Last night, OnTheMarket issued a statement on the rising stakes in the property portal wars.
It did so after a rallying letter was sent out by Iain White to agents regarding a meeting next month. See next story.
White – an industry consultant whose clients include Choices, whose chairman is Simon Shinerock – is calling on disenchanted OTM member agents to attend a meeting in London on May 9 where there will be a lawyer.
White has said that no press will be allowed at the meeting, but that media announcements will be made afterwards after checks with barristers.
It is not clear who will be bankrolling this legal bill or what looks to be a PR campaign.
In his letter, being pushed around agents, White claims there are three categories of agents likely to attend: those who have given notice and have received a threat of legal action; those who would like to leave OTM but are concerned about legal action, or have already given notice but not received any threat of legal action; and agents who have recently joined OTM but now believe they have made a mistake.
In the letter, White asks if agents will consent to have their names passed to the press and industry commentators.
Last night, a spokesperson for OTM told EYE: “We are aware from extensive coverage on the property news forums that there is a campaign to convene a meeting between some agents, a consultant called Iain White and a firm of lawyers.
“We understand that some agents have claimed to ‘feel misled into signing up with OTM’ and that some others ‘believe they have made a mistake and would like to leave OTM’.
“Any agent who signed up with Agents’ Mutual did just that – they signed a contract. The contract laid out very clearly their obligations to pay monthly fees for an agreed period and to list their properties at OnTheMarket.com and a maximum of one other portal.
“Contracts are the very basis of estate and letting agency and any agents who joined us signed contracts voluntarily. It is standard practice for any organisation to seek outstanding payments from companies who find themselves in arrears.
“In the interests of the broad membership of Agents’ Mutual we are straightforwardly working to ensure that contractual obligations are met. We have always been conscientious about seeking appropriate independent legal advice about contractual issues.
“We understand that there has been a reference in Iain White’s letter to ongoing legal proceedings between Agents’ Mutual and individual firms.
“While we understand that Mr White has even requested permission to disclose to the press and to ‘industry commentators’ the names of agents attending his meeting, we believe it would be inappropriate to comment through the media about any contractual issues with any individual agent.
“The stakes are high in the portals marketplace, both for the portals and for the agents who feed them.
“It must be disappointing for some of OnTheMarket.com’s detractors that we continue to grow in terms of both traffic and agent support. It’s hard not to question what or who is motivating such an orchestrated campaign and what its ultimate objectives might be.”
“Agents joining AM have done so with the primary objective of helping develop a portal owned collectively by them and thousands of others to challenge the duopoly of Rightmove and Zoopla which, unchecked, can become increasingly harmful to the interests of independent agents, their clients and consumers generally.
“We are looking for those agents not currently meeting the obligations within their contracts to engage with us with a view to resuming their full support for AM and its purpose.”
Comments (42)
Mr White the Ex-Countrywide subsidiary MD has now turned to Champion of the Independent Estate Agent, next Donald Trump will be proposing US tax breaks for Muslims, stinks of PR nothing more.
All things considered whilst protecting the AM as an affinity group, OTM has to become a strong product that agents can make individual decisions that it is the only portal they need to be on.
The stakes are high and what has to be recognised is that AM can’t advertise spend it’s way to being better than Rightmove; OTM has to become better than Rightmove.
Like Propertylive versions1, 2 and 3 the product has to be more compelling. The product needs improving and the cash both sides could end up spending with solicitors sorting out contract issues could be better spent on product development.
One year in there is a lot of success to applaud so it is essential that the remainder of the contract term is focused on making sure *** agents want to renew their contracts in 2020
three X’s are apparently smutty, I apologise for any offence caused!
A contract is only any good if it delivers. Comments from many agents tell me that many since joining AM/OTM many have lost trade and in cases staff; where revenue has dropped affecting commissions in comparison to other like agencies.
AM/OTM itself has created entry via cartel like restraints which the CMA are obviously closely looking at.
Agents who support AM/OTM in such restraints, who at AM meets decided jointly to abort other platforms (as suggested by the CMA), and agree to creating a platform to ban other lawfully trading agents should take legal advice.
My view is that there is enough research now available to make mockery of any legal advice AM/OTM is passing on or claiming.
Agents should take note of the CMA letter the other day: https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/517834/Open_letter_to_estate_agents.pdf
Breaking competition law is serious. Agents should look close at the letter and decide if they wish to continue to be seen SUPPORTING AM/OTM’s restraints on others which ultimately can have adverse affects on consumers..
The CMA state:
The consequences of breaking competition law can be severe. Estate agents that are found to have breached competition law can be fined up to 10% of their annual worldwide turnover, and directors of such companies can be disqualified from UK company directorships for up to 15 years where their conduct in relation to such a breach makes them unfit to be concerned in the management of a company. In addition, individuals involved in certain very serious cartel activity, such as agreements between estate agents to fix prices or allocate markets, may be prosecuted under the criminal cartel offence and, if convicted, could go to prison for up to five years and/or have to pay an unlimited fine.
It will be no surprise to many on your comments. The more you post the more blinkered you seem to become? You seem hell bent on using the last para to scare people into submission. Many times I have asked you to disclose to everyone the “business interest” which you have and people can then judge your motive of the rhetoric anti-OTM.
As for competition law, give it a rest for again you have shot yourself in the foot. Those that attend the meeting need to be very careful they do not fall foul of anti-competition law if it is observed they are colluding in breach of BPR’s, for contract law is specific if it was freely entered into. There is no case for unfair terms and conditions in law if you read AM terms and how they went about entering the agreements, which for those out anti to AM will not have access to so can’t make comment other than old wives tales.
Oh and again I have to remind someone they do not know what a CARTEL in law is!
@Woodentop – You say scaremongering. Maybe you should read the CMA letter. Replicating its content – if you feel it’s scary – then you should agree agents should take the CMA’s warning seriously.
Also Wt please show who you really are? Hiding behind a pseudo doesn’t stand well fr you. What do you have to hide?
My motive is simply that AM/OTM has created cartel like restraints which is industry bad for restrained agents, platforms and consumers. Such restraints appear very anti-competitive. My want is to see a better fair trade market place.
If it was a cartel, which it isn’t, why do you hark on about something it isn’t? I like everyone read the CMA letter it makes no reference to AM or OTM being a cartel it also made it perfectly clear that it was not investigating OTM BUT you continue to infere that it is and they have been doing so for many months.
I have nothing to hide, but then I do have to comply with confidentiality with past and current business’s. My name is of no importance but as many on EYE know I have made this point before and that I am a High Street estate agent and pro OTM, my experience and contacts is another matter which has always been their to help agents. They can take it how they find it but sitting back and watching some utter tosh being spouted by those who know nothing about our industry or have alternative motives, which is with intent to influence others requires checking.
Your motive is questionable and a smoke screen?
Oh… here Mr Mealham goes again – “Who are you…Where do you work?… What are you hiding?”
He simply can’t abide the anonymity the internet allows.
I repeat for the ‘n’th time:
IT MATTERS NOT WHO SAYS WHAT – IT’S WHAT IS SAID THAT MATTERS.
Nowt else.
‘On the market speaks out!’ can someone explain to me how writing headlines works because from my limited knowledge of reading them and this article surely it should be ‘Disenchanted OTM member agents to attend a meeting in London on May 9 ‘
As usual a good bit of spin from Ros to keep her main advertiser happy.
Bl99dy good spin to keep 100 plus comments coming in.
Haha, hit the nail on the head! Wouldn’t be surprised if OTM worded the headlines.
A statement on behalf of EYE was made in the comment thread on a story from September 30th 2015. http://www.propertyindustryeye.com/onthemarket-looking-solid-says-city-analyst-but-possible-risk-for-zoopla/
The facts remain exactly the same today and the statement is repeated here for your information. Some might do well to especially note the penultimate paragraph.
We don’t normally get involved in the comments on stories but as certain of the people on here repeatedly raise this issue I am going to make an exception today.
Whatever some of you may wish to think or to allege, this site is not owned or ‘sponsored’ by Agents Mutual/OnTheMarket. Never has been. The sole owners of the site and company are myself, Ros Renshaw and John Brassington.
Agents Mutual/OnTheMarket began their marketing at about the same time as we launched Property Industry Eye and they were one of our first advertising clients. They booked space for an extended period of time and they continue advertising with us. They do so on commercial terms that are comparable to our other long-term clients. They are a very long way from being our highest-spending client.
Both Zoopla and Rightmove have repeatedly been invited to advertise on Property Industry Eye. That neither has done so is entirely their decision. They are always welcome to do so.
We cover the ongoing portals story as even-handedly as possible. None of them has any influence over what we do or do not report. The integrity of our news is paramount. We report news from Rightmove, Zoopla and OnTheMarket as it comes to us. Sometimes we can carry responses from them to a particular story. Often as not they make no comment at all and that means we cannot always make a story appear as ‘balanced’ as we or some of you might like. That’s just the way it is.
Without fear or favour we will always report the news, positive or negative, in respect of any organisation and that includes all three main portals.
Where we report that a body or organisation has published something relating to the portals we always try to include links to those reports so that readers can find out more if they wish to.
Oh and by the way – If we did not believe in being as even handed and objective as possible in our reporting then some of the comments made about us and the site would have been taken down long ago.
I hope this makes matters clear once and for all.
Nick, the regular posters know its balanced here. I mean Trevor and gang spout bile towards OTM on a daily basis. Heck i have as well. They / we are never censored only one member i can ever remember being censored and she really was barking!
I think the voices that say you are not balanced probably have a vested interest in OTM not actually succeeding, why else only comment on OTM stories and with such venom. After all if OTM succeeds we as agents are better off.
Trevor has had his business disrupted as he is seen as a competing portal (he actually tries to sell the fact you can team up with a non-otm member so property can be advertised on all 3 portals).
Simon S Has a tie in through the other pub with Z so wonder why he supports the demise of OTM.
Iain White is gaining advertising for his consultancy trying to mount a legal challenge.
So if you are an agent thinking crikey, Look at the protagonists involved and why they want OTM to fail.
As for Danny, Harry, Etc look at past comments and make your mind up if these are high street agents or marketing fodder within a portal or online agent. As why would even the most skeptical agent want OTM to fail?
Nick, although I appreciate you coming on here to comment on this matter I think you should look back at the vast majority of OTM related articles and look at the general feeling behind how they’ve been put forward.
…I think you should look back at the vast majority of OTM related articles and look at the general feeling behind how they’ve been put forward.
I think it should be clarified that this supposed “general feeling” which ‘Chrispy’ is referring to is that of the Anti-OTM Brigade – and the Anti-OTM Brigade only.
All journalists write with a degree of favouritism in their tones and personally Nick, I don’t think you should have to answer to anyone. (Although respect for doing so)
For me a change I would welcome on EYE is everyone’s user name being displayed with a verified user type underneath. ie
Ric “Estate Agency”
Digital Expert “IT”
danny “Portal Rep”
Verified by EYE as I think the vast majority of readers and posters on EYE offer a balanced view and debate, no matter what side of the fence, but to know for sure people are from the field they say they are would be good.
Each month OTM gains more members, each month Z loses them.
To me it suggest Z are desperate and possibly funding the campaign.
I guess you know there was at least one new member!
Be careful about the rest – are you sure that’s factually correct?
Didnt Eye publish a story last week saying Zoopla has been net positive for branch numbers for 11 months now? I’m all for bashing portals when I pay what I do but every single time I log onto this website to read the news there’s a comment from “smile please” which is absolutely moronic. If OTM had a zipper you would unzip it and gobble what’s inside. So desperate.
Ahhh, smile please..
It wasn’t that long ago you were swelling their ranks – now you’re the enemy!
Welcome to my world, mon ami!! ;o)
To be fair PeeBee i have never been in anybodies ranks.
I judge what is right for my business at that moment in time.
i have always said i am behind what OTM are trying to achieve just questioned if they can get there.
18 months ago i was worried leaving Z would have a negative impact on my business. I look at it today and see many agents have not suffered any drop in market share.
I also look at the dangerous position we are allowing Z to grow, data, software providers, third party adverts to our clients. And think we have already created one monster in RM why create another?
I also see OTM growing month by month. For me its the right time to back OTM.
As for the negative posters on here, i bet they do not even own an agency. Looking at a number of comments they are ill equipped to make the decisions needed to run a successful business.
At best they are senior negs, at worse they are reps not servicing their paying clients which is why OTM have nabbed almost 7000 of them.
You joined OTM 18 months ago?
Why did this report from PIE 10 days ago say you have only just decided to join?
http://www.propertyindustryeye.com/agent-says-it-would-have-gone-under-if-it-had-stayed-with-otm/
I am very interested in what you have to say about this….
This is what is said in the actual article regarding you just joining…
* Separately, and in brighter news for the portals, one of EYE’s regular commentators yesterday posted up their intention to join OTM.
‘Smile please’ said: “As many know, I have sat on the fence for some time.
“Reading comments and talking to others this week, I think now is the time I get off it and throw my support behind OTM.
“I think there is still a long way for OTM to go and still not convinced they will topple RM, but with the rise of online-only agents, increased fees, data sales and by the looks change in stance of OTM fees, we should take the plunge. It’s a risk but a calculated one.
“I hope others too will join up in the coming months.”
David, Take a moment, let the red mist dissipate …..
I did not join 18 months ago, if you took the time to read, i said it was not the right time for me to join 18 months ago. I have indeed sign up with in the last month.
And Simon check out the Arena, i think its 6,500 members signed up and using OTM so not far off the 7000. I will update it again next week so you can see how close they are to the 7000!
I love it when they miss a vital putt from three inches!
;o)
I really do wish people would shut up when it comes to “almost” when quoting OTM member figures.
Can they for once and all just say “we have X members paying full ratecard and Y on free/£50 contracts.
All jokes aside I sincerely doubt OTM has anywhere near 7,000 offices signed up.
Almost, agreed! Almost won the premier league or FA cup doesn’t actually count for much does it. 🙂
Actually if you look in the Arena Area of the site, OTM has positive numbers of members going on for 6 months now.
Simon Chan, You are entitled to your opinion but i think my comments are more measured than most. As for being an OTM supporter if you were indeed a regular watcher or poster you will have seen i am more critical than most. But hey good attempt a humor…….. Is that tumble weed i see floating past?
Each month OTM gains more members, brilliant but can someone explain to me how that’s having any impact on the public going to use it because they clearly aren’t.
Be nice if Springcheat came out and gave some real figures and backed them up with some data.
You’re right SP and the financial world and all the investors that put the smart money out there must be wrong. Zoopla shares at an all time high! how can this be?
I’m sure RM’s shares have doubled since it launched as well, must be because OTM are on the brink of taking over….
“smile please
APRIL 25, 2016 AT 8:01 AM
Each month OTM gains more members, each month Z loses them.
To me it suggest Z are desperate and possibly funding the campaign.”
Should of gone to specsavers…
“January marked the ninth consecutive month of growth in the number of UK Agency partners…”
Source: http://zpg.co.uk/sites/default/files/zpg-trading-statement-february-2016.pdf
I believe I read somewhere recently it is now 11.
Shambles.
Closer you get the worse it looks.
A contract is an agreement between two parties, I’m pretty sure their contracts said they wouldn’t reduce prices if you signed up originally yet I’m also sure they are now offering £50 a branch … That makes this announcement look a little like do as we say not what we do. May I remind Ian Springett that he signed a contract and that’s the basis of agency … Why then is he breaking it ?
haha…. that £50 really bugs you dunnit danny fella… love it.
AM – Please offer someone £25 a month to change danny’s record.
im sure they are way ahead of you Ric, contract law and promises don’t seem to matter to these guys …
Contract law? only IF the contract says “ALL Companies will pay the same membership rates at ALL times” will they be in breach due to offering “Newbie deals”
(Forget any form of discrimination charging one company more than another – as RM & Z would also be in hot water)
Crikey blimey danny boy…..if you still work at Z have you not got anything better to do?
Come to think of it, I would be in trouble….. and any other agent with vendors paying different fees would be also.
More importantly……if you are an agent and not on OTM why would it matter to you? V odd your obsession with something which has nothing to do with you.
All that is necessary for the truimph of evil is that good men do nothing …
Mature and professional response from Ric… Anyone would think you are a OTM employee, or disgruntled competitor paying £50 a month!
Why would I be disgruntled paying £50 a month? Surely I would be happy with my reduced rate and for the record; you will see me posting for the past 10 years as an estate agent called Ric on forums like this.
I think I have been one of the more balanced pro AM supporters in the past to be fair.
But thanks, I will add you comments to my review site as a testimonial to my service 😉
Just seen this on linkedin:
CARTEL OR WHAT!!!!
Oliver Hill: In our local area this is exactly what has happened. *** I was copied into many emails with regards to what portal to come off (Zoopla if anyone’s interested) because of this it made perfect business sense for us to stay with the big two as it became a bit of a USP for us and its worked well.
Will be really interesting to see if the CMA do hand out any fines.
https://www.linkedin.com/groups/3073629/3073629-6128921249675563012?trk=hb_ntf_LIKED_GROUP_DISCUSSION_YOU_CREATED
I tried engaging with OTM for a month, the result was very poor. Out of 20 agents I was the last one left, the support offered was summed up by ‘you’re in a contact so that’s the end of it’. Perhaps it’s time for OTM to re-engage with those of us who are paying a much higher price than the listing fee!