The two founders of hybrid agents EweMove, famous for its puns and jokes and bought by Martin & Co in only September for a total of £15m, are sensationally quitting – sacrificing a two-year earn-out worth £6m.
David Laycock and Glenn Ackroyd will leave what is now the Property Franchise Group at the end of June, with millions in their pockets. It now looks as though Martin & Co will re-examine how, if they wish, to get into the online/hybrid agency market.
Laycock and Ackroyd will, however, quit taking with them the £8m paid upfront some seven months ago in the form of £5m cash and £3m in shares. A further £7m was promised in the two-year earn-out.
Now however the pair will sacrifice most of that, taking with them a further £1m in cash. Some will be payable in July, and the rest at the end of the year.
The announcement about the departures is being made to the stock market this morning, with EweMove’s new owners saying that it wants the brand to be taken more seriously by agents.
Property Franchise Group chief executive Ian Wilson denies that there has been a bust-up, that the pair have been sacked, or that he regrets the acquisition of the network of 90 operators, mostly working from home.
He did however say that “we are disconnecting their employment”. He stressed that it was Laycock and Ackroyd who had asked to go, and he paid tribute to them as “clever, capable guys”.
Wilson did, however, say the pair – who previously ran a ‘quick sale’ estate agency business before founding EweMove – had “not really settled” after the purchase.
Last September, Wilson said that it was a way for Martin & Co of getting into the hybrid/online estate agency market.
So, has the business regretted its purchase?
Yesterday evening, Wilson told EYE: “We are definitely not regretting the deal. Their technology is better than anything else I have seen. It would have taken us a long time to build.”
However, Wilson did say that there were disagreements as to the franchise recruitment operation, which he described as “anti estate agent”.
He also said that while shareholders thought that EweMove should become “Purplebricks mark two”, this was not currently on the cards.
Wilson said that values of customer service, upheld by EweMove, were also held by “old school estate agents”. He believed no one is better placed to deliver that, and that these agents were the type of people that EweMove should have been recruiting – similar to the Local Property Experts model employed by Purplebricks.
Wilson also said that while EweMove’s inexperienced franchisees have proved to be very good at getting leads, they “are not good at converting leads”.
Laycock and Ackroyd will still be available to act as consultants to the Property Franchise Group until the end of the year. Neither will be able to work in the market for two years – we understand in the roles of either employees or directors.
Wilson said that it is unlikely that the jokey brand name – complete with puns about head shepherds and sheep pens – will change.
The Property Franchise Group will now bring in experienced management for EweMove, and also appoint separate managing directors for its Martin & Co and Xperience brands.
It is also understood that the existing franchisees of both Martin & Co and Xperience were consulted about the direction of the brands held by the Property Franchise Group.
The official statement says:
‘Following the announcement this morning that EweMove’s founders are to leave the business, Ian Wilson, CEO of parent company The Property Franchise Group PLC, said: “Glenn Ackroyd and David Laycock, founders of EweMove, will be stepping down in June this year.
“We are hugely grateful to both Glenn and David for their entrepreneurial spirit and vision, creating this dynamic hybrid estate agency. The time, however, is now right to move the business to the next level. We are looking for a new managing director for EweMove, who will share the founders’ passion for customer service, allied to the latest in prop-tech, and who will reach out to the many estate agents who want to own their own business but do not want to risk £100k on a cold-start shop.
“We bought EweMove because it was the fastest growing pure franchise in the property sector and its pace of growth has continued with 11 new franchisees signed up since 1st January this year and 100 active all over the UK. We are wholly committed to this brand and its network of franchisees but we do want it to be taken more seriously by experienced estate agents.
“Perversely it’s modern digital technology that can bring old-fashioned virtues of excellent local customer service to life.
“EweMove is open 24/7, its franchisees don’t do paperwork and its website converts traffic into leads at an almost unheard of 8% – the average estate agency website is lucky to achieve 0.5%. This means that EweMove franchisees can literally ‘turn the dial’ to decide how many vendor and landlord leads they want to receive by setting their Adwords spend. Unlike other ‘on-line’ agents EweMove works on a traditional no sale, no fee basis and attracts higher than average fee instructions.
‘The new MD will be based in its Cleckheaton, Bradford HQ.’
Of all of the disruptors, I have Ewemove down as the one that will do best. With Ian Wilson on the bridge and some actual estate agents on the decks doing some respectable business, this is the one that stands a chance.
Of all the people who told us what they were going to do Glenn and David did it and have my respect for the way they have achieved what they have. Walking away from a huge pot of cash for whatever reason shows a level of integrity a lot of people simply don’t have.
I don’t believe disruption will work and I don’t see the merit in paying anyone money you confirm or clarify what the selling public already know. The industry is going to change by going back to how it should be.
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Hi Robert,
Thank you for your kind words.
You’re right that the industry is changing – agents need to embrace technology that enhances customer service and provides 24.7 information. The winners will be those who adapt to change best.
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Agents only need to embrace service suppliers who are acting in agents interest rather than for the verticals earnings that can be made from agents’ data.
Replacing local history , reputation and precence with digital marketing is expensive and heavily contested, that is the greatest barrier to disruption. The digital revolution is no different to the industrial revolution in that the changes and effects will take time to settle down. I have a fair idea what the future looks like, I am building it!
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Another nail in the online/hybrid coffin. With only circa 350 properties available nationally on RM this morning shared between 100 or so franchisees this is not a viable business. Next thing we will hear is Messers Ackroyd and Laycock have bought it back for a nominal sum or it will be quietly taken away to the slaughterhouse and put out of its misery !
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Hi Pepe,
You’re just looking at our Central Office Cleckheaton Rightmove account – Not our other Rightmove branches.
It’s easier to see our branches on Zoopla – http://www.zoopla.co.uk/find-agents/?company_name=EweMove%20Sales%20and%20Lettings&radius=0&search_source=find-agents
Current live sales/lets on Zoopla (excluding managed) being 1,269
To save you the time, combined we have 2,593 between sales, lets and managed.
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Thats still only 12-13 available properties per franchise. Doesnt stack up. Dont get me wrong I would love to have walked away with that sort of money for that level of business so I am “well jell” as they say. I think M & Co jumped in to a panic buy before seeing how this whole online malarkey would play out.
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@inthefield,
Remember that most of their franchise are one person, that they have no fixed staffing or office costs, with all of their costs scaling with the number of sales and lets. Hence they don’t need to be as large as a traditional agent to make a very nice living.
I would not expect any EweMove franchise to become mega rich (unlike the top francises in some of the other franchises), but likewise the startup costs are a lot lower, hence fewer people will lose a lot of money joining them.
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Ok but lets look at it on the basis that the franchisee works totally on his/her own and that there are literally NO costs whatsoever. On the above numbers if we take the higher end of the figures the franchisee has 15 units to sell at any one time. Lets then say that hes sold 50% of those so at any one time his pipeline is around £1500 (7.5 of 15 units). Then if a third of his pipeline goes through a month then he will make a third of 7.5 sales or a third of £1500 (£500). Thats if there are NO other costs, no postage, no printing, no phone calls, no computer, no fuel for viewings, no car costs….I could go on. Im using the metric of £200 per instruction as someone has said lower down so Im not sure if thats the real figure they get. Even if you triple that though to £600 then youre are looking at £1500 per month assuming NO costs? Discuss…
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Are you confusing this with PB? Ewe move as I recall work on similair fees to you and I and from what I hear go in at 1.5% of sale price.
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If they do charge proper fees then i have totally misunderstood their model. I was going off of the post below which indicates that the franchisee gets abourt £200 per property complete?
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I am the most expensive agent in my patch and I make that very clear to my vendors before justifying my fee by proving my service is better.
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They also make money from letting management, so slowly build up a nice income scream some of this goes to “head office” to cover all the admin and back office, in exchange the franchisee does not need any letting admin staff.
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In a professional where problems arise that only people can solve, computers and technology can only provide a level service and convenience up to a certain point.
Buyers and sellers need guidance not just a responsive website.
Have the people at TPFG paid too much for a company that essentially is struggling due to completion from PB who provide little back end service – but are better at getting the pay very little message across?
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Apolgies for the gobbledegook in this post, hadn’t put my lens’ in…..
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In terms of service, EweMove is the most highly rated agent estate agent on Trustpilot.
https://uk.trustpilot.com/review/ewemove.com
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Ironic really isn’t it that the purchase of all these sheep is now sounding like a “dogs dinner”
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So, Martins bought EweMove because “Their technology is better than anything else I have seen. It would have taken us a long time to build.”
It must have been technology more fiendishly difficult to crack and replicate than an Enigma machine to pay £8 MILLION up front and give £7 MILLION in share options for!
If my memory serves me right EweMove only had about 300 properties for sale when the deal was done and just 350 now.
Either Ackroyd and Laycock are the greatest deal makers of all time or Martins are the biggest easy touch of all time.
Take your pick.
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You’re just looking at our Central Office Cleckheaton Rightmove account – Not our other Rightmove branches.
It’s easier to see our branches on Zoopla – http://www.zoopla.co.uk/find-agents/?company_name=EweMove%20Sales%20and%20Lettings&radius=0&search_source=find-agentsCurrent live sales/lets on Zoopla (excluding managed) being 1,269
To save you the time, combined we have 2,593 between sales, lets and managed.
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I get it when founders of a business can cash in their chips…and only too often new cultures are not acceptable to those who have been the boss. I did love the stat from M&C about where they see improvement in the business ‘Wilson also said that while EweMove’s inexperienced franchisees have proved to be very good at getting leads, they “are not good at converting leads”.
Bit of a shame if their software is supposed to be best in class…
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I think what this proves is that not “anybody” can become a successful agent overnight after completing a training course. I’m sure (Glen) you can give examples of where this has worked, but in general selling a concept that someone with no EA experience can invest say £20k and become market leader with a profitable business is not reality. These models have be sold before and many (or indeed most) have failed. Good luck to those “sheep” who have put their livelihoods on the line.
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You’re missing the point. With very low overheads we don’t have to become market leaders in our respective areas. We only need a small proportion in order to make a good living. My income pipeline is looking very healthy so thanks for your good wishes.
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There’s much talk of the lucrative kitty’s being scooped by the clever innovators of Ewe Move, P.Bricks etc but can anyone provide any information of the typical/average earnings of their front line operators?
Are they raking it in?
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Estimates…. 36,000 listings at £200 a time divide by 300 reps is £24,000 average
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thats a living I suppose for the reps but is there any data about the companies profit/loss?
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On a previous story about Ewemove I carried out a quick Companies House search of 2 local (to me) Ewemove franchises and this is what I found out – these 2 may not be representative of course but with an avarage of 12-13 properties per franchise there can’t be much money to be made
http://www.propertyindustryeye.com/senior-agents-from-big-chains-take-up-cut-price-franchise-offer-at-ewemove/#comments
Legal_Landlord
February 22, 2017 at 12:46 pm
Ar random I picked a Ewe Move franchise local to me and found Ewemove (Leicester North) Ltd Co number 09132176 which incorporated in July 2014.
The most recent accounts were files on 10 February 2017 for the year to 31 July 2016 – what a car crash !
To July 2016 fixed assets are £9703 , current assets £13,786 & creditors of £41,632 giving deficiency of assets of £18,143.
Profit and loss was a loss of £18,143
For year to July 2015 figures were fixed assets £12,788, current assets £11,432 , creditors £35,820 so deficiency of assets £11,600 with profit & loss showing a loss of £11,700
There are 2 young Directors who front the business and a 3rd director is his early 50’s who owns more than 75% of the share capital ie he owns the business in effect.
So in 2 years of trading it has yet to make a profit based on the abbreviated accounts.
I hope the 900 monthly enquiries aren’t looking at the Leicester North franchise accounts to see if they are making a profit…..
Legal_Landlord
February 22, 2017 at 12:55 pm
Another one – Ewemove (Nottingham South ) Ltd Company number 08990949 incorporated April 2014
Accounts filed January 2017 up to April 2016
Fixed assets £7886, current assets £2375 , creditors of £12,614 so net deficiency of £10.239
Profit & loss shows loss of £15.718
For year to April 2015
Fixed assets £10,815, current assets £4112 , creditors of £18840 so net deficiency of £14,680
Profit & loss shows loss of £13,893
https://beta.companieshouse.gov.uk/company/08990949
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Which firm?
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Thank you very much for that information Robert and Legal_Landlord.
Challenging though it is, I think I’ll stick to ‘mainstream’ – which I believe will continue to be the choice of the majority of vendors who would rather cross a choppy sea in a sturdy ferry than a raft.
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PB currently have 427 LPEs and my understanding (unless it has changed) is that they get paid £150 per instruction. Where the Territory Owner gets an extra £50. If the Territory owner wins the instruction they get the full £200.
7 instructions a month (based on 3,000 a month total) at £150 = £1,050 per month for a standard LPE. They will probably get some further money from viewings packages, referrals. Nothing substantial though.
Plus overheads of car, fuel, phone, etc. Not a great deal. I believe they give new LPEs guarantees for up to 3 months though so I can imagine many leave after the guarantee finishes.
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Guess that’s why they are not motivated to give the highest level of customer service to their vendors! If you have an effective full on marketing machine to portray the opposite though, I suppose it doesn’t matter….in the short term!!!
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However, that is a gross figure before tax, phones, mileage costs, redress mberships (rolls eyes), HMRC registration (rolls eyes again) costs are taken into account. Looking at the very few 2nd year annual returns* that have been filed by the franchisees there seem to have been none earning the six figure sums advertised in some of PBs’ literature.
*There appears to be a heck of a churn rate in LPEs’
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I would be very interested to know from Glenn what he is likely to be doing from now on and if he would be interested in a JV project?
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Glenn Ackroyd and Ewe Move seem to strike a far more harmonious note with ‘High Streeters’ than P.Bricks – why is that please?
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Everyone is used to and can live with claims that ‘we are the best’ even if it is a load of twaddle.
What we don’t like is the directed insults designed to undermime what we do, claims that it can be done a lot cheaper…when in reality without investors subsidy, it can’t, manipulated reviews and marketing to deceive customers, backing from organisations that claim to be on our side….and all designed to drive many small independents out of business….leaving the way clear for a few to amass huge amounts of money for themselves.
Vive la independent!!!
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I gather because they genuinely try and compete on service not price.
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Sounds like they have bailed out and run with the cash……… and I dont blame them. I think you will see the online agents model of getting lots and lots of investors but not making a profit crystalise after the founders realise their funds and leave the bath. The investors still swimming around in the bath will see the water draining out and that there is no profit and wont be and they too will try to jump out of the bath. Perhaps creating a big splash and getting wet the other onliners who too may want to reconsider their bath positions.
Im all for making lots of money and appaud the ex shepherds in doing what they have and making money. Martin & Co seem to have the wool over their eyes? – perhaps were too focused on getting in the “on line act” too keen to actually think about the modle. They didnt look to see the actual act/performance wasnt drawing in the crowds and the curtain is starting to twitch to slam down calling time on the performance for all. Dont be in the bathwater at the end.
Still love to know how much Bricks and Emove have to pay out for each property they have sold.
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Ackroyd used to give me hope as a landlord, as he thought about issues like a landlord and came up with win/win solution, in recent years he stopped thinking of landlords as his clients and started to think of people buying his franchises as his customer….
He then sold out to a company who has lots of money but no “fun” about how they trade and no willingness to criticize how agents currently work. (A company that I recall giving a presentation at the franchise show many years ago, saying that the key to making money as an agent is to maximise the “back handlers” from mortgage brokers etc, and that Martin & Co has the setup to do this. E.g. nothing about customer service.)
Now that EweMove has stopped being anything special, it is off my radar when I need to find an agent to manage a property.
I look forward to seeing what Ackroyd does, now that he has freedom and money.
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This shows the difficulty for entrepreneurs fitting into a corporate structure, especially one in a plc company.
It took me 10 years of my working life to realise I was a lousy employee and wanted to do things for myself and another 10 to get where I am today.
Its why despite some pretty ridiculous offers from the big boys I have stayed firmly independent. I wish David and Glen well and hope they get back into the business soon (after the appropriate garden leave/non-compete clause)
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£6m to stick it out another 18 months or so- I know what I would have done. Especially if I couldnt work in the sector for that period. Is the mask starting to slip on online agents? Is it time the media started taking a tougher look at the detailed figures of these businesses rather than regurgitating their outlandish claims of success? More and more, we hear of the founders making millions, and fast, yet (and I may be mistaken) I dont recall hearing any major franchisee success stories. For most franchise based models, this is their core focus- creating a success for (at the very least) early franchisees and then leveraging this success to drive a growth of network. I wonder how many franchisees, especially those coming in woth no industry exereience, genuinely underatnd the viable earning potential they have and how disproportionate that income is to the benefot of senior management/ownership?
You also dont need £100k to start a business. My partner and I started with just £10k each. It took hard graft but 13 years later we have a scuccessful, respected, profiatble business with organic, sustainable growth. We have never borrowed, never been in debt and never been late on an invoice. You just have to be willing to take a small salary home the forst couple of years (we still took hokme salaries though).
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Glenn, David, and Ian Wilson are 3 of the most inspirational business leaders I have worked with and it has been an absolute pleasure to have been part of their incredible journey. All three of these guys do what they say they are going to do and that counts for a lot in business.
Behind the fluffy sheep branding, we have helped them evolve from a newly born lamb looking for a website to a national flock, is a highly efficient, and systemized, business. Always looking ahead as opposed to the past. Great customer experience has been the foundation, supported with the latest technology and an incredible team. Franchisees who are passionate about the brand and looking after their customers. A passion and loyalty, you soon pick up on if you ever have the pleasure of attending and eating cheesecake at a Ewemove Annual conference:)
Ian Wilson has had the insight and intellect to see the true value of what David and Glenn have created and he is the perfect leader to drive the business through the next phase of growth utilizing the industry-leading branding, technology, and marketing skills which come with this intelligent acquisition. This will benefit all the Property Franchise brands. Just watch this space!
It is possible to combine the best of traditional values and years of experience, with the latest marketing, branding, and technology. In my opinion, it will be those traditional agents who adopt the best of the new, who will be the winners.
I have read many a post on this forum and been surprised by the hostility and bitterness targeted at those who are looking to innovate, and improve, and dare to be different. We speak to agents of all sizes, and backgrounds on a daily basis, and to be honest, the majority show admiration for what Ewemove have done. Whereas on this forum, there seems so much negativity. As is so often the case, the thermometer of success is merely the jealousy of the malcontents.
As people are different, so are their moving tastes and requirements. There is no right or wrong business model for Estate Agency, as long as the customer comes first, and people keep moving house, this industry is big enough for everyone!
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Totally agree. How refreshing to have a positive comment for a change.
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All of us who run businesses respect those with the drive and determination to get going and keep going. The hostilty to Ewemove and PB comes from the denigration of traditional estate agency in an effort to set yourselves appart. Refernces to ‘no more shiny suits’ and ‘conmissery’. I’ve seem many local ‘disruptors’ enter the market over the years citing vat experince of dissapointing experince and and aim to reinvent the wheel. The estate agency wheel is quite difficult to reinvent and the overwehemling majority of us out there who strive to do a good job and look after our clients have enough to put up with journalsist and the general public denigrating our profession with out the disruptors feeding their opnion.
From what I’ve heard of our local EM the local franchisee merely take the instructions and and proper estate agency is done via the call centre-at least PB charge a much lower fee-even if it is up front-to offset the ‘call centre experience’.
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Your local Ewemove franchise has just won an award as estate agency of the year in Beverley. You do them a great injustice by even mentioning a call centre. We don’t have any call centres. Educate yourself before trying to hoodwink everybody else.
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