OnTheMarket has announced this morning that in the first five weeks since flotation, additional agent firms with more than 1,000 offices between them are now in listing agreements with it.
The total number of UK estate agency offices covered by listing agreements with the company is now over 6,500.
While around this figure had been achieved previously, before flotation, there was a latter drop-off in numbers. Last November, Zoopla claimed that OnTheMarket’s membership had fallen from a high of 6,500 to 5,500.
The 6,500 figure has now been rapidly built back up again since flotation on February 9.
Although the ban on online estate agents has been lifted, it is believed that the new membership figure does not include any online firms.
OnTheMarket made clear this morning it intends to continue the momentum.
It said it intends to achieve rapid growth through a combination of:
- offering equity participation using Agent Recruitment Shares to selected new agents alongside long-term listing agreements, with arrangements in place to restrict agents from the short-term sale of any Agent Recruitment Shares and to align their interests as shareholders with the success of the company; and
- offering selected other agents free or discounted rates for an introductory period, with a view to converting these agents to a standard paying agreement once the portal has demonstrated advertising value to them.
It told the City: “The core proposition of the business remains the creation of an agent-backed, full-scale property portal to disrupt what is otherwise a duopoly of Rightmove and Zoopla by offering a premier search experience to consumers whilst charging sustainably fair prices to agents.”
CEO Ian Springett said: “We are extremely pleased at the level of support we have experienced for an agent-backed challenger portal and at such a rapid and substantial increase in the number of signed-up estate agent offices in the first five weeks since admission to AIM.
“We believe that as we expand our sales team, we shall continue to sign up more and more new estate and lettings businesses up and down the country.
“We have already started to ramp up our marketing activity in line with the increase in our property stock and we are continuing to expand our sales, IT and marketing teams to support our new growth strategy.
“Our disruptive strategy to become a full-scale competitor to the market-leading portals with sustainable fair-pricing for agents has been overwhelmingly supported so far, giving us the ideal platform to build rapidly upon this early progress.”
Comments (32)
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RIP OTM
there said it!
No direction, no strategy just a wing and a prayer.
My company declined the free offer, couldn’t see the point.
And that is the point !
Well I cant wait to see if OTM fail and if the do then, all the suckers who haven’t backed them go out of business because Rightmove and Zoopla hike up their fees.
Some strange fish on here!
Taking a look, I notice the same branch appearing twice under the same address. Is this a way to artificially inflate numbers? Looks very suspect to me.
Looks like they are splitting out sales and letting into two branches and using this to inflate numbers. Does this mean the so called 1,000, is actually more like 500, not talking into account those who have left since IPO? Say this is 200, would leave a gain of 300 (example figures).
Example: https://www.onthemarket.com/agents/search/?agent-name=Chancellors&agent-search-type=branches&view=list
I was at a dinner party last Friday. Twelve of us including myself and my partner (both agents). The conversation got on to work and the housing market and of course Rightmove was mentioned. We started talking portals and when I asked, nobody round the table had heard of On The Market. We are all 30/40 ish and out of ten nobody had heard of them.
Says it all.
Not exactly well informed then!
Had any of them heard of CPR or GDPR?
Yes because they are offering free membership. It’s easy when you’re not paying!!
How many have left in the same period?
How many intend to get out as soon as they can?
The notion that this will challenge Rightmove after the battering it has taken in the last two years, not just from the court case, but also from it’s disgruntled members, is I am afraid a distant fantasy.
It may come true, but a lot of money needs to be spent and a lot of time needs to elapse before it can.
Not at all surprised seeing they are offering listings for free to newcomers. The proof will be if people stay once they have to pay for the non service.
It will end badly for Agents, I’ve said it before and I’ll say it again, all they’ll become is a 3rd portal, an extra monthly cost and they won’t stay cheap (or cheaper) as soon as they get some ground (if they do at all) prices will go up, you watch and see.
Zoopla aren’t going anywhere as the consumer like to use them and know the name, therefore Agents will continue to use them to satisfy the consumer. So it won’t be a case of challenging the duopoly or becoming part of it, they will be an addition and I bet they know that in their head office, without a care for the businesses who will get them there.
It’s a blind move by agents who think being on OTM too will benefit their agency at this time.. truth is OTM mean nothing to the public at the moment. You’re just creating a new expense for yourself, not that I care about that part.
I just don’t want to see what happened with Rightmove and Zoopla, becoming a reliance and a necessity to survive, happen again with a 3rd portal.
Many people on here claiming OTM likely to increase fees etc.
If the leads driven to agents increase as the number of properties listed increases, many sensible business owners will simply wish to continue if good value for money.
In respect of fees increasing – I am sure the agents (majority of shareholders) would be able to resist the price increases, although many early adopters benefit from fixed price fees.
1000 extra agents? Yeah because they’re giving it away! No fee whatsoever for a year! You’ll see a big drop in numbers after 12 months
I beg to differ. If they can build meaningful traffic to the listing agents it will be worth paying for after 12 months. But this is the last roll of the dice for OTM. Fail to deliver something meaningful and impressive by this time next year and they will be finished.
Fail to deliver something meaningful? you say AgencyInsider.
Well, a 200/250 Million Flotation Value – Fail
100 Million Investment – Fail
£4-£5 Float Share Price – Fail
£1.65 Share Price – now circa £1.40 – Fail
So, just for clarity – 4 Targets, 4 Fails!
Oh, and if my aforementioned figures aren’t spot on accurate, don’t worry. The end result is still the same – Fail, Fail, Fail & Fail. Funny, one would have thought they could only go up the way?
An Olympic Poor Performance then – and absolutely nowhere near the podium!At least COnTheMarket topped the Failures Table.
I hope the Management Clowns are donating their salaries to charity as they cannot think they have earned them? A balloon in each boardroom chair could have delivered the same level of failure, for no salary.
As Ken Dodd may well have put it –
What’s the difference between a Balloon and a COTM Balloon?
They’re both full of hot air, however the 1st one is usually Free whilst the 2nd one you have to keep paying for until it goes bang!
Mugs.
Still awaiting my shares despite repeated attempts to obtain them.
I have been offered a free listing agreement with OTM for a year with no tie in beyond! Not sure what value this offers to those founding members who will now be paying for this new recruitment drive!
So you must not be advertising with OTM. So why does the “value it offers to founder agents ” matter to you, a genuine question?
I’m just trying to establish who the real agents are!
I’m a founding Gold Member so let’s just be clear on my perspective.
Yes, COnTheMarket are giving away my hard earned money on freebies & discounts, whilst I am still forced to pay as a Member who wants to Leave and will be Leaving, as soon as I can get away from this sham!
It’s a tainted portal barely assembled on empty promises, no morals and a motley crew of management. The only thing they are missing is a Jolly Rodger Flag.
It would be laughable, if I was on the outside looking in, however I’m not, I’m locked in their dungeon and paying for this fiasco, along with many others.
I’m a silver member with 3 offices and just acquiring a 4th when the BDM made me the offer of 12 months free listing, without realising I’m already a silver member. I’m in dispute with them and part of the action group so I do have an invested interest in this story and that fact that if i were paying I’d essentially be subsidising myself. Interesting I’ve never had a call back from the BDM after she found out I was involved!
hertsagent13
MARCH 14, 2018 AT 07:51
I have been offered a free listing agreement with OTM for a year with no tie in beyond! Not sure what value this offers to those founding members who will now be paying for this new recruitment drive! (QUOTE)
I agree with Eastsidestory why does it matter, oh and by the way I don’t believe you.
DISINGENUOUS and misleading to the City. A large number of these agents had signed up subject to the IPO proceeding. The actual number of organic sign ups is more like 600.
Anyone care to have a bet that within the next 24 hours Zoopla will announce some meaningless piece of ‘news’ designed to give the impression that everything in their garden is rosy?
I’d never trust the leadership of this company. They will 100% hike the fees as soon as they have the critical mass to ‘challenge’ the duopoly. The share price will rise and the value will have to be shown in continued growth. In my opinion the managements motivation is to be as big as Rightmove and to achieve the financial rewards for themselves at the cost of agents they have tied in (again) to sustain their personal objectives. It’s not about helping agents at all.
Noting your comments, is it not time you get yourself on board as these comments are not reflective of a member/shareholder ?
OTM are damned if they do, damned if they don’t.
It is not a cost to agents if the share value increases and we have fixed prices for many years to come.
A 10% increase in fees, year on year with Rightmove is just not affordable for many small businesses !
I hope they succeed and not just for the potential rewards of lower marketing costs, I am just sick of price increases from RM and lesser leads being generated !
And for those that claim to have been offered advertising for FREE, why the hell would you not be on board , I would jump on any website offering FREE advertising?
No such thing as a free lunch and don’t want to be on board when the ship goes down!
A gold star to the first NON Onthemarket agent (Hi Danny) whos unhappy with this news?
And if so please explain why you’re unhappy if you’re not even on OnTheMarket?
Here we go. 6500, 6750, 7000, 7500, 8000, 10,000, 15,000, 20,000, 50,000, 100,000, a Million!
Hang on, same old, same old figures nonsense, heard it all before, this time freebies and cheap deals all subsidised by the Remainers & Leavers.
Come back to me when Rightmove prices start tumbling. I still see sod all marketing, I still see them wiping Rightmove’s ?
COnTheMarket – mediocre at self publicity, cr*p at delivering anything tangible. So, what’s New? What’s new is when their share price falls as it has, out comes the press release, at least they have learned from Purplebricks
Oh, I’m a Gold Member still handcuffed to this portal saga, so I’m 100% entitled to voice my opinion as I’m still paying to be a prisoner!
SInce Im mentioned by name ill just try and translate for you
offering equity participation using Agent Recruitment Shares – Giving away shares in the new company at the expense of the members of the old company .
offering selected other agents free or discounted rates – Offering anyone who will take it free membership at the expense of those still paying.
I think George Orwell sums it up quite nicely but those of us who arent members still have an opinion…..
But you’e not with OTM Danny so why do you care? Honestly why do you care?
Unless you’e a rep for Rightmove or Zoopla and seeing as I can’t rememer you ever posting on any other topic this seems the most likely?
Ive said it a hundred times , maybe once more for those not listening. I invested in PrimeLocation many moons ago , a portal set up by Ian ,by agents , for agents, which he then sold for profit. I know whats coming and im trying to be the sensible voice . Also when you say if you disagree with my opinion you must be a rep for a portal you start to sound like Donald Trump .. I cant ever remember you commenting on any other story , do you work for On The Market ?