An awesome blog post…via our pal Kevin Boer – 3 Oceans Real Estate Blog. Lots of good quotes in this one…we will certainly leverage this PR in our model.
Redfin is the company everybody in the traditional real estate industry loves to hate. Theyll go bankrupt just like all discount firms do when the market turns bad. Can you believe how they force listing agents to do all the work Their agents don’t have a clue about the market!
Deride Redfin if you want, be skeptical of its business model, take potshots at Glenn Kelman all you want but whatever you do, dont dismiss Redfin out of hand, at least not before hearing what this man has to say.
Clayton Christensen is a professor at Harvard Business School who has become well-known for his research into how technology disrupts industries. His theory, put forth in his books The Innovators Dilemma and The Innovators Solution posits that new entrants into an industry often take advantage of a disruptive technology to enter the marketplace at the lower end, catering to the low-margin customers that the established players arent that interested in serving. He gives examples in many industries, including financial services (Charles Schwab came into the brokerage business catering for the budget stock investor), steel manufacturing (mini-mill technology), and hard drives.