he said his own dogs would attack him. we have some time to talk about how your disrupting the industry. mo hart how much time we give it, i don't think people would fully appreciate how much you have. i go back to tivo. when we first saw tivo and tried to explain it to people we got blank stare. then they got one. >> until you used it. >> how are you disrupting the real estate industry? >> there's a few things that we do. we publish the information so we got access to the databases that real estate agents use. we put it online and we hired our own real estate agents and paid them to put the customer first. >> they are your employees? we're not paying them a commission? >> that's the crazy part. we started as a software company and decided if we wanted to change the game we had to hire our own agents. today we have 3 or 400 agents

all across the country. their paid a customer satisfaction bonus so if you're happy they make money. if you're not, they don't. that allows us to not only have digital part be revolutionary but also the service part. i'm not the founder. i'm just the ceo. when we had to decide what we wanted to do with this business we could turn over leads to traditional real estate ats or try to change the game. we decided that we wanted to change the game. this meant having a digital business that also had personal service. >> why haven't anybody done this before? we have trulia and zula but nobody has tried to do this? >> they're not that crazy. it's easier running a software business. that's what i did before. it's a digital business with pure digital margins. you don't have to worry about a real estate agent showing up to

hang a yard sign or write an offer. the challenge has been going market by market getting good local people and delivering consistent quality service. it's larger opportunity because there's $60 billion in fees paid to real estate agents. >> when you disrupt such an old industry aside from somebody threatening to beat you, what is the real estate -- what feedback have you heard? >> that's changed. i went on "60 minutes" and said it's the most screwed up industry in america. lots of people got upset about that. i don't think it's the most diplomatic approach. i still want to change the game. i think we have to work with real estate agents in the bay area and seattle. we've adopted a less strident tone. >> it is a disruption. you can be as polite as you want to. if i get a red fin real estate

agent and i don't buy a house, they get paid. if i buy a house, they get paid. they're your employees. it's how i feel about them that kind of a yelp version of real estate. that's what they are depending on. that's a complete change. >> it's a complete change in accountability where the agent is accountable for not just any result but a good result. the real disruption is they are six times more productive than a real estate agent. they are closing two or three deals per month. they don't spend any time prospecting for clients. they're not really allowed to do that. >> do they make more money? >> they're in the 90th percentile of agent pay. we come into a market and say what do agents make and tie our

agents pay to about the 90th percentile. there are some that make more. there are some that make less. that's where we want to average it. there are still real estate agents in silicon valley in the top 1%. most are struggling to get by. our agents are making somewhere between 50 to $150,000 a year depending on which market we're in. they tend to be some of the best paid people in the industry. >> i was going to ask you who are you working among real estate agents? i was wondering if they are young and up and coming. >> it's a mix. you say do you really think that turn is going to come. is the internet going to change real estate so much that by the time you're the top dog it won't

be there. the other folks that work well with us are folks whose kids went away from school, lived in a community for 20 years and they don't like calling all their friends and prospecting for business. they love real estate. they know the schools. it's broadened our consumer demograph demographic. it used to be google and microsoft that work like me. >> the dynamics has changed too. it used to be i hired a real estate agency and usually he or she is the only person who could know where the open houses were or the available houses. now i go online and say i want three bedrooms, it should be in the following zip codes, i'm going a lot of work. i should be rewarded for that. >> right. most people who hire traditional agent are paying that agent for

all the time he spent looking for them. >> which i'm doing any way. i'm doing it for fun. >> look for the customer. >> okay. >> agents work their tail off trying to figure off where the next client will come from. if they had enough customers they would be much busier. all we do is say don't worry about that. the customer will do the research on his own. >> most of their job is finding more listings to drive the business not necessarily for serving many and finding me my house. they may do a good job at that. >> i want to be careful here. i'm not trying to judge every real estate agent. i'm not trying to say they are

sharks. i am a real estate agent. the hardest part about choosing red fin's business model is when we made that choice. my friends in silicon valley. i came from here and started a software company. they said it's glen. he started a real estate company. >> are you a real estate agent? >> i'm not a licensed broker. i have to worry about it when an agent doesn't show up on time. i have to worry when a client feel like they could have gotten more. having a customer service business is operational intense. i love it now. at first it was a real change. >> not to get you in trouble again. >> you keep trying. >> i've got to move onto my next guest on television. if you're watching television we'll be back in a minute.

back in a minute.

welcome back to "press here." if you're the grocery shopper you know a pound of hamburger costs about $3.99. now not all products work that way. two dentists may charge wildly different amounts for the same fillings. car repair, a new fuel pump may cost more at sam's garage than at bills. >> the winner is your mechanic. >> art wants to standardize car repair costs. his new online service your

mechanicic sends a repairman to your house or office. you choose the mechanic but the price is constant. he's a serial start up entrepreneur who drives a 22-year-old car. i know people are fascinated by the concept of the guy coming to your house. we could talk about that. that's fine. what i think is fascinating is this idea of this is how much it's going to cost, period. >> it sort of happened to us. when i go to a shop, how do i know i'm paying a fair price. my car is there. i'm almost like a victim. they can say if your car is not starting ahead, $600.

how do i know that's fair price. i want to create a place where you can go and say i need new a alternator or new brakes. it gives you a fair price. it takes three hours to do the job. the part costs $400. this is how the price is good. that's what we have done. >> the price is one thing but how do i also know what you're telling me is the problem is really the problem? every time you take it to a shop you think it's brake pads and they're like we have to replace this and this. how do you go about making that more transparent? >> we also give you free second opinion. this is an independent mechanic and he says you need this. you're not sure if this is what you need. >> i don't even know what that

is. >> that is my limit of my understanding of cars. >> you can call one of our employees that answer phone calls. you can say he says i need oxygen. what do i need ask him to know if this is what i need. we tell you what are the common symptoms. there's total transparency. >> are you saying i can call you on the phone and say this guy tells any and you don't charge me any money? >> right. this is free second opinion. you have to have an appointment.

>> talk about sticker shock. my son wanted new tires and we had no idea how much it would cost until he had to pay. we have a static pricing. here is the other question. are these the cheapest prices you can find and how good are the mechanics? >> it's not the cheapest prices. i want to be clear. the idea is you have people in your community, mechanics, doctors, lawyers. if they can connect you with these people and you can work with them. like a friend who is a mechanic who comes out and help you when you need something and these guys when they are working for shoppers and dealers make very little money. you'll be shocked first-degree you knew what a mercedes master technician makes. >> they can't do this on the side? >> they can. >> how much do they make? >> about $25 flat rate.

you're probably paying 140, 150 an hour. there's a huge difference. we bridge the gap. in some cases we are cheaper, 20, 50%. some case where he is a little more expensive. in most case wes can probably lower the price quite a bit. >> the point where some people could be uncomfortable about bringing a stranger to their house. >> it's not a bug it's a feature. >> you adopt some of the social media as well. there are kind of yelp like scorers for the mechanic.

>> we verify their work, criminal records, driving history. they have to have a clean record before they can work with us. >> if the ratings are bad do you just cut ties with them. >> what other industries would benefit from set pricing? that's the part i love. >> any service industry today. you go to a lawyer. you go to cleaning service. there's no standardization of pricing. you never know why something cost, how much? it couldn't be cool if every single service you have to buy and say this is what i want and this is what the fair price is. >> fair enough. thank you for being with us. congratulations on your tech crunch. "press here" will be back in a minute.

welcome back. to beat netflix is to have your business disrupted the way blockbuster came on to the scene. even netflix can be netflixed. entertainme entertainment reporter takes a look at the disruptive company and where it might be headed. she spent two years researching and writing netflix. thank you for being here with us. >> thank you for having me. >> i would figure you have three reporters who knew the history. when i was reviewing the service i would get them in the mail. it was $500 to get a dvd player. i thought i news the history of netflix and in the first few chapters i realized i was wrong.

>> so did i. i tracked down the other founder. there was an entirely unknown chapter about the founding team. >> reed hastings was late to netflix. you think of him coming up with the concept of returning a movie late. >> i'm sure he thought about it but no. there was another guy who worked for reed hastings who was about to get fired because the company was getting acquired. he said i'd like to start something amazon. reed said i'll give you about $2 million. while think were waiting for the merger to take place they just tossed around ideas. lay heard about dvds. when it came out an totally

unscath unscathed, they decided this could be a business. >> i'm going to talk from personal experience. i'll keep it short. >> once upon a time. >> once upon a time. i used to use netflix religiously and then i stopped. was there a tipping point where a lot of loyal customers came left and came back. >> streaming or my mail? >> streaming. i stopped using mail altogether. streaming there's nothing. >> a lot of people complain about that. i would say to your question about quickster, people were turned off by that. >> the price hike. >> it got out ahead of them which was unfortunate. they meant to say you'll have to pay for streaming now because

you've never had to pay for it before and we are going use the money to get you better content. that was supposed to be the message. we're sorry we'll have to raise prices on some you have, not all of you. they briefed somebody about it. it got out into social media an took off. people were furious. they thought emp wouveryone woue pric prices raised by 60%. reed sort of compounded the error by saying let me tell you about this quickster thing. you'll have to have two different billings and people were outraged by this and angry because the company had been so responsive before. >> people bought into the company. kind of like apple and virgin

and american airlines. >> that was the greatest thing about netflix and why they were able to grow so fast is because people invested in that brand emotion emotionally. the website is very market research platform. the company is testing different aspects of it. is this a better color. do you like the button here or here. what about this language? >> you wrote in your book 20% turn. not in customers, in employees. >> wow. >> it's tremendous. that's mcdonald's. >> they are extremely demanding on people. reed hastings likens his company to an nfl team. if you're picked for this team, you're the best. you're the best there is. we will pay you better than anybody else but we're going to work you. it's always been that way. >> i'm going to ask so what is his standing now in the pantheon

of ceos? a couple of years ago he was looked upon as ingenious. >> yeah. that was the beginning of the downfall there. >> i remember you could hear people hissing at him when he was introduced on stage. i rarely have heard that. he was somewhat sheepish. >> i would think so. they've recovered from operationally speaking. the brand is damaged. there's no question about that. it revealed a side of him that i think people didn't really know which was arrogance. all of his long time team left. there's nobody to tell him no anymore. he's a very strong willed guy. >> do you think he will step

down? >> no way. he gets a lot of data from that website. most of the time he'll use it which is like a lot of other founders who identify themselves with the company and just sort doff what they wachbt to do. he normally doesn't do that. >> blockbuster ignored netflix and dvds until it was almost too late. they came close to killing netflix. >> we all know of course that happened. in 2007 blockbuster had a proposition called total access. they went into huge debt to fund this thing because you could take the movie that you got in the mail into a blockbuster store. they were losing two bucks on every disk. they were so committed to it that they were just bringing 100% of the new subscribers.

netflix went to them twice and said this is going to kill both of us. you're going to get killed by debt and you're taking our subscribers. why don't you let us have that business and you can go into streaming or whatever you'll do. blockbuster said no both times an it was a disaster. >> then blockbuster changing its mind. it's a great book. it's a fascinating book. it's called "netflix." we'll be back in a minute.

tmpblts other day . the other day i ran into a fella off the plane who had down loaded a dozen episodes.

that's our show for this week. thank you for making us part of your sunday morning.

washington on a beautiful 60-degree sunday. ten blocks from the capitol building al x ander ovechkin's team has won five of its last seven. the russian-born captain leads his team as usual in shots taken and hits delivered. but rick nash leads his new york rangers in all scoring categories. and they've won four of their last five. two teams at good places. the capitals and rangers, the nhl on nbc after this update. thanks so much. we'll break down the caps and

rangers in just a moment. but first let's rip through the significant saturday action in the nhl beginning with toronto hosting the atlantic division leading pens. first period tied 1-1. chris letang shot blocked but he feeds sydney crosby. pens up 2-1. third period pittsburgh leading. frazier shot stopped by marc-andre fleury. scoreless in o.t., shootout crosby. >> i don't think i've seen this guy play any better than he is right now. that's saying something. he's solid, confident, it shows. >> to the west st. louis, san jose, sharks with a 3-1 lead, but vladimir took over. then it's boca again. basically the same spot. first career hat trick. game tied 3-3. we go to overtime. and in the extra session it's patrick burgland, the redirect. he wins it for the blues. his 12th of the year. st. louis 4-3 over