Rental Advertising - The Network Effect

Rental advertising has become much more profitable and cost effective than ever before. In the past, rental advertising depended on the local newspaper, rental magazines and other expensive forms of advertising. Now, the cost to obtain a renter can range from $0  - $199.

During our recent trip to Austin, we asked all of the leasing agents what their vacancy rate was. They all said about 8 - 10%. We then asked what the ideal vacancy rate would be. They all said they would love to have a 100% occupancy rate. We then asked if we could give them a cost effective solution to get them to their goal would they be interested in learning more.  Their response. Of course. Our solution. A rental advertising network.

The future of online rental advertising is in the network effect. The more sites you can post your rental property to, the more leads you will receive. There is a large trend in rental sites trying to get more distribution by posting their ads on other rental sites. Could this potentially lead to cannibalization and brand deterioration?