EweMove franchisees – working mainly as individuals from home – are achieving ‘phenomenal’ success it has been claimed.
Nick Neill, managing director of EweMove, said: “A staggering 83% of those who have been trading in full for the last year are earning over £40,000 in commission – with the highest commission achieved by an agent within the past 12 months soaring past the £500,000 mark.
““Our ready-made business model means that franchisees can literally see results from day one, with one of our latest franchisees to join us already seeing commission figures of £281,000 in just a matter of months.”
A spokesperson for the firm clarified that the £500,000-plus sum went to a team of three, while Neill himself told EYE that the sums quoted are gross.
EweMove has a hybrid model, and operates on a no sale, no fee basis.
The business, which was bought last year by The Property Franchise Group, appears to be turning around after it under-performed earlier this year.
It lost £300,000 on revenues of just £900,000 in the first six months.
Neill said it has successfully recruited agents from the likes of Foxtons, Countrywide, Andrews, and Hamptons joining the ever-expanding ‘flock’.
As part of The Property Franchise Group, EweMove is in the sights of Belvoir, which has expressed interest in a merger – although TPFG has described it as a hostile take-over bid.
Comments (34)
Ewemove have 707 properties for sale across all 110 franchises. Approximately 6 each.
They have brought 211 new properties to the market in the last 30 days. Approximately 2 each.
Since the start of this year they have gone backwards…
I can only assume the £500k+ franchisee is an agent who rebranded to Ewemove and brought their sizeable managed portfolio with them.
Or owned by them ?
Hi Keyser Söze
I think you may not be researching all of our Rightmove accounts. The number in the last 30 days is actually 424 sale and Let properties brought to market. Some of which have of course been Sold STC and Let within the month.
The £500k franchisee has been trading for a few years and was not an ex-agent, so no inward transfers!
So we’re definitely not going backwards. But if you want to check any numbers on which you may make some assumptions, feel free to contact me to check if you wish.
No, I have researched all of them. You currently have 707 available properties for sale. This is around 100 less than earlier this year = going backwards.
I noticed above you have included the Let properties in your 424 figure (which will include relisted let properties after the tenant has given notice). I am talking for sale properties which is 211 brought to market in the last 30 days.
These figures are correct.
Yes, yes. But how long before the brand makes a PROFIT??!!
Hmmm…
According to Zoopla, the “branch” with the most properties – also described as that with the ‘Shortest avg. sale age’, is Basingstoke.
It has a register of 85 listings, of which 59 (69%) are marked as Under Offer/SSTC.
Now let’s apply some assumptions:
Say their fall-through rate is 15%. Therefore 50 will complete.
Say their pipeline drops through every 3 months.
Their average listing value is a touch under £371,000. Say their sales are predominantly on properties of 90% of average – £334k (approx.)
Say they are selling those for 96% of Asking – £320k (approx.) – say their Fee is 1.5% – £4800 PER SALE.
That would result in a Fee income of £960k. Plus add-ons.
IF the franchise split was 50:50 then the figure stated in the article above might just about be do-able.
Maybe someone from the flock would care to comment.
To ewe…
Think you are being gereous with the 1.5% fee …..
I had to be generous with the fee, smile please – and all the other assumptions – it’s pretty much the only way the figures stood a cat’s chance of stacking up!
Say you say the word “say” to explain away the naysayers.
Say I say you say the word “say” too many times.
Say I say you are spending more time on this forum than on your own business.
Who say?
You say?
Me say?
NO SAY!
It can’t be Ewemove (Basingstoke) Ltd as the Company was only incorporated in January 2017
What some may forget to remember is that we’re growing our franchise network at a pace, so many in our ‘flock’ are still only a few months into trading and growing their business, hence we will always see a small group who report lower income – for obvious reasons.
But for those who join us (please note Proagent54) they get access to a fully functioning estate agency business, with all the software and systems they need, including access to Rightmove and Zoopla for a stunning £1,000 per month licence fee – significantly cheaper than anyone could achieve if they set up on their own, either working from home, from a serviced offce, or a high street shop – as our franchisees can choose to do.
When I compare our net earnings to a traditional high street agent, we simply do much better.
And neither are we reliant on the income derived from charging excessive fees to tenants, so we’ve already shaped our business model to ensure we thrive in a post-fee ban environment. In fact, this was done right from the outset of Ewemove as a customer-centric, serviced focused business.
Perhaps those that fear their future as traditional agents should get in touch with us to find out why we will continue to thrive and why we’re so different to both the Online agents and the High Street agents……
It lost £300,000 on revenues of just £900,000 in the first six months
What are you now doing differently compared to what you did to make the above massive losses, that would have put any Proper Agent out of business?
I think you’re mistaking two different bits of information. This is about Franchisee performance, not that of the franchisor.
Very well put and good luck to you Head_Shepherd#2
You couldn’t have possibly expected anything other than negative comments on here. As soon as 99% of the contributors on here see a headline about online or hybrid agents they stick on their competition bashing hats and start tapping away without really giving the contents of the article (or their own posting in most instances) any real thought.
As a high street agent I welcome competition and never ever knock it. The world of estate agency is rapidly changing but unfortunately the readers on here either won’t accept it or are just burying their heads in the sand only popping up every morning to let us all know how awful any model other than there’s is.
Thank you MrLister!
Is the £1,000 plus VAT presumably? What other costs have to paid each month?
It is plus VAT. Have a look at http://www.ewefranchise.com/ if you wish to find out more….
Don’t forget the franchisee also pays £200 (or was it £250) plus VAT to Ewe Move for each instruction and has to bear their own costs of local advertising!
Considering Ewe Move does no marketing (other than listing the properties on the portals), the cost of local advertising could be significant, as lets face it, very few consumers have ever heard of Ewe Move!
Furthermore, looking at Ewe Move’s website, without a clear and transparent fee structure, I personally fail to see how consumers are flocking to Ewe Move in the numbers claimed to achieve the alleged commission levels.
Head_Shepherd#2
“…so many in our ‘flock’ are still only a few months into trading and growing their business, hence we will always see a small group who report lower income – for obvious reasons.”
Fine and dandy. Accepted.
Except for the small but ever-so-highly-significant factoid that this article isn’t about that “small group” you refer to. It never goes near them. Never mentions their “lower income”. Not one syllable.
It’s all about those who have been in your pen for over a year. Numbers have not been disclosed other than your boastful “83%”… of something.
That, by the way, could be as low as SIX people if you are a little generous with the roundings up and down.
To ewe…
£1,000 per month licence fee
And no doubt a % of sales / Letting
To be fair you may save the franchisee £300 – £400 per month (before your cut in revenue) BUT they have a stupid logo with equally stupid branding.
If i was to franchise, i would rather Hunters, at least they have an idea regarding taste and marketing.
Accepting that your franchisees pay a £1,000pm licence fee, what are the total running costs of a “typical” franchise when you take on board day to day running costs (phones, cars etc), marketing (leaflets, boards etc), ongoing franchise fees (10%+ of T/O)? If they T/O £40k, they are probably only at best just scraping a profit?
I think I wrote a reply to a different article a while ago – we don’t take a slice of franchisee turnover as other property franchises do. Instead, we charged a low fixed fee for each completion, leaving our franchisees to keep a bulk of the fees they charge.
I suspect that the ‘recent franchise’ was already a working agent with existing income from an office based agency, the little guys on their own with no experience will fail.
Baggiefan,
Does that refer to WBA? Are there any other Albion fans out there?
It does indeed agentV … and there are plenty, just that bored with Mr Pulis style of play 🙂
Where are you based ?
Wolves fan.
See you soon
Any evidence, anywhere, of these claims???
Personally I think it’s great that there is a franchise you can take when you retire from the office stationary supplies company you worked for and still earn just about the same.
Reads of pure spin at a failing franchise model that PFG paid well over the odds for.
And with the numbers shown here, when costs are deducted, you would earn far less than an employed lister
That’s a fair point but most wouldn’t get employed as a lister as the majority have no experience.
Those will be the branches where Securicor or Brinks Mat turn up to deliver the wages?
Best of luck if true.
Nick – when you saying ‘earning in commision’ I’m guessing you mean turnover before costs? If so, the figures a pretty poor. Eh at’s left for the shepherd after costs on a £40k turnover? And what do the 17% turning over less than this figure think about it all?