My Reply to Reply.com? Waste of Money.
Filed Under: Industry News
What’s a sign that there’s another bubble brewing in Web 2.0?
Sites like Reply! pick up $17 million in VC funding. From MercuryNews.com’s report on ConnectSF:
Companies exhibiting their wares ranged from small start-ups to known names that have raised millions in venture capital — think Zillow, which recently raised another $25 million, or Reply of Walnut Creek with $17 million.
What a joke. It’s a lead capture site. So, what value does this site bring to me, the consumer?
“Get connected to qualified service providers to maximize your next important life decision.”
Who outside of a Silicon Valley boardroom talks like this? Yikes.
Technorati Tags: Reply, reply.com, VC, VC funding, Web 2.0
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12 Comment(s)
4 Trackback(s)
- From Reply vies for the Real Estate 2.0 crown « Future of Real Estate Marketing | Aug 22, 2006
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Bo | Jul 31, 2006 | Reply
Not only a joke, but a bad joke.
I tried them for a period of time and found their leads to be sub quality . I experienced somewhere around a 1-2 per cent success rate, which is about like direct mail. I chose to discontinue service.
realestatemarketing | Jul 31, 2006 | Reply
Smart thinking Bo. I’m still flabbergasted a VC would see a $17 million ROI potential in this site. Didn’t we learn anything in 2000-01?
David Tran | Jul 31, 2006 | Reply
I agree with everyone. Giving away 17 mil is a lot for someone who just match you to businesses like reply. Being a broker I have signed up with several companies but only one that really works for me so far is myhomething.com a small home grown site based out of Missouri City, Texas has lots of mussle to get me 15 lead of which I have closed 9 in the past 3 1/2 month an astonishing figure for someone who work from home. I’d say give them a few mil so that they can help businesses like mine grow and compete with larger rivals. I give http://www.myhomething.com and A+. If you are a broker, lender or a loan officer, I highly recommend them as they also offer free enrollment. Here is what you get:
Get access to motivated buyers and sellers locally or nationwide.
View Lead Details with no-obligation to purchase
Select only the leads you want - Pay only for the leads you choose
Pass the word around and you wont be sorry!
David Tran
Chris Dowell | Jul 31, 2006 | Reply
There are always enough new realtors out there, for companies like these to make a return.
Andy Denton | Aug 1, 2006 | Reply
Great post Joel. I consider myself an industry outsider, and am continued to be baffled by the value proposition of lead generation. The only ones winning are the tech companies. Yes, Chris Dowell is correct, the new agents are the ones who are paying these fees. But, little do these professionals know that these leads convert at a less than 2% rate.
So, in the end what is left? The consumer is tricked or unwittingly handing over their personal information to be bombarded by personal offers of real estate services (realtors, mortgage, insurance,etc.), by 3-5 competing service providors. And then, the poor Realtor ends up chasing leads which convert at a less than 2% rate. The only one winning in this transaction are the tech companies (my firm included) who are stuffing their pockets with money paid to them by a hopeful agent.
I personally don’t see the value added by strict lead generation. See my full analysis here http://www.inman.com/inmannews.aspx?ID=47402. Hopefully our iHomes.com product can fix this dilemma.
I sympathize with you.
UrbanDigs | Aug 1, 2006 | Reply
Crazy. I interviewed with CEO of reply.com the other day as their marketing dept contacted me to plug their new venture launching Aug 22nd. Its soley a lead generation site but has some interesting twists to content that will be offered as far as the interview went. I promised not to discuss until their launch as they asked me to for some reason.
But, nothing new or unique by any means. Just another exit strategy for lots of venture capital I would think.
Fred | Nov 10, 2006 | Reply
Got the same conclusions than yours after trying zillow, reply and others… Waste of time and money… French VC’s are waiting for the french zillow, but french people are only looking for a home to buy at a good price, not for mapping or home valuation gadgets.
Sorry for my english
more french real estate information here…
Lenore Wilkas | Sep 20, 2007 | Reply
They obviously have the 30 second elevator speach down pat and could have past relationships with that VC. The VC only want a ROI so someone there thinks they will get one from them.
Brian Wilson | Sep 20, 2007 | Reply
Everyday I empty reply.com spam from my junk mail filter but I guess that is a valid business model. Now that they have millions, I expect I will have to step up my cleansing to 3 or 4 times a day.
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Brian Wilson, http://www.zolve.com
Brian Kohn | Nov 1, 2007 | Reply
Hi Everyone,
We just launched a new site called http://www.realpatrol.com and our leads are confirmed before they are sold.
If any is interested in testing some leads please feel free to contact me.
Thanks,
Brian
brian@realpatrol.com
248-246-5778
Vlad | Apr 18, 2008 | Reply
Joel,
Thanks for approving the trackback to my post. Have been long time fan finally had an opportunity to link to your blog. Keep up the great work.
Frank Borges LL0SA- Broker FranklyRealty.c | Jul 29, 2008 | Reply
That $17M would have been better spent investing in Active Rain!
Maybe if they gave their first 5 leads FREE, then I would try it.
What about RealtyTrac Is that also a scam?
Frank