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IMO think he will have more to answer for as investors will look at what he has achieved since being in the top seat. Handed an unbreakable business, no innovation, played it safe with annual increases to achieve £85 increase per agent every year and sat on its single golden goose without spreading the rewards, risks and channels. Once again IMO with the volume of traffic it has revenues are a snapshot of what could and should have been .
With banks wanting to turn the housing market tap off for what could be 3 months or more. I’m hearing agents are continuing to leave are at the least looking to take member holidays from Rightmove unless it reduces its costs to zero.
There is a real chance (IMO) that revenues at RM will drop over £100m. £75m in discounts + £10m in agents not returning + £25m from branches closing or consolidating. Add to this that they may not be able to exercise their annual 10-15% increase for a couple of years and little innovation actually happening, doesn't look good.
Due to volume of cancellations they have had to backtrack offering a 75% discount for 4 months, I estimate that will cost £60m profit. What's unknown is how many advertisers will still leave as hearing many will not come back.
https://propertyindustryeye.com/eye-newsflash-rightmove-announces-75-cut-in-rates-for-agents-and-says-sorry/
Disastrous offer by RM (IMO) today in offering help to their members. Hearing a number of agents are giving notice on the back of this. My opinion is you could not be any more distant in understanding and listening to your customers. Will be interesting to hear how many agents have given notice which may not be reflected until end of May.
https://propertyindustryeye.com/eye-newsflash-rightmove-announces-deferred-payment-scheme-during-crisis/
It’s not a saving if you’re losing business. (IMO) OTM are way behind in delivering value, proven by the fact they have gone from charging, to charging less, to charging nothing and now paying agents in shares to list for free!
They need more funding to stand a chance of getting to second both in stock and value.
If a weak agent leaving is their best hope then good luck! If you had tracked those that have left rightmove over the last 5 years you may find over half had returned and a quarter had gone bust. If you then look at those remaining many get their properties on rightmove by sharing with a mates office. I believe the amount of agent's properties on OTMP and not on rightmove is less than 500. Out of 17,000 agents overall its not a shock that this is the quality of press releases that can be achieved.
Don't get me wrong rightmove aren't great and feedback I've had is they are haemorrhaging revenue from add on products and salepeople and managers are walking out the door. The only tool they have is increasing membership prices and that elastic band is at full stretch! Zoopla may now be the one to watch. Low membership costs and opportunity for an agent to earn commission off associated services.
Reading through the article and comments there is the reality that agents themselves will make it difficult for others to leave rightmove. Rightmove increasing prices will make it more difficult for agents to find the additional budgets once the free periods are up and the paying members are out of contract.
Unless there is another +£200m invested before the middle of next year I can only see this going backwards over the next 6 months...IMO
I can appreciate all the possible justifications here, but if it is to hold on and reward good people this could have delivered the same result at 80p or £1. Furthermore with such a low threshold the chances are they will be exercised a lot earlier and these great people can take the money and run.
My fear is the majority will sit with directors that already have the incentive of increasing the value of the company from their existing shares.
Anyway as already said that's the territory if you choose to play and if I was making the decisions I would have probably done the same.
Totally agree! If analysts are setting target prices of 80p which is considered to be extremely achievable, setting the strike price this is poor show.
My understanding from speaking to those on the ground is that these new signing are for free membership with no commitment to pay at any time. This means there are a further 8k that have yet to say yes for free.
That's it I'm all in and expecting the news to start flowing from next week!
Good luck to all.
As mentioned I'm not firm either way as could provide an argument for each way of thinking. The key is how many they are actually selling and how long before the true number is recognised and the impact it will have.
Don't disagree but each portal, just like any individual has their own view. Add to this a number of unique scenarios and you'll always get a difference of opinion on many fronts.
For example if I removed my property for 2 months had it completely redecorated, new driveway and marketed for a different price it could be argued that it is now a different property. The old date and advert is irrelevant to the current offering.
I'm neither one way or the other, but just wanted to highlight its not as easy as you think and any rule needs to find a middle ground...in your/their opinion.
Clarity on relisted properties. The portals general criteria is that if a property has been off the market/unavailable for a number of weeks or has had a price reduction of at least x%, they are repromoted alongside new stock. This is a portal rule and not controlled by the advertising agent, That's why you will see the same for a high number of agents and not just purp. Hope that helps everyone?
Totally agree!
My kids broke my crystal ball so rather than try and guess the bottom for the chance of a couple more pence, I've bought another 50k today as IMO this will be at 60p before year end with more to come in 2019.
Scott - believe youre on the right track but the truth of the matter is it only needs to be 24 hours earlier. They would then not only have a real USP, but serious buyers and therefore sellers are either being won through daily alerts or visits to the sites each day and search for new properties in last 24 hours.
The first battle is to retain stock when the initial paying members tie-in's end and then get the last few hundred/thousand to agree to pay at the end of the free period.