This article will examine the role that “reputation” should play within the brokerage firm’s overall Internet strategy.
The basic dynamic that amplifies “reputation” on the Internet arises out of growing consumer expectations that:
1) They should have, under the evolving rules of transparency, access to information offered by other consumers and experts regarding agent and brokerage performance
2) They should have the ability to offer comments about their own real estate experience for the benefit of other consumers
The fruition of these two expectations will result in every agent and brokerage firm having a “rep” somewhere on the Internet.
For those who appreciate a longer-term perspective, the reputation function has traditionally been managed through more local community based channels and through the REALTOR® ethics and professional standards function. However, today’s consumer is no longer willing to accept general impressions of community reputation.
Since the REALTOR® ethics enforcement program offers no compromise to transparency (being all but secret) it is seen as a credible determinant of neither reputation nor expertise. The American consumer’s infatuation with ratings and rankings, and the current systems total lack of either, has created an increasingly powerful vacuum.
Into this vacuum have come a number of Internet-based entities that are soliciting and building databases of consumer evaluations that meet the consumer’s demand to review the comments of others and to offer comments of their own.
Among these new Internet “reputation” aggregators, homethinking.com, yelp.com, brokerrating.com and propsmart.com offer the best insight into how the process works. In addition to these for-profit entities there is a wide range of blogs and podcasts that also offer up information about specific firms and agents.
As a starting point for this discussion it is important to note that the ranking and rating phenomena is by no means limited to the real estate industry. In today’s Internet empowered world, businesses large and small in every industry find themselves confounded by disenchanted clients, customers, employees, suppliers and even competitors who seek to use the Internet as an essentially “free” venue to air grievances online.
With little more than a Web connection and a keyboard, these would-be “Muckrakers” can do everything from irritate, via a scathing review, to causing serious business problems, by using message boards to reveal company secrets or spread rumors of unethical behavior. Some go so far as to initiate a complaint site or register a Web address in their target’s name.
“There is all type of damage by miscreants on the Web to a business,” said Marc S. Friedman, chairman of the intellectual property practice at Sills, Cummis, Epstein & Gross in
Legal remedies vary by case and by state. Lawyers, Internet specialists and others with experience in this realm counsel that the best course may be to ignore irritating posts because trying to squelch a malcontent can have unintended consequences. “Your reaction often, if you’re a small business, is to get angry and to fire off a letter,” said Barry Werbin, an intellectual property lawyer at Herrick, Feinstein in
Real estate professionals must recognize that anybody can write just about anything through these venues. This may be a classic case where the best defense is a strong offense. Each firm should:
- Develop specific Internet reputation policies and procedures
- Initiate an Internet monitoring procedure so that the firm can become aware of all references, either positive or negative
- Take advantage of intellectual law remedies such as trademarks and copyright protection to limit the ability of dissenters to use markets and protected properties in their assaults
- Capture testimonials whenever possible and place them on websites, blogs and other Internet spaces, install hot links between these positive reviews and the firm’s website, and create specific opportunities to enhance a positive image on the Internet
- Do everything possible (and legal), when negative materials appear, to have them removed and/or ameliorated, without making the situation worse.
Do not take these matters lightly. A negative Internet comment, review or rating can have far reaching ramifications for both the firm and its agents.
This whole area of the Internet transparency is really just emerging. On both the protection and assault sides new theories, new tactics, new remedies and new horrors are being developed on a continuous basis. Someone from your firm, or representing your firm, must be vigilant and knowledgeable about this vital area.
Most brokerages are acutely aware of the importance of a good reputation in their immediate community. This same level of care and attention must now be transitioned onto the Internet. Pro-activity is an absolute must. Don’t get caught with the wrong “Rep” on the Internet.
