realonomics

REALonomics is paying tribute to Bill Gates for his contributions to business with three video posts: (The Tom Brokaw Interview, Bill’s 1992 Predictions and this one, Bill’s Last Day at the Office). Bill’s last day was filled with emotion, feedback from well-wishers and a lot of humor from around the country.

Think of how your life and business is different because of this man and his vision. Like him or dislike him, there is no question that his business has transformed life on planet earth. It’s hard to even think of life with his software, a PC on the desk, MS WORD, MS EXCEL, PowerPoint and the rest of what Bill Gates delivered. Enjoy the YouTube video, posted here as a farewell tribute.

Please post a comment with respect to how you believe Bill Gates has influenced the business world in general and the real estate industry in particular.

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Bill Gates will stand in the halls of business history as the person who transformed not only technology but entire segments of the business world with an operating platform called “Windows” that dominates the globe with an approximate 90% market share.

Upon his retirement from Microsoft, REALonomics is honoring Bill Gates and his contributions to business and of course, who could question his influence on the real estate industry? Here’s a video from 1992 with some of Bill’s predictions.

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Today, June 27, 2008 was his last day at the helm. No other person in our lifetime influenced technology like Bill Gates, Founder of Microsoft. His Disk Operating System (DOS), Windows platforms and Microsoft Office changed not only business but people and now the world.

Through video REALonomics salutes Bill Gates for his contribution to business and indeed, who can deny, the real estate industry itself.

Below is Tom Brokaw’s interview with Bill Gates about his exit from Microsoft, his influence and his future in philanthropy.

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Kevin Seney knows his way around the real estate and mortgage industries. He’s comfortable talking about both and equally comfortable addressing their dark sides. Our paths crossed recently and I began to explore his new franchise concept Bug! Realty.

Although REALonomics cannot address the validity of Bug’s economic model, its brand, marketing, emphasis on cyber agents and offices, lower overhead and a commitment to meeting the needs of the consumer in a transparent way caught our attention.

We tracked down Kevin and found him as open as his model. He was eager to share with us his vision for Bug! Realty and the the real estate industy itself. Kevin discusses his own franchise offering, comparing it to what he calls the “tired…instituional…not current” traditional brands. The following excerpts come from our exchange with Kevin Seney. For the full interview, click here.

REALonomics: Can you tell us who Kevin Seney is and about your real estate background?
Seney: I have been involved in real estate since I was a teenager. Growing up in Wyoming, I had a remodeling business in high school which led me to building spec homes when I graduated. We eventually lost our butts, when our construction loans went to 18%, but I learned some valuable lessons at 20.

I started my own Mortgage Company, The Home Loan Store, Inc. I opened the company in a small, highly visible downtown retail space, right next to Starbucks. I finally sold the company in 2000 and took some “much needed” time off.

Looking back at my experience working with Realtors® I walked away with a very unique perspective on the business of real estate. I was always amazed how much money Realtors® spent on “Image Advertising” and “putting on the show,” but as an insider, I knew how INEFFECTIVE it was for them. Meanwhile, I felt like consumers were all laughing at the industry. The economics of real estate were changing quickly. Real estate needed an “Image Makeover.” I HAD MY IDEA!

REALonomics: As you know, REALonomics is in a perpetual quest for what we call “Model Perfect” because we think the real estate industry and its relationship with the consumer is in dire need of a transfusion. What makes Bug Realty a unique model in the sea of options for brokers/owners and agents? What are your core value propositions and distinctives?
Seney: First, let’s talk about our brand. Existing real estate brands are tired and institutional. They are not current. They are from the 1970’s.

Our brand is NEW. It is COOL. It stands alone in the industry as being COMPLETELY DIFFERENT. People love to talk about Bug! Our brand has personality. Our brand is clearly distinctive!

REALonomics: What prompted you to create Bug Realty and what’s the message behind the bugs?
Seney: I saw a clear opportunity for this model. The market is wide open for change. The message behind the Bug goes clear back to my original objectives with brand development. I set out to create a brand that was simple, yet cool and consumer friendly. Something New! Something Fun! Something Remarkable! Something that signaled CHANGE.

Here is what all the experts said: Powerful brands are simple. Powerful brands are memorable. Powerful brands carry significant emotional meaning to the consumer. As a result, people talk about powerful brands. Consumers love us. They love Bug! simply because they already did.

REALonomics: What do you see as the major trends that are present in the real estate economy that can harm and/or help owners get a grip on their business and its profitability equation?
Seney: We could not have launched our franchise at a better time. I would like to say that I timed it that way, but our experience so far, has been that the entire industry is looking for something new.

Consumers are also licking their wounds, recalling the guy in the $100,000 car who sold them the house that is suddenly without equity. The consumer wants change too. People are becoming economy and ecology minded. Our message is being well received.

The more difficult the market, the more our model makes sense. Every day I hear of established brokers going out of business. Can’t pay the rent.

REALonomics: Does Bug Realty have any relationships with core service providers such as mortgage, title, escrow, home inspection, etc. and how do these work within the organization’s framework.
Seney: So far nothing. The industry is still floundering and not paying much attention to new opportunities. Coming from the mortgage industry, I also believe that the consumer wants freedom of choice for both mortgage and escrow.

Keep it Simple, is our motto. When the time is right we will tie up with a national lender for marketing reasons and a shared web experience but I still believe in local people making their own choices, in their own markets, with local service providers. This is still a “People Business” and we want to keep it that way.

REALonomics: Apart from the Internet, what are the components of your technology platform, that is, your internal technology tools that you bring to the table for owners and agents? Do you espouse transaction management; tablet PCs or any of the trendy technology solutions?
Seney: We require all agents and franchisee’s to have the basic “Bug! Virtual Office Package” which consists of a wireless laptop, cell phone, eFax and online forms, and business software.

We are exploring many options such as agent blog sites, internet marketing options, and an array of transaction management software.

Recently, I made the decision to standardize our Franchise on the Apple iPhone. All agents will have one. Why? They make us even more portable. Our agents always have internet access, even in line at Starbucks. And, most of all, they are just cool. We are a cool company. It works.

REALonomics: Are you seeing broker/owner profitability problems in the current market situation and do you think the industry is going to see the closing of doors with respect to real estate brokerage firms.
Seney: We already covered this, but again, it is clear that there is a lot of “fixin” to be done in the real estate industry. Doors are closing daily, across the nation. We believe we have the solution.

REALonomics: We have a readership of thousands of people from all aspects of the industry including franchises, title, mortgage, owners and agents. What’s the most important message you have for the industry as a whole?
Seney: Join us! We have an incredible future ahead. We are pioneers having the time of our lives. We are creating something really cool. We need leaders. We need visionaries. We need regular people.

In December of 2007, we closed out our first round stock offer of our Series A Preferred. We are already planning a second round offer later this year. We exceeded our plan for 2007 by 118%. Our costs were HALF what we expected!

2008 and 2009 will be explosive for this company. Our franchise is currently approved in all 50 states. We have a regionalization plan already in place. We have already sold our first Region: Welcome Region ONE in San Francisco, CA.

Every day I wake up and pinch myself…is this really happening?

REALonomics: What question would you most like asked of yourself that we have not asked and what’s your answer?

To see the Kevin’s answer to this question and other you may retrieve a complete copy of the interview by clicking here.

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Gary Keller and I first met via telephone sometime in 1993-94 for a discussion about “profit sharing” real estate brokerage business models. We’ve remained engaged in dialogue over a variety of issues for more than a decade. Off-and-on we bounce back into our overlapping universes to banter over one issue or another, picking mutual brains for insight with me benefiting most. His books, The Millionaire Real Estate Agent , The Millionaire Real Estate Investor and Flip have positioned Gary as one of the true “thinkers” and “doers” of this industry.

Keller Williams Realty International is one of the franchise success stories of the past two decades and has emerged as one of only a few “New Model Math” brokerage concepts. REALonomics caught up with Gary Keller, the co-founder of Keller Williams Realty International, and captured the following insightful interview with this industry leader. Gary talks about “techno-babble,” “brandchising” and how our Internet models have turned into a help desk model that goes nowhere. Here are excerpts from our exceptional exchange with Gary. For the full interview, click here.

Gary Keller, Quoted

“When experiencing the downside of a cycle businesspeople (broker and agent) must do two things: cut expenses to the core and put focused effort around driving growth. You first have to protect your margin and then build from there.”

REALonomics: Keller Williams has seen excellent growth in the past decade, what are the core specifics of your economic model that serve as the fuel for KW’s acceptance in the market place?
Keller: I think it has to do with the economic soundness of our model. It was created out of the tough market of the late 80’s and is built on low risk and a managed rate of return…DOWNLOAD THE INTERVIEW

REALonomics: How did the books Millionaire Agent and Millionaire Investor change your role in the organization and how did it contribute to the success of KWRI? Are there more books coming?
Keller: Actually, these two books came about because of my role in the organization. I have always been a student of the real estate business and helping agents grow their business is a real passion of mine…DOWNLOAD THE INTERVIEW.

REALonomics: Some organizations, we happen to be one of them, think real estate franchising has reached somewhat of a saturation point. Do you think this is true in any way and if so, how does KW define its growth model for the future?
Keller: I really don’t think of it that way. There is “franchising” and there is “brandchising”. The industry is absolutely saturated with “brandchising” but not with “franchising”…DOWNLOAD THE INTERVIEW.

REALonomics: We are obviously out of the rapidly appreciating market run-up we all enjoyed. What is your advice to broker/owners regarding how they can weather the current financial storm in the lending industry?
Keller: The current market condition was inevitable. That is why we call it an economic cycle. When experiencing the downside of a cycle businesspeople (broker and agent) must do two things…DOWNLOAD THE INTERVIEW.

REALonomics: Do you think there are too many real estate agents in the industry? If so, why can’t this industry do what others do and cut back its labor force to create a better economic model? What’s our hang-up with respect to our come-one, come-all approach?
Keller: Yes, but that has always been the case no matter what market we’ve ever been in. Since the nature of our relationship between agent and broker is one of independent contractor it really has never been the role of the broker to decide how many people are or aren’t in the industry – only their company…DOWNLOAD THE INTERVIEW.

REALonomics: Do you think broker/owners are leveraging technology and the Internet in ways that truly make sense for themselves, their businesses and the consumer? Do you advocate paperless solutions such as tablet PCs for agents and back end transaction management technologies?
Keller: This is a tough question to answer. I think the bottom line is that most don’t know what they’re doing. Without a sound lead capture and conversion system in place, which most don’t have, the Internet is being run like a real estate help desk where all the information is given to the caller and then we hang up…DOWNLOAD THE INTERVIEW.

REALonomics: Are you seeing broker/owner profitability problems in the current market situation and do you think the industry is going to see the closing of doors with respect to real estate brokerage firms.
Keller: Those companies who can’t cut expenses to the core may truly have a tough go of it in this market we face right now. Those who can will be the winners coming out of it.

REALonomics: What question would you most like asked of yourself and what’s your answer?
Keller: What matters the most to you? And my answer is GOD, FAMILY and then BUSINESS!

DOWNLOAD THE ENTIRE INTERVIEW HERE.

Want to know more about Keller Williams? Visit www.KW.com.

Want to read Gary Keller’s books: The Millionaire Real Estate Agent , The Millionaire Real Estate Investor and Flip.

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