Agents have been warned that their reliance on Rightmove and Zoopla means risking their own businesses.
Paul Smith, CEO of Spicerhaart and a director of Agents’ Mutual, said: “As agents, our reliance on Rightmove and Zoopla carries significant risk to our businesses, livelihoods and our entire industry so it is essential that we take a stand now.
“We are all guilty of handing over the responsibility for our web leads, traffic and our inventory to the portals, and as a result we have created the duopoly which exists today.
“We have provided a lot of shareholders with enormous dividends, and as our own industry faces increased competition from online players.
“We cannot afford to hand over any further power to the portals or we will weaken our position and increase their dominance.”
Smith also said that OTM, now coming up to its first birthday, would focus on the needs of the consumer by “providing them with what they need – a simple and well-designed website which displays properties in the best possible light”.
He said the site “has already become familiar to millions of property-seekers across the country”.
Smith went on: “Support across Britain’s traditional estate agents continues to grow for this 100% agent-owned and agent-controlled portal.
“It is providing high-quality leads to its members and in our own case, OnTheMarket provides us with a high level of genuine enquiries from motivated sellers and landlords.”
He said: “Spicerhaart voted with its feet and was proud to back OnTheMarket from an early stage.
“It remains a committed board member firm of Agents’ Mutual because we want to control our own future.
“Agents joining OnTheMarket have the ability to fix their fees until 2020 and as a mutual without shareholders, OTM will ensure its focus remains on the consumer.
“Led by an experienced executive team – in whom we have every faith – we believe that OTM will achieve what it set out to do by becoming a genuine alternative to Rightmove for estate agents and consumers.
“As the portal approaches its first birthday, it’s clear that it has achieved a great deal in just 11 months, so imagine what it can achieve throughout 2016 with its growing levels of support.”
Comments (47)
Trevor your fundamental argument is also fatally flawed in law. The agent has legal obligation to where they advertises their properties. Period.
But lets just suppose that you are correct, so why is it that all agents in the UK are not being prosecuted for not being on all web portals. Some agents are only on one and that isn’t OTM. I don’t hear you spouting off about them.
What about the agents that are not on OTM but qualify to do so, are they also not giving best coverage to the consumer. Your opinion seems to be blinkered that ALL agents are already on 2 web sites and this is flawed.
In my area RM are first, OTM are second and Z have only two agents which are corporate (Z shareholders).
Hi Wooden top. Please look up cartel and EU anti competitive law and we can resume the conversation. Until then. Respectfully you don’t have full understanding.
Trevor you posted and I just wanted this to be clear and not side-lined in amongst the other garbage you spout,
@RealAgent.
“Not at all. My non support is based on its cartel like rules that don’t favour agents or consumers or other platforms”.
Is it not true that INEA is your baby which falls under the OTM one portal rule if the agent chooses another site? That paints a different picture, nearer the truth.
Springett & co have no clue how to run a website and clearly don’t know much about digital marketing. How the hell did they think they would be no.2 in terms of traffic? (Admittedly they’ve now switched to inventory but in both presentations I attended, Springett said traffic….several times). They have a Board of Estate Agents.
RM and Z don’t have a clue how to sell houses – they are digital, data and tech experts.
Ditch OTM, pay the two biggies their fee so they can continue to advertise and grow/ maintain traffic & brand awareness and let’s all get on with doing what we’re good at!
Primelocation was the best of the portals, it isn’t fair or correct to say Ian Springett doesn’t have a clue how to run a website. Zoopla would not be what it is today without them getting their hands on Thinkproperty, Primelocation and Findaproperty. There is big difference between building a something good and buying something good.
As someone well place to offer objective comment There is nothing at all wrong with OTM as a portal. As an affinity group Agents Mutual is a staggering achievement, unmatched by anyone in the industry past 30 years. there is stuff that ispreventing AM membership going to 10,000 branches but the executive are in place to run the group in what they see as the groups best interest.
Those that want things changed either have to be patient, lobby for change or be openly critical and hope to force change.
“Agents have been warned that their reliance on Rightmove and Zoopla means risking their own businesses” … Says director of Agents Mutual running rival ‘On The Market Website’..
In Other News, Tesco’s director says ‘Don’t Shop at ASDA’
Nicelee put 🙂
Trevor you are right but by God, so is Paul. God do we, the industry need, OTM to succeed. Rm and ZPG are relentlessly adding to the demise of the high street agent by allowing massive traction to the on line propositions. If they (on line agents) did not have access to the two giant portals,they would not survive. The traditional high street agents must represent 90+ % off RM and ZPG revenues and yet they both kick us in the face by allowing on-line agents to massively disrupt our business and also by adding ludicrous price increases (at least RM are – nearly 10 % they are currently trying to extort from us as their annual increase.)
The industry needs to wake up and smell the coffee on this or it will crumble. And we all know that what the buying and selling public will get from on line propositions, is very definitely NOT in their best interest.
Typhoon. Many of us tried to approach Ian Springer to help early on. He didn’t even have the decency to respond. Instead platforms like INEA which is 10% portal and 90% mls were added to the AM/OTM cartel ban list.
RM. Z and OTM are structured in a way to ring agents to a place and COMPETE. Many other more advanced real estate systems bring agents together to COLLABORATE.
Colĺaboration unites access to more listing and helps fees rise.
OTM would need £100m to even reach a second place.
It also fails to embrace legislation that could be used by agents uniting.
Ah ok so what you are saying Trevor is because Ian Springett didn’t give you the time of day or include your, whatever it is, you’re against it. Sorry but do you realise how petty that sounds?!
@interested observer
Yes. But local press hit then most of local potential buyers. 3 in 4 still move mainly locally. Countrywide recently quoted 65% move in a 6 mile zone.
Core things papers generated was limited adverts where Joe Public had to call up or call in. So although portals are now the new way. They also give ALL info about a property away meaning calls don’t always come in that could be converted to valuations direct
Fair points. Bemused why 6 people dislike your reply!
@RealAgent.
Not at all. My non support is based on its cartel like rules that don’t favour agents or consumers or other platforms.
The trouble is you would say that now Trevor wouldn’t you.
This should be marked as an ‘advertisement’. It smacks so hard of desperation on OTM’s behalf that I personally find it somewhat distasteful.
Agree. This is more of an advert by Paul Smith rep for AM/OTM
Cant agree with Mr P S
OTM still doesn’t have the same market presence as Z or RM so small independent EA such my very good self (ah the smell of ego first thing in the morning!) means I cant afford to muck about when it comes to generating leads. Till the day OTM can offer serious competition to either Z or RM I stay as I am. I never offered OTM a letter of intent either so I can stand tall.
PS why does PS think on liners are any real competition? Could it be because he “charges what he’s worth” or as I like to think What he can get away with! On liners only disruption is their low cost approach, problem is they have nothing else to offer the market therefore it’s only a matter of time before these flybynights close their operation (or actually come up with some proper disruptive technology).
Really ????
9 Dislikes !!!!
Just cos I cant agree with PS.
Cos I don’t think on liners are any real threat?
Or cos he “charges what he gets away with ” ?
🙂
It’s such a joke isn’t it? He’s on here all “protect yourselves from corporate greed” while he hasn’t sold a house in years. He is to his negs what Zoopla and Rightmove are to him and he can’t see it. What a moron.
Leaving aside the embittered comments that seemingly always follow the mention of OTM, the fact is, Paul is not wrong.
The reality is that, agents can make a personal choice about which portals suit their business, but I don’t think a single estate agent can make the argument that an industry controlled portal is worse than a commercial entity like Zoopla or Rightmove.
I was at the Estate Agency Live conference in December where the MD of a huge real estate firm in New Zealand said how in their country they were desperately trying to rebuild the industry owned portal they had allowed to lapse, against, exactly the same back drop of losing control of their data and spiralling portal costs.
Not fully true Real agent. If you work for some agencies like Spice. Then you have to do as your masters command. Not what you may feel is in the consumers best interest.
If you own a business then I think that allows you the right to decide where YOU invest YOUR advertising spend doesn’t it!?!
As for what’s in the consumers interests, well I think you’ll find that’s very easy to say and a little harder to prove.
@RealAgent. Just because Mr Smith might own the taxi”s doesn’t mean they can’t provide a safe and best ride for the drivers and passengers. But I guess if you own the cars it makes it okay?
The Estate Agents Act 1979 states agents should act in clients best interest. A manager pushing a lesser option because they are told could compromise an agents ability to do what they honestly feel would be better.
Last year there was a lot of data to say OTM was performing badly.
Of course its ok. Are you telling me that because I pay the bills in my company my staff should have the right to tell me where I should advertise as well!?!! I’m not even sure why this is up for debate, its a bonkers argument to suggest otherwise!
You like quoting the Estate Agents act but if you think that clients best interest is as black and white as how many visits one portal gets over another then thats naive and shows complete lack of understanding of the business. You cannot successfully argue or prove that any ONE method of marketing offers more or less coverage for the homeowner so to suggest so simply because you disagree with OTM does you no credit.
@RealAgent. A good director needs to lead. But they also need to listen to the front line staff. No one method makes up for a combination of tools in the bag to list and sell homes.
Spot on Paul. If we all ditched RM and Z and went onto OTM the problem would be solved. United we stand, divided we get ripped off and our front doors purple bricked up.
I know, I live in dreamland!
@client 1st. Maybe we should chip in go buy Mr Smith a day ticket to Dreamland. It’s crazy to think any portal brings agents together to unite. Portals simply bring agents together to COMPETE.
Far from ‘mutual’ interest.
Funny. I recall a time not so long ago when being a member of the local agents association meant a lot in terms of prestige, professionalism, and client security. We had one medium the local press. We all fought like cat and dog but at the same time worked to professional standards. Then the local paper started pushing prices up so we had our own press and kept prices down. The public will go wherever the property is advertised. The answer is in our hands but it needs professionals to work together so we can spend money on more negs, and training better staff, not RM shareholder dividends.
Sorry , am I reading this right ? An embittered plea from the man who tried to help Tesco enter the market to save ourselves … Talking about dividend is some cheek after you saw the massive pay off when they came running . Thing is you have you seem to have a history of backing business’s that just don’t quite make sense and fail quickly don’t you Paul
@Paul. When are you going to realise that simply creating another RM 2 or Zoopla 2 is not a sane alternative.
An alternative ‘solution’ is needed. Not ‘another’ portal. Stick to selling houses. The AM board know very little about next gen property tech.
Pre Internet estate agents paid more for less coverage to local newspapers who really did have them by the proverbials. In many areas local press had a strong player and a weaker one so choices were limited. Bang for your buck, Zoopla and RM offer much more. So would OTM if anyone looked at it. But as Rightmove lite that’s not going to happen.
This guy said that OTM would be number 2 by October 2015. He was so far away from the truth then it is embarrassing (5% of Zoopla, 2% of Rightmove!), why should anyone listen now?
The fact is that the only reason that OTM are adding agents now is because they are giving it away. That policy must have been approved by the board so no wonder they are taking turns having a rant.
I can understand the motivations of the top end agents involved, but this guy is going to end up looking very silly indeed.
It’s like groundhog day on here. Seriously HarryN why do you bother jumping on EVERY OTM based story? I await the usual suspects jumping all over this. Tedious.
If you don’t like and agree with my comments then feel free to object – you can even have a bit of a rant if you like.
It would be even better if you could put up some sort of intellectual argument to challenge my comments.
I believe I am entitled to point that out the guy who gets the opportunity to air his views on this website has aired other views that have been completety detached from reality. Anyone reading this should be aware that they are not reading the words of a Warren Buffet-like sage of the industry…
“He was so far away from the truth then it is embarrassing (5% of Zoopla, 2% of Rightmove!)”
WONDERFUL example of your knack of comparing eggs with sticks there as usual, HarryN.
I’m not saying that Mr Springett was right – such a statement was based upon dreams not reality due to our industry’s sheeplike nature and fear pressure; not to mention the number of Agents (and far larger number of branches) that are ineligible to join.
BUT… in my patch, OTM HAVE become the number #2 portal. In terms of properties listed, that is. ANOTHER measure – and I would say a far more important one than number of people who idly check out their local competition or daydream about their next home.
And my patch isn’t alone. Z have ‘lost’ some 20% of their advertisers, in case you haven’t noticed.
OTM, on the other hand, have OVER FIVE THOUSAND MORE than they had on 25/1/15
I wouldn’t be constantly gloating about Z’s position in all of this if I was you… it seems that well over 25% of their target market disagrees strongly with you.
OTM are number two in my area too, and have been for a while. But lets not muddy the waters with facts, the negative ‘I hope everything fails’ contingent will have to go back to Trip Advisor to get their kicks.
Paul, what has dividends got to do with it? I am sure your staff would like to see the sort of money you take out of SpicerHart. Bad point you are trying to make there.
If you are any good, once the leads come in and if you lot do a decent job of converting them, then Rightmove and Zoopla will actually do you proud like they do for us., and customers will come back time after time.
Amateur dramatics and fluffy words like this does not cut it. I am an independent in the North and have no intention of joining because of all this fluff, lack of data and the egos involved.
Smith is part right in what he says. However it falls over when he mentions that agents should join the AM/OTM cartel which harms the interest of agents and consumers by being little known by Joe Public.
OTM uses the dated single directional schema which was the worst way to try and unite agents who need more access to listing. Not less.
AM/OTM is also anti competitive which goes against EU law.
Mr Mealham
SOMETIMES you refer to AM/OTM as “cartel-like”.
Here and today you simply say “cartel”.
Please do us all a favour and MAKE YOUR MIND UP.
Oh – and make sure of your facts before committing your opinions to screen – they don’t fade away and you can’t deny them.
PeeBee I’ve stated many a time my views as to AM and OTM being a cartel and cartel like. Two companies with two different sets of directors. Where one company upholds the restraints of the other that are anti competitive to others in the market is not only cartel actions but also in poor light under EU anti competitive trade rules. How clear is that.
There you go PeeBee. I have even given myself a dislike to save you and others the trouble.
Yawn.
Just because you want something to happen, it doesn’t mean it will!
Wanting something to happen is the motivation to making something happen.
If the polarised opinions of OTM are put to one side, as they should in this instance, what the service providers are doing with information gathered, often without full knowledge or full consent ought to be a real concern to all.
I was asked to analyse a very detailed report yesterday, the report had all the information required to drive individual agencies out of business. Agents would do well to understand the whole landscape, data flow and analysis that results from every enquiry, instruction or applicant. Moreover they would do well to understand who exactly it is being passed to and the affect that data transmission has on their fees and future.
Very true Robert. Data is very valuable and is so easily given away. ……
The big concern has to be paying a service supplier, creating an obvious contractual duty of care towards your data, only to find the service supplier is distributing intimate performance details with all of your competitors.
Irrespective of anyone’s thought about Paul Smith, Spicer or OTM any right minded business owner should be aware of the costs and consequences of unwittingly authorising data trustees to distribute data like Dandelion seeds.
Robert – data is also being intervened as shown in the Telegraph to fraudulantly divert completion funds. …………
http://www.telegraph.co.uk/news/uknews/crime/12090890/Revealed-Gangs-netting-millions-from-house-purchase-email-scam.html
PIE used to be good for constructive argument – and the the Muppets took over !