Comments on: Are you leaving affiliate money on the table? http://4realz.net/2009/04/are-you-leaving-affiliate-money-on-the-table/ Authentic Real Estate and Internet Marketing Conversations Thu, 11 Mar 2010 00:41:21 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Tim O'Keefe http://4realz.net/2009/04/are-you-leaving-affiliate-money-on-the-table/#comment-3967 Tim O'Keefe Tue, 14 Apr 2009 21:35:47 +0000 http://4realz.net/?p=1251#comment-3967 Dustin- The blog post I made was elaborating on my comment. Which I often do. Seeing that the comment never made it (at least in my mind at the time) I put forth the idea that intelligent commentary despite disagreement can be useful in stirring up the pot. I am thankful to you for not deleting my comment. And some day we will have to reprimand that jerk Mr. Akismet. He usually is so diligent. I still do not think mixing affiliate and brand is a good idea :-P ~Tim Dustin-
The blog post I made was elaborating on my comment. Which I often do.
Seeing that the comment never made it (at least in my mind at the time) I put forth the idea that intelligent commentary despite disagreement can be useful in stirring up the pot.
I am thankful to you for not deleting my comment. And some day we will have to reprimand that jerk Mr. Akismet. He usually is so diligent.
I still do not think mixing affiliate and brand is a good idea :-P
~Tim

]]> By: Frances Flynn Thorsen http://4realz.net/2009/04/are-you-leaving-affiliate-money-on-the-table/#comment-3965 Frances Flynn Thorsen Tue, 14 Apr 2009 14:39:48 +0000 http://4realz.net/?p=1251#comment-3965 Dustin, I was moved to respond to this because there was a similar opportunity for this type of income several years ago. When I was licensed in PA there was an opportunity to work with a similar company that offered three moving estimates to consumers. The company offered a $100 referral fee payable for each consumer who hired one of the companies after signing up and receiving three estimates. I thought it sounded like a good idea and I was anxious to participate. We spoke with legal counsel about the appropriateness of that type of business arrangement and we were advised not to proceed. That said, a questionnaire at REALTOR.org would bear out the likelihood that this affilaite arrangement is permissible. Check Question 1 here: http://www.realtor.org/RMOQuiz2.nsf/RESPAQuiz?OpenForm "... Services that are provided after closing typically are not covered by RESPA and are not considered settlement services.." Interesting! What if these services are provided prior to closing? Does that change anything? I am anxious to hear qualified legal input on this. Perhaps you can find a good real estate attorney to weigh in. Regarding your other questions: Q. If a REALTOR made $25 by getting another REALTOR to sign up for an invoicing tool, would that be a RESPA violation? A. I doubt it. However, there may be a provision in the brokerage policy and procedure manual restricting an agent's ability to create revenue streams on a real estate web site. (Real estate web sites are marketing vehicles and fall under "broker supervision.") I've seen policy and procedure manuals that prohibit this type of rev share model. Q. How about if they plug another service or tool. Let’s take the Trulia widget, for example, that sends free leads from REALTORS every day to your employer. Is that a RESPA violation? Or is it only a violation if the REALTOR accepts money for the lead? A. The Trulia widget (http://trulia.com/tools ) is fine and does not create a RESPA problem. Only BROKERS can accept referral fees. Real estate agents who are not brokers are not allowed to accept monies for real estate leads ... this is a matter of state law, not RESPA. Brokers pay agents referral fees to agents based on a formula specified in the independent contractor agreement. Dustin,

I was moved to respond to this because there was a similar opportunity for this type of income several years ago. When I was licensed in PA there was an opportunity to work with a similar company that offered three moving estimates to consumers. The company offered a $100 referral fee payable for each consumer who hired one of the companies after signing up and receiving three estimates. I thought it sounded like a good idea and I was anxious to participate.

We spoke with legal counsel about the appropriateness of that type of business arrangement and we were advised not to proceed.

That said, a questionnaire at REALTOR.org would bear out the likelihood that this affilaite arrangement is permissible. Check Question 1 here:

http://www.realtor.org/RMOQuiz2.nsf/RESPAQuiz?OpenForm

“… Services that are provided after closing typically are not covered by RESPA and are not considered settlement services..”

Interesting! What if these services are provided prior to closing? Does that change anything? I am anxious to hear qualified legal input on this. Perhaps you can find a good real estate attorney to weigh in.

Regarding your other questions:

Q. If a REALTOR made $25 by getting another REALTOR to sign up for an invoicing tool, would that be a RESPA violation?

A. I doubt it. However, there may be a provision in the brokerage policy and procedure manual restricting an agent’s ability to create revenue streams on a real estate web site. (Real estate web sites are marketing vehicles and fall under “broker supervision.”) I’ve seen policy and procedure manuals that prohibit this type of rev share model.

Q. How about if they plug another service or tool. Let’s take the Trulia widget, for example, that sends free leads from REALTORS every day to your employer. Is that a RESPA violation? Or is it only a violation if the REALTOR accepts money for the lead?

A. The Trulia widget (http://trulia.com/tools ) is fine and does not create a RESPA problem. Only BROKERS can accept referral fees. Real estate agents who are not brokers are not allowed to accept monies for real estate leads … this is a matter of state law, not RESPA. Brokers pay agents referral fees to agents based on a formula specified in the independent contractor agreement.

]]> By: Tim O'Keefe http://4realz.net/2009/04/are-you-leaving-affiliate-money-on-the-table/#comment-3961 Tim O'Keefe Mon, 13 Apr 2009 17:38:06 +0000 http://4realz.net/?p=1251#comment-3961 I think this is a bad idea in so many ways I cannot count them all. Let me begin by going back to the movement towards localism. Why did that have to be? Because many of the posts had nothing to do with the real estate in that agents town. I remember seeing ( and still do at times) agents writing about SEO or Online Marketing. As a marketer and SEO vendor I find those posts interesting. However, it diminishes that authors brand. What are you an SEO or a Realtor? In the case of affiliate marketing it is very tempting to slap a moving company up on ones blog. Moving.com, Foreclosure.com, Forsalebyowner.com are some places that would make easy fits. For a few sheckles you just diminished your message. You would be much better served to offer this stuff on the back end of sequencing or an email campaign. And in fact even better off to partner with local vendors to offer tips and strategies and commissions(textual, video, etc) as content for your front end and backend lead marketing.(I let you deal with the legalities one way or another as I have no idea how that would work) In the end, why would you dilute your brand and message with other brands, stronger than yours stealing screen real estate? Tim O'Keefe Real Estate Marketing/SEO http://www.houseblogger.com I think this is a bad idea in so many ways I cannot count them all.
Let me begin by going back to the movement towards localism.
Why did that have to be?
Because many of the posts had nothing to do with the real estate in that agents town.
I remember seeing ( and still do at times) agents writing about SEO or Online Marketing. As a marketer and SEO vendor I find those posts interesting. However, it diminishes that authors brand. What are you an SEO or a Realtor? In the case of affiliate marketing it is very tempting to slap a moving company up on ones blog. Moving.com, Foreclosure.com, Forsalebyowner.com are some places that would make easy fits.
For a few sheckles you just diminished your message.
You would be much better served to offer this stuff on the back end of sequencing or an email campaign. And in fact even better off to partner with local vendors to offer tips and strategies and commissions(textual, video, etc) as content for your front end and backend lead marketing.(I let you deal with the legalities one way or another as I have no idea how that would work)
In the end, why would you dilute your brand and message with other brands, stronger than yours stealing screen real estate?

Tim O’Keefe
Real Estate Marketing/SEO
http://www.houseblogger.com

]]> By: Dustin http://4realz.net/2009/04/are-you-leaving-affiliate-money-on-the-table/#comment-3960 Dustin Mon, 13 Apr 2009 15:59:13 +0000 http://4realz.net/?p=1251#comment-3960 Frances: Please elaborate... because I'm not seeing anything convincing in your comment besides the nice plug for your course. What are the the potential RESPA violations with an affiliate program? Are the issues only with mortgage, title, etc. type affiliate programs or all affiliate programs? If a REALTOR made $25 by getting another REALTOR to sign up for an invoicing tool, would that be a RESPA violation? How about if they plug another service or tool. Let's take the Trulia widget, for example, that sends free leads from REALTORS every day to your employer. Is that a RESPA violation? Or is it only a violation if the REALTOR accepts money for the lead? Frances: Please elaborate… because I’m not seeing anything convincing in your comment besides the nice plug for your course.

What are the the potential RESPA violations with an affiliate program?

Are the issues only with mortgage, title, etc. type affiliate programs or all affiliate programs? If a REALTOR made $25 by getting another REALTOR to sign up for an invoicing tool, would that be a RESPA violation? How about if they plug another service or tool. Let’s take the Trulia widget, for example, that sends free leads from REALTORS every day to your employer. Is that a RESPA violation? Or is it only a violation if the REALTOR accepts money for the lead?

]]> By: A Social Media List of Resources : RE Bar Camp Los Angeles http://4realz.net/2009/04/are-you-leaving-affiliate-money-on-the-table/#comment-3958 A Social Media List of Resources : RE Bar Camp Los Angeles Mon, 13 Apr 2009 06:11:20 +0000 http://4realz.net/?p=1251#comment-3958 [...] To Know About Twitter for Real Estate (via Cyberhomes Blog) Blogging & Affiliate Programs:  Are you leaving affiliate money on the table? (via [...] [...] To Know About Twitter for Real Estate (via Cyberhomes Blog) Blogging & Affiliate Programs:  Are you leaving affiliate money on the table? (via [...]

]]> By: Frances Flynn Thorsen http://4realz.net/2009/04/are-you-leaving-affiliate-money-on-the-table/#comment-3957 Frances Flynn Thorsen Sun, 12 Apr 2009 15:50:54 +0000 http://4realz.net/?p=1251#comment-3957 I think Marc poses an excellent question here! I see red flags all over the matter of licensed real estate agents generating affiliate income. There are very serious RESPA issues with this. I discuss this at some length in a new course I developed for CE credit in AZ - Social Media: Tips to Avoid a Risk Management Nightmare. There is discussion in some quarters that calls blogs and web sites "media sites" and not marketing tools. State regulators and HUD are not inclined to take this view of licensee's Web forays. I think Marc poses an excellent question here! I see red flags all over the matter of licensed real estate agents generating affiliate income. There are very serious RESPA issues with this. I discuss this at some length in a new course I developed for CE credit in AZ – Social Media: Tips to Avoid a Risk Management Nightmare.

There is discussion in some quarters that calls blogs and web sites “media sites” and not marketing tools. State regulators and HUD are not inclined to take this view of licensee’s Web forays.

]]> By: Ricardo Bueno http://4realz.net/2009/04/are-you-leaving-affiliate-money-on-the-table/#comment-3946 Ricardo Bueno Thu, 09 Apr 2009 06:18:28 +0000 http://4realz.net/?p=1251#comment-3946 @Teresa: I say that you go for it! @Teresa: I say that you go for it!

]]> By: Dustin http://4realz.net/2009/04/are-you-leaving-affiliate-money-on-the-table/#comment-3943 Dustin Wed, 08 Apr 2009 20:10:13 +0000 http://4realz.net/?p=1251#comment-3943 Teresa: If you do join the affiliate program, let me know your results. I've been playing with a bunch of them, and while none of them are big money-makers by themselves, in aggregate, the dollars start to add up. Teresa: If you do join the affiliate program, let me know your results. I’ve been playing with a bunch of them, and while none of them are big money-makers by themselves, in aggregate, the dollars start to add up.

]]> By: Dustin http://4realz.net/2009/04/are-you-leaving-affiliate-money-on-the-table/#comment-3942 Dustin Wed, 08 Apr 2009 20:09:06 +0000 http://4realz.net/?p=1251#comment-3942 Ricardo: My unexpected stuff was the meetings I had... I was approached with some opportunities that had not been on my radar, so it surprised me a bit. Great stuff! Ricardo: My unexpected stuff was the meetings I had… I was approached with some opportunities that had not been on my radar, so it surprised me a bit. Great stuff!

]]> By: Dustin http://4realz.net/2009/04/are-you-leaving-affiliate-money-on-the-table/#comment-3941 Dustin Wed, 08 Apr 2009 20:07:44 +0000 http://4realz.net/?p=1251#comment-3941 Marc: I've not had any discussions regarding RESPA violations... but you've definitely got me curious. My gut tells me that RESPA doesn't apply in this case because there are hundreds of movers in the system and the relocation.com set-up recommends a variety of movers for each person... not one specific mover. Nonetheless, if I was a realtor worried about legal ramifications, I certainly wouldn't trust my gut. ;) Marc: I’ve not had any discussions regarding RESPA violations… but you’ve definitely got me curious. My gut tells me that RESPA doesn’t apply in this case because there are hundreds of movers in the system and the relocation.com set-up recommends a variety of movers for each person… not one specific mover. Nonetheless, if I was a realtor worried about legal ramifications, I certainly wouldn’t trust my gut. ;)

]]>