In this day and age of hyper-change a lot of new terminology gets bantered about. “Web 2.0” is the latest that has created a considerable amount of buzz, yet no one seems to have a clear idea as to exactly what it means. Well, here’s my 2-cents on 2.0.

As the name implies, Web 2.0 represents “version 2” of the Web. And this new version reflects substantial changes in both the way people use the Web and the underlying technology that enables this enhanced user experience. For the purposes of this particular article we will focus on how these changes affect the way you and your clients / prospects use the Web. In a later article I will address the technological changes more deeply.

First let’s look at what Web 2.0 isn’t. Perhaps one of the biggest confusions about Web 2.0 is that it is often equated with using the Web for enhanced “social networking”. Examples of this include YouTube.com, Myspace.com, Facebook.com and so on. These sites allows its users to post information about themselves as a way of networking and interacting with other individuals that they otherwise would not have access to. While these services have proved to be extremely popular (Google recently purchased YouTube for over $1.7 billion just to gain access to its user base, and ostensibly, additional advertising revenues), they represent only a slice of what Web 2.0 is all about.

From a user perspective, a Web 2.0 site blurs the distinction between content providers and content users. That is, content users / visitors are allowed to actively create the content found on the site. This represents a huge interactive change from the old model where site owners were the source and distributor of information, while users were passive recipients. This makes for a much more dynamic and rapidly changing user experience.

Digg.com is a prime example of what Web 2.0 is all about. The way Digg works is deceptively simple. Any member of Digg (which costs nothing to join) can post a link and their comments to any story they feel is relevant (if only to them). Other members who see the post either “digg it”, “bury it” or simply ignore it. The more a posting is “dugg” the more it bubbles to the top of Digg.com’s popularity list, which is constantly changing. The essence of the inherent popularity of Digg (and other similar Web 2.0 sites) is that it gives the opportunity to otherwise obscure masses of people to achieve their 15 clicks of fame, and benefit from the “social proof” of knowing what’s hot, and what’s not.

This means that Web 2.0 gives the average “Jane” or “Joe” the ability to affect what millions of other users see (and think what is important) on the Web. It is a form of personal empowerment that simply did not exist before and goes way beyond having your own Website. That’s because, simply having your own site doesn’t mean millions of people are going to find it or take the time to see what you have to say. But on Web 2.0 sites, these millions are already there and depending on what you have to share, they may very well be interested.

So how does this all affect you and your real estate career? Are you now going to have to get your own site upgraded to Web 2.0 standards? Well, not so fast. Web 2.0’s ability to enhance online business (other than advertising revenues) is still very much an open question. So let’s take a look at how Web 2.0 principles are currently being applied in the real estate industry:

• RealestateVoices (http://www.realestatevoices.com) – this is the real estate version of Digg.com. Members post articles that are rated by other members. So far it appears to be sparsely populated and seems to serve no other purpose than to inform.

• Zillow (http://www.zillow.com) – this free home valuation service now allows homeowners to modify their property’s listing with additional information that may affect their “Zestimate” (Zillow’s estimate of value). And just recently, Zillow has enabled property owners to post their Make Me Move™ price. This allows people who are not currently selling their home to think seriously about it, and becomes a source of leads for enterprising agents who continually check to see which properties in their area recently posted these prices.

• Point2Agent (http://www.point2agent.com) – this real estate template Website company has recently added a feature where other agents, and more importantly, consumers can post their comments and/or questions about any of your listings on your site. This is a powerful and anonymous way for visitors to a) interact with you, and b) modify the content that makes up part of your listing information. NOTE: the staff at Point2 monitor these postings to make sure nothing inappropriate shows up in these comments. To see an example of this go to: http://homes.point2.com/US/West-Virginia/Mingo-County/Gilbert/Verner/749508-Consumer-Comments.aspx

These are just some examples of how Web 2.0 is beginning to creep into the online real estate space. As time goes on, there will undoubtedly be additional manifestations as well. As to how all this is going to affect your ability to increase the amount and quality of business you do online is still uncertain. What is certain however, is that the more you give your visitors the ability to modify the content of a site, the less control you have over what shows up. I’m not sure that business is quite ready for this kind of structured anarchy just yet. For example, Burger King thought they would take advantage of the popularity of YouTube by producing a video with a rap star and then posting it on the site. Well, they got publicity all right, but apparently not the kind they were hoping for! Word of “digital” mouth can be destructive as it is helpful, and you never know for sure which way those winds will blow.

For now, the best thing you can do is just keep your eyes and ears open to these new user-centric experiences. And, don’t spend your hard earned dollars on the “latest and greatest” Web 2.0 “solution” until it has well proved itself. In the next installment of this series of articles on Web 2.0, we will explore the how the underlying technology is making the Web act and seem much more like a desktop application —which is good news for everyone!

NOTE: Mr. Internet®, RUSSER Communications, its staff and officers receive no compensation whatsoever from any third party vendors and make no recommendations as to the suitability of the products or services mentioned in this article. NOTE: Author does have a financial interest in WebAssess.  Always thoroughly investigate any product or service before trying or purchasing.

Mr. Internet is the alter-ego of Michael J. Russer, an internationally recognized Internet speaker, trainer, author, and strategic consultant to the real estate industry. He's dedicated to helping real estate professionals leverage their people skills into profit on the Internet. You'll see his column on REALTOR® Magazine Online every month and in the magazine quarterly. Send your Internet questions to help@askmrinternet.com or you can visit his Website at www.russer.com.

This article is reprinted in its entirety from the January 2007 issue of REALTOR® Magazine by permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2007. All Rights Reserved other than mentioned above. Mr. Internet® is a registered trademark and Ask Mr. Internet!™ is a trademark of RUSSER Communications.