An agent says he has been told by Rightmove that he will be charged a geographical rate for properties outside a far smaller area than was the case.
The agent – who has asked not to be identified but who recently changed physical location within the same urban area, therefore keeping some previous customers – said he had previously been charged on the basis of having over 50% of stock outside a 250,000 property radius, or approximately five miles.
The agent has now been told that the charge will be levied on having 50% of stock outside a 100,000 property area – a reduction of 60%.
Geographical pricing is used by Rightmove for online agents with national coverage. It pegs its charges to the number of listings, currently thought to be 40.
So, if an online agent has 400 listings, it pays ten times the standard branch cost.
However, Rightmove also uses geographical pricing for agents with over half their listings, measured on a three-month basis, over 100,000 ‘chimney pots’ away from their branch.
Rightmove says that geographic pricing is in place so that members are charged more consistently and fairly.
It does appear that the area which dictates when geographical opinion kicks in has been shrinking quite dramatically.
A link, apparently dating back to 2015, puts the area at 300,000 ‘chimney pots’ – triple the area now quoted.
A spokesperson for Rightmove yesterday did not comment on any changes but said: “A virtual branch is based on a property radius of 100,000, which better reflects the average size of the area where an agent’s instructions are located.
“Agents are charged using geographical advertising if they have more than 50% of their properties outside of the 100,000 properties radius.”
http://media.rightmove.co.uk/pdf/how_rightmove_charges_agents.pdf
Comments (28)
So everyone here saying lets all leave…. go on then we will follow but you lead the way…. all talk no trousers.
That being said, i must admit i dont agree with this rule! Very frustrating for us that want to spread our success further afield even being one office and genuinely not offering an online service, not sure why RM thinks they can dictate where we conduct our business.
However, i understand they need a measure to ensure PB and other “online agents” dont take the George Michael and pay for one office the same as us and advertise all over the UK as we would all kick up a fuss then also, either way they cant win. but surely a more case by case approach would help?
I am really tired of seeing everyone in here moan about portal fees, if you dont like it dont pay it, i for one of course would like to pay less… but id also like a ferrari for £5,000 but never going to happen.
i used to pay £2000 a month on newspapers going back 10 years, and id have zero evidence on ROI and not batter an eyelid. now i pay £1200 for RM and know what im getting and a shed load more exposure… time to suck it up folks and if you dont want to, move on. spend less time on here moaning and more time focusing on why the fees are to expensive for you, clearly not doing enough business. 🙂 happy Friday all.
Rightmove are in danger of setting off a chain reaction. We left in March this year and are also a single office independent. The more of the likes of us leave the more the fees for those that remain will have to be jacked up to cover their loss of income. It may just be a small snowball now but an avalanche is coming.
The larger chains will also see their preferential rates disappear.
Pretty soon this could be the next MySpace.com. Anyone remember them?
Hunters pay £700 for Z and RM, these are the agents who will be shafted next by RM.
The only way to bring down the RM beast is to leave and back another portal.
We are in independent agent (Lettings only) we moved office from the centre of Leicester to the village we live in to save the rental costs of a city centre office.
RM response to double our fees on a regular basis over the years as our stock was outside of our location, despite numerous calls and discussions with RM over the years, we are classed as an online agent and the geographical virtual office was implemented.
I’ve lost the will to fight RM anymore with their rules and profiteering so we left in July this year after 14 years and moved to Z and OTM, so far we’ve seen no drop off in enquiries if fact i’d say the the quality of leads is actually better.
No call from RM to ask why or try to retain our business, they are just not interested.
Joined RM on 2004 charged £192 pmth Avg stock listed 60 props £3.20 each
RM June 2018 charged £500 Avg stock 30 props £16.66 each
RM July 2018 proposed geographical charge £1000 pmth Avg stock 30 props £33.33 each
My advice the only way this will change is to vote with your feet.
STRIKE STRIKE STRIKE….. well done .
It’s started, agents have started making a stand.
Make a stand and send a clear message to Rightmove. Remove all stock from Rightmove in December.
**RightMove December 2018, NO Stock, NO Portal Campaign**
STRIKE STRIKE STRIKE !!!!
I am minded of ’30 seconds from disaster’ the telly show that forensically examines the things that went wrong in the final seconds before a plane spirals into the ground or a train rear ends another.
For 3 years now I have been watching the portals like a black box, recording everything that’s happening, every change in pressure , every input, every change made to the system.
Those on the flight decks seem to be asleep or are complacent and overly confident. If both the duopoly do not recognise the difficult (but different) challenges they are both facing either of them could easily tip stall and spin into the ground.
Both are missing warnings and alarms that are obvious to anyone who has transitioned this industry between tech generations in the past.
So would you short Rightmove Robert?
I’ve been watching LON: RMV like a hawk
Well there are a lot of people shorting OTM right now in what appears to be a coordinated attack on the Onthemarket share price. Just after the Belvoir announcement there has been about 9 sells a day and all at precisely the same amounts of 1000 and 2500.
Very light volume though Why do you think that the authorities need to look at the shorts which arose after a RNS in the public domain . Time to top up
I appreciate it’s light volume…but take a look at today’s trades.. only 13 trades has seen the sp drop 5pc.
The RNS was a positive one. In my view someone or a group of people are deliberately trying to tank the SP. I would not be surprised if someone prepared to lose big on it in the process.
I was the only person to stick my hand up at the Fine and Country conference in January when asked “who thinks portal fees will reduce in the next 12 months?”
I don’t know about shorting but if it were an aeroplane I’m very glad I missed the flight!
The ride is at best going to get very turbulent and declaring they’re going to increase ARPA to £2500 is akin to reckoning they can limbo a 747 under the Severn bridge. Great to watch the attempt but no-one in their right mind would like to be on board when they try
At 76% profit margin 1/4 of their existing client cannot afford or justify their spend, at 90% those that are left will find it harder and harder to finance an increasing share of the profits.
Wonder how much purplebricks pay? Is that in public domain being a publicly owned company?
Another example of rightmove trapping real estate agents and allowing fake funded onliners free reign to kill our no sale no fee industry.
Debenhams have announced 4000 job loses due to being unable to compete with internet purchases. Wake up mate….Everyone knows the internet is killing the High Street Retailer…..but most shop based Estate Agents think they are immune to this phenomenon.
Its not Rightmove or PB or Emoov but the internet….stop blaming everyone else and change your fee structure.
Start by lowering your fees thereby closing the gap between you and the online model..
Idiotic comment – unless of course you’re joking!
There it is. The stupidest thing I’ll read all day.
Are you the same ‘Vossy’ that posted down the other pub with us all years ago?
The problem with social media is people are able to post without engaging their brain.
Idiotic comment
Online purchase: You see it, pay for it then get it delivered. 3 stage transaction. No one else involved.
House purchase: See it online (normally) travel to view the property. Make an initial offer, negotiations take place between, at least, THREE parties. Sale gets agreed, conveyancers instructed, Survey then happens – potential issues can arise, contactors required for quotes, knotweed is found, problems come back on the searches – there are now at least SIX people involved in the transaction etc. etc – Do you think a 17-year-old call centre operative base hundreds of miles away has the local contacts to help resolve issues and “get things through???” People will soon see that not EVERYTHING can be done solely online and by a computer – certainly not the selling of properties – FOR THE BEST PRICE anyway.
Bless You
£1,000,0000 divided by 64,376 instructions in 2017/2018 =£15.53 per instruction on RM per million spent.
Did PB spend more than one million pounds on Rightmove?
PB share price at present is 199.75 pence
Had the same by recorded mail from them, upping by £600pm. Ludicrous.
I’m a small independent not a national. Notice served.
Jrsteeve…
It would be very interesting/confirm factually your post if you emailed proof of your 600pm Rightmove increase to Ros Renshaw of PIE, whilst stating you wish your company details to be withheld etc.
If agents are indeed receiving such letters/increases and are serving notice to leave Rightmove then actual evidence speaks louder than words.
Just my “2 portals worth”…..
No problem with that, i’ll email it shortly. Absolutely sick of them, £1700+vat per month for a small local independent is just too much. The £1100+vat i’m currently paying isn’t exactly a bargain. We’re not in a high value, high fee area (near Manchester) so increases do make a difference.
Typo??
Rightmove says that geographic pricing is in place so that members are charged more consistently and unfairly
or the spokesperson forgot to edit all of that section from the actual RM business plan which says “inconsistently and unfairly”.
I’ve looked at the Geo Pricing link and if anyone can give me a shortened version which makes sense I’de appreciate it.