brokers know they can make a camera purchase, not many take action either way i.e. Camera for DIY or hiring an MSP so they end up doing the same that they have done for years. It's a mugs game presenting someone else's technology at your expense as an MSP whilst unavoidably indicating to clients where they can access the technology themselves for a DIY approach. Also, brokers / establishments marketing older properties don't like virtual tours as they are usually trying to hide something and rely on prospects falling in love with the surrounding area / external views etc. Becoming an MSP is not a standalone business - it's a small add on to a more comprehensive Marketing business. Matterport should grade their MSPs to give propective clients confidence in their capability and to help those that deliver quality vs a price based / race to the bottom approach. New features such as those in Dunkin Donoghuts tags will go along way in helping MSPs deliver client value over other virtual tours. Continually Innovation is key for Matterport so that MSPs have a reason to go back to prospects. The innovation needs to demand a skill that MSPs can acquire / develop to make their channel business sustainable. Offering easy to use rich features keeps the barriers to entry low so that anyone can do it. Until this changes, the only way to differentiate is to offer 3D as part of something more comprehensive / sophisticated that requires a skill. Matterports current Channel strategy is in conflict with their direct sales approach. This needs to be addressed by allowing MSPs to offer something slightly different over and above that requires a skill which can be graded & trusted / valued by local clients. MSP Spain |
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