Computer vs. Realtor: Computer Wins. Twice.
March 25, 2008
Seattle based Redfin, a service that you use in lieu of a buyers broker or agent when buying a house.
We explained their model in detail when they launched in mid 2006. A year later the company was interviewed on 60 Minutes. And all along the way there have been lawsuits and litigation threats against the Redfin model - a home buyer replaces uses the Redfin service instead of a broker or agent. Redfin then refunds 2/3 of the buy side fees back to you. The average reimbursement has been $10,520.
Now, though, based on a report being released by the company tomorrow (the report is embedded at the end of this post), Redfin is able to get a second financial benefit to its buyers. Statistics show that Redfin buyers negotiate a much lower price than their broker competitors. They looked at two markets, San Francisco and Seattle, and gathered data from February 6, 2007 to February 5, 2008.
The data, says Redfin, shows that Redfin buyers paid an average of 1.015% below homes’ asking price, while brokerage customers paid .087%. Translated into dollars, the average Redfin buyer spent $5,048 less to buy a house that they probably would have without Redfin behind them.
So adding those two benefits together, a home buyer will save $10,520 + $5,048, or $15,568.
Digging a little deeper into the data they’ve supplied me, it seems that there are pockets of highly aggressive buyers that are a perfect fit with Redfin. In Santa Clara country the negotiating advantage was $16,107. Redfin also says that their business model, which keeps agents on staff for customer service purposes, are not paid commissions based on sales. They receive bonuses based on customer satisfaction surveys. That means they have to treat their customers well, and make sure they get a good deal.
The model seems to be working. Redfin has been involved in over 1,500 transactions (as of 1/31/08) and had reimbursed around $12 million to very happy home buyers.
As an aside, if anyone remembers a little rant I had last month comparing the working environments in Seattle and Silicon Valley, it was the CEO of Redfin, Glenn Kelman, that I was debating against.
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Biographicon Wants To Be Wikipedia For The Non-Notable Masses
March 2, 2008
Having a page put up about you in Wikipedia is difficult, mostly because of the Notability requirement for inclusion - and you aren’t “notable” unless you’ve received significant media coverage elsewhere. Other services have filled in the gap for the billion or so people online who can’t get onto Wikipedia - sites like LinkedIn, Wink and Spock (as well as most social networks, for the less professional profiles). Read more
Microsoft Office Online and Attacking The Innovator’s Dilemma
March 1, 2008
Mixx Raises $2 Million Round For Social News Voting
February 25, 2008
Social news aggregator Mixx has raised $2 million from earlier backer Intersouth Partners, as it limbers up against Digg, VentureBeat reports. Based in McLean, VA, Mixx only went in to beta in September 2007, but got an undisclosed amount from Intersouth a month later and an investment from the LA Times in December. Founded by former USA Today VP Chris McGill, Mixx is going for news industry partnerships more than the tech geek crowd - it's got carriage for its Mixx button on LA Times and Reuters (NSDQ: RTRSY) amongst other sites. Whilst there are big parallels with Digg and Reddit, Mixx also adds news personalization options.
Verizon to offer unlimited voice, data, and messaging packages
February 18, 2008
- $100 - Nationwide Unlimited (voice)
- $120 - Nationwide Select Unlimited (voice, SMS, MMS)
- $140 - Nationwide Premium (voice, SMS, MMS, VZNav, VCAST, email)
- $150 - Nationwide Email and Messaging (voice, SMS, MMS, and data)
- $170 - Nationwide Global Email and Messaging (voice, SMS, MMS, and international data)
- $200 - Family plan with two lines, $100 per additional line.
- 5GB cap on data is out
- No contract extension for current customers
- Available on one or two year agreements
- All plans include Mobile Web 2.0 portal access (skip it)
- No roaming or long distance
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Yahoo Layoffs Begin; Media Group Numbers
February 12, 2008
From our sources within the company: The expected layoffs have started at Yahoo (NSDQ: YHOO), with as many as 100 expected from the Media Group, including those based in the Santa Monica offices, and elsewhere. We're in the process of confirming names. According to someone mid-level who has been laid off: "It is like a morgue in here." By the way, the technical term is RIF, as in Reduction in Force; CEO Jerry Yang called it a "strategic workforce realignment" during the earnings call late last month.
Staci adds: This is how fluid the information is ... I'm told now the number for the Media Group will be about 50. That's lower than it probably would have been had other actions like the dismantling of the Brand Universe group (some reassigned, some laid off) not already been taken in the last few months.
Among those affected: our friend Susan Mernit, senior director, product, Personals, and Patrick Houston, VP- Content & Programming, Lifestyles. We'll add to this list as we confirm.
More to come.
Marketing Services Provider Lookery Raises $900K Seed Round
February 12, 2008
Lookery, a marketing solutions provider for social networking sites, has raised a seed fund of $900,000 led by Charles River Ventures, Reed Hundt and Vikas Taneja of HT Ventures, according to its blog. The company helps social networks and advertisers by disseminating demographic information such as age, sex and location--while supposedly maintaining users' anonymity--from social media sites to advertisers that seek certain audiences. Last July it launched Lookery for Facebook, a display advertising network enabling advertisers to target specific Facebook members through information garnered from the apps they use. It hopes to raise its first round funding in late April.
Yahoo acquires Maven Networks
February 12, 2008
Yahoo announced Tuesday it snapped up online video platform provider Maven Networks, in a $160 million deal.
What makes the transaction particularly interesting is it comes at a time when Yahoo is butting heads with Microsoft, which launched a $44.6 billion unsolicited bid for the company at the start of the month. As the companies fight over Yahoo's proper valuation, now add to the mix the Maven Networks acquisition as another factoid.
Yahoo and Maven were apparently in merger talks long before the Microsoft bid, with the deal reportedly on the verge of getting inked on Jan. 31 or Feb. 1, according to reports. Then add to the excitement Microsoft's mega-billion-dollar buyout off on Feb. 1, and it's understandable there would be a slight distraction to the Yahoo-Maven deal, wouldn't you say?
Nonetheless, the Maven deal moved forward and here's what Yahoo hopes to get out of it:
Yahoo is aiming to bolster its video content syndication and video advertising capabilities to publishers and advertisers. Maven develops video publishing platforms designed to allow publishers to dish up videos to consumers through a range of media players, easy-to-use media management and workflow technologies.
Yahoo is seeking to meld its library of licensed video content, as well as its relationships with advertisers and Web publishers, with Maven's technology to manage and distribute online video to such media company titans as Fox News, Sony BMG and Gannett.
Maven will retain its operations in Cambridge, Mass., and operate as a Yahoo wholly owned subsidiary. Or, perhaps, one day, a wholly owned Microsoft subsidiary...
Dave Morgan, AOL’s EVP-Global Advertising Strategy, Leaving For Startup World Again
February 11, 2008
Dave Morgan, the founder of online advertising firms RealMedia (which later became 24/7RealMedia and sold to WPP for $649 million) and Tacoda, is leaving AOL (NYSE: TWX) exactly three months after being appointed EVP-Global Advertising Strategy, according to an internal memo we obtained. The official announcement will come later today. Morgan came to AOL after he sold his behavioral advertising company Tacoda to it in September, for about $275 million.
The memo, sent by Ron Grant, COO of AOL, outlines a rather cordial parting of ways, and when I reached Morgan last evening by phone, he confirmed his departure, and echoed the thoughts. From the text of the memo:
"Dave has worked side by side with Curt to make sure the integration of Tacoda—his baby—went smoothly...Dave helped us define and implement our vision for Platform-A. We've benefited greatly from his enthusiasm...and we will continue to do so as we bring Platform-A to market this year. In fact, Dave will be working with me to identify start-up opportunities that are strategic to AOL and Platform-A.. Dave, though, is an entrepreneur at heart, and so it didn't really surprise me that he wanted to get back in the start-up game again and we'll look forward to working with him in the future."
Morgan told me he is looking at a couple of ideas in the online advertising field, and will possibly even look at AOL funding some part of it, if it makes sense. But a departure three months after his new appointment at AOL will raise more than a few eyebrows, especially as the big Internet media companies are in turmoil and tussle for consolidation. This is the second major departure from AOL's ad team announced in the last week: Discovery just hired Kathleen Kayse as EVP of digital media sales..she also came from Platform-A where she was EVP of marketing solutions and led ad sales and partnerships.
AOL will not fill the role created for Morgan. Curt Viebranz is currently the president of Platform-A.
These moves come after parent Time Warner announced its intention last week to split AOL into an access business and an audience/advertising business. There is rampant speculation that all of this means AOL will sell off the audience business, or get in bed with Google (NSDQ: GOOG) in a bigger way, especially if the MSFT-YHOO deal ever happens.
David adds: I met with Morgan two weeks ago to discuss his views on the state of the online ad industry in general and AOL's ability to continue its string of investments and acquisitions amid widespread recessionary fears. Not giving any hint of his plans to leave his current post, he said companies like AOL will have to be more aggressive about looking outside the U.S. to extend its ad network. "If you believe in the long-term market opportunity, the down markets are when you want to make your strongest moves." Guess he is making his…
Harbinger Parent Ups Stake In NYTCo To 9.96 Percent; Activists Meet With Management
February 11, 2008
Harbert Management, the parent firm of Harbinger Capital, announced in a regulatory filing that it now has 9.96 percent of the New York Times Company (NYSE: NYT), or 14.25 million shares. Through its Harbinger unit, the firm had previously disclosed a sub-5 percent stake, as part of an effort to put nominees on NYTCo's board. We reported at the time that it was always the intent to up its holdings, but that it originally wanted to fly under the regulatory radar.
-- Meeting: In addition to the new holdings announcement, the firm filed a letter sent by Scott Galloway of Firebrand Partners (also part of the activist group) to Chairman and Publisher Arthur O. Sulzberger, and CEO Janet L. Robinson referencing a previously unreported meeting held on Friday: "On behalf of Harbinger Capital Partners and Firebrand Partners, I am writing to thank you again for taking the time to meet with us last Friday. We are looking forward to continuing a productive and positive dialog. Accordingly, as we discussed on Friday, each of our director nominees is free to meet with the members of your nominating committee at their convenience."
-- Board nominees: The filing also makes official the four proposed nominees to the board each of whom were previously identified: Scott Galloway, James A. Kohlberg, Allen L. Morgan, Gregory Shove. The fund reserves the right to substitute other names or add additional ones if NYTCo attempts to change the structure of its board.
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