OnTheMarket is poised to take up to 28% of total portal spend, a new report has predicted.
But the report, by Accounts and Legal, says: “However, many agents are still ‘on the fence’, which could push this even higher in the event of a successful launch.”
The report adds that the key challenge for Agents’ Mutual’s new portal will be to take traffic, rather than revenue, from the existing portals.
Otherwise, it says “agents delisting from one of the incumbents will be severely disadvantaged”.
The report also says that some analysts believe that the new portal will find it difficult to take traffic because of the level of search engine optimisation by the existing duo.
Accounts and Legal concludes: “Will it work? There is certainly a willingness among agents to adopt a third player. Even if gaining traffic is an uphill struggle, it should at least introduce some much-needed competition to the sector.”
Based on a survey of 194 agents, the report says that Rightmove and Zoopla are still using their dominance to push through annual price increases.
Agents surveyed said that Rightmove had raised the price of their base package by 10% and Zoopla by 18%.
The survey says that agents typically paid Rightmove £634 last year and £700 this, while Zoopla was £386 last year but £450 in 2014.
The report emphasises that while Rightmove dominates nationally, Zoopla “owns London”.
On pricing, the survey says London agents pay more: a Zoopla ‘silver’ average price per month for lettings and sales costs a London office £570, as opposed to £400 paid by an agent outside London.
Of the 194 agents questioned, 51% will join Agents’ Mutual, while 49% said they would not. However, of this 49%, more than half (53%) said they might join later.
Of those who will be listing on OnTheMarket, 55% will delist from Zoopla.
Accounts and Legal provides accounting services for property companies.
Comments (17)
Get a life Paul H. Don't bother replying as I won't be reading any more of this twaddle!
@peebee please see my wilko reply, you appear to believe our model will fail hence the 0% I think you read it wrongly 🙂 As for BS well I pride myself on being honest and straightforward and helping bring real value to a market badly in need of change,the fact you disagree is fine, I do listen and where we make mistakes or things aren't right I get them changed,for sure our quality control needs improving and we are working on it but we are a very young business experiencing strong growth. We are there to be shot at because you know us,sadly the reverse is not true so in our defence we can only speak in general terms as noted if you send me your website url assuming you have one I would be more than delighted to give you a "helping hand" my door is always open…………….
No, easy Chris – I certainly didn't "read it wrongly" – YOU chuffed up with the original woefully incorrect statement (tut, tut – fancy doing THAT…) but now try to play on words because you can't bring yourself to hold up your hand and admit it. Pity, really – you might have regained SOME credibility if you'd been "honest and straightforward" enough to admit that what you said was not a true reflection of my previous comments. THEN, you state "…for sure our quality control needs improving and we are working on it…" I'm sorry – but from where I'm standing your "quality control" needs IMPLEMENTING, not "improving"… you obviously have none whatsoever. Not surprising – as you clearly don't do anything more than any other passive intermediary in allowing any old Tom, **** or Harry to upload their own woefully inept and legally dangerous (to both you and them) property information in the name of what your company describes as "value, flexibility and user-empowerment". Or complete, utter MDT, in MY dictionary. And as far as YOU giving ME a "helping hand" – thanks – I've seen how you're chuffing up your own business so I'll pass on that kind offer. And remember – I'M not the one claiming here to be the new Hovis, so you needn't worry your little self whether or not I'm chuffing up mine. I'll live or die by what my clients think – as I have done now since the late 70's without the help of new experts like you.
I find these constant reports and opinions too boring for words and completely irrelevant at this stage. Why don't we all just wait and see. I do believe the completely bias reporting from PIE toward Agents Mutual is trying to sway opinion their way. What i do know for a fact from our area association meetings is that hardly any agents in our city are interested in joining AM. I know that is the same from our region as so few turned up to the last AM meeting and those that did were cool to say the least. Those that were at the meeting who i had been told were silver members in fact were not and had only muted they might be interested. If this is what AM call a silver member I wonder how many actually are? My belief is the few gold member companies who make up the vast majority of the number of offices in total are the same group who started off Primelocation and are the ones who are hoping to make the money out of this deal. Read the small print carefully that's all i would say!
I find it amusing that in the same post you come out with…….”I do believe the completely bias reporting from PIE toward Agents Mutual is trying to sway opinion their way.”…And you then follow it with…..” What i do know for a fact from our area association meetings is that hardly any agents in our city are interested in joining AM. I know that is the same from our region as so few turned up to the last AM meeting and those that did were cool to say the least. Those that were at the meeting who i had been told were silver members in fact were not and had only muted they might be interested. If this is what AM call a silver member I wonder how many actually are? My belief is the few gold member companies who make up the vast majority of the number of offices in total are the same group who started off Primelocation and are the ones who are hoping to make the money out of this deal. Read the small print carefully that's all i would say!”….Pot calling kettle it appears. So how about instead you follow your great advise and…… “Why don't we all just wait and see.” Gold membership closes on 24th October, I would imagine that shortly afterwards it will be announced how many gold & silver contracted members there are, how much funding and contracted annual revenue is in place as well as how many sign ups have signed legally binding contracts. It is at this point that I believe that any on the fencers will jump on board #onthemarket in the knowledge that they will potentially be losing more by not doing so.
great word "upto",easyProperty will take upto 28% of the lettings market,thats from 0 [peebee/wilko opinion] to 28% . 🙂 onthemeerkat will find it harder than they think to gain traction with the most important people- the consumer they are going to need very deep pockets to build a brand and traffic, not saying they can't do it but odds are it will take much longer and require more money they they think
and when things go wrong,which they will, well there is going to be alot of cooks in the kitchen,mutuals as a rule do not make fantastic businesses as they end up being pulled in many directions by many different parties. month 6 we need more marketing to compete,mmm lets raise fees,mmm lets vote,vote fails what then…..or there is a fixed price that can't be changed so there is no way to increase the budget unless we get more members but we can't because we need more advertising money to generate more traffic to sell the concept.
"…will take upto 28% of the lettings market,thats from 0 [peebee/wilko opinion]…" OI! Don't you go quoting ME with YOUR words, sunshine. Where and when did I ever say that?
oh – and there is NO SUCH WORD as "upto" It is two separate words, easy Chris. Like 'easy' and Chris. And 'close' and 'to' – words which are separated by one character space. UNLIKE 'easy', 'walking', and 'distance' – which according to easyProperty's recent description of a property is THREE MILES…
hahaha oh dear for one who dishes it so much you are a might touchy mr pee bee perhaps you need your afternoon nap………
Touchy? Not me, sunshine – just waiting for you to show me where and when I stated the "opinion" you claim I am supposed to have. See, easy Chris – here's the problem. Your constant stream of MDT is piling up so high it's now about to engulf you completely, I'm afraid – and you've only got yourself to congratulate for billshutting so profusely.
Chris "easyProperty will take upto 28% of the lettings market,thats from 0 [peebee/wilko opinion] to 28% . 🙂 " NOT as long as your photos and resulting marketing image don't improve…..2nd thoughts why am I trying to help you? After all aren't I the A.Hole of the human form as in your expensive launch. Actually keep it going just as you are….I have decided to compile a list of bad online snaps from online agents(mainly yours) to show my potential sellers and let them decide(after seeing them) where and how they want to market their most valuable asset.
lol I was being ironic as in you seem to have no faith in our model ergo you think we will get 0% so not sure why you are taking offence. Please send my your website url so I can learn from the master.
Note the comment you refer to was never made hence the apology by PIE so no need to repeat as you are simply wrong
I really, really, in all honesty, do not believe that Zoopla has so many "independent" users than "Rightmove" ….If we have a saleable property then shouldn't our traditional agency methods, backed up by Rightmove (irrelavent of OTM) be enough to sell at the best price for the owner? It just seems to me that some of these "reports" and opinions focus entirely on "traffic" and if an agent leaves Zoopla but remains on Rightmove, are they saying Rightmove doesn't have enough traffic to market the property adequately????
What a surprise, "take traffic from existing portals" … It's like they stalk me around the internet and pretty much directly quote what is down right obvious and what I have been saying for months.
PP – Don't be so coy – you're obviously one of their sources so its no surprise they quote you. I dont think saying 'I told you so' is required though – even IT numpties like me realise that 'search engine optimisation' is necessary for any new web-site to succeed – we can only hope that the AM people have the right skills on their team to hit the ground running although anyone backing AM will certainly not expect them to perform like a new RM from day one….
I find it rather odd that despite OnTheMarket launching in January people within the industry are still referring to it as Agents Mutual, who on earth outside of the property arena will know what OTM is?
When are we going to have 'actual' data rather than survey assumptions?
Looks like I'll have to get the data myself and report back on which portals do well where. And most importantly what impact Agents' Mutual will specifically have on each area and the incumbent portals.
Be Right Back,
The Real Estate Pundit
End game possibility?
AM will usurp NAEA and then start taking bites into the big EA software companies. That's a big chunk of spend for any EA which doesn't produce any leads. Then agents can all be franchisees of the big centrally controlled AM Mothership.
We'll all be Spingetts Sprogs!!