The Insider: Issue 007

Summer is moving at light speed, friends. We made it to issue double o seven. How could we not call that out? Enjoy your weekly dose of Insider-ness.

Last Week This Week

• Keller Williams launched the KW Expansion Network to provide a formal structure around its growing “expansion team” movement. Expansion teams got out ahead of the territory-based franchise model; this brings these things back into alignment. The traditional definitions of what a brokerage or franchisor is are becoming increasingly fluid at a time when legal and regulatory challenges to the industry are hardening.
  
  
• Tech-forward lender Better Mortgage, which originated $25B in loans last year in 47 states) announced plans to go big on real estate brokerage. Lenders getting brokerage licenses and setting up agent networks is not new, but Better is going much deeper: they’re going to hire salaried agents and offer sellers steeply discounted (or even zero) commission rates in order to drive more mortgage originations on the buyside. They’re also messaging hard against the existing brokerage business — e.g., “Real estate “brokerages” are unfair and too expensive.”
  
  
• Sundae, an instant offer company for truly distressed homes/sellers, raised $80M. Two things are interesting here, 1.) we’re starting to see some specialization within the iBuyer category as it grows, and, 2.) big money is reaching down into the traditionally diffuse fix-and-flipper market.

Have You Heard About This?

One year later, Clubhouse is finally out of beta, just in time for... nobody to care? The company announced last Wednesday that it would end its waitlist and invite system, opening up to everybody. The app was the hottest download in February, gaining 10m users in a single month. Heck, we even jumped in. But it was slow to launch to Android, and remained in beta months past its peak. A $4b valuation is nothing to scoff at, but it reminds us that nothing beats building your voice on your own platform.

Many brands are trying to appeal, or appear “relevant” to the Millennial generation. We get it, especially in real estate, where this massive cohort is hitting primo home buying age. But messing with your brand in this way is not without risks. Tiffany & Co.’s new “Not your mother’s Tiffany” campaign is a cautionary tale. Be careful out there.

What's Inside

• We’re dropping a new From the Source focus group this week featuring first time sellers sharing their perspective about their transaction experience and their agent.
• Join us for another Floor Time this Thursday, July 29th at 10am PST/1pm EST. We’ll have some special guests join us for a mastermind on ways to speak more honestly and meaningfully about homeownership in this market. Brokers, Marketers, and Association execs, we hope you’ll join this conversation.
  
  

Inspiration Point

Funny, Not Funny

2020 was all about the year, really. Every conversation seemed to have that number dropped in it, no matter what we talked about. 2021 is all about real estate and the insanity of the market. Where there’s insanity there will be hilarious memes. We thought many of you could appreciate this one above. The big takeaway is that at least no one is saying it’s a bubble.

This Web Connection Sucks

Not saying any of us have ever said or done any of these things, but being busy modern people working in this “unprecedented” market, we thought you all might get something out of this article, “How to Blame Technology.” Some great tips (life skills?) in there for when you can’t blame the dog.

Quote of the Week

“A piece of copy is like a pot of broth. The more you boil it down, the stronger the flavor gets.”

— John Caples, Legendary Ad Man