OnTheMarket.com has announced its pre-launch Bronze membership scheme.
It completes the suite of planned membership contracts as set out in successive Agents’Mutual information memorandum documents published to agents.
Unlike the Silver and Gold schemes, this Bronze scheme does not require a five-year listing agreement. It is aimed primarily at those agent firms which, for whatever reason, prefer a shorter-term initial contract.
The initial contract term will be 12 months, with a six-month break clause. In line with commitments given from the outset, the Bronze listing fee structure reflects the shorter-term commitment in that the fees are higher than for Silver and Gold and are not fixed beyond each contract period.
The Bronze scheme offers all independent agents the chance to enjoy the same status as Gold and Silver members. The differences in the tariffs reflect only the differences in the levels of commitment given.
The current standard tariff for Bronze membership is 10% higher than that for Silver members, but those firms joining Bronze membership in time to be listing with OnTheMarket.com at launch will receive a special pre-launch Bronze tariff at a premium of 5% over the Silver rates.
Gold members agree to a five-year listing agreement at a fixed tariff 10% lower than that for Silver members. Gold membership requires agents to subscribe for £1,000 of Agents’Mutual loan notes for each of their offices. These pay interest of 7% per annum and are repayable in 2020. There is also a non-refundable joining fee of £600 per office.
Silver membership also offers a five-year fixed tariff contract with no requirement for loan note subscription and, currently, no joining fee.
The current Gold and Silver membership schemes will remain open until just prior to the launch of OnTheMarket on January 26.
Post-launch, Gold will be withdrawn. Silver will then be subject to a joining fee, although the current five-year fixed tariff will continue. Bronze members will be free to convert to Silver membership at any time.
Ian Springett, chief executive of OnTheMarket.com, said: “Now that we have announced our launch date and final preparations are under way, it is the right time for us to release a Bronze membership scheme.
“We now have our Gold, Silver and Bronze options available to firms who have yet to sign up.
“We hope this will now open the way for many agents who have so far been sitting on the fence to get on board and support OnTheMarket.com at the point it comes to market.
“Clearly, the more agents who join us, and the sooner they join us, the greater the impact of our launch will be.”
Comments (36)
I have heard that they will lose 4,000 branches with an average of 42 properties per branch and have prepared themselves to "cover the defecit" from existing members and "new incentives"
I am extremely confused with the free being ask for by Agents Mutual, the literature in their own strategy states: (The directors and their advisers believe the Company’s entry to the market to create a sustainable, lower-priced alternative to Rightmove and Zoopla will increase competition.)
Yet the cost being asked for their bronze membership is already higher than that which I pay to Zoopla?
Rip off if you ask me!
Long term aim ……. Guessing you are not an agent? or if you have not spoken to an AM rep. Once they are established and running costs are undercontrol if a surplus of cash they will look to reduce fees. No guatantee of course! – From what I have heard Z got hammered month end with notice from agents and more to come this month – I think its worse than they feared – If anybody has shares I would look at ditching asap
Bronze membership is indeed good for those unsure – but if OTM doesn't take off as predicted, its the Gold & Silver members who will be tied in and who would suffer for their commitment. OTM is a good idea and will give power to agents wishing to negotiate with whomsoever they advertise, and I suspect will have localised pockets of immense success. Whether it breaks the national duopoly remains to be seen.
Shame AM did not have a no other portal rule; that would quickly put OTM on the map and close down Z & RM.
I'm looking forward to Tin membership in February where there is no joining fee, no one portal rule, they lend me money to join and membership is free or am I just a cynical old fence sitter?
Well, interesting to see the Agents Mutual affect as illustrated by both RM & Zoop now coming forward to secretly offer lower fees – a big change in attitude from the "if you leave, you're doomed and you will be penalised when you come crawling back" line which was being spun up until very recently! If you feel you must stay with The Duopoly, best get negotiating on your monthly fees as they are coming down! Be assured that the Property Portal market is changing and I look forward to estate agents agreeing on just the one aspect of our entire industry… OnTheMarket.com should become the No1 Property Portal, that deals with our Online Shop Window… then we can focus on all the essential services & skills that our industry provides for OUR respective clients.
No. I think Z will be offering you that soon….. just hang in there 🙂
"A monopoly controlled by estate agents for estate agents…." One wonders whether the likes of Property Pundit will be quite so honest on 26th Jan when trying to explain to their clients why their properties (the clients' properties, that is, never the agents'!) are going to be listed on a portal that not a single buyer has ever visited…
Why have an agent at all eh fence sitter? after all with the agents blocking the route to the portals you favour so much and denying their customers, surely we should just cut them out completely!?
Firat, I'm not an agent but if I was one that had signed up to OTM, my clients would know all about OTM well before 26th Jan. I think that's called providing a service if you are unable to recognise it.
You are not an agent. So let me ask you this, do ever tire of someone who does not do the job you do, telling you how you should run your business? I think most estate agents know exactly who pays their fees and the job they have to do for them, further I believe that most of them work in one of the most competitive industries there is and also know exactly what they need to do to ensure their businesses thrive and prosper. Finally I have seen advertisements for OTM in agents adverts, windows, websites, banners, email footers and pavement signs. Hardly what one would call introducing it by stealth. Stick to what you are good at Property Pundit, should there be anything that is.
My response was aimed at Fencesitter, why are taking umbrage?
Because I didn't read it properly, my apologies PP.
"First, I'm not an agent but if I was one that had signed up to OTM, my clients would know all about OTM well before 26th Jan." Who said the clients don't know about OTM? It's the 3rd December today – nothing changes for nearly 2 months.
I think this is an extremely positive announcement to those smaller firms, who I have seen comment on here, that were particularly bothered about the length of commitment. I suspect actually that relaxation for bronze membership will see a number more subscribers to OTM. A well timed release.
RA – I agree with your comment up to a point. What about those 'fence-sitters' who don't want to subscribe to the 'one other portal' requirement? You have to concede that there will always be a substantial contingent who WOULD, but WON'T…
Oh I do concede that point. I am certain there will be some who felt that the conditions of membership were dictatorial and wouldn't support it out of principle. If I am honest, when AM first appeared I was a little ambivalent about the whole thing, but the more I thought about it the more I felt it wasn't about the money, it was about whether I trusted the current portals to continue to go stronger and have my interests at heart. Quite simply I didn't; so whilst I wasn't happy about the 5 year commitment, and that I did initially feel like I was being told what to do, I could understand that if AM/OTM were to have any chance of success it had to be by weakening the other two. After all they had no choice but to try to get agents to drop one of the others as very few agents would have paid for three portals and the founding agents knew that, so the one other portal thing was again something I personally could live with.
"What about those 'fence-sitters' who don't want to subscribe to the 'one other portal' requirement?"…I'd be lying if I said that the 'one other portal' rule was initially not a concern, but when I signed up the pro's of AM far outweighed the cons-the rule was the lesser of many evils. One year down the line and many of those con's have now evaporated. I feel that the real risk was taken by those initial gold members who signed up last year, right now taking into account the state of play the risk is far far less. There are now far more pro's then there are con's and less of a risk to take taking into account the membership levels now available.
My company committed at Gold Level in December 2013, since then we have contributed financially along with many, many others… and we are now closing in on Launch Day 26/01/15. All this early support has helped get Agents Mutual to this point. The Bronze Level gives those undecided an opportunity to join OnTheMarket.com on terms which may suit their particular business strategy. We are an independent business and we have to be thoughtful on our annual expenditure however in our view Agents Mutual is a huge opportunity to bring the UK Property Portal back to it's original format of providing a focussed service for the public and the estate agent, rather than the spiralling Duopoly Portals which serve their shareholders first & foremost! For those still undecided I can only say this… why have competing estate agents agreed on something?… it surely demonstrates our concern about the Online Direction of the Estate Agency Industry… this is your opportunity to support Agents Mutual and move the UK Property Portal Market. It's your choice.
Why would any agent even consider this? Zoola has been the fairest agent. There were times when they were willing to work with an agent when it was a slow month. Rightmove will just block the account straight away abd keep charging fee for no service.
What I will not forget, is the businesses that was willing to ride through the hard times and really cares about their clients. Cannot be said for Rightmove, but Zoopla surely got my vote when I was an independant agent. Rightmove charged three more at thd time than they did any other agent in town. This was confirmed to me by an property surveyor working in the area.
I would recommend Zoopla way before any other portal.
nosharkbait – "I would recommend Zoopla way before any other portal." Unfortunately, your argument is based upon sentiment and not business. Z may well be 'nice people to deal with' – but if they aren't putting as much food on the table as RM, relative to spend, then you have to go where the leads are generated. It's like the scenario where the nicest person in the world sets up as an Estate Agent – lovely to deal with but totally inept at the job – next door to the rat who sells everything. Sadly, as we all know, the rats always get fed and the cute fluffy bunnies sometimes starve.
If only the opposite worked…
Forget the cute bunny stuff. The point here is that the result will be seen by the history books as the industry saying "I'm sick of this DUOPOLY – I want my MONOPOLY back!". Morons.
A monopoly controlled by estate agents for estate agents. Idiot.
"Forget the cute bunny stuff…" NO. I speak out for ALL cute fluffy bunnies, as they have no voice of their own. One day, when there are no bunnies left – despite the tireless (and obviously unappreciated…) work of those who try to save the poor defenceless fluffy bunnies – you will regret those last words on the subject… trust me – I'm an Estate Agent.
Sentiment and not business, …. a 5 year financial commitment to portal which hasn't even launched, and at this moment in time has nothing to actually offer in financial return, and has the possibility it may not. Hmm… you know it makes sense, not.
Ok?…. forgive me….I've missed your estate agency business credentials?….. lay those out for me as I need to know why my nearly 30 Years successfully within this industry doesn't match your mesmerising CV….. I'll settle back and fill ye old fountain pen and pull a sheet of parchment paper…. sorry?….. get my ipad! Go ahead……. (sound of drumming fingers on ye old leather topped desk)
GPL – as we found today he's a wannabe property buyer who just happens to own shares in RM & Zoopla. Coincidence?
Slowing up Peebee? Classic 'portal rep' indicators!
Possibly, Benay – very possibly. More reason then to argue the non-validity of the comment on its merits, don't you think? ;o)
Interesting what you say about them being willing to work with you when you have a slow month. A few years ago we had 4 slow months and listed absolutely nothing, but they wouldn't do anything for us. Just took our money and told us if we come off then when we come back on they will bump up the charges considerably. That said, I agree they are nicer; but aren't most people when they are running in second place?
That was a fabulous last sentence MF.
Were they not a completely different business then, third of the size, only one brand? Businesses change. Work with what they can offer now. Key to business is living in the present (and recent past). For any marketing, one you are paying or considering paying marketing. Forget the past and just ask, what can you do for me now and over the next 6-12 months. Grill them, get facts, ensure you are in the know of why that price and what you get in return, and if your not happy, give them a call.
"When you were an independent agent" So what are you now then?
Sorry that was in reply to nosharkbait!
A portal rep? Chuckle, I tried to post a 3 word reply and got this error "ERROR: Your comment was too short. Please try to say something useful." Mary Whitehouse has been replaced by Mrs Judgemental, the patronising English teacher!