Earlier this month, several top level executives at Point2 Agent — a leading provider of real estate web solutions — left the company.
The Point2 press release on this states:
Point2 Technologies Inc. (“Point2”) today announced the resignation of members of its team last week…
Blanche Evans, the Editor of RealtyTimes, has this to say in a December 20 article about Saul Klein taking over as CEO of Point2 Technologies:
So the five investors at Point2 cleaned house of about 10 percent of its workforce, including upper management, and is starting over with a veteran of the real estate industry at the helm.
(My emphasis in both snips)
So, this begs the question….
Did these executives quit by their own volition, or were they fired by the “investors” in Point2? (Point2 is a privately held company — hence they have investors, not shareholders or a formal Board of Directors who answer to shareholders).
Given Ms. Evan’s reporting, I can only see three possible scenarios:
1) The Point2 executives quit of their own free will, and Blanche Evans misreported.
2) Ms. Evans is correct, the execs were “fired” by the Point2 investors. If this scenario is correct, given the Point2 verbiage in their press release, then it would appear that the executives in question were, “asked to resign” — as often happens when an executives employment is terminated.
3) I am completely misinterpreting the term “cleaned house” and Ms. Evans simply means they resigned. To me, this seems the least likely of these three scenarios. Ms. Evans is a highly regarded journalist and I just can’t see her choosing a term like “cleaned house” when “resigned” would be more accurate.
Does it really matter? I don’t know. In the grand scheme of things, the bottom line is the seven executives who left, for whatever reason and by whatever avenue, are gone.
However, when the Editor of RealtyTimes, the “Internet’s largest independent real estate news service” strongly implies they were terminated, it is an interesting little tidbit and it definitely makes one sit back and say, “Hmmmm”…
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Technorati Tags: Point2, Blanche Evans, RealtyTimes, Things that make you say hmmm
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{ 14 comments… read them below or add one }
Daltonsbriefs 12.26.07 at 9:26 am
Ok, I don’t use Point 2, I tried it early last year and didn’t find it all that useful. So, not to be snide, what does it really matter? Many of these tech companies have investsor and exec issues as they try to grow from a neat idea to a business model that makes money.
Jay - The Phoenix Real Estate Guy 12.26.07 at 9:48 am
DB - I understand your point. But the ~166,000 real estate professionals that do use Point2 Agent (myself included) clearly have a vested interest in the management and future direction of the company.
Does it matter whether these guys were fired or if they quit of their own accord? Like I said, I don’t know.
For what it is worth, as a privately help company, Point2 doesn’t have to release their financials. But I suspect they are past the point of neat idea and well into a model that makes money.
When seven execs simultaneously leave a company that is the self-professed “largest provider of online marketing and lead management software for real estate professionals” it’s news, whether one uses the products or not.
Nice hat!
Anonymous 12.26.07 at 3:03 pm
So what your saying is there is some coverup inside Point 2 as to why these people left.
Jay - The Phoenix Real Estate Guy 12.26.07 at 3:20 pm
Anonymous - No, that isn’t what I’m saying. Didn’t mean to imply that if I did.
Let’s pare it down to this:
Fact: Seven executives left Point2 Agent
Whenever anyone, in any company severs their employment, there are only two basic categories they fall into:
They either leave: 1) voluntarily; or 2) involuntarily.
“Resigned” implies they left voluntarily. “Cleaned House” implies they left involuntarily.
The company press release that says “We fired seven executives” is exceedingly rare. *IF* these people were fired, in all likelihood they were given the opportunity to resign. Then the press release can say, “they resigned”.
I have no idea if the P2 exec team left on their own free will, or were asked to leave. And I don’t know if it even really matters. I simply find it interesting that Blanche Evans seems to think they were fired. Perhaps I’m the only one that finds it interesting. It’s probably just the old Human Resources manager in me….
Rod Rebello 12.26.07 at 4:27 pm
Well, I think it does matter (especially as a P2 customer myself). Being asked to resign (as you say, euphemism for resign or be fired) indicates a considered, conscious change in corporate direction by the investors. They may have already had Saul Klein waiting in the wings. If the execs left on their own, then the company is being forced to react to this change, and luckily, seems to have hired a well respected executive manager. In any case, it will be interesting to see where they go from here.
Brendan King 12.26.07 at 7:10 pm
Hi Jay. Brendan King here the former COO of Point2 Realty Solutions and one of the first to resign. Just thought I would save every one some time here. I can unequivocally tell you that I resigned of my own volition. This is also true of the eight other executives and managers that left. Jay if you have any doubt you can call the people at Point2; Barry Willick (president), Roger Noujeim (PR), or even Saul Klein.
I don’t mean to sound defensive here Jay but it does tick me off a bit that Blanche would blatantly misreport the facts. In any case, as you suggest, none of this really matters. In the near future you will find out what we are up to…… Something new coming to the Internet near you.
Jay - The Phoenix Real Estate Guy 12.26.07 at 8:01 pm
Thanks for setting the record straight Brendan. No need for me to contact anyone at Point2, I don’t question you *at all*.
And I don’t blame you — I’d be ticked off too. Blanche should know better. In my opinion (not that it’s worth much here) she owes all of you a retraction.
Looking forward to seeing what you all are up to!!
Robert Mickalson 12.27.07 at 12:26 am
I’m a point2 user (still very happy with it), doesn’t really matter, but this post is awesome Jay, and illustrates the power of blogs. To be discussing a news event, then one of the main players in that event actually comments on it himself on your post, is just too cool. You never know who may be reading your blog! Good job Jay. But you already knew that.
Rod Rebello 12.27.07 at 8:24 am
I read Blanche’s article, and her strong implication is that the execs got fired due to giving away too many free services. Definitely needs a retraction given Brendan’s response.
Charleston Real Estate Blog 12.27.07 at 2:51 pm
Jay, once again, a fantastic job at keeping on top of the story. I noticed in Blanche’s story that she indicated that Saul guesses that 80% of the subscribers at P2 had upgraded. My most optimistic and best guess would be 10% are either professional or premium members.
Jay - The Phoenix Real Estate Guy 12.27.07 at 4:26 pm
Howard - I saw Saul’s estimate on paying Point2 customers and also thought it was VERY high. I thought your 10% guess was far more accurate.
So I went to the agent directory on Point2Homes.com — which conveniently lists agents by state, and includes membership level.
So I counted…
Here is the count of Arizona only:
Standard (free) level: 2,297
Professional(pay) level: 333
Premium (pay more) level: 38
Total AZ membership = 2,668 (note, the directory lists 2,718, but one page doesn’t display (page 24 if anyone at P2 is reading this).
That puts the paying membership in Arizona at 13.9%
Now I have not looked at other states, so I can’t say for sure if the distribution of membership levels in Arizona hold true for everywhere else (though I suspect they are close). But I feel confident that Saul’s 80% estimate of paying members is WAY off the mark.
I just might be sick enough to add up all the states and provinces. But don’t hold your breath.
Maureen Francis 12.31.07 at 11:46 am
So they left of their own volition and have a project they will be launching. Cool.
But P2A investors either did not see it coming or did not previously plan on putting Saul Klein there or they would have done it prior to/simultaneously with the exodus for obvious PR reasons.
Jay - The Phoenix Real Estate Guy 12.31.07 at 12:50 pm
Mo! Long time no “see”. Hope you are doing well.
And good point.
Kathy Atkins 04.12.08 at 5:14 pm
Hello Guys,
Anyone knows the where abouts of Brenda King? It has been 3 months know since they all pulled the Intel\AMD move. I’m eager to see what they are comming up with. I must share that as a Point2 client we in Agents in Florida feel the diference.
Kathy
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