Zoopla stands to lose almost £30m in revenue if Agents’ Mutual signs up 5,000 agents who decide to pull their stock off Zoopla, the Telegraph has reported.
However, Alex Chesterman, who founded Zoopla and steered it through its successful flotation last week, sounds unworried.
He told the Telegraph that Zoopla has spent the last six years capturing an enormous amount of information about properties.
“It’s hard for someone else to play catch-up to that,” he said.
Yesterday, Zoopla started formal trading on the stock exchange. Its shares ended just below 230p after a quiet day, having risen from the 220p launch price on ‘grey market’ trading last week.
The Telegraph interview, which makes much of Zoopla’s valuation tool and in which Chesterman also dismisses talk of a London property bubble, is here:
Comments (31)
@Peebee….
HAVE to?
Oh, dear – that sounds like a threat.
And coming from someone who said "AMEN" to my suggestion – that of completely turning off t'internet – only a few days ago, a complete 180 on previous stance I would suggest, Paul H."
No threat, as you well know matey 😉 I agreed to turning off the internet, aint gonna happen tho is it!!
Remember my old adage, matey…
NEVER say "never"! 😉
"However, Alex Chesterman, who founded Zoopla and steered it through its successful flotation last week, sounds unworried."
Of course he sounds unworried – It's now part of his job description to sound unworried!
Interesting to note the comments about favouring dropping Zoopla over Rightmove. We dropped Rightmove years ago and haven't looked back (yet!).
I remember when Rightmove used to be 'nice'…. it was before their flotation.
MF
Well done for apparently having the stones to drop RM. For many Agents that would be a step too far – including I believe the vast majority of the M Collective…
Hope you don't mind me prying a bit deeper – but it is entirely relevant to the whole internet issue. Are you in an area where RM is perhaps less dominant than Z? Are you Sales or Lettings (or both)? Do you use other portals – and if so, why?
Thanks in advance.
Danny, I think that AM currently have more than twice the £6m you mention. So quite a bit available for the initial marketing. Come on man, bung 'em £2600 like I did and help get this game afloat.
I do regret that Z, as the more agent friendly of the 2 organisations, is likely to be the one to be dumped simply as for most of us they are a less vital tool.
Michael, if you burnt £1300 and kept £1300 I think you have a better deal. The simple fact is that the public arent going to be told to change their habits and us agents cant resist the opportunity to give other agents a hard time, business is business. There was a story in the thread above about two Am gold members already saying "there not on so and so portal" If they drop the rules about where I could advertise they woould stand more chance of me "bunging them £2600" Until then I eargerly await my competition dropping off one of the major two portals….literally will be like Christmas come early …albiet by 7 days
danny… trust me when I say your words are falling on deaf ears.
I'm afraid they're all 'lost causes', matey – AM has them mesmerised in a way that Paul McKenna could only aspire to!
"I'm afraid they're all 'lost causes', matey"….As are you for NOW Peebee! But the time will come when you will have to revisit the proposal and that may come sooner than you think!
"But the time will come when you will have to revisit the proposal…"
HAVE to?
Oh, dear – that sounds like a threat.
And coming from someone who said "AMEN" to my suggestion – that of completely turning off t'internet – only a few days ago, a complete 180 on previous stance I would suggest, Paul H. 😛
According to an intriguing post on the other place, that will be November!
I think its more ignorant to believe that property stock rules where people online, Globrix launched with all the property in the UK on it. It had agents telling people that its the place to go , it had a fanfare and us agents telling vendors it was the place to go. It failed , why , because people do what they have always done. At the time of the globrix launch there was findaproperty and propertyfinder and the other one I forget the name of , none of them had more than a handful of listings in some areas but they marketed heavily and thats the key. I got my update from AM and I wanted to pull out some points..
"Weve got 23 guys working on tech" – £80K each – £1.8 million annualised
"Weve hired 20 reps from RM and Z" – £60 K (guessing a little here) £1.2 million
"weve got an office in London" £ground rent in London for 50 people anyone – £half a mill a year ?
" Myself, Helen and the tech guy" – not working for free – what £400,000 between them ?
" We are recruiting still and will have a commercial operation ready to go , customer services, feeds guys, marketing, etc etc – Be generous at £1m
So of the £6m thats been called in I reckon £5mill is on staff and fixed costs , leaving £1million to be spent on an advertising campaign to last 12 months for the entire of the UK . So here's the deal Am , when your senior team sign a document saying that you will sell your house to pay the costs if the business fails (like I did in the early days) then I will sign up to your services limiting the choice I have within my business. Until you get some skin in the game you can have my competitors money to pay the massive set up costs your enduring…
Danny….
Those figures are all over the shop! Firstly the reps are home based, the cost to rent an office in Southwark will be around £100k per annum inc business rates not £500k! The sales reps will be commission/performance lead and will earn those figures if targets are achieved. And the salaries for Helen, Ian and the tech guy is just a complete shot in the dark.
I was told that if AM hits 5000 by launch then the marketing budget will be £14m as opposed to your guess of £1m.
I hope your not an accountant 😉
5000 by launch .. they have c2500 , signing up 300 a month according the release , on silver suck it and see no commitment contracts.Thatll give them about 3500-4000 by Christmas and id imagine theyve been round the "low hanging fruit" youve emailed an interest, dont get me wrong, I wish them every success but I cant see them having enough to persuade my clients that where they should look … the public dont pay to logon to Rightmove or Zoopla..
So you over estimate Agents Mutuals overheads but you undervalue their potential membership figures, you'd be dangerous if someone left you in a room with a calculator!
Apparently over 250 have signed up in the last 14 days Danny, and not just signed up but invested money by way of a loan to the business. I believe there will be a tipping point when agents will be left in no choice other then to get on board and I believe that will come before launch.
"I believe there will be a tipping point when agents will be left in no choice other then to get on board…"
Matey – AM are MAKING that decision for a MAHOOSIVE CHUNK of Agents who will still be listing on Zoop and/or RM on January 2.
And those competitors just might bite big, costly chunks out of the AM Collective's @$$£$…
Danny;
" Globrix launched with all the property in the UK on it. It had agents telling people that its the place to go , it had a fanfare and us agents telling vendors it was the place to go. "
Firstly NOT true…I didn't hear the fanfare or tell any vendors about it….much like 95% of other agents…that's why it failed.FACT.
Secondly…comparing AM launch to Globrix?….you're really havin' a laugh!
He told the Telegraph that Zoopla has spent the last six years capturing an enormous amount of information about properties.
“It’s hard for someone else to play catch-up to that,” he said.
This is genuinely the most industry ignorant statement ever made. Unless Mr Chesterman is now in charge of all things global from the economy to mother nature and fanatical terrorists he is simply wrong to claim that anything collected is worth anything more than its historical interest value.
At the very first property appraisal done this morning by the most junior valuer in the industry, the market will change and that humble valuer will have caught up and overtaken everything that has gone before.
Quite right Paul H
It's not about the tools or gimmicks that the AM site will have to use against RM or Zoopla. It is the stock that AM will hold that will hurt them.
As soon as AM launches successfully, it will demonstrate that UK agents do not have to be held ransom by any portal and the control of the stock lies with the agents, this is what will hurt Zoopla.
As soon as the UK agents realise this, the next step will be to remove all stock from RM.
If AM goes ahead then there is no reason for a RM or Zoopla to exist.
That truly is the most desirable outcome for the professionals in this industry. There really should be only one go-to portal for house buyers and tenants where they can be sure of finding 95% of all homes being offered through traditional agencies. RM and Z and any others can continue to survive by servicing private vendors and landlords, and on-line agencies if they wish, or even offer their own on-line service, but this method of selling is and always will be the smallest part of the market. As long as traditional agencies continue to provide a professionally trained, knowledgeable, trustworthy and accessible service they will always be the preferred choice for the vast majority of clients. I have no doubt that £30m is only the tip of the iceberg with respect to loss of revenue the big two will suffer as soon as it becomes evident that AM is where all the property is being advertised.
You entirely miss the point Robin, the public have this property Nirvana already in Rm and Z and won't be told to change their habits by you as it saves a bit of cash . vendors expect to be listed where they would look themselves to buy and sell houses.fact
Its an interesting article and to be fair Zoopla are the "nice" portal to deal with , but the bottom line is that they will be the biggest loser when AM launches. I have had this discussion amongst all of my friends that own businesses and all agree that they don't like Rightmove, but if you were going to be on one, then they would be the one.
I think Alex however misses the point AM doesn't need to offer the public valuation tools, it simply needs to get its members to commit to list their properties with them first, a full five days before they hit any other portals and that alone would ensure it was the first choice for buyers!
"…all of my friends that own businesses and all agree that they don't like Rightmove, but if you were going to be on one, then they would be the one."
So – instead of WEAKENING RM's position – you all act to STRENGTHEN it.
Oh, dear…
Mr Chesterman needs to wake up pdq as almost every agent I have spoken to in the last 2 months is planning to dump Zoopla rather than Rightmove as they see RM not Z as the portal identified with property among the property-searching public in much the same way as Macdonalds is identified with junkfood. And how come the £30m figure never appeared in Zoopla's IPO prospectus ??
I wouldn't be too bothered about agents mutual if I had just trousered 40 million on top of previous floats involved in. I would be watching with interest in January…….from Barbados!
Judging by most of Alex Chestermans comments his under the deluded impression that Agents Mutual or any competitor NEEDS to replicate the valuation tool of Zoopla to stand any chance of success…. .roll on January.
Completely agree Paul….. I've actually said to one of the newer AM reps PLEASE PLEASE PLEASE do not fill the site with too much rubbish like Zoopla…… (I hate to say follow some of RM's format)
Zoopla is great for buyers wanting to offer low and blame someone for doing so BUT Zoopla is so easily used as a touting tool to show another agents vendor why their house is best off Zoopla and therefore best off with their current agent.
What's still so sad is I only yesterday had to fight against a fellow AM Gold member Agent suggesting my company is not on Zoopla therefore why an earth would they use me…..
Perhaps I am missing the point though…. maybe my fellow Gold Member agent is going to drop RM!
Anyway…….. AM if you are reading this and I am sure you are, for what my opinion is worth (as a gold member you know the answer to that!) – Make the Portal work for the vendors and not against them…. have vendors wanting to be on AM as well….. most say will I be on RM few say will I be on Z …. there is a reason for this!
well said ! I have already dropped Zoopla from 4 out of my 6 branches it has made no difference at all !
marccox – why not all 6 then?
Ric,
you know we're listening and your contributions and efforts are valued. Thank you.
Lee
AM reps earn nearly £50k basic and earn between £30 and £60 every time someone sets up on a package.
To beat the main players they need to spend £25m a year for 5 years to even dent the top 2.
It's all well us agents saying it'll topple the big 2 but….
How will we work together as whatever one we drop, our competitors will use that against us with vendors.
And how will vendors react, they are happy with RM and to get them off of there is a massive task that I can't see happening.
It will only make them stronger in my opinion
When you say that vendors are happy with Rightmove, how can you be so sure?
I am not convinced that the selling public have got Rightmove and Zoopla on their selling check list when appointing an agent to sell thier home. I suspect that there is an element of reverse delegation going on from the lower orders in agency who rely on Rightmove and Zoopla to make their working life easier and in some cases possible.