If you’ve not been following the Reddit drama over the last month or so, you might want to start.

It’s becoming a great case study in how modern communities function (or some would say sustain dysfunction), and it has direct application to the real estate industry.

Why?  Most real estate offices operate more like communities than traditional sales organizations.

As independent contractors, the agents resemble a loosely-connected community of micro business owners.  Agents are getting paid (unlike Reddit community members), but they can easily move between brokers and get paid a similar amount.  The reason they stay has much to do with what they perceive they are receiving from the community.

In this framework, you (the broker/real estate office) are Reddit.

If you do a good job as a community organizer, there are many wonderful benefits that come your way.   If you do a poor job as a community organizer, you may find your office is burning down due to forces in your community that are difficult to understand and control.

Reddit’s Story

Many people call Reddit the “front page of the internet.”  It’s a very popular user-submitted news site mostly run by community members.  It’s among the top 50 websites on the internet.

If you want a quick primer on what’s happening with Reddit, I would recommend reading Gina Biannchi’s article in Recode.  It’s long, but it covers several different angles on the Reddit drama.

In essence, the site was thrown into chaos earlier this month after their CEO fired a popular moderator. In a sign of support, Reddit’s moderators revolted, shutting off access to some of the sites most popular communities, many with millions of subscribers.

Eventually, Reddit’s CEO Ellen Pao lost her job in the ensuing turmoil.  Her crime?  Trying to shut down a forum created to make fun of obese individuals.   Reddit’s moderators defense?  We have a right to free speech.

The situation is on-going and who knows where it will end.  For sure, Reddit’s brand has taken a big hit (appropriately so) and business as usual is now mayhem.

Could this Happen to You?

This isn’t just an interesting soap opera to watch.  For the real estate industry, there are lessons to learn from the Reddit story.  However, the lessons don’t become visible until you see the real estate companies/offices operating as open communities.

Bianchi’s insights will help us understand how this works.    Open communities operate under the following principles:

-Communities attract the best and worst of humanity.

-Control is not an option.

-Product is the answer to 90 percent of your community problems.

-Leaders need to be visible and engaged to influence the community.

-Your business model has to enhance — not fight — core community dynamics.

In our next WorkPuzzle, we’ll delve into these principles and help you to avoid (on a micro level) becoming the next Reddit.

In the meantime, pop over to Reddit and see what all the hubbub is about.  Also, read a few of the latest articles on Reddit.  I guarantee some of the issues will remind you of stuff you’ve observed in real estate offices over the years.

Questions or Comments?  Reply to your WorkPuzzle subscription email.

Didn’t get the WorkPuzzle email?  Subscribe below.  We promise not to share your email with others or use it for any other purpose but delivering WorkPuzzle notices.