ON THE NET OR OUT OF BUSINESS

Bill Gates really got my attention with his message in the late 1990's "You are either on the Internet or out of business" when he was pointing in a direction that was inevitable, to a new world where the personal computer and the associated networking capabilities would connect people like never before. The power of this technology would disrupt the way we operate, forever.

It has taken longer than Bill imagined, but the world has indeed flipped over. It is flatter, leaner and faster.

I am particularly interested in how the Internet would disrupt this major industry of Property. IN South Africa our poorly regulated, actually quite antiquated Real Estate industry has held back the flood. Many estate agents still do not even have access to the Internet, and certainly the advertising of houses on the Internet is viewed with suspicion, even now. Notice how many adds on the property portals are brochure ware, nothing more than an online add to fish for buyers for properties not listed, or even worse, to solicit sellers.

But wake up to the facts, guys:

• 3.2 million adults have access to the Internet in SA according to AMPS 2008.
• 2.4 million use the Internet for search...(would property search be relevant?)
• 2.1 million uses it to do research and obtain information. (property for sale?)
• 2 million use it to receive and send e-mails...
• 0.9 million use it for banking purposes
• 0.6 milion use it to download music.
• 83% of all Internet users have access either at home or at work, which we can assume puts them in the LSM 9 to 10 categories.

So here is what brokers and Estate Agents should be thinking about. Their target market is LSM 9 and 10, of which 77% of these people use the Internet.

The majority of these people will search and research by default first....using the Internet. And Broadband is coming...fast.

You can surf the wave, but dont think it wont come, "you are either online or out of business" .