Broker Portal

Project Status ReportJanuary 2014

Broker Portal Project Overview• The Project Seeks the Creation of a National MLS Consumer

Facing Property Search Website

• The Goal is to Create a Portal Funded by MLS dues and data,

governed by brokers and MLS, to present listings to consumers

with a display that adheres to the Fair Display Guidelines

• The First Steps Include the (1)Formation of the Organization, the

Development of a Business Plan, and (2) the Development of an

RFP to Build the Site.

Purpose of this presentation is to enable MLS boards and Brokers to consider participation in the creation of the business

Important Catalysts That Create Action

• The NAR MLS Issues and Policy Committee have clarified the

model MLS rules to deem MLS consumer facing websites a

Basic MLS service. This allows MLSs to use dues to develop

and market an MLS consumer facing website (either on their

own behalf, or via something like the National Portal).

• Brokers have developed a model for listing display called the

Fair Display Guidelines whose main thesis is to insure that

only the listing broker and agent are displayed on a listing.

FairDisplay.org

November Meeting

Attendees

• 25 Brokers

• 25 MLSs

Discussion

• Fair Display Guidelines

• MLS Consumer Website as a Basic Benefit

November Meeting Outcomes

• Creation of a Governance Task Force

• Creation of a Technology Task Force

December Meeting

• Report from the Governance Task Force

• Report From the Technology Task Force

Next Steps

• Raise $250,000 from Brokers and MLSs to form

corporation and Build Business Plan and RFP

Current Status

• Two committees representing brokers and MLSs were

formed: Governance Task Force and Technology Task

Forceo The Governance Task Force provided a draft governance

document

o The Technology Taskforce has developed a straw man of costs

• The next step of the project is to inform brokers and MLSs

about the project and solicit involvement and funding

• The new class of participant in the project will

incorporate the business and develop the formal

business plan

Draft Governance of LLC

• Board Of Directorso 4 large brokers

o 3 medium brokers

o 3 small brokers

o 3 MLS executives

o 2 others

• The Company will have two (2) Member classes: MLS Members and Broker

Members. The Broker Members will be subdivided into three (3) sub-classes: Large,

Mid-Sized, and Small Broker Members based on the number of listings submitted to

the Company Database determined as of a date prior to the Members’ election of

Managers. “Local Operating Companies” in separate markets owned by the same

parent company will each be eligible to be Broker Members of the Company.

• Firms (brokers and MLS) who provide financial support will guide the finalization of

governance and incorporation

Estimated Expenses To Launch Minimum Viable Portal• $15 Million

• The technology committee recognizes that many of the costs of

launching a minimum viable product will hinge on the volume of

participation of MLSs and Brokers. Another significantly variable

cost will be the website marketing.

• Estimated costs to MLS dues $1 to $3 per subscriber per month.

• Firms (brokers and MLS) who provide financial support will guide

the finalization the website product, business plan, RFP and budget.

• Traffic to the site will be driven by 200 Million Monthly MLS

customer portal emails sent by MLSs today.

Current Needs and Use of Seed FundsMinimum raise of $250,000 to move forward.

• Meeting Expenses

• Consultant/Facilitation Fees

• Legal Fees

• Incorporation Fees

• Public Relations and Communication Fees

• Bookkeeping/Banking services

• Research and Purchase of a URL

Organizational Meeting• Novembe

r 2014

Governance and Technology Task Force Reports• December

2014

Recruit Financial Support From MLS and Brokers• January

2015

Form Corporation With Seed Funding• March -

April

Timeline

Looking Ahead

• Raise at least $250k in $5k

increments

• Hire legal firm to form corporation

• Communicate project and solicit

industry wide feedback

• Recruit technology task force for

RFP creation

• Drive MLS and broker participation

How You Can Participate

• Contribute $5000 in seed funding for the development of the corporate

entity, business plan and go to market strategy.

• Indication of Interesto Contribute $5000 to cover expenses

o Initial $5000 contribution will be credited to any membership, programming

(in the case of participating MLSs) or similar fee required for participation in

the Broker Public Portal upon its launch.

o Any unused contributions will be returned to contributors on a pro rata basis

in the even the Broker Public Portal is not launched and there is a remaining

balance of contributed funds.

o This is not an investment, but a contribution to defray meeting and other

related expenses to the possible formation of the Broker Public Portal

Other MaterialsFair Display Guidelines

NAR MLS Consumer Website Policy

Draft Operating Agreement

Indication of Interest for signature and return

Talking Points

WAV Group has been selected as a consultant to disseminate

the information about the portal to broker and MLS. If you

have any questions you may reach out to Victor Lund at 805-

709-6696 or victor@wavgroup.com