Alex Chesterman “unexpectedly has a battle on his hands”, according to the Financial Times.
The Zoopla boss is now battling to prevent further inroads into his customer base after losing 11% of his estate agency advertisers because of OnTheMarket’s ‘one other portal’ rule.
But Chesterman does not seem to believe that OTM boss Springett is much of an entrepreneur. There even seems to be some doubt as to whether OTM is an internet company.
He told journalist Kate Allen: “I’m always looking over my shoulder, looking for the next me.
“But in this case their very clearly stated aim is not to innovate.”
He went on: “We are a force for good for consumers . . . This small group [of OTM agents] would like to return to the way things were and pretend this little thing called the internet never happened.”
The piece suggests that Chesterman is not enjoying “the triumphal outcome” he had hoped for when he took Zoopla public last summer, and might regret not having floated Zoopla sooner.
The piece does, however, acknowledge Chesterman’s hugely successful track record and his undoubted strengths – as seen by estate agents.
One, who declined to be named, told the FT: “Clearly he’s a very bright man. But I don’t think he understands that buying a property is not like buying a VW Gold. It’s an emotional process and people still want to deal face-to-face.”
The article is here
Comments (35)
Met AC at Z’s AGM earlier this year and he seemed to have no sense whatsoever of his company’s impending demise following OTM’s launch. Whistling in the dark came to mind………maybe this is why we get the weekly rant from him about how dreadful OTM, Springett, agents, everything and everyone else is. Paranoia, you ask ? Who said that ??
Back to the piece….The real problem is that Chesterman just doesn’t understand why us agents just do not get it…perhaps the only remedy is for him to go and work in agency for 2/3 years to understand his customers a bit better, might be a bit late though!
SO… Z finally admit to believing they are bigger than the multitude of Agents whose subscriptions keep their office lights burning.
Chesterman finally admits to believing he is important in some way, shape or form.
Good. Admission is always the hardest part of the healing process.
Mr Quirk – a question for you. Humour me, if you will.
Just suppose the internet DID cease to exist, three weeks next Monday, at 9am.
What would you be doing at 9.05 that day – and where would you be doing it from?
Ahhh… from the ‘Dislike’ I see that the Marketing Minion is keeping watch.
Sorry for leaving you out, Mr Jury… but I thought it was unfair to ask you that question.
I don’t think you are aware that life DOES exist outside of cyberspace…
I have to say that this whole portal debate now seems to be very personal and focussed on egos each day rather than what the businesses actually have to offer advertisers. Alex Chesterton says “I’m always looking over my shoulder for the next me…and its not Springett !”. Really, does that say anything about your company and what it has to offer?
The winner in this will be the one who concentrates on the business instead of the next slanging match.
I would say if anyone should be looking over their shoulder it should be the owner of Manchester United Malcolm Glazer. Has anyone else noticed how similar Alex Chesterman looks to him?! Well him and Shaggy from Scooby doo.
Sorry didn’t really have anything positive to contribute to this story.
I feel sorry for the idiot shareholders who were too stupid to have not done their research. Zoopla shares average slope is still on the way down over the long term.
The sentiment of that quote is not wrong- the words chosen are. Estate Agency is a service industry not a sales industry and until the internet finds a way to provide service, not just information it will remain an advertising medium and nothing more.
‘People still want to deal face to face’. How many offers are from buyers that visit an estate agent’s office these days? Or viewing requests? Come on , guys, who are you trying to kid? Just yourselves, seemingly. No wonder the person that provided that quote ‘declined to be named’ (quite like most of the commentators on this thread, funnily enough)
100% of offers are dealt with in office in my firm. We verify them for money laundering, offer check, obtain details of the chain, get solicitors instructed and print memos out there and then. Why do we do this? to ensure they are a genuine buyer, happy to say our fall through rate is one of the lowest out there.
We also try and get every vendor to sign contracts in our office, gives them a chance to meet the team, show them our advertising, ensures they are not time wasters and protects us from the 14 day cooling off period.
Online only agents cant give that service which is why i see if they do sale agree a property it tends to fall through several times.
Lets pretend this little thing called the internet never happened. Great quote Alex!
Isn’t it strange , I read that and thought it the daftest thing he could of said. Extending a personal feud with an ill considered quote like that is hardly likely to endear him to the very agents the rest of the board should be insisting he cosies up to. In an industry where the consumers are not paying the bills it is unwise to take too high handed attitude towards those who are not only providing profits but the data that one is reliant on for today’s income and tomorrow’s plans.
There will be some strategic partners who would do well have a quiet word with Mr Chesterman and point out that now they are involved it isn’t all about him.
Unfortunately Mr Chesterman is yet to realise that Estate Agents sell homes and we choose Property Portals to advertise on as part of our marketing strategy.
There is no chicken & egg scenario Mr C. Estate Agents first in terms of providing the estate agency service…. property portal second! You lost sight of this Mr C… or more accurately didn’t give a toss on your march to your next barrel of millions!
Rightmove’s galloping share price only demonstrates the share owning/driven/profit taking of shareholders, investors etc… to associate the rocketing share price as anything meaningful in the real UK Estate Agency Industry?… nope, sorry… RM is also just another property portal/advertising medium that will hopefully be jettisoned when the tipping point is reached.
I can see RM trying to corner the supply of the air that we breathe next…. and as always the profit hopers will line up to invest and drive the share price!
The reality is that the Hikemove/Zhoopla show seeks to dominate our industry yet they simply provide Online Advertising?… and for the gazillion hits that they both claim we should be selling millions & millions of houses. They are quite simply the Ronaldo & Rooney equivalent!… both on wages that mean they should be scoring 20 goals a game!… but they don’t!… let’s agree that both RM & Zhoop are no mote than Magic Share Profit Portals… clearly Mr C continues to gaze upwards at that white light beaming out of RM’s portal rear!
GPL, what is the happy medium for you? When I worked in local press agents resented the papers despite having the lowest page rates. Moving online the same scenario repeated itself: happy for the media owners/publishers to take the risk and incur the costs of building a product and an audience but not happy with paying to access that audience. The reach per £ spent online, visibility etc have decreased v previous print media (papers, directories etc) yet the agent complaints still flood in. I’ve worked extensively in print and online with car dealers and Estate agents and car dealers understood the cost of sale principle (I’m not suggesting for one minute without complaint, but nothing like the vitriol I see from some agents towards RM/Z). Simply, they understood they made more money out of the media than the media made out of them. If they didn’t, they stopped. Simples.
It seems to me many agents are fighting the wrong battle – decent customer service, calling people back, responding to emails, area knowledge, qualifying incoming calls correctly and better insight into your own marketing spend would all be a better starting point for improving marketing ROI. Example: the number of agents with no idea if a lead was duplicated between RM and Z. How can you judge a media if you don’t know what it actually does for you? This isn’t a dig, so apologies if it reads that way, it’s a genuine desire to understand when a portal/paper whatever stops being a useful tool and becomes a weapon used against you.
InterestedObserver. From the online street corner that I’m standing at all I can see are a Duopoly whose chief aim was to create the impression of an Online Market/Need for their Portal Advertising Product… their promotion is NOT to serve those that pay their monthly membership or really to serve the public…. it is simply to drive the impression that their Magical Portal makes the major difference and is the must have. Unfortunately both, but particularly RM lost sight of their membership and that has driven a wedge between many members & those portals.
OnTheMarket can deliver the same product minus the detraction of profit, shareholders etc. If I can drive a BMW equivalent that does everything that a BMW does without the premium then should I just drive the BMW because I’m a brand bunny. And I can hold my car keys up and say I drive a Honda Legend which is not seen on the same brand level as Mercedes or BMW however it does exactly what I want/need without shafting me financially to maintain its brand image.
Our industry is changing and contrary to Mr C looking back is NOT a bad thing or a retro step… many businesses would do well to consider what they used to do. If computers/internet died tomorrow estate agents can and will still sell homes… what would Mr C and Mr Rmove do?
I embrace every comment on here that states let’s leave the Zoopla says, OnTheMarket says however it won’t happen as there is a massive portal shift underway for our industry and there has to be…. in the meantime RIghtmove’s relentess focus on share price performance shouts WE DON’T GIVE A SH@TEM*VE ABOUT THE UK ESTATE AGENCY INDUSTRY… WE JUST CARE ABOUT OUR OWN BUSINESS!
GPL , Are you saying that I should do some disaster planning around what would happen if the internet or computers didnt exist tomorrow ? Thats on my list things to do right prepping for the Zombie invasion. They DO exist and they are not going away , Where you on the kodak board “Ok,lets just imagine that smartphones didnt exist, people would still take pictures right ? ” ….Just in case your not aware Kodak went under ….
now you know with cheap comments like yours Danny I can only reply with….
Danny rhymes with…
f*n*y!
I hope you can see a delicious irony when replying to an article where Chesterman says “some estate agents want to pretend the internet never happened” you write “if computers/internet died tomorrow “
Danny…I’m sure Arun would be worried about losing 3 months worth of Zoopla fees for over 100 branches don’t you!
Some independent agents have genuine concerns as you’ve stated whilst others are using those same concerns as cover for the fact that they’re tied in to a contract and want it to run down. Those contracts are running down and Cheaterman knows it.
I’d imagine those you can count one one hand … And they will use OTM as a bargaining tool. I like many have been watching intently and I haven’t seen anything to make me believe that my marketing spend is better spent else where’s
Bargaining tool for what precisely. To bargain for a better 30 day notice contract?!
“….Just in case your not aware Kodak went under ….”
Actually, Danny, Kodak filed for ‘Chapter 11 Bankruptcy Protection’ in the US in January 2012, which they emerged from some 18 months later. They reorganised. They came out stronger and leaner.
BUT they’d be well and truly bu99ered if the internet or computers ceased to exist tomorrow… as would the businesses of certain online Agents who have clearly taken a vow of silence this afternoon…
You haven’t thought this through fully have you Peebee? Since the 26th January the central office, area rep online agency section of the industry is facing a a new challenge that hampers their business strategy and from a position of weakness there is very little they can do to change or influence anything.
I have to say that I was rather looking forward to a discussion with both Russell and Stephen to see if they understand the challenges that existing and emerging technologies are going to have on their particular business model.
“The Zoopla boss is now battling to prevent further inroads into its customer base”….From what I gather the only reason that’s keeping Thousands of agents on the anti agent portal (Zoopla) is the fact that there long term contracts are yet to expire. Those contracts are phased to run out over the course of 2015 commencing June.
I can only assume that you work for Zoopla Paul as you have knowledge of the contract dealings of ” thousands “of agents …. And then you’ve been busy interviewing them all about their marketing desires and what’s stopping them joining on the market….. Or option B is your making stuff up and writing it down .
Or did your your OTM rep impart this knowledge upon you ” from what I gather from the Ark salesman god is really hacked off now “
Danny…how many agents do you think are currently signing up to long term 1 or 2 year deals with Zoopla?
I’m on a 3o day contract and I’d imagine the vast ,vast majority of independents like me are also. I would imagine the corporates are on longer terms but contract issues isn’t what’s stopping the majority of independents like me joining . It’s oppressive contract terms and disappointing numbers ….
What I do know Danny is that the clock is ticking on the Arun and Foxtons contracts.
I’m sure that’s the only thing stopping them , they couldn’t afford as a £100 million business to pay their out of three months worth of subscription. I’m sure their not concerned about competitive pressure, removing a huge source and the poor numbers
Danny I’ve just replied to this but below instead of this discussion.
“A force for good for consumers” Thanks Alex, I thought you were about helping me the estate agent!
The link requires a registration. I appreciate it is free but that is still quite expensive to read what Mr Chesterman reckons.
The safest and most effective way of seeing what is coming up from behind is to use a mirror; you won’t see an imagined threat or a threat far off in the distance but invariably the real problem is stood there in full view.
With a spare half hour this morning I registered and read the Kate Allen article in the FT. Alex Chesterman is without doubt very good at being an entrepreneur but he simply does not have the character, aptitude or constitution to be a good service supplier to an industry that is 80% dominated by entrepreneurs. He either doesn’t understand his place in the hierarchy of things or more likely finds the requirement to be subservient to the industry abhorrent.