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April 25, 2012

The Dangers of Proprietary Solutions

There are many real estate organizations that focus on “their” proprietary solution. They use the old fashioned mindset of trying to lock clients into them by “licensing” them software to do what needs to be done. But if the client ever wants to leave they have to start from scratch with someone else. This is a solution that creates value for that service provider, but the client doesn’t get much at all. True partnership involves risk on both sides of the table.

There’s a trend to put fees at risk based on performance. However, the real win in real estate is setting up a non-proprietary technology platform for the client. Create lasting value and not just try to hold them in by saying “leave us, leave the software.” Not very cool.

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