Alan Pyles is not only an entrepreneur, he is a visionary. His experience consistently includes turning young companies into substantial successes. The youngest president and owner of a Ford Motor Company dealership at age 17, Pyles has never believed in the traditional for tradition's sake and cringes at the status quo. Rather, he believes in turning the system inside out, making it work through maximizing talents, working hard and thinking creatively.
Pyles' success is evident in his track record, as well as the industry buzz created relating to the birth of his most prized venture, Creative Alliances, LLC. Among Pyles' achievements:
Purchased an HMS Home Warranty regional franchise in 1984. Built it from scratch and generated a team who turned it into the number one home warranty region in the nation. He is still a partner, having acquired two additional since, and has maintained that number one status every year since 1985.
Became President of HMS National, the sixteen-year old parent company of his regional home warranty franchise, in 1996. In his three-year tenure as President, the company's membership base more than doubled, growing from 12,000 to over 30,000 through his leadership.
Hired as Senior Vice President of Homes.com in 1999. Recruited to quickly establish a national direct sales team for the then pre-IPO company, he enlisted over 50 sales representatives in only 60 days. His new sales team stormed the industry and grew Homes.com's web site sales business from 500 sites per month to 4-6,000 sites per month, every month, for over a year.
Alan Pyles is a nationally known speaker to the real estate industry. Most recently he spoke at the 2000 National Association of REALTORS® convention in San Francisco and the 2000 RIS conference in New York. Pyles is also a regular speaker at most of the industry's leading gatherings, including, the National Association of REALTORS® annual convention, Real Estate Leaders Conference, Gathering of Eagles, RESPRO, as well as dozens of regional, state and franchise conventions.
Pyles' leadership style has been featured in many trade publications including Sales & Marketing magazine twice, once as part of the cover story - "7 Traits of Great Business Leaders", as well as Success magazine, Real Estate Leadership (cover) and Washington Small Business (cover), among others.
Alan can be reached at apyles@creativealliances.com
I believe we have three specific trends (continuing) within our industry.
1. We are going to continue to see the consumer become more and more informed. This will empower the consumer and force our traditional methods of business to change. While this will not be an overnight change, the speed in which it is required will only increase.
2. Consolidation and affiliation within the broker business. While the trend has slowed, it has not stopped. NRT, Home Services and even Weichert's new franchising efforts continue to change the landscape of the “everyday broker”. While it appears obvious that this trend will continue, if only at a slower pace, it is still unknown how this will affect every aspect of the real estate transaction. There is no question “if” it will affect it, just “how”.
3. Consolidation of the support service (to real estate). With FNIS and First American perhaps leading the charge, this would be a logical place to expect continued expansion. Related to the consolidation of the independent broker, the limited funds from the typical “VC” or uninspired public market…support companies MUST find more economical methods to reach and distribute their products and services. Few companies can afford to build and support (ongoing) a niche in this marketplace.
You can never count out Stu Siegel. While we can all name a few individuals that have found success from what seems to be “luck”, Stu’s recurring placement in the winners circle proves he delivers far beyond luck.
The team at RISmedia continues to show they have their hand on the pulse of this industry. They continue to deliver quality information, genuine introductions and have found the balance between being a player in one venture or another without compromising their reporting integrity.
Finally under the category of “things that make you go Hmmm”, I would suggest Stefan Swanepoel. While Stefan is usually far ahead of the general industry as to the trends and services, it does everyone well to listen to him and ask yourself how you would react if and when presented with a situation similar to what he presents. The underlying question then of course…why wait until the situation presents itself, why not lead it?
As the consumer becomes more informed and as the internet makes information and services easier to receive…I believe the “fee for (selected) service(s)” trend will continue to grow. Also it would appear the niche marketers will continue to thrive- Buyer Broker/Agent being among one of the leading trends.
While the mass market would seem to be drawn to the mega brokers and brands…it would seem a need for niche marketers will always find an audience. Just as we have seen our buying trends turn to national brands and franchises when it comes to stores, restaurants and even home improvement companies, local dress shops, restaurants and hardware shops remain.
While far from a breakthrough idea, as an industry we need to recognize the emerging educated consumer and stop attempting to fight the trend, or hide behind restricting information…that continues to be uncovered and unscrambled and easily made available anyway. We need to seek and deliver MORE services. Provide the consumer MORE information, access to MORE.
“Transaction management” products have not thrived perhaps due to an early exuberance from the providers. That said, EVERY transaction should have an online trail that the buying and selling consumer can see the process (and better recognize the many steps an Agent and Broker take to create a successful and smooth transaction). This is one of the times I would say the expression “less is more” isn’t accurate…in this case, “more is more”!
A few excellent (easy to use) flash presentation builders are available on the marketplace. While many (most) agents have resorted to providing virtual tours on their listings, perhaps a more aggressive (professional) presentation of the features and benefits could be derived using such a service. This puts the agent in a more aggressive position and can aid the seller in seeing them more as a professional…taking charge of how the home is presented. Problem…takes a few minutes. Will we invest the time?
The role of the broker needs to be determined clearly within the agency. Is the broker a part of the actual listing and selling process? Are the buyers and/or sellers their clients, or the agent's? Where does (or can) the broker’s income come from? Where is it more venerable and what is being done about it?
It would seem the comparison to the automobile industry's “Finance and Insurance” department could make sense for many companies. See the agent as the client, and just as I have suggested “MORE” and “fee for service” as it relates to the consumer dealing with the agent, the same applies with the agent working with the broker.
We recently had a broker in Long Island (no, we will not name names!) that reached out to us! They realized we had some products and services they knew their agents would desire, and would make them more competitive in their local marketplace. THEN, when we would not agree to purchase all of their agents breakfast, they chose not to have us present. Let me review…they reached out recognizing the value for their clients (agents), it would help them and make them more competitive…but unless scrambled eggs are provided, they don’t get it? What alternative does the agent have but to ask for a higher commission or go elsewhere…were is the added value?
Mostly I believe it is far beyond the time to look outside our industry to discover how to become or maintain a profitable firm. We have become guilty of profiling industry peers that have yet to achieve the level of success we desire, yet expect them to lead us. Perhaps Disney could better enlighten us as to how to provide quality training? Could we learn from GE as it relates to how to make more than one division contribute to our bottom line, or when to make a business decision and close it?
Not knowing a great deal about the inner workings of a professional Baseball team, I am sure many join me in wondering how owners can profess no profits are made…and then announce a $78 million dollar deal to sign a player that has been in the league for 12 years. Most of us fail to feel for the owners, realizing “something” must be in it for them.
That said, I am sure most fortune 1,000 CEO’s scratch their heads and wonder how as brokers, such a little net profit can be achieved with such a strong gross commission, especially when inventory cost (listings) is carried by the sellers. While the traditional companies and real estate companies each need to market and bear the sales costs…relativity no direct inventory costs must be borne. Again…perhaps we should reach out to other industries that have made this work.
We have focused on (and continue to) finding and bringing “Relevant, (useable) business solutions” to the marketplace. Having been involved for the past 18 years…the past 4-6 have been the most exciting and challenging all in one. So much advancement, so many failures. So many features, so many features! Which ones really deliver value, which ones just have outstanding speakers?
To “borrow” a phrase from a friend…while the “World” wide web has opened up so many opportunities for the consumer to learn, purchase, inquire, when it comes to real estate, perhaps we need a “local” wide web.
I may be interested in purchasing a book and do not care where it comes from, but as it relates to the internet and real estate, the old adage still applies…location, location, location.
As a result, our focus is delivering through agents a localized experience for the consumer using the “World” wide web. My Home Management Club is an excellent example. This is an affinity club specifically for homeowners, exclusively sponsored by professionals such as Realtors. All content is uniquely delivered specific to the consumer’s situation…geographic, home style and even locality related to home sales and other specific content of interest to the client…brought to them by their local real estate professional. No more “one size fits all. Now all sizes, for all”.
My three “comments” related to favorite books…
1. I try to read non-business books so I will remain more open to read more timely daily news and magazines related to our industry.
2. When I do read a business book, I want it to be from outside the industry to gain another prospective.
3. That side, here are the two I recommend…
Other thoughts to share…
A few trends or thoughts I have heard passed along that I feel still have a chance to take hold, or still seem to merit further discussion:
1. One trend discussed, but not successfully implemented nationally- Mega offices, and less expensive satellite offices. The concept being, the mega office is located in some more economical location. Many of the redundant machines and support functions could be eliminated. Small “closing and appointment” offices could be leased for local convenience of the consumer, or roving sales/office managers.
2. Just as many agents have secured moving trucks for both client convenience as well as advertising (side panels), I have heard of a few brokers that “lease” space to their agents for sellers to store excess while having the house on the market. The home shows well, and MORE is being provided.
