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Agents’ MUTUAL

Agents’ MUTUAL. Agents’ Mutual Limited. A Company limited by Guarantee. Oxford 19 th March 2014. Agents’ MUTUAL. Company limited by Guarantee. No shareholders or shares. Directors approved and re-elected by the Members. They are unpaid .

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Agents’ MUTUAL

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  1. Agents’ MUTUAL Agents’ Mutual Limited. A Company limited by Guarantee. Oxford 19thMarch 2014

  2. Agents’ MUTUAL 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. • 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.

  3. Agents’ MUTUAL £6M Loan Capital June 2013 – 6 member firms January 14 - 550+ member firms - 1850+ offices • Large national brands – 2% • Prominent regionals – 20% • Small firms (1-3 offices) - 78%

  4. London Agents’ MUTUAL

  5. The Regions Agents’ MUTUAL

  6. Agents’ MUTUAL • Agent now have to list with both portal groups • a duopoly with no real constraint on prices We are persuaded by the arguments that the creation of a strong competitor to Rightmove will restrain price increases.. 2012 Rightmove set to raise income to £200M by 2017 - Zoopla needs to treble income to match Rightmove. • 2013 • Income £140M • Costs £36M • Profit £104M • Margin 74% • 2013 • Income £65M • Costs £35.5M • Profit £29.5M • Margin 46% Zoopla prices will rise to meet Rightmove’s – there will be no price competition ZPG CEO, 2013

  7. Agents’ MUTUAL The Threat

  8. Agents’ MUTUAL I..it is clear to see a small fortune can be saved by instructing us over the traditional High Street Agent.

  9. Agents’ MUTUAL

  10. Agents’ MUTUAL Landlord.org is the site that traditional agents do not want you to see! Save money, avoid the middlemen and take control.

  11. Agents’ MUTUAL The Threat • Vendor direct • Landlord direct • Multi-listing • Agency software • Franchising • ?

  12. Agents’ MUTUAL Strategy • 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. Our portal

  13. Agents’ MUTUAL 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

  14. Agents’ MUTUAL 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 • Agents can publicise their switch and promote the new portal • No net increase in cost of portals to agents. • in some cases, total outlay on portals will fall. • Reduces investment requirement and risk.

  15. Agents’ MUTUAL 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. Agents’ Mutual now has its own ‘anchor tenants’ – the first 500+ members and they will take listings and fees away from the others. They own and control the Company. • The 3 major corporates are the ‘anchor tenants’ for both Rightmove and Zoopla: • Advantageous terms • Share interests (Zoopla). • Independent agents are just rent-payers. Anchor tenants – Jan 14 Anchor tenants - before Anchor tenants - Jan 15? INDEPENDENT AGENTS INDEPENDENT AGENTS CORPORATES CORPORATES CORPORATES CORPORATES INDEPENDENT AGENTS INDEPENDENT AGENTS INDEPENDENT AGENTS INDEPENDENT AGENTS CORPORATES Agents’ MUTUAL INDEPENDENT AGENT MEMBERS Agents’ MUTUAL INDEPENDENT AGENT MEMBERS INDEPENDENT AGENT MEMBERS 7

  16. Agents’ MUTUAL The objective Costs £30M* At full scale £250 per month 12,000 agent offices 10,000 agent offices

  17. Agents’ MUTUAL Strategy Raise 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. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 £400 20% discount for 6-year commitment Average monthly fees Average £4200 per office per year £200 Growth Full scale £50

  18. Agents’ MUTUAL Strategy If agents get behind it, Agents’ Mutual can deliver much quicker. £250 average listing fees or less – sustainably. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 £400 20% discount for 6-year commitment Average monthly fees Average £4200 per office per year £200 Growth Full scale £50

  19. Pricing and funding Agents’ MUTUAL Three membership schemes during the ‘Growth’ phase No commitment Higher pricing Not fixed ? Price shown include lettings. Lettings-only 50% No pre-launch funding Commit for five years Prices shown are fixed

  20. Pricing and funding Agents’ MUTUAL Commit for 5 years Fund the development Fee discount v Silver • ENTRY TICKET • Pre-launch subscription • 8 months x £75 = £600 • > non-refundable • Loan Notes of £2000 per office (£1000 lettings-only). • annual interest of 10% • repayable by 2020.

  21. Agents’ MUTUAL Funding and financials £6M+ Pre-launch funding £21M+ Post-launch annual income • Become the No.2 Portal • take listings and income • drive awareness & traffic 3000+ offices Listing fees £14M pa 1850+ offices Listing fees £7M pa 12 months Launch 6 months

  22. Agents’ MUTUAL Funding and financials £35M+ annual income • Become a credible alternative to the No.1 Portal • Match cost base and capability • Undercut prices 3000+ offices £21M+ annual income 3000+ offices 1850+ offices First year One year to Launch 6 months

  23. Agents’ MUTUAL What next? Register at: www.agentsmutual.co.uk • Silver membership: • non-binding Letter of Intent • contract when 4000 committed offices reached

  24. Agents’ MUTUAL Funding and financials £21M+ Post-launch annual income £6M+ Pre-launch funding Contract HERE 3000+ offices Letter of Intent NOW 1850+ offices 12 months Launch 6 months

  25. Agents’ MUTUAL What next? Register at: www.agentsmutual.co.uk • Silver membership: • non-binding Letter of Intent • contract when 4000 committed offices reached • New Gold membership offer: • Contract and funds now.

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