Agents’ Mutual Limited. A Company limited by Guarantee.
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Agents’ Mutual Limited. A Company limited by Guarantee. 25 th September 2014 Conference
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Agents’ Mutual Limited. A Company limited by Guarantee. Conference. 25 th September 2014. Launching January 2015. Company limited by Guarantee. No shareholders or shares. Directors approved and re-elected by the Members. They are unpaid . - PowerPoint PPT Presentation
Transcript of Agents’ Mutual Limited. A Company limited by Guarantee.
Agents’ Mutual Limited. A Company limited by Guarantee.
25th September 2014Conference
Launching January 2015
100% agent-owned property portal
Serious competitor to the existing major portals
NOT to maximise financial returns to shareholders
High quality property search service
Minimum listing fees consistent with achieving and maintaining leadership
For ALL bona fide Sales and Letting Agents
ALL segments of the residential market.
Company limited by Guarantee.
No shareholders or shares.
Directors approved and re-elected by the Members. They are unpaid.
All firms listing on the portal are Members. Maximum liability = £1.
All Member firms get one vote and an equal interest in the Company, irrespective of firm size.
90% vote required to approve a Sale.
June 2013 – 6 member firms
Target 1000 offices; £3M funds
January 14 - 550+ member firms - 1850+ offices
Large national brands – 2%Prominent regionals – 20%Small firms (1-3 offices) - 78%
£6MFunding
Rightmove set to raise income to £200M by 2017
Zoopla needs to treble income to match Rightmove.
Agent now have to list with both portal groups a duopoly with no real constraint on prices
2013- Income £65M- Costs £35.5M- Profit £29.5M- Margin 46%
2013- Income £140M- Costs £36M- Profit £104M- Margin 74%
The ThreatPart-service, remotely-located operators..
..mixed in with
Full-service, locally-visible agents.
Commoditizes proper agency
Puts pressure on fees
A race to the bottom?
PORTAL INCOME:
Agent £20 per property
per month – say, £60
Vendor direct £599
?
The Threat
Strategy
Our portal Entering alongside the two giant players won’t work
No reason for consumers to switch Extra cost to agents Too much marketing investment required Too risky to attract commitments and funding
We have to create some disruption.
Strategy
Use agents’ CONTROL over where they place their listings:
Medium term commitment to list with the new portal – 5 years Members to list with maximum of one other portal of their choosing
Effective on launch in January 2015 Fully exclusive listing ideal but not viable for agents
Strategy
Use agents’ ABILITY to market a portal
STOP building Rightmove’s brand
STOP building Zoopla’s brand
ACTIVELY PROMOTE the portal you own and works for you
AGENTSTerm commitmentOne other portal
Co-branding/promotion
COMPANYExcellent brand and portal
Strong central marketing supportCommercial drive + service ethic
Strategy
Neither Rightmove or Zoopla will have all the agents and properties we will have. creates a unique set of listings for our new portal a reason for consumers to use us leaves internet-only operators with our competitors
Agents can publicise their switch and promote the new portalOnTheMarket will promote full-service, locally-visible agency
No net increase in cost of portals to agents
CORPORATES INDEPENDENTAGENTS
INDEPENDENTAGENTS
Anchor tenants - before
The 3 major corporates are the ‘anchor tenants’ for both Rightmove and Zoopla:- Advantageous terms- Share interests (Zoopla).Independent agents are just rent-payers.
Agents’ Mutual now has its own ‘anchor tenants’ – more than 3500+ offices - and they will take listings and fees away from the others. They will own and control the Company.
Every firm which joins Agents’ Mutual becomes a member on equal terms with all others - one of the ‘anchor tenants’ - taking listings and fees from the others.
CORPORATESCORPORATES
INDEPENDENTAGENT MEMBERS
INDEPENDENTAGENTS
INDEPENDENTAGENTS
INDEPENDENTAGENT MEMBERS
Anchor tenants – Aug 14?
3500+ offices
CORPORATESCORPORATES
INDEPENDENTAGENT MEMBERS
INDEPENDENTAGENTS
INDEPENDENTAGENTS
Anchor tenants - Jan 15?
INDEPENDENTAGENT MEMBERS
5000+ offices
The objective
Costs £30M*
12,000 agent offices£250 per month
10,000 agent offices
At full scale
StrategyRaise development funding from member agents – the Gold members
5-year commitments from Gold and Silver members – in return for fixed fees.
Fees lower than the big portals – but high enough to allow reinvestment for growth.
Once full scale is reached – 10,000+ offices – fees can fall.
Pre-launchsubscription
Year 1 Year 2 Year 5 Year 9Year 8Year 7Year 6Year 4Year 3£400
£200
£50
20% discount for 6-year commitment
Full scaleGrowth
Averagemonthly
fees Average£4200 per office
per year
Strategy
If agents get behind it, Agents’ Mutual can deliver much quicker.
£250 average listing fees or less – sustainably.
Pre-launchsubscription
Year 1 Year 2 Year 5 Year 9Year 8Year 7Year 6Year 4Year 3£400
£200
£50
20% discount for 6-year commitment
Full scaleGrowth
Averagemonthly
fees Average£4200 per office
per year
Three membership schemes during the
‘Growth’ phase
No commitment Higher pricing
Not fixed
Pricing and fundingFirm size Office Location
Offices in Firm
Volume Discount
Prime London
Other London
Prime Country
Other Country
1-3 0%£595 £495 £395 £295
4-6 5%£565 £470 £375 £280
7-12 10%£536 £446 £356 £266
13-19 15%£506 £421 £336 £251
20-49 20%£476 £396 £316 £236
50+ 25%£446 £371 £296 £221
No pre-launch fundingCommit for five yearsPrices shown are fixed
?Price shown include:• branded listings• all platforms inc. mobile• lettings.
Lettings-only 50%
Pricing and fundingFirm size Office Location
Offices in Firm
Volume Discount
Prime London
Other London
Prime Country
Other Country
1-3 0%£595 £495 £395 £295
£506 £421 £336 £251
4-6 5%£565 £470 £375 £280
£480 £400 £319 £238
7-12 10%£536 £446 £356 £266
£455 £379 £302 £226
13-19 15%£506 £421 £336 £251
£430 £358 £285 £213
20-49 20%£476 £396 £316 £236
£405 £337 £269 £201
50+ 25%£446 £371 £296 £221
£379 £316 £252 £188
ENTRY TICKETPre-launch subscription£600 payable in instalments> non-refundable
Loan Notes of £2000 per office (£1000 lettings-only). annual interest of 7% repayable by 2020.
Fee discount: 15% v Silver
Commit for 5 yearsFund the development
Fixed pricing
Firm size Office Location
Offices in Firm
Volume Discount
Prime London
Other London
Prime Country
Other Country
1-3 0%£595 £495 £395 £295
4-6 5%£565 £470 £375 £280
7-12 10%£536 £446 £356 £266
13-19 15%£506 £421 £336 £251
20-49 20%£476 £396 £316 £236
50+ 25%£446 £371 £296 £221
Funding and financials
£6M+Pre-launch
funding
Listing fees£7M pa
Listing fees£14M pa
£21M+Post-launch
annual income
10 Months to LaunchJune to December
Become the No.2 Portal take listings and income drive awareness & traffic
Portal developmentBrand and marketing development
3500+ offices
31st JANUARY – CONTRACTS IN6th MARCH - FUNDS RECEIVED
Regional and central sales forces
1820+ offices
5000+ offices
£7.7M+Pre-launch
funding
£21M+annual income
First yearOne year to Launch
£35M+annual income
Become a credible alternative to the No.1 Portal Match cost base and capability Undercut prices
6 months
5000+offices
8000+offices
Funding and financials
What next?
Register at: www.agentsmutual.co.uk
Make it happen.
Sign up
