Zoopla’s offer to agents with fewer than 30 branches of a 9 month fee-free period – providing the agent does not also list with Rightmove (the Portal Obligation) – has been well publicised.
EYE has now seen a copy of a ZPG contract containing the offer and we were interested to note that it comes with a clause stating that if the agent is found in breach of the Portal Obligation the fees payable will be increased by 30%
We asked Zoopla if they could you explain how that would work in practice.
Would it kick in at the end of the nine month period? Would it be backdated in some way?
What would happen if an agent took the free period and part way through Zoopla found them listing on Rightmove as well?
Zoopla told us:
“We would not simply remove an agent.
“If an agent has agreed to make Zoopla its primary portal over Rightmove but continues to list with Rightmove we will first notify the agent of that in an effort to rectify the situation.
“If however this is unsuccessful the additional 30% will be charged from the point that they breach the portal obligation.
“It is important to note that the obligation to leave Rightmove only kicks in once their existing Rightmove contract ends.”
A Zoopla spokesperson said:
“This is an unprecedented time for the industry which is why we believe we have made what is the most generous offer of any portal globally with up to nine months of free service.
“This represents a multi-million pound investment in the relationships we have with agents and shows our desire to reach long-term, mutually successful arrangements with our agent partners.
“We’ve been transparent in the offers we have put into the market and the feedback we’ve had from agents shows they value this and the investment we have made.
“Indeed agents are voting with their feet and already nearly 60% of our agents have chosen to benefit from one of our free deals and many more agreements are in the pipeline.
“Naturally like any commercial organisation we have to have contracts that include a proportionate remedy should one side choose to not fulfil their commitments.
“This is standard practice and is made clear at the time any new agreement is signed.”
They are giving 9 months free to start with. I.e it just won’t turn out to be free if you breach. Simples. What do agents do if a client beaches our notice period and sells meantime via other agent. We want our fee! And rightly so.
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…….seems commercially & Agent fair to me. Clear/upfront, unambiguous.
Still had poor experience dealing with Zoopla staff when looking at them recently as a Portal Provider so, for now, I’m not tempted.
It was the cheeky “We, like Rightmove, ……” comment in an email response from Zoopla that rubbed me entirely the wrong way. Not the best approach Zoopla. The “G@d” Complex is always a risky approach …….as Rightmove are beginning to learn.
Shame really …..as I admire Zoopla’s business diversification following their own acceptance that they were happy to sit in the shadow of Rightmove.
C19 represents an unexpected gaping goal for Zoopla, at least they stepped forward with a “substantial offering”.
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