Great points -- once upon a time my co-founder came up with an interesting theory that the rental brokerage industry is a NET LOSS for the brokers, and the only reason it works is attrition.
More formally, if you assign a reasonable hourly wage for a real estate agent, say $25 an hour, then the sum of all agents working each year plus their business expenses exceeds the sum of all commissions collected each year! The lost time is wasted on unqualified tenants, competing over the few qualified tenants, negative ROI marketing (featuring on NYTimes.com or posting bad photos), etc.
If you believe in the net loss theory, then all the startups that always pitch "broker services a la carte" are doomed to fail. That is, brokers offer some bundle of services and a startup tries to unbundle and charge a fair price per line item. That thinking treats brokers as commodities when we can see clearly that great brokers earn 10x a mediocre broker, suggesting there is probably some skill.
More formally, if you assign a reasonable hourly wage for a real estate agent, say $25 an hour, then the sum of all agents working each year plus their business expenses exceeds the sum of all commissions collected each year! The lost time is wasted on unqualified tenants, competing over the few qualified tenants, negative ROI marketing (featuring on NYTimes.com or posting bad photos), etc.
If you believe in the net loss theory, then all the startups that always pitch "broker services a la carte" are doomed to fail. That is, brokers offer some bundle of services and a startup tries to unbundle and charge a fair price per line item. That thinking treats brokers as commodities when we can see clearly that great brokers earn 10x a mediocre broker, suggesting there is probably some skill.