A leading agent has said that the reason why OnTheMarket is attracting so many “inaccurate claims” is because of the threat it poses to other businesses.
OnTheMarket, which bans online-only agents and through its one other portal rule resulted in a fall in Zoopla’s membership, was launched by Agents’ Mutual on January 26 last year. It had said it would overtake Zoopla by its first anniversary, but this ambition was not referenced in a statement last night by Noel Flint.
Flint, a director of Agents’ Mutual, last night expressed both frustration – and confidence in the venture. He emphasised that it was not just about controlling costs, but also data.
Flint, who is head of London residential and a partner at Knight Frank, said: “We have been impressed by the traffic figures and by the healthy mix of new and returning visitors.
“It is of course frustrating to read the numerous inaccurate claims levelled against OTM, usually from people who have a vested interested in trying to halt its rise in the marketplace.
“In truth, the fact that they go to such length is a reflection of the strength of the threat that it presents to their portal or business.”
Flint said that OTM has already created “a significant change within the portals market in a way no other recent market entrant had done”.
He said: “The reality is that the portal is working and we have every confidence that it will continue to grow.
“As more agents recognise the strategic importance of regaining control of their data and costs and as they see the strategic opportunity to serve their clients and property-seekers better with their own portal, we believe that OTM will go from strength to strength.”
He added: “As a mutual, the venture is uniquely placed to achieve a huge step forward for traditional estate agency.
“OTM is injecting some much needed competition into what had become a rather staid arena, dominated by two giants whose main focus was the creation of enormous profit margins.”
Knight Frank was one of the board member firms which chose to retain Rightmove and removed its properties from Zoopla/PrimeLocation.
Flint maintained that OTM is providing Knight Frank’s offices with high-quality leads and their volume is steadily growing.
He said: “We chose to retain Rightmove rather than Zoopla/PrimeLocation as our ‘other portal’, a decision which was later echoed by most of the members, and which has left Zoopla and PrimeLocation with much lower property stock, not least at the high end where Knight Frank operates.
“Our clients like the portal and I don’t believe we are experiencing any loss of business since removing our properties from Zoopla and PrimeLocation to join OTM.”
Flint said that Knight Frank uses OTM to market properties 24 to 48 hours in advance of listing them elsewhere.
He said: “We feel this gives the most motivated property seekers an extra reason to search on OTM and to create a property alert to be first to see these properties.”
The board member firms of Agents’ Mutual are Chestertons, Douglas & Gordon, Glentree, Knight Frank, KFH, Savills, Strutt & Parker and Spicerhaart.
Comments (48)
Woodentop, you asked for an explanation.
EA’s en masse will never drop RM and Z and move solely to OTM. Any AM supporter who thinks that will ever happen needs a reality check.
As I have said many times before, I am not anti agents portal, I am anti OTM and its restrictive one other portal rule. This rule is not in the interests of sellers and has, as I predicted, caused deep divisions among agents.
AM has put up a brave fight against RM and Z but with 2% and 5% of traffic respectively to OTM after a year of heavy advertising and members initial zeal and enthusiasm it is a fight that is being lost.
IMO only the pride of members is hiding the real truth about OTM and its performance.
AM should have allowed agents to continue advertising with RM and Z but insisted as a condition of membership that members advertise all properties exclusively on OTM for 48 hours. I bet 80%+ of agents would have joined and AM would have had far more goodwill, support and income to fight a longer battle that would have stood a far better chance of becoming No.1.
The one portal rule was a massive misjudgement and a fatal own goal.
AM has a larger % market share than Apple!
Dear Robert – it’s a fun comparison. Apple has 35% of the UK’s smartphone market. They are the most expensive & most profitable too – isn’t that where AM started? I didnt get my phone based upon the fact the make zillions on profit. I got it because it was the best for me.
Plus, people tend to only have one product. To my certain knowledge, Apple don’t stop you from buying any other devices either. I wonder what the comparable stats would be for brand awareness 😉
Hello Eric, Apple might have 35% of the smartphone market but overall it isn’t 35% and there is nothing quite as “tie you in” and restrictive as itunes which means that while you might be free and able to buy Android your entire music collection is essentially held hostage on Apple.
The point of the analogy is that for comparable market shares no-one bleats on and on and on that 27% market share in under 3 years of kicking off the project and still only 10 month from go live isn’t a very creditable performance. I think there are an awful lot of people envious of Mr Sprigetts achievement and rumoured remuneration and an awful lot of people who have been proven wrong thus far about the longevity of OTM.
And that means what exactly?
Which market share are you talking about?
Are you talking about buyers (who provide the value but pay nothing)?
Or are you talking about share of properties on the market (which means nothing when there aren’t any buyers looking at them)?
Also, are you talking about Apple in the smartphone section or maybe music downloads, or wearable tech or etc etc etc. (apple revenue 2015: $51.5bn, Net profit $11.1bn) But if AM has a larger market share than Apple it must be worth loads…
I think you’ve finally lost the plot if that is your response to the sensible points that Harree pointed out.
Define market share. Are we talking computers, tablets, smart phones, wrist watches, headphones, keyboards…? Your comparison is like saying Fiat have a bigger market share than Lamborghini. Totally ignorant.
How about 27% is about the same as VAG plus BMW?
The only lack of performance is agents advertising on more than one portal. Customers rarely go to two web portals unless they believe that there is something the other one hasn’t got. Following your theme then, agents are cutting their throats slowly but surely. As for Apple, h’mm first I’ve heard of them and most blue chips companies advertising on a web portal that stabs them in the back, in fact it would be the other way around, the portal would be pleading and pleading to keep their customer happy. Shame RM & Z don’t do the same. The one portal rule is nothing more than a red herring to have ago at OTM, for it is no different to any other web site, it displays the agents properties.
“the creation of enormous profit margins”
… sorry are we talking about Rightmove, Zoopla … or Knight Frank? http://www.knightfrank.com/news/announcement—knight-frank-reports-record-profit-and-turnover-for-2015-07532.aspx
My only issue with OTM is the restriction rule and whether it is actually working. I think competition is welcome but feel it should be on merit, not imposed. If the rule was lifted, I am sure a huge number of agents would give it a try and choose the portal / portals which served them best and offered the best value for money in their area. They may be surprised with results one way or the other.
If it’s true OTM are offering such great deals then there would be little to lose and may attract those who worry about losing leads. Sooner or later OTM will be judged on achieving that which they promised – to be the second largest portal. I am uncertain how close they are to achieving this. How many have migrated back to the portal they left? What is the net growth in listings over the last 6 months? What is customer awareness now compared to 6 months ago? These are details which would influence potential new agents.
Eric that is precisely why OTM isn’t moving as fast as it could or more importantly should. Fear of loosing business! Good communication and less of the duploy, as one only needs your customers to go to one portal? As it is most agents are all on RM and why? Because it got their first and was intended for estate agents but they moved the goal posts in more ways than one and a divorce is now called for, hence the rise of OTM which needs better support than it is getting form those that live in fear?
No I don’t, unlike all of his competitors Ian Springett has 5 year contracts in place.
And of course …
That 5 year contract is as watertight as a sinking ship.
Which, OTM is.
Please answer this question as I have difficulty in understanding your post.
Why if you are a High Street agent do you want to support RM or Z that encourages web only portals, who openly are hell bent on putting you out of business and with their support? Meanwhile charge you an absolute fortune. Doesn’t make sound business sense. Buyers and tenants will go to whichever web portal they are directed to, whoever that other web portal may be.
Happy New Year everyone!
Now down to business, we attack OTM because they are useless, not because they are a threat.
I’m amazed that near one year in people are still supporting them.
Gump – you say
“…we attack OTM because they are useless, not because they are a threat.”
I don’t follow that phraseology – on the basis that as an Agent, OTM CAN’T be a threat to you or your business.
I think some clarity is required here…
Should of said success – Nicotine and caffeine levels are at optimum levels, no idea why I put threat tbh, although I did read that haunted house thread before hand, maybe it was subliminal.
I hope that provides a little clarity
The biggest restrictor to the potential of OTM has been removed.
Springett has left?
Nope, Ian Springett has built an affinity group of competing agents bigger than any other I can think of in the past 30 years. He has put together a portal that has a more certain future for the next 4 years than any of his competitors.
You seriously need help.
No I don’t, unlike all of his competitors Ian Springett has 5 year contracts in place. None of his competitors have that certainty.
The agents signed up to AM have qualified, local and respected staff in all of the activity centres of the UK , none of his competitors have that.
Robert May, you really are an absolute tool
I might be a tool but at least I’m able tolerate people who have a different opinion to my own and don’t spend my time sycophantically brown snouting.
I am incredibly jealous that whilst the rest of us have had to come back to work, you’re still able to indulge in some post xmas early morning sherry’s Robert!
Is that the best you can come up with? A bit cliché and weak.
Oh, it’s not true?! In which case, i’m with Simon. You’re seriously deluded!
Do you really think that this business is more secure than Rightmove? A company worth just shy of £4bn… Really?
A business that started at the end of January 15 with ambitious growth plans, grew for one month and then stalled from March through to November and has only just started seeing an uplift again as they are giving the product away for free?
A business that depends entirely on the public being aware of it, but one that the public couldn’t care less about?
A business that restricts consumer choice and forces the majority to look over two sites instead of one for properties.
A business that was expecting a significantly higher number of agents to have signed up by 2016 in order to fund a marketing strategy that still wouldn’t have matched RM or Zoopla’s spend.
A business whos sole purpose is to reduce costs for agents (who Joe Public hate and have no intention of helping out), as opposed to providing increased functionality or fill a gap from existing suppliers.
If, after all that, you really believe that OTM has a more certain future than any of its competitors, then I applaud your optimism.
If Joe Public hate Estate Agents why do 98% of those who sell property trust them to value and sell their property? Why do those that don’t use Estate Agent to sell their property rely on Estate Agent to value their property before listing with FSBO or Internet listing agents?
In terms of business valuations what is the combined worth of 27% of the industry earning about £1billion in fee income worth, bearing in mind that 27% is data generating/ goodwill & reputation loaded rather than just a service supplier with a 1 month notice period?
That’s a really rubbish skirt around of the original question, but I’ll let you off that. However, are you trying to get across to me that because people use a service they must love the people supplying it? I use the facilities of a bank most days, but those blood suckers are the absolute worst!
I’m also looking for a new job so I can spend even more time on here – and in all likelihood I am going to have to employ the services of a recruitment consultant. Have you even spoken to one of these? They leave you wanting to gauge your eyes out with a spoon and put knitting needles through your ears.
But they are a necessity. As are estate agents for most people.
“I am going to have to employ the services of a recruitment consultant. Have you even spoken to one of these? They leave you wanting to gauge your eyes out with a spoon and put knitting needles through your ears.
But they are a necessity.”
Actually, no they aren’t.
Blimey – there was me starting to think you knew everything – and you blow that thought in 45 no doubt beautifully typed yet completely ridiculous words.
You’ve downgraded your status back to that of a regular blowhard t0$$er.
Put that on your CV.
Haha! Here’s Barry Chuckle to assist his ailing friend who is now comparing AM to Apple Inc.!!!
Go on then Barry, why won’t I need to go through a recruitment consultant for the job I want? I’m genuinely interested to know, and you were very clear I don’t have to.
If I have to tell you how to get a job on your own steam then you’re beyond even my help before the first shovel of coal is stoked into the fire.
A career change seems a good idea. I hear McDonalds are hiring – and I believe you can apply online if that makes life more bearable.
To you…
We’ve done a full circle back to burgers! Good work Barry.
Mr Outsider
Your cynical outlook does you no credit whatsoever.
If this is how you blog then no wonder you need the services of a recruitment consultant, clearly your reputation as an approachable, friendly estate agent is not shining through.
Or at least that’s the impression you are giving me!
And that is what they call “game, set and match”. You got done mate.
Really? neither Peebee, Ian Springett nor I are looking for work and are at the mercy of recruitment firms to get the job we want.
If you were old enough you would know the answer young gun.
The issue for OTM agents is they need to be on one web site. The traffic is never going to move away from RM or Z if they are still promoting these sites. Then the story will be totally different, the public would follow them as they have no loyalty, who only look for convenience.
And why is it you call yourself woodentop!!!
pay nothing, get nothing. If OTM are using this tactic to sign up members then they wont have enough money to market the site fully.
Those that clicked displike to my last post.
OK!
So how will they pay for the marketing and advertising required to generate new leads?
So when are they going to announce that it’s overtaken Zoopla, April 1st?
I should hope “it’s growing”. They offered me 13 months free then £50 a month for a year. If something is free of course it will be growing. The scary part is wether or not it is growing at say, the rate of Clarks shoes if they were being given out for free? Or the amount of burgers in a given high street if they were free every month for a year? It’s free so there is an uptake but the uptake from what I hear is nowhere near what you would think for something that’s free.
Did someone say free burgers?
2% of Rightmove’s audience and 5% of Zoopla’s, a year in and many millions spent.
No wonder the only way that they can get new agents to join is by offering at £50 per branch – or even free of charge!
Time for a rethink?!
“The reality is that the portal is working and we have every confidence that it will continue to grow”
After 11 months operating as a portal you’d think that they’d be able to say something more positive than telling us the site works and we think more people will use it!
It will work if everyone wakes up. Those who are on Rightmove and Zoopla and not OTM need to remember you are accelerating the online agent! How would Purplebricks have a stock market ipo of £240m after 2 years and easy Property raise £25m unless your content was adding to the cred of the duopoly! Wake up Connells LSL Countrywide, the online agents are eating into your market and you are helping them, its the little and medium houses that are selling and flattering these new comers. You have been warned.