by Morgan Carey
on Thursday, April 11th, 2019 at 9:49am.
I've just returned from Inman Disconnect and it was an absolutely amazing gathering of real estate's most brilliant and engaged minds. Our group was dynamic, passionate and driven to try to figure out what the future of our industry might look like (in the next 5 years).
One of the themes that was most prevalent in our discussions was change. Phrases like "we must adapt to new challenges," and "adjust our models to accommodate new competition," or "meet new expectations of our customers." Our customers in this case are agents, teams and brokers whether you are on the franchise side like RE/MAX or on the vendor side like Real Estate Webmasters Inc.
We talked a lot about listening to our customers (our agents) and responding to those things that were clearly pain points, or clear desires from a large group. It was quite a compelling meeting and I highly recommend it for executives considering it for next year (Thanks Brad!).
Change at Real Estate Webmasters Inc
The other big theme for me at Inman was the fact that we talk about this industry as "one thing" i.e. "The Real Estate Industry," however it is in fact many things. There are segments: Luxury, Starter homes, Flips, Distressed, Downsizes, Commercial, Rentals and all things in between.
Where an iBuyer might have a great chance to "disrupt" the distressed home, or life situation seller with urgency, they are likely never going to effect the luxury market. That sort of thing. And of course agents, teams and brokerages (and their models and needs) are also just as varied.
We have also been thinking about this at Real Estate Webmasters and have decided that it's time we not just address some of the important feedback we get from our customers, but also acknowledge that the needs of our customers are different based on their size and complexity.
On our new company website (due to launch later this year) you will find that we have broken down our content into 4 distinct categories: Agents, Teams, Brokers & Enterprise. These are our core customer types.
Generally if you don't fit into one of these buckets, you are probably not a Real Estate Webmasters prospect. But as we dove deeper into these types we realized that there are really sub sets of these customers that we tend to attract, and that "some" of those sub sets work very well for our company and some do not. We also realized that in some cases there was overlap, for example: A top agent (say $100M+ producer) may have a similar marketing budget and need for customization just like a medium sized $100M team. Or a starting team may not need custom work just like a starting small brokerage might not. Both need to focus on platforms, systems, and be cost conscious.
In considering both concepts (type & sub-type) of customer, we have broken our new structure into 5 categories. These categories are meant to address one of 5 types of customer that we would like to attract at Real Estate Webmasters and provide the level of service they require with as little friction as possible, at a cost that is competitive for the product & service.
5 new plans for 5 customer types:
Enterprise: Our fastest growing segment by % of revenue. Enterprise customers are generally multi hundred to multi thousand agent organizations. Sometimes this is a large broker like a Realty Austin or a Daniel Gale and sometimes this is an entire franchise such as CENTURY 21 Canada. The true distinction between enterprise and other groups is that they are purchasing a platform and providing services for a large % of their organization.
We see enterprise as having one of the toughest battles to fight with new franchises like EXP and Homesmart crushing it, Keller and RE/MAX investing hundreds of millions in their own platforms, and Redfin and Zillow continuing to threaten from many sides. We feel the strongest franchises and enterprise players will survive, but only those that are willing to change, and adapt to a new, far more competitive landscape.
Build, Buy or Partner: This is the challenge of enterprise. You can either build it (and we here at REW feel that "in real estate" we are truly the only firm large enough and with enough true market knowledge to build custom enterprise platforms) you can buy it and try to integrate (this is the route Compass and RE/MAX have taken which means tens or hundreds of millions of investment and then change management) or you can partner with various providers which generally happens on the lower end where margins are tight and you need an offering but can't afford a truly custom solution.
New Enterprise Pricing: Custom build included!
What is different in REW's newest enterprise offering? Custom work is included! For one low $20 per member monthly fee (our current retail rate) we are now offering the services of our custom group "included" for organizations of 300 agents or more.
The amount of customization provided through our retainer program actually auto scales based on the size of your organization and your level of committed users. Here is a few examples:
At 1,000 Agents we would provide you with up to $324,000 USD in custom work "included" in your 36 month package.
At 5,000 agents we would provide you with up to $1.75 million USD in custom work "included" in your 36 month package.
At 10,000 agents we would provide you with up to $3.6 million USD in custom work "included" in your 36 month package.
And keeping in mind, not only are we the ONLY large custom agency in the entire space that can even offer this level of customization, we are doing it for a price of only $20 per user, which is lower than several of our competitors.
The other major change for enterprise is that you no longer must commit to 100% of your organization. As long as you are purchasing at least 300 users then you qualify for these credits, even if 300 users is not 100% of your organization.
So for example, you may not want to purchase websites, CRM & Apps for 1,000 of your users but would for 400. You would still get $108,000 in monthly retainer on a 36 month term. You would just only be adding 400 of our 1,000 to the system (and of course you can always add more later).
This is a pretty big change for us, as in the past we only accepted 100% of organizations which meant we were at a competitive disadvantage structure wise to our competition who was more flexible with minimums. We have listened to the feedback, and are happy to offer this new change.
And one more thing! Your first 300? We are giving you a deal on that too! 300 x $20 rate = $6,000 USD. We are coming to market with a special price of 300 users for only $5,000 USD per month and that still includes up to a $72,000 USD credit over 36 months in custom services.
Pretty awesome right? You now have custom work available not just for your build. But also for maintenance of your custom projects and future projects for the term of the agreement.
Not quite at Enterprise level? Try REW Custom
REW Custom: For those that have the need for a true "custom" build, but are not yet at the enterprise level, perhaps a medium to large brokerage. Or they may have custom needs as high as some enterprise groups, but just don't have a high user count.
REW custom includes the following:
Framework install (Discover or Vision): Retail $5,000 USD setup. Your price. No Setup 3 MLS feeds: Retail $999 install per MLS & $300 per month. Your price: Included at no extra cost Custom work (retainer): 15 hours per month for 12 months retail $36,000 USD. Your cost $0 Up to 150 users: Retail $3,000 your cost $3,000 (additional users $20 per month).
That's right, you get all this value for just $3,000 USD per month. It's perfect for a brokerage (or a large team) who really want to stand out, and want to have that "custom" look and feel to truly differentiate their brand.
REW Semi Custom:
A little bit smaller, but still have the need for a CRM, great platform, and a bit of custom work to get you started. Maybe you need a custom colour scheme, or some additional MLS fields added, or an API connection somewhere. REW Semi Custom might be for you.
Framework install (Discover or Vision): Retail $5,000 USD setup. Your price. No Setup Custom work (retainer): 5 hours per month for 12 months retail $12,000 USD. Your cost $0 Up to 50 users $1,000 USD (additional users $20 per user)
Just add marketing to this $1,000 per month framework and you are done! Leads will be rolling in!
This is the same program as we sell today.
It's $5,000 setup for a Vision or Discover site and $499 per month SAAS. It includes up to 25 users (additional users are $20 per user)
But now we are offering a free custom retainer included in your purchase. This means you will get 15 hours of retainer over 3 months (a $3,000 value) included in your purchase.
The number one complaint about the previous version of this offer was that often people just want one or two things to make it perfect for them (increase header size, add a couple of MLS fields etc) and felt "nickeled and dimed" a bit when they found out that was custom work (because it is custom work). Obviously for bigger custom asks, we need to bill for our time but we figure since you're making a big commitment and trusting us, we can make an investment as well in order to make your customer experience even better. We hear you. And thank you for the feedback on this one.
We have debated this for a long time. Is the more DIY non-custom customer our customer? The conclusion we have come to is yes. There are many agents who are great candidates for our larger programs in the future who are just starting out OR they just want a no hassle best of breed platform with free upgrades at a great price. REW Lite delivers this experience.
In REW Lite it's as simple as it can get.
No setup fee, no contracts, no custom work, no per user, just $300 per month.
You get our industry leading framework & platform (includes a Vision or Discover site which normally retails at $5,000 USD setup and $499 per month), you get our CRM, you get an IDX and you get access to support via email / Zendesk (our ticketing platform) 7 days per week.
Hire us to do your PPC and lead gen, hire a third party, or DIY. You can have leads generating the month after launch.
What you do not get:
You cannot add additional users. You cannot order custom work You do not get sub domains. You do not get Company Controls, Agent Roster or Offices. You do not get CSM support for install (it's truly DIY), however you can order high-touch CSM help if you need it for one time $2,500 USD if you're not web savvy. Then we'll set it up for you.
Later on down the line when you want to think about adding users, or doing custom work, we upgrade you to CORE. You pay the setup fee for CORE, change your SAAS bill and you unlock even more awesomeness.
So there you have it folks! REW's new pricing structure / plans.
We're planning on rolling this out May / June timeframe and in the meantime if you have questions, please reach out to me or post a comment below. I'm happy to discuss. And if you are enterprise, we are happy to offer this to you today.
We appreciate all the great feedback we have received from our customers and are excited to offer these new more targeted pricing plans for you.
We look forward to working with you.
*note: All credits are in USD. Assumes 36 month contract. Assumes purchase at retail. Custom work delivered 1/36 of stated credit per month as part of REW's custom retainer program. Additional custom work is $200 USD per hour. 30 day cancellation required for REW Lite.