1 / 28

Agents’ Mutual Limited. A Company limited by Guarantee.

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 .

yehuda
Download Presentation

Agents’ Mutual Limited. A Company limited by Guarantee.

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Agents’ Mutual Limited. A Company limited by Guarantee. Conference 25th September 2014

  2. Launching January 2015

  3. 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.

  4. £6M Funding 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%

  5. London

  6. The Regions

  7. Agent now have to list with both portal groups • a duopoly with no real constraint on prices Rightmove set to raise income to £200M by 2017 Zoopla needs to treble income to match Rightmove. • 2013 • Income £65M • Costs £35.5M • Profit £29.5M • Margin 46% • 2013 • Income £140M • Costs £36M • Profit £104M • Margin 74%

  8. The Threat

  9. The Threat

  10. The Threat Part-service, remotely-located operators.. ..mixed in with Full-service, locally-visible agents. Commoditizes proper agency Puts pressure on fees A race to the bottom?

  11. The Threat PORTAL INCOME: Agent £20 per property per month – say, £60 Vendor direct £599 ?

  12. 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. 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 • Term commitment • One other portal • Co-branding/promotion • COMPANY • Excellent brand and portal • Strong central marketing support • Commercial drive + service ethic Strategy Use agents’ ABILITY to market a portal STOP building Rightmove’sbrand STOP building Zoopla’s brand ACTIVELY PROMOTE the portal you own and works for you

  15. 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 portal • OnTheMarket will promote full-service, locally-visible agency • No net increase in cost of portals to agents

  16. 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’ – more than 3500+ offices - and they will take listings and fees away from the others. They will 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 – Aug 14? Anchor tenants - before Anchor tenants - Jan 15? 3500+ offices 5000+ offices INDEPENDENT AGENTS INDEPENDENT AGENTS CORPORATES CORPORATES CORPORATES CORPORATES CORPORATES INDEPENDENT AGENTS INDEPENDENT AGENTS INDEPENDENT AGENTS INDEPENDENT AGENTS INDEPENDENT AGENT MEMBERS INDEPENDENT AGENT MEMBERS INDEPENDENT AGENT MEMBERS INDEPENDENT AGENT MEMBERS

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

  18. 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

  19. 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

  20. Pricing and funding Three membership schemes during the ‘Growth’ phase No commitment Higher pricing Not fixed ? • Price shown include: • branded listings • all platforms inc.mobile • lettings. • Lettings-only 50% No pre-launch funding Commit for five years Prices shown are fixed

  21. Pricing and funding Commit for 5 years Fund the development Fixed pricing • ENTRY TICKET • Pre-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

  22. Funding and financials £21M+ Post-launch annual income • Become the No.2 Portal • take listings and income • drive awareness & traffic £6M+ Pre-launch funding £7.7M+ Pre-launch funding Listing fees £14M pa 5000+ offices • Portal development • Brand and marketing development • Regional and central sales forces 3500+ offices 31st JANUARY – CONTRACTS IN 6th MARCH - FUNDS RECEIVED 1820+ offices Listing fees £7M pa 10 Months to Launch June to December

  23. Funding and financials £35M+ annual income • Become a credible alternative to the No.1 Portal • Match cost base and capability • Undercut prices 8000+ offices £21M+ annual income 5000+ offices First year One year to Launch 6 months

  24. What next? Register at: www.agentsmutual.co.uk Sign up Make it happen.

More Related