The wonderful world of Web 2.0 startups is full of twists and turns, and ShackPrices is making one of those turns re-branding itself as Estately.com and revising it’s business model. ShackPrices was focused on offering itself as a real estate search engine is now Estately.com that will offer a low cost alternative to finding an real estate agent who is best suited to meeting a specific criteria of needs.
One word of advice to Galen though, update your blog to let us know what you are doing or why. It is re-branded Estately but it’s content is ShackPrices. Those who are interested in your company will appreciate the update and the inside scoop on why the change was made.
And if you think that this turn is surprising or unconventional, it is very typical in the world of Web 2.0 as business plans change on a dime. This Question and Answer session at the Churchill Club with 5 top web entrepreneurs is illustrative (and long but entertaining) on the issues facing building a successful Web 2.0 company. So best of luck Galen.
Co-founder Galen Ward, who launched the real estate search startup last December in Seattle, said the company’s new service will attempt to link home buyers and sellers with the best agent for their specific needs. Estately will ask consumers a few basic questions — whether they are looking to buy or sell, possible price range, type of property, the qualities they desire in an agent, etc. Then, the company will spit out three potential matches from a list of dozens in Western Washington. Ward didn’t give an exact number, but he said they range from those who offer discounted services to full commission agents.
What is interesting about Agent Match is that the company will get paid by taking a 12 percent cut of the agent’s commission. That could be off putting to some agents, but Ward said it is cheaper than the 30 to 40 percent referral fees of competing services. For example, an agent who sold a $500,000 home would pass on $1,800 of their $15,000 commission to Estately. (Assuming a 3 percent commission was used in the transaction). via John Cook’s Venture Blog
Update: Galen from Estately.com left a great comment and even did a better blog post explaining the direction they are taking. Go take a look.
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I want to clarify; this isn't a change in our business plan, more of a logical extension to what we already do. Lots of people use Estately every day to look for homes and we had a lot people asking us to recommend agents or see homes. In spite of the hype, real estate is still a very personal and real-world experience.
Estately was about learning about the area and finding great homes before, now it is about learning about the area, finding great homes, and then working with an agent to buy them.
The blog is updated – read up! We didn't really expect folks in the media to start publishing at midnight, but we're glad they are eager to publish.
And when I say the blog is updated, I mean we'll update it soon. WordPress can be such a pain.
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