Redfin: You’re So Vain You Probably Think This Ad is About You
Redfin’s hubris reached a new level yesterday, claiming one of Century 21’s new ads targeted the Seattle-based internet real estate company directly.
Oddly enough, I don’t hear the word “Redfin” at any point in the ad. I suppose it could happen if you played the ad backward, but I highly doubt that as well.
Redfin’s primary strength has been an inscrutable sense for public relations. But this one’s such a severe stretch, I’ll be amazed if Glenn doesn’t end up on the 15-day disabled list with a torn hamstring.
There are many companies who rely heavily on the Internet for their business. There are many agents, including some who are dodging the urge to purchase a gold coat, who do the same. What separates these companies and agents from Redfin, aside from the chutzpah to keep asking for venture capital? We show properties to our clients. And we don’t collect an upfront, four-figure fee for taking a listing (or, more correctly, for entering a listing in the MLS after the client completes the paperwork themselves.)
Century 21’s new ads are varied but the message has little to do with what’s being said. It is all about the gold coats. People recognize the coats. Think it’s a silly notion? Think about Jack-in-the-Box. Not only was “Jack Back” but Jack was everywhere. The best marketing icons live on long after someone had the silly idea to retire them.
(Want further evidence of the power of marketing? Finish this sentence: “two all beef patties, special sauce, lettuce, cheese …”)
Redfin’s post seemed reminiscent of a B-list celebrity appearing on the Surreal Life or other such shows. The 15 minutes (13 minutes in Redfin’s case, courtesy of 60 Minutes) is over … the quest to squeeze another couple of minutes’ notice out of an apathetic public continues.
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Hi Jonathan,
You make a good point.
But the ad seems designed to rebut the idea not that the Internet is useful, or even that it is useful to real estate consumers: Century 21 after all has an Internet site for consumers. The question the ad asks in the opening screen is more specific than that and self-consciously stark: “can a computer can do it all?”
So what is meant by do it all? The real estate agent in the ad answers that question, carefully enumerating the services she provides. And she begins by talking about the idea of a computer brokering the transaction.
So who has advanced that idea? Plenty of folks. But since you’ve made this charge, we would ask you what companies are more closely associated with the idea of brokering real estate sales by computer?
Perhaps it is hubris to claim that Redfin would be near the top of that list.
But where we have claimed to be the exclusive target? In saying that the ad seemed to be an over-reaction, we noted that “we are still one of the only online brokerages,” but not the only one. By comparing ourselves to a nerd noticed by the prom queen, we recognized the pathos of our own vanity.
And yet we did take the ad seriously, perhaps more than we should have. When you work at a small business, it is easy to take yourselves too seriously, and we apologize for that.
In our discussions of the ad over the Memorial Day weekend, we thought about it only in terms of how it would affect our business, and so it seemed like a good idea to surface the discussion that Mike Young and I had about it on our blog — which after all is often just Redfin’s view of the world any, try as we might to make it something more.
Two corrections, hopefully not disputatious: You can pay Redfin $4,000 at closing when we list your property; that you can also pay $3,000 upon signing the listing agreement is one of two pricing options;in either event, there is a 100% customer satisfaction guarantee. One other correction: we offer our clients home tours.
Hi, Glenn … thanks for stopping by. Seriously.
Here are my thoughts …
>But since you’ve made this charge, we would ask you what companies are more closely associated with the idea of brokering real estate sales by computer?
Zip Realty, for one, is well known for its listing searches. But answering the second part, I don’t see you as being all that close to “brokering real estate sales by computer.” Your clients find the home and, from what you’ve said in the past, aside from not showing the property you complete the rest of the transaction much like any other agent would. And you hand the client some cash at the end of the deal. Which is cool. It’s not a model I would attempt, but I’m on my own financially.
> But where we have claimed to be the exclusive target?
The headline for your blog post was “Century 21 Runs an Anti-Redfin Ad.” Seems self-explanatory. And since it’s a blog, you can’t claim what many a reporter (including myself) has in the past and say you were screwed by the headline writer.
> in either event, there is a 100% customer satisfaction guarantee.
So someone pays you $3,000 up front, the house doesn’t sell, they say they’re not satisfied and you hand them back the $3,000? All they need to do is say they weren’t satisfied? If it’s automatic, then I’ll tip my hat on that one.
> One other correction: we offer our clients home tours.
True. Kinda. You do offer the original Gilligan’s Island three-hour tour. As many homes as the buyer wants within that block, according to your site. So I’m thinking maybe 8 to 10 homes. Any future tours, the buyer pays.
As much as I wish I could limit my driving to three hours, my work with buyers often extends beyond that. Even those who are narrowing their selections on my website’s IDX search.
> The question the ad asks in the opening screen is more specific than that and self-consciously stark: “can a computer can do it all?”
Short answer: no. Computers don’t negotiate. True, a buyer can do this on their own but their agent usually has a little more experience and a little better feel for what might work. Computers don’t know how best to protect a client’s earnest money or protect a seller from a potentially flaky buyer.
Forget all of the touchy-feely stuff, like seeing someone’s eyes when they move in as the ad said. It’s a cool feeling but it’s irrelevant. There are some fairly details aspects of the transaction that a computer can’t handle. Clearly, you also recognize this because you have agents in your employ. If you believed a computer could do it all, you wouldn’t need them.
tic toc…
Great article AND comments, Jonathan! Agree or disagree, the Redfin PR tends to be smoke and mirrors.
What the hell???!? I get myself burned at the stake for taking on that 16 Minutes Point2 POS and Kelman shows up here because you called him vain?
Plus please for the love of god don’t put a McDonalds advertising line where I get it on my feed reader late at night…. I have to go out driving for a Big Mac now.
Grrrrr where did I leave my red lightsaber….?!
Your red lightsaber? You’re worrying me, wool face.
Thanks, AR … I can’t deny that the PR machine is incredible, usually. But this was one of their weaker efforts. Which I would have pointed out, even if they’d gone after the hot-air balloon and not the gold jacket.
What’s really funny is I got flamed by one of the anonymous geniuses who haunt the Seattle-area blogs. Strictly personal, of course. Pretty easy when you’re hiding behind an anonymous pseudonym.
the hot-air balloon
Never trust the sale of your most valuable asset to someone who advertises with a big bag of hot air…
Bring back the gold jackets(Where is Bob Pittman, now?).
If I buy the gold, Thomas, will you buy the red one?