W Online Lead Generation Mike Rahmn Windermere Technology Services Owners’ Retreat March 2- 5, 2004

W Session Agenda Shift in Landscape Overview of HouseValues Discussion: “How do we respond the Windermere Way”

W Shift in Landscape Marketing Vehicle Television Radio Newspaper Outdoor Direct Mail Brand Office Agent Office Walk-in Word of Mouth Open House Traditional Marketing Buyer Seller Repeat Customer Focus of investment on Marketing. Passive approach to cultivating client. Awareness ContactCustomer

W Shift in Landscape Establishment of Internet Source: NAR 2004 Buyer Profile Usefulness of Information

W The Disconnect $11 Billion Total Spend 74% of Consumers Begin Process Online Source: National Association of Realtors; Borrell Associates RE Spend 89% of Advertising Dollars Offline

W Shift in Landscape Marketing Vehicle Direct Response Marketing Lower cost Marketing. More time spent in cultivating customer. Measurable results. Action Send - Call - See Customer Direct Response TV Direct Marketing Personal/ Office Website Online Marketing Event: Client Appreciation Night Marketing Drive-by Walk thru Contact Agent Newsletter Direct Marketing Phone Spam Auto-response Buyer Seller Returning Customer

W The New Landscape Traditional Marketing Direct Response Marketing Mix No longer “either/or” the environment is now “and”. Must do both. Audience is becoming accustomed to traditional marketing tactics and savvy buyers. (Awareness) (ROI)

W Timeline for Internet Consumers Buyers and Sellers SELLERS BUYERS

W Shift in Landscape Gap in Communication Cycle = Missed Opportunities Source: NAR 2004 & Calf. Assoc. of Realtors 47% of the people now use the Web to locate agents Only 42% of those agents respond to inquiries 70% take 2-days to reply Leads Untouched

W Shift in Landscape 70% of sellers chose an agent in one week 52% 18% Source: Hebert Research

W Shift in Landscape 62% of buyers select an agent in 1-3 days! Source: Hebert Research

W Shift Impact = Opportunities for Lead Generators BROKER CHALLENGESLead Generation Companies (HouseValues) Profit pressures New revenue and profit stream More effective use of marketing budget Increase capture rates on ancillary services Brand recognition Broker brand is front and center Automatically communicate with thousands of prospects on an ongoing basis Agent productivity Proven formula for success Leads + tools + training = SUCCESS! Exclusive leads = no competition for customer Agent recruiting and retention Strong differentiator for recruiting “Get agents off to a strong start” Broker as source of business for agents Productive, successful agents stay longer Page 12

W Current Players CendantBrand is first point of contact. Leverages infrastructure to capture full business. Purchased lead management program. Weichert$2mSimilar to Cendant. Aggressive with direct response marketing and capturing and incubating leads. Five min. response time to all online leads HouseValues$100mService to replace traditional marketing spend at the broker level Lending Tree/ Interactive Corp. $800mGenerates response and sells as lead or referral. No follow- up. Bank of America$4BPartners w/ brokers and uses listing data to generate leads. No cost to brokers. BofA gains the mortgage business. 11m online visitors. Avg. 4 visits/month. 500m branch walk-in visits into 5700 branches

W TV & Internet advertising HouseValues.com & JustListed.com Web sites Web-based real estate CRM tools Automated follow-up Home buyers & sellers Page 14 HouseValues Automated Lead Generation & Follow-Up

W Multi-million dollar national advertising budget National and local television presence Partner with the major Internet sites and portals More than 3 million buyer and seller leads generated to date Generating nearly 200,000 new home buyer and seller leads every month HouseValues Exclusive Geo-Targeted Leads

W Leads auto-populated into proven CRM tool Leads distributed to brokers online Automatically tracks results, referrals and income Complete contact management solution Automated campaigns, newsletters and home listing updates Schedules follow-up activities HouseValues CRM

W HouseValues CRM

W Who is in the Center? Traditional Transaction Title Insurance Company Pest Inspector Mortgage Company Escrow Company Home Inspector Agent is first point of contact Agent

W Who is in the Center? Lead Generation Transaction Agents are no longer the first point of contact Mortgage Company Relocation Title Insurance Company Pest Inspector Escrow Company Home Inspector Agent Lead Generator

W Comparison Lead Generators Traditional Marketing Radio, Cable TV, Network TV, Outdoor, Newspaper Local Media (Newspaper, Magazine) Cable TV, Network TV, Radio, Outdoor, Online Marketing Impressions, Pay-per- Click, Site Optimization NONE Online Inquiries HouseValues 200,000 inquiries/month 800,000 visitors/month 75,000 inquiries/year Agent Education Training Seminar, Weekly Calls, Online Tutorials Education, Help documentation, Fanning Lead Incubation Automated s, Call Center Windermere Referral Program CMS Automated follow-up process CMS, CMA, Auto- Notification, Custom Xpress, Visibility Plus Web Site No ListingsComplete Listings, PropertyPoint, Agents W

W Site Traffic – 2004

W Site Traffic – 2004 vs. 2005

W Windermere’s Opportunity Actively market our site Increase Use and Awareness Not to abandon infrastructure. Build on it. Know Our Customer Acquisition Cost Measuring the success Tracking the leads How much are you putting into your marketing? Gain leads from Lead Generators for new markets or new agents?

W Windermere’s Opportunity Discussion Topic: How do we respond The Windermere Way?