As I read the announcements of Zoocasa’s entry into the real estate brokerage business and its arrogantly worded public announcements on how they are gaining access to the entire contents of MLS databases across Canada, it was with great disappointment that warnings given to some organized real estate bodies in Canada as long as three years ago were not only ignored but kept from the eyes of their memberships. I shook my head, remembering the day, less than two years ago, when a CEO of one of Canada’s oldest real estate associations took the warnings about Rogers that were supplied to his Board of Directors, along with all the supporting documentation showing how this attack was coming, and threw it in the garbage, telling the board it wasn’t true. Actually the word that came out of his mouth was “nonsense”. Now more than 2,000 members of that board, historically one of the most innovative in the nation, have been placed in serious jeopardy.
Rogers Media’s attack on organized real estate and the MLS data held in associations across Canada is backed by the most powerful marketing company in Canada, one with resources calculated in the billions of dollars. At an initial cost of under $100,000, Rogers will buy up MLS data currently worth in the hundreds of millions of dollars, data that was previously owned by you! As previously disclosed here on the pages of REM for over three years, Rogers is simply following a tried and true methodology already established by a media company similar to it, the REA Group in Australia.
Every agent or brokerage across Canada had better understand that Zoocasa brokerage and its published motives of generating referral fees, and its selection of Lawrence Dale as lead broker, are nothing more than “red herrings” thrown out to confuse you and organized real estate both. Sure, referral fees will fund Zoocasa.com in its replacement of realtor.ca, but what Rogers was really interested in was the MLS data and what opportunities it contains.
Being a multi-faceted corporation with many business divisions, Rogers will use the data contained in the MLS downloads and the traffic that goes through Zoocasa to fuel its other businesses. Using that data and the marketing power of Rogers cell phones, the Maple Leafs, Rogers Cable and so on, Rogers will start selling goods and services to your clients without your permission or the need for Rogers to pay you for that right. Whether it’s one year of free Rogers home alarm system, 100 free monthly minutes added to any Rogers cell plan or a Rogers branded cash back Visa card hosted on its TheShoppingChannel.com, the opportunities for Rogers are limitless and their desire to control where Canadians search for real estate is almost insatiable.
Imagine the millions in mortgage referral fees paid to Zoocasa.com, with no disclosure needed by Zoocasa brokerage, that any bank would gladly cough up to get your clients’ business because Rogers certainly does! Imagine how much Rona or Home Depot will pay Rogers to be the exclusive home for renovations on Zoocasa.com. Maybe Housemasters or Holmes Inspections will become the official home inspection company on Zoocasa, recommended to give any home buyer an inspection they can use to ensure the home is as it was offered on Zoocasa.com.
Remember, it was only a short couple of years ago that Rogers, through Zoocasa, wanted your MLS data so bad that it willingly stole MLS data and was found guilty in court. Remember Zoocasa was using the click-through agreements agents and brokerages previously agreed to years ago, to drive traffic to Zoocasa and away from realtor.ca.
A final warning to members of organized real estate. Rogers won’t be alone in attacking realtor.ca and your business. Bell Media and Shaw Media Group have similar desires to access your MLS data and unlock the earning potential contained in it. With hundreds of millions of dollars at stake, these companies certainly won’t sit back and watch! Will you?
Ross Kay is a former third-generation member of CREA, who says he forfeited his affiliation in order to be able to speak freely and discuss viable solutions. Kay says he is Canada’s foremost expert on listing data distribution. He is currently CTO of FeaturedOn.com.
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