realestateview Retrenches Sales Force – What Now?
March 25, 2009 by Simon Baker
Sources tell Property Portal Watch that the complete realestateview.com.au sales force was retrenched last Friday. The sales team was responsible for selling realestateview advertising packages and the property data online subscriptions to real estate agents in Victoria, Tasmania and Sth Australia.
With the sale team disbanded and only a small team left in the business, what does the future hold for realestateview?
realestateview is the 4th most visited real estate portal in Australia and the third most visited in Victoria behind realestate.com.au and domain.com.au. The site primarily focuses on the Victorian market but also has some coverage of Sth Australia and Tasmania and the other States. (For more information see our recent write up on the business.)
In a recent predictions article for the Australian market, we wrote that we expected to see the tier 2 and 3 players go through very tough times and this appears to be coming to fruition.
The retrenchment of the sales team is probably a sign that the Australian real estate market is getting tougher and that agents are making decisions about where they market their listings. As realestateview is the third most visited site in Victoria, it is likely that agents are now deciding to concentrate their spend on the market leading realestate.com.au and potentially the number 2, domain.com.au. This is not unexpected and this trend of agents focusing their spend on the market leader can be seen in other countries around the world.
The one saving grace is the property data online business that provides agents with access data reports on home sales in Victoria. It competes head on with RP Data (who recently renewed a deal with realestate.com.au) and the domain.com.au owned Australian Property Monitors.
It is likely that the realestateview business will see a decline in the numer of agents advertising their listings on the site and with this decline in content, their is also likely to be a decline in readership. While management are clearly cutting costs, the revenues will also decline too. It would not be surprising to see realestateview closed or sold in the next 12 months.
There are really two potential buyers for realestateview. The first is domain.com.au as it would strengthen is position in the Victorian market and therefore provide a much stronger competitor for realestate.com.au. The second is realestate.com.au. While there is no real gain for them in the Victorian market as almost all agents now advertise on them, it would provide them with a property data business and be a blocking move for domain.com.au.
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Dear Simon
Yes we did terminate the employment of members of our sales team but not because of a decline in subscriptions content or traffic, in fact we have increased in all those areas, and by approximately 30% in traffic.
The decision was based on adopting a different sales approach. Given the close relationship with the REI’s and its members it is more cost effective, efficient, and we have achieved better results, by attending and speaking at REI functions and events.
We will continue our growth in Victoria and through the national expansion strategy and I can categorically state realestateVIEW.com.au is not for sale.
REI’s should focus on advocacy and improving the industry rather than a pipedream of having a portal to take on the big guys – they really are chewing up lots of their members cash for no return.
Hear Hear Paris.
I
This is why Realestateview wants to support REI’s -
We recently received our new contract from realestate.com.au. Depsite the recent price freeze announcement, our new contract increases our fees by over 11% when our contract expires this month (March 2009).
The price freeze announcement says “realestate.com.au last raised our prices on 1 September 2008*. Please note: for agents that are on pre-September 2008 residential subscription prices, your subscription price will be brought into line with the September 2008 rates at the time of your renewal.
So our fees are going up this year and again in March 2010 as the so called freeze expires in February 2010. In summary, our fees are going up in March 2009 and again in 2010. That is NOT a price freeze. I wonder how many customers are actually receiving the price freeze ??
Without competitors like Realestateview in the online space the greedy will become greedier and more arrogant and the only ones chewing up agents cash will be profit focussed portals with no competition and no concern for the goose that is laying the golden egg.
Does the REINSW have any cash left to burn?
Petra, what is your strategy to acquire new customers both within Victoria and nationwide?
With Institute memberships declining, due to business closures, budgetary constraints and disengagement with the Institute bodies, how do you intend to farm customers for your online venture?
What is the balance REIV has with its core charter, and PDOL & realestateview?
For example, when there is an instance of a Victorian Agent advertising miss-information on realestateview (perhaps using another agents IP gathered through PDOL), what is the position of the REIV? Does it support the agent or the consumer? What actions have you taken in the past?
“With Institute memberships declining, due to business closures, budgetary constraints and disengagement with the Institute bodies, how do you intend to farm customers for your online venture?”
AJ, they will continue to rely on people like “Concerned Agent” who think paying a total of $1500 per month for domain and realestate.com.au is too much.Sure this is more than it was 4 years ago but the truth is, thats very very good value.
“Concerned Agent” also shows how they love the “keeping the bastards honest” routine….It amazes me how REIV and REIWA have some members thinking the best way to keep the big guys in line is for the agents to spend MORE cash on their industry site! I cant remember how much REIV charge but they may as well be burning it…
Just my opinion…
Paris – they might not be burning as much cash as you think with a reduced salesforce now in effect.
What is interesting about people criticising the Institutes, of which I am one, is that on the whole people forget some of the great work which the institutes do as a matter of daily operations. Such as monitoring the industry, reporting to local government, lobbying local government, informing the public etc.. they also ensure that the industry as a whole is constantly updating their skills, and usually ensure that their members are doing the right thing by consumers.
Most of the time they do a good job, other times, well lets just say they are lacking.
However, for all which the institutes do for the ongoing maintenance of the industry, how low are their fees compared to Domain and realestate.com.au?
it would seem that a key takeaway for any portal, is not just benchmarking your deliverables against print, but also comparing the value/cost offering to other suppliers within the real estate sector.
This is where my questions to Petra stem from. What makes realestateview compelling? and how do they balance out the agenda of the REIV, with the obligations inherent in running a portal?
AJ, I 100% agree.
In my time in the industry the REI’s have done a great job at everything you mention above. I simply suggest that their members time and money would be better spent working with suppliers rather than against them… I recently went to a state REI event where a speaker spoke poorly of the major players and could only rattle off the same irrational reasons mentioned above (plus a couple of extra chestnuts)
While sitting there I couldn’t help but think a few things;
1) this guy was put up there to give advice and suggest to members what they should be doing but he really knew little about internet marketing.
2) he was suggesting to his members that they shouldn’t put as much focus on a site (realestate.com.au) that delivers agents over 50% of their leads over the industry site.
3)he was really asking the room to play politics with their Vendors money.
I just think that, as noble as it seems, when an industry body becomes a supplier problems arise.
Parise – We agree 100%.
The REI’s need to engage online marketing professionals (and I do not mean sales teams) to have any idea how to make a successful venture.
Operation Destiny was the REI model several years back, only to be replaced with what seems Operation Enzo.
But, as you and I both raise, there are potential conflicts of interest.
Petra? Or perhaps Enzo would like to comment (I hear a sigh from Victorian Agents)
simply reis should not be in this space
they should be supporting industry training and development not hosing members money on online media.
Reality is I dont know why people complain about pricing.
Realest view has about 600k uvs
REA vict has????
If rea or domain put prices up the agents dont pay as by their own figures more than 80% pass on the cost…most at a profit.
Where are you getting your stats from Snoop?
Those figures, if they are accurate, would have been derived from a more robust property market and more favourable economic conditions. Even in those times agents would negotiate on their commission %.
In current market conditions, it is not without reasonable guestimation, that marketing spend/activity will also become a negotiating factor for agents in the current property and economic environment.
Any agent who makes a profit from Advertising should revisit their state legislation, for in many states there are laws in place to protect consumers from being fleeced.
You make an interesting comment about UV’s (or UB’s). As you are aware, it is not about exposure but leads. So depending on the Leads and Value which agents get, again, a lower UB site might provide a better ROI than a higher UB site.
Last time I checked, 600 000 UB’s was a large number.
See how the REI’s and property portals go when Google launches in Australia in a few months time. The agents will be all over it and then many questions will be asked regarding the values of property portals – I’m thinking a totally different freeze!
Google will be a furphy
thousands of listings all duplicated no supporting data or commuinity info the list goies on
it might kick off with a hiss and a roar but i dont beleive google will be a meaningful payer beyond linking to a portal listing
Snoop – you will be most surprised with what they have to offer. Plenty of planning has gone into this and as we know mistakes are not part of their online culture. Their alerts I am told will be a huge feature
Well I will await with baited breath.
They have been talking this up for two years ,and the local team have zero experience in property also need to bear in mind the local google outfit cant do anything without Usa Approval.
A big danger typical US company trying to act global but not thinking local.
Snoop – well have a look in June/July. Why do you think that REA and RP Data are sharing the same doona now?