Real Estate portal market globally growing by leaps and bond and we find that the market opportunity for the industry is immense. However similar number of portal got failed in market after the initial launch.
While E commerce in general not making too much profit due to one reason or another and question of why they discount bomb is keep pouring over investor fund is a one of the some reason that big companies like flipkart get markdown valuation from top investors. I
n our study what we find that all large or most of the large portals not profitable and doing business with investor funds. This is one of the key concerns for the real estate marketing platform and people aware with industry see the trend of very limited number of investor now entering the market to fund a real estate portal or marketplace.
Where is loophole
The big question still not resolve that what is the problem, why portal not making profit or why even so much of traffic and lead there is issue of profitability for the portals.
We at Techzone India try to unveil the question with some answers that we know not well received by all , but we know it very well that a planned real estate portal can be profitable from the first year if they work with precise target to market and what they want to achieve.
These are just an overview of what we find in our research and complete research documents available on request
Our startup consultancy for real estate business and technology platform delivery to more than 20 portals is one of the reason where we start discuss these point and try to figure out the real reason or improved way to make a real estate portal success in any of the market without too much burning of the investor funds.
We guide and provide consultancy to the real estate portal to make them profitability by giving them insight and strength of technology, market, marketing, public relationship, process and resources to do the best for portal.
Here we start with the top reason and point to consider for the success of the real estate portal.
To get successful on your real estate portal venture, you must select the high performance technology. While doing our research and interacting with more than 200 portal aspirant companies who planning or doing the development work for the new portal launch, we find that out of the 200 companies more than 180 companies are not bother more about the technology and there is very limited time vision about the technology, they feel that technology will not give any big advantage the only success or failure is the listing of properties. While they have the vision about the industry and own perception over it, we recommend you to go with very high technology when selecting technology for your real estate portal. There are several reasons, why you go with high quality technology.
Key Reason to go with good technology
Stable Technology platform for your business ( making Difference between the Framework )
Get more SEO automatically from the technology itself
Upgrade and integration
Managed Code for Deployment by any suitable team
Standardization of coding give you easy management of the Code
Multi APP Version – Go for technology that highly available for extension from the Web to Mobile easily
Easy Infrastructure – The easy management of Infrastructure and cost saving from those
2 Outsourcing vs. in-House development
While everyone feel that if we invest 20,000 to 50,000 Dollar, then why go for outsourcing model, we can easily create the awesome software in house also. This is true in some sense but there is addition points need to be considered before climbing your decision about the preferred mode of development process.
Let start with a single question, what is your primary agenda for the portal, did you want this portal to run successfully to bring more business and give innovation to the market by deploying some special and first time solution in the market. Or you want the in house team as this will increase the chance of investor to rope in you when you are saying that you have a team of 25 or 50 IITians. This is really a good and excellent question that what need to be done and what is the primary agenda. A high quality solution with stable and full knowledge base about the industry will work on other ways compare to the solution team that is having less experience and good exposure to the technology over experimental labs.
A great example you can explore within the housing.com, if you track them properly you will find there is lot of changes and those change are inevitable since those are created by the people who is just having one things in hand- an investor funds and a vision to go with a good solution. But they changes lot of stuff and this give customer an easy exit that there is something wrong, so even so much of branding and hype it didn’t able to be on the position where it can go with the available resources and team size.
We feel that you will go with very high quality outsourcing company for the development and management of your portal and let give more and more time to your business for the business development. As technology is some time become core of our business and we are not able to focus on the primary objective of our business as we try to manage the technology development in house. While in-house technology development come with some advantage and some disadvantage also. Some of the selected one is as below.
In House vs Outsourcing Mode for Real Estate Portal developments
|Team Size||Need time to Established the team||Quick Expandable|
|Knowledge base||Limited Knowledge due to Limited Team||Extensive Knowledge due to higher number of projects|
|Dedication||Fully Dedicated||Not Fully Dedicated|
|Delivery Time||Un targeted – No fixed target||Targeted|
|Time to launch and market||Vary large Time frame||Small Time Frame|
|Technology Selection||Team Dependent||Value Dependent|
|Source Code||In House – Security is your||Can buy – Full Secure|
|Third Party Integration||Tough||Easy|
|Professional Advise||Cost Extra||Nil or Minimum Cost|
|Estimated Cost||USD 150,000 to 2,50,000||USD 45,000 to USD 60,000|
While we have make this documents for the purpose of reference only and cost decision is based on the standard portal structure from Techzone real estate team and 2-3 clients reference, based on the development center in India.
A good marketing is great marketing and while it take just few days to learn about the marketing mastering them can take years. So we need to be very wise and talk with data about the marketing. The success of marketing more and more with quality of your available data and optimization of those data for the purpose of the management of the business.
Hence we always recommend to go with a marketing agenda that lead to some short terms goal and some long terms goal and keep aligning them as much as possible with each success and each failure. Understanding the marketing requirements in a prospective view of consumers, business partner is more important than the investor point of view.
Since sometime investor come with their own vision and they need to achieve that target but we are doing marketing for the clients and business so we need to be stick on that with easy and affordable way. This is not very much rocket science kind of things that marketing by Facebook and google is not done at all in the early stage and even today if they are doing any marketing it is for the purpose of the PR reputation, Brand awareness with investment community and hardly there 5% of marketing efforts are toward the customer oriented products.
So we need to find the way how portal really gets successful and why it will get successful. Because if you got the traffic with very high price per click., than your overall cost of getting a new lead must be minimum because too much costly lead not bring value. As you are buying the traffic and marketers play the role to increase the traffic in numbers.
Important aspect of lead is branding in consumer mind landscape. it will bring where we can do some research or get my products from that portal. More detail of Types of marketing that can be plan for real estate portal is getting discussed in another article.
4 lean and Mean team
Yes that’s correct, it is not mandatory that you start with 500 IIT and 1500 IIM graduates with your company. Go with just normal guy with good or excellent in industry knowledge and capability to read and learn the market.
The lean team is having more opportunity to grow your business in fast mode and higher revenue and profit options.
Let start with an example of what we learn from one of the portal of guesthouse booking that they hire about 50 IIT and IIM graduate to just make the listing of the Guesthouse from Delhi and NCR region to their portal.
Now these guy visiting the guesthouse owners, out of 50% are just not able to speak anything more than their own regional language and these guy look like them as kind of over smart team members and they tend to avoid, because what they want to understand that how much booking you can bring to our hotels instead of who are you.
As everyone knows on-boarding team is get replaces with vendor management team once the on-boarding process is completed. So my question is that deploy the team and members who really able to work hard and not just for the sake of degree and college. Pick the suitable team and as per the product and client you need to serve give them training and use them in market.
5 Suitable Products
I know this is one of the first things we need to discuss, but why we stated this in last s this is not about what products or services you want to offer.
In our case we are talking about real estate portal, so this will be something like that. Now a suitable product means is not about the consumer and the listing of property and project over your portal.
A suitable product for the agency, agents, developers and builders is very much important, as these are your business makers. So let bring a solution and package and offers that really suitable.
It is not mandatory that you start with all free only. You can go for some free some paid or anything but it need to be suitable and perfect for your market where you want to start with.
6 SEO – Since SEO is much talk about by everyone so we don’t talk too much, however this is really one of the important aspects of your successful portal of real estate. So get a best in class solution that gives you much of the SEO work for you without too much fund burning.
The easy SEO or Time bound SEO strategy, whatever you want to start with; please do not bother too much about the SEO. Since google and Other Search engine is becoming smarter and smarter so you need to get a good product for yourself and SEO will be taken care by technology itself.
The part of your SEO strategy can be as simple as link building with reputed brands, tweaking your title and description, making url readable to Search engine, making content readable to social media, going with good meta data and so will help you in several way. However these are very much know things but always get ignored somehow and these small things make big impact for the traffic on long terms.
This is very much of your interest that you keep checking your solution and user interface in the SEO prospective as well, but never create a product for the purpose of SEO only. SEO is just one of the extension for your overall business plan, so keep in mind only the customer and target market where you want to sever, SEO, marketing and branding will keep follow.
If you check with some very successful solution and get to know more about the stages they cross you will find most of them not even bother too much about the design and only focus on the client and once they reach the base of the clients that is useful then it will not a matter to do the changes that help you get memorized in your business platform without issue.
7 Mobile – The Mobile cannot be ignored at all, hence mobile is must and approach for mobile using suitable budget and price is very important. Coming days we are sensing that may be the installation of mobile app is get educed or people want to remove the multiple apps from the mobile since there is lot of app available and those app taking too much time and space within mobile.
So focus for mobile is to make smart app that really used by the users and it give them compelling reason to use your app include the standard works and then work very hard on your mobile version of your portal.
The Mobile version website which one is suitable for us is again a big question and it need further and separate discussion like choosing between responsive Mobile site vs adaptive mobile site, native Apps Vs Hybrid app or Web view app. But overall mobile cannot be ignored and this is really very important to go with mobile platform along with your portal from first 3-4 Months or so.
8 Strategy – The word is so large that an explanation of this can be go beyond the context of article, so we keep this lean and leave it to you to fine tune your strategy about what to do, how to proceed and where to move in.
But the good strategy is half win of the game. The strategy about the user interface, User communication, Product selection, additional service offers, the interaction of the business from online to offline and so forth. There is lot of things that can be handled within strategy and a successful portal must come with a strategy that is at least good, if not excellent.
we find there is lot of companies and portal who either ignore the infrastructure or keep too much effort for that. We feel that a balanced approach will work excellent and it will give you saving in terms of commercial, time and free your resources.
Since at the start of your portal journey you cannot expect too much of traffic so don’t go for all long year or multiyear contract for multiple server that cost you hundred thousand dollar and then it will not use at all. Let go with either elastic mode or cloud mode or if you want to deploy the dedicated server farm do that in very smart manner.
What to choose and why to choose between the cloud and dedicated is again a large debate and it need a separate discussion and we leave that for now. But this is mandatory that you go with a scallable server infrastructure for your portal that can be move beyond the limit by very fast transfer from one way to another.
There is one more and very important component of infrastructure that is get ignored by people and sometime they simply not want to be on that, THE CDN. Yes you are right; you must use CDN for your real estate portal if you want to achieve the best in class speed and performance.
Since there is more than 70% resources of any real estate portal is static, like images, video, floor plan and documents. So using CDN will not just save your server space, it lead to increase the speed at last 5-6 time from your current dedicated or cloud based server. Keep in mind that these are only an overview of what one can do.
10 Partners – This is not mandatory for everyone since you are so smart. But we feel that a good partner for your technology, platform and consultancy will save your life in several ways. It will help you with the expertise and previous work knowledge and guide you more while jumping into the deep water.
The primary purposes of the partnership with a technology vendor, investor consultancy, legal advisor, market players is very much about the interaction with business and keep growing your business by learning from the mistakes of others.
If you are not interested to learn from the others mistake, there is very high chance that you will become the subject of learning for others in coming days. So making mistake is not a problem, but going by those mistake and overcome from those issue is one of the success mantra for all business so the real estate portal solutions.
Conclusion – In a nutshell this is important to understand the pressure from your own mind before anyone else and treat the funding from the investor as your own fund and make decision based on the merit and not just the imagination of what you want to achieve or what others are saying.
A good stitching of all your linen of real estate portal fabric will lead to high quality product that is smart scalable and profitable for the investor, business, and consumers and off course for you as well. What we learn in years that play to lose the game and win it by efforts it will increase your confidence and give you freedom to do something that is really innovative.
Since we find there is no lack of innovation and market is expanding each day so there is huge demand and opportunity is unlimited, only hindrance is your target to handle your own position and set of issue and care about those issue at large.
This is barely a matter of what someone else doing. As each of us are different so our products, offers and thinking process and we need to keep it original for all reason to be the successful in invention of the business.