LoopNet's Message: People Will Pay

Do the Math... It is October 1995. You receive a paper letter from Dennis DeAndre encouraging you to list your properties at LoopNet on the World Wide Web. Just send him a flier on your listing, and he will post it (for free!).

How will LoopNet make money? You're confused. You have never heard of LoopNet, and you're barely aware of the web. You are not familiar with the expression "dot-com." Except for Netscape, there are no public Internet companies. Indeed, the Internet Bubble is five years in the future.

Fast forward ten years to October 2005. Tom Byrne, LoopNet's Chief Marketing Officer, tells me that Premium Memberships have grown 50% so far in 2005 to almost 54,000. Premium Memberships, which provide earlier access to listings and enhanced services, cost roughly $40 per month ($39.95, if paid one year in advance, or $49.95, if paid monthly). You do the math.

Would you have predicted this success? Remember just four years ago when LoopNet launched its Premium Service in September 2001? You probably wondered if people would actually pay for information previously available for free. (Basic registration was, and is, still available for free.)

The answer turns out to be "Yes, people will pay." So now the question is how big can LoopNet grow? How many real estate professionals (brokers, owners, managers) will join? According to Byrne, 300,000 new people have registered for Basic (free) Membership at the site so far in 2005, and they are hoping to convert many of them to Premium Membership as they continue to enhance their services.

Recently LoopNet added a new feature for Premium Members, the ability to create a web site for property listings linked in real time to LoopNet ($39 for 90 days). Here are four examples from across the country: a Houston office portfolio, a Chicago office lease, a Miami office condo and a San Francisco office lease.

Spread the Word... This "Sponsor Profile" Dispatch recognizes LoopNet as a primary supporter of PikeNet. Thank you! (Visit Dispatch Advertising for sponsorship details.)

-- Peter Pike