Listing on the MLS for a flat fee is a more difficult business model to pull off in 2011. The model is based on volume and the number of people listing their home for sale through traditional channels has gone down considerably.

Part of the problem is that far more of the total listing inventory is made up of distressed properties (bank owned properties, foreclosures, and short sales). This leaves far fewer homes being sold by traditional agents, flat fee brokers as well as for sale by owners.

My company is still listing (and selling) a lot of properties but profits are being squeezed more than ever. Looking at my competitors listing I can see that others are having the same problems with fewer listings to go around.

Even the big real estate companies that offer some type of discount are revamping their business models as well. Zip Realty and Redfin have significantly revamped their offers and market positioning from 5 years ago.

When the market turns around I still believe we will be in an excellent position. The question still remains - When will the market turn? What business models will prevail?