Brokers (of all kinds) have been around for millenia and will be around for millenia more. There are always consumers who are willing to pay for expert advice and there are always sellers/producers who are willing to accept less than top dollar because they don't want the hassle of dealing with the consumer (which doesn't scale).
I think that technology can empower the consumer, but doubt it can empower the consumer enough to eliminate middlemen (of which brokers are one type). I've heard that story before, and all I saw was a different kind of middleman (heck, Amazon.com is a middle man for a lot of products).
So, that said, how can you align incentives? You have a limited number of ways to pay the middleman or broker: you can pay them a flat fee, you can pay them an hourly rate, or you can pay them based on the size of the deal. Which incentive structure do you think aligns interests the best?
There are many other options. Here's a simple toy one, designed to eliminate the bad incentives discussed by freakonomics:
Say you have a tiny house that could reasonably sell in the range $90k-$110k, depending on how hard the broker works. If you give the broker 5% of the sales price, then he gets $5k on average, but on the margins he only sees $50 for every $1k he can raise the price by negotiating. So instead, give him 50% of ever dollar of the sales price over $90k. Now he still makes $5k on average (i.e. 50% of the average $10k over the lower-bound of $90k), but on the margins he gets $500 for every $1k he increases the price by negotiating hard!
Needless to say, there are all sorts of other ideas smart people could come up with. Often, the reason these don't work is because they seem complicated, and it's hard as a consumer to assess to broker-fee structure itself (a sort of market failure). But there's a good chance that technology can change this, by making info related to broker fee structures more accessible and more transparent. For instance, data about average broker fees, the distribution of house sales prices, etc. could be collected by a tech start-up, which would have been unfeasible to collect in the past.
I think that technology can empower the consumer, but doubt it can empower the consumer enough to eliminate middlemen (of which brokers are one type). I've heard that story before, and all I saw was a different kind of middleman (heck, Amazon.com is a middle man for a lot of products).
So, that said, how can you align incentives? You have a limited number of ways to pay the middleman or broker: you can pay them a flat fee, you can pay them an hourly rate, or you can pay them based on the size of the deal. Which incentive structure do you think aligns interests the best?