Agents will earn referral fees from Zoopla’s acquisition of uSwitch

| Rosalind Renshaw

Zoopla has confirmed that it has completed its acquisition of comparison site uSwitch after receiving shareholder and FCA approval – and says that its member agents will reap financial benefit from new revenue opportunities.

A spokesperson for the portal last night told Eye: “Zoopla Property Group will share referral fees from completed utility switches with agents who are looking to help their clients save money on their household bills and instigate these switches.”

In a statement yesterday, Zoopla said: “The deal reaffirms Zoopla Property Group’s mission to be the most useful resource for consumers and most effective marketing partner for professionals in the property space.

“The enlarged group is now working on developing products which will directly benefit ZPG members by allowing them to source the best gas, electricity, broadband, TV and phone deals in the market and earn fees whilst saving money for their clients.

“Over the coming months, ZPG members will benefit from further investments in product and marketing, enhanced consumer engagement and greater insight into their property requirements, a further differentiated and expanded audience and opportunities to generate revenues from saving their clients money.

“Alex Chesterman, CEO of Zoopla, said: ‘This deal is another important milestone in our journey to create the ultimate property market resource and in the evolution of the property portal.

‘Being able to help consumers both find their next home and save money on their household bills is a great fit and we are excited about the new products that we are working on and which will create revenue opportunities for our members.’”

Separately, Rightmove has been hailed as an icon in the value of online-only business models for shareholders.

In a piece for the Telegraph, fund manager Nigel Thomas says he is a fan of the portal and suggests that estate agents could easily up their spend.

He said Rightmove has 78% marked share of pages viewed, “making it one of the most popular websites in the UK. But page impressions alone are not profitable.

“The estate agents pay to have their properties on the site, generating £167m of revenue for Rightmove last year, and pre-tax profits of £122m.

“With margins of over 70%, Rightmove generates a lot of cash and, with annual capital expenditure averaging £1.2m, returned more than £103m to shareholders via a share buy-back of £74m and dividends of £29m last year.

“Since Rightmove became a public company in 2006, it has returned more money to shareholders than the total market value of its shares at the time of their initial public offering: £482m compared to the capitalisation at flotation of £424m.

“My confidence in Rightmove’s business model, even with competition from Zoopla, Prime Location and new entrant OnTheMarket.com, is not built on its large market share, but the fact that estate agents now generate 90% of their house searches online, yet only spend 27% of their marketing and advertising budgets online.”

 

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43 Comments

  1. HarryN
    June 2, 2015 at 07:15

    I have been very clear on my position with the portals and I have to say that this article shows exactly why the attitude toward Zoopla by this magazine, fervent OTM supporters and OTM themselves is completely out of order.

    Rightmove are being lauded for their profiteering, while Zoopla announce ‘their latest innovation’ – which actually shows how agents may be able to make some money as a result of their latest acquisition!

    When will certain parts of this industry wake up and realise that they are strengthening Rightmove’s arm which will damage all of us, while they are intent on damaging Zoopla who are genuinely innovating and for the first time in years were starting to make a dent in Rightmove (until thousands of you decided to leave them).

    I can understand why that benefits Ian Springer and the top end agents who are livid about their sale of Primelocation for £50m (Zoopla is currently worth £1bn), but what does it do for the industry.

    Ros, I really do not understand your position here. While OTM were making promises and paying you to advertise, I can understand why you have so slavishly taken their side, but now it is clear that the thing is a complete flop, don’t you think you should start thinking about the impact your support of this project is having on the industry?!

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    1. SimonShinerock
      June 2, 2015 at 07:33

      Exactly (Well, it’s Springett but that’s not important). OTM has strengthened Rightmove, temporarily at least and slowed Zoopla’s progress and all the other little portals out there that were snapping at Rightmoves heels. They say that to err is human but to forgive divine. I say it is really hard to admit it when you are wrong and to be big enough to make amends.

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      1. PeeBee
        June 2, 2015 at 07:40

        And all from the man who thinks ‘Houser’ is the new Hovis and its creator is a genius…

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        1. SimonShinerock
          June 2, 2015 at 08:46

          As I said, to err is human.,,well done on pointing out my failings, now perhaps you should give me credit where it’s due

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          1. PeeBee
            June 2, 2015 at 08:49

            YOUR successes aren’t being discussed here.

            Put in a feather-fluffing press release to Ros and I’ll comment appropriately if it is published.

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            1. 1stTimeBuyer
              June 2, 2015 at 09:45

              Wrong side on the bed this morning PeeBee?

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              1. PeeBee
                June 2, 2015 at 13:06

                Nope – I’m simply intolerant to being spoon-fed ********.

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      2. Paul H
        June 2, 2015 at 08:34

        Whilst your here Simon perhaps congratulations are in order for the fact that you have (without fail) precisely 100 reads on every single story at 12.01am every single day, there must be 100 very motivated people keen to bump up your readership figures for you.

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    2. Robert May
      June 2, 2015 at 07:43

      Harry please could just say how you fit into the industry before I write a reply? Are you a business owner (corporate or independent), a manager or negotiator?

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      1. HarryN
        June 2, 2015 at 08:50

        Robert – what has that got to do with anything? I am giving my view – it either resonates or it doesn’t.

        For many of the short-thinkers on here, they are too busy jumping around high fiving each other about the imagined damage they have done Zoopla, while Rightmove quietly (very quietly) strengthens its position. Where do you think this will lead and how long until people realise that as much as OTM caused some noise and threat in 2014, every day they are being exposed as mediocre at best, incompetent at worst (I qualify this in acknowledging that they did a very good job pre-launch).

        So many agents are angry about the situation they are in – having signed frankly ludicrous 5 year agreements – but their stupid pride is blinding them from realising that a strong Zoopla means a controlled Rightmove. If that means paying Zoopla a bit more year-on-year (while reducing press spend on the other hand), so what?

        If you are really asking if I have a vested interest, yes I do. I will be screwed as much as everyone else if Rightmove regains its monopoly position.

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        1. Robert May
          June 2, 2015 at 09:32

          I was asking in order to post relevant to your experience; if you are a junior neg the extra £10 in you wage packet will mean more to  you than discussing the net benefit or detriment to your P&L by collateral fee erosion caused by your service suppliers. A figure likely to far outweigh any rise in subscription by a dominant portal.
          Your reply sticks you at the senior end of the spectrum so I would suggest while you are not wrong there are several things you ought to consider.

           

          I am not here to judge you  on AM/OTM but want to open up a discussion that goes beyond subscriptions to portals.

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    3. Paul H
      June 2, 2015 at 09:12

      Looks like HarryN has got some of hismates to log in and press the like button this morning.

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  2. HJ12
    June 2, 2015 at 07:55

    I think we all know that if OTM had not come along Zoopla would have continued with there unjustified increases. In 2012 we were subscribed to both Find a Property/Prime Location and Zoopla. We lost Find a Property but did not get any discount. Our monthly invoices were simply merged. The next 18 months the Zoopla rep tried to increase our fee’s 3 times. What we need to to realise is both Rightmove and Zoopla need to satisfy their shareholders. Don’t be fooled by Zoopla being the ‘nice’ portal…it would be a very different story if OTM did not exist!!!!

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    1. 1stTimeBuyer
      June 2, 2015 at 09:51

      So you wanted a reduction because FindaProperty as a brand no longer exists… so that means when Zoopla added some other websites to there marketing, they need to charge more then?  Also I notice 1FindaProperty points to Zoopla, so when it comes to SEO, you loose nothing.

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      1. HJ12
        June 2, 2015 at 13:42

        I was paying 2 separate subscription before they merged. Find a property was our main portal as we are London based. As for the other brands i never received a lead from memory.

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      2. wilko
        June 2, 2015 at 14:25

        1sttimebuyer…….~My branches were only on Zoopla when they merged with Primelocation and Findaproperty…….I didn’t get charged a cent extra because I only had a contract with Zoopla.

        Do you think that is a fair practice, because in my book they were totally unfair towards the likes of HJ12.?

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  3. The Outsider
    June 2, 2015 at 08:30

    So we have Rightmove going from strength to strength and Zoopla increasing the value of its organisation by over 30% in 2015 and yet OTM languishes behind with no real Agents Mutual developments and aquiring only a handful of agents per day – falling well short of their targets they set themselves for the end of the year.

     

    Far from disrupting the portal market, it’s energised and refocused the efforts of the other two whilst delivering a feeble offering themselves.

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    1. Robert May
      June 2, 2015 at 10:24

      The release of OTM as a G3portal much like Rightmove and Zoopla demonstrated where informed domain thinking is; that alone has driven a disruption  that few have yet understood.
      I am not sure if you were around on Friday but there is an acceptance and excitement about my beta version sortal project.  Rummage4 is not about disrupting the industry; it is designed to sooth  and settle the industry so that service providers remain such and agents are handed back control over their data and data driven revenue opportunities such as this.

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      1. The Outsider
        June 2, 2015 at 13:12

        I didn’t see that Robert, but will have a play.  Is this designed at bringing back more optimal searches – regardless of topic, or is it tailored for property?

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        1. Robert May
          June 2, 2015 at 14:07

          Rummage4 is the training system designed  to introduce and open up natural  search to all; fully optimised, personal/ local results on any subject. The property version is designed to put Agents at the centre of  property search  results  for their given property types or locations.
          Contact me for the access codes  to the .property version (contact form)

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  4. Typhoon
    June 2, 2015 at 08:42

    The referral fees spoken about will not come close to the lost business that estate agents will suffer,through ZPG “overselling” mortgages, life assurance removals and God knows what next,as they continue to steal food from the mouths of the people who pay them to be in existence and make such outrageous profits. I winder when they will introduce the private seller opportunity !

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    1. 1stTimeBuyer
      June 2, 2015 at 10:05

      Sorry but, zzzZZZZ private seller, oh will you move on.  Stop looking for something that clearly isn’t there.  That line had its day a long time ago.  They have stated many times, and to the public stock market that this will not happen. Accept it and move on…

      I would focus on working with not against the direction the industry ‘and world’ has moved.  Agents can not deny change has happened and happening, deny it and get left behind.  Embrace, and be part of the future. (sounds like an in/out EU line!)

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  5. fluter
    June 2, 2015 at 09:57

    Well The Outsider, at least they (AM/OTM) and all the agents that support the concept are trying to do something to halt the unrelenting rise in power the duopoly have over agents, obviously excluding the corporates with whom RM/Z have cosy agreements which are heavily subsidised by the much higher fees charged to the small independents. Glad you weren’t in the trenches back in the day

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  6. wilko
    June 2, 2015 at 09:59

    How many products do Zoopla already sell to viewers of the site (on the back of agents’ property ads) ?…….And the agents aren’t rewarded with anything except price increases? Now they are offering a small incentive to sell energy for them!

    Why won’t they reduce their advertising fees substantially and sell the energy,mortgages,removals,data….. and anything else themselves?

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  7. fluter
    June 2, 2015 at 10:04

    “Alex Chesterman, CEO of Zoopla, said: ‘This deal is another important milestone in our journey to create the ultimate property market resource and in the evolution of the property portal”.

    I had to re-read this bit because I thought it said millstone

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  8. GuardianIndependentObservor
    June 2, 2015 at 10:11

    £190 M so they can fleece the consumer more  , who is , already smart.. , this  is a negative effect on Zoopla reputation, the consumer  can see through all the sweet wording …   diversification / cross selling is and will continue upsetting a mountain of  people they are taking business away from …..

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  9. Trevor Mealham
    June 2, 2015 at 10:28

    Who remembers: Fun Boy Three – The Lunatics (Have Taken Over The Asylum). Change that to the VC’s have taken over. ………

     

     

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  10. GuardianIndependentObservor
    June 2, 2015 at 11:01

    very interesting background…… Sherry Cotou  Entrepreneur , angel active.. Investor …. ( when you know think of uswitch acquisition ) so many fingers in so many pies …  @scoutu > zoopla board member  by the way she is now chairman on LSE Board ,recently appointed end of May 2015 
    my point is how can she a board member of a PLC and also chair of LSE committee board  ?

     

    really is something is very very  wrong morally as well as basic independent partiality ,conflict of interest  she has way  way to much influence…. leverage and power

    http://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/12293594.html

     

     

    BY THE WAY I OWN NO SHARES IN ANY COMPANY OR INVESTOR

    MY motivation is to show what really goes on  David vs Goliath

    open your eyes …..

    all this info is out in the public domain ,but many don’t correlate these connections.

     

     

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    1. HarryN
      June 2, 2015 at 13:31

      This comment is beyond stupidity.

      Is there an inference that somehow the LSE influences share price? If so, you show absolutely no understanding on how the market works.

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  11. GuardianIndependentObservor
    June 2, 2015 at 15:07

    Please have the respect not to call people names in this forum,

    Read the paragraphs above

    There is  a very big conflict of interest that a board member  of a PLC FTSE 250 tech stock company  is the chair of  LSE , active investor of tech companies   and so many fingers in the pies with other companies.

    Its beggars belief that city seems to think they can not be scrutinised , it so so wrong that this person is at the head of an  Financial Institution and also represents a PLC stock Tech company listed within  the same organisation.

    The prosecution or defense do not moonlight as the Judge in a court room.

    The amount of wrong doing in the city  over past 8 years,  will not surprise anyone if the fact … is stranger than fiction.

    there should be 110% no connection or activity when you are representing financial organisation. I’m sorry but this absolutely smells rotten to the core.

    there are so many… more items of contention that could be discussed, but that would spoil, your disappointment to soon.

     

     

     

     

     

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    1. Paul H
      June 2, 2015 at 15:18

      “There is  a very big conflict of interest that a board member  of a PLC FTSE 250 tech stock company  is the chair of  LSE , active investor of tech companies   and so many fingers in the pies with other companies.”……Quite, and did you know that there is also an active investor in tech companies who owns shares in both Zoopla and a well known online agent…..
      http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/11358260/Zoopla-investor-backs-online-estate-agent-eMoov.html

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      1. GuardianIndependentObservor
        June 2, 2015 at 16:19

        GuardianIndependentObservor
        JUNE 2, 2015 AT 4:18 PM

        Paul you raise another coincidental fact that Simon Murdoch early angel investor of zoopla, managing partner of venture capital firm Episode 1 and an early backer of gaming company Betfair who also backed  emoov .
         Coincidentally Simon  also knows a Mr S Morana (chief financial officer and executive director of zoopla plc ) from his betfair days, Stephen was an Interim Chief Executive Officer of Betfair Limited  January 1, 2012 and served as its Chief Financial Officer. He served as Chief Financial Officer of Betfair Group Plc from September, 2006 to December 3, 2012 and served as its Interim Chief Executive Officer from January 1, 2012 to August 1, 2012.
        He joined Betfair in 2002 and served as its Finance Director since July 2005. He held a number of senior finance positions, including at Sapient, the NASDAQ listed technology innovator…..
        He headed up the UK finance team at Sapient. He has been a Director of The Sporting Exchange Limited since September 2006.
        stephen has been an Executive Director of Zoopla Property Group Plc since April 23, 2014. He serves as a Non-Executive Director of Featurespace Ltd and boohoo.com plc. He served as a Director at Betfair Limited since September 25, 2006. He served as a Director of Betfair Group PLC from September 25, 2006 to December 3, 2012
        all rather Cosy Club ………………

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    2. The Outsider
      June 2, 2015 at 15:56

      Do you understand the role of a NED and the responsibilities it carries?

      I suspect not.

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      1. The Outsider
        June 2, 2015 at 15:56

        Sorry.  that was to Guardian of the galaxy, not you Paul.

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  12. GuardianIndependentObservor
    June 2, 2015 at 16:18

    Paul you raise another coincidental fact that Simon Murdoch early angel investor of zoopla, managing partner of venture capital firm Episode 1 and an early backer of gaming company Betfair who also backed  emoov .

     Coincidentally Simon  also knows a Mr S Morana (chief financial officer and executive director of zoopla plc ) from his betfair days, Stephen was an Interim Chief Executive Officer of Betfair Limited  January 1, 2012 and served as its Chief Financial Officer. He served as Chief Financial Officer of Betfair Group Plc from September, 2006 to December 3, 2012 and served as its Interim Chief Executive Officer from January 1, 2012 to August 1, 2012.

    He joined Betfair in 2002 and served as its Finance Director since July 2005. He held a number of senior finance positions, including at Sapient, the NASDAQ listed technology innovator…..

    He headed up the UK finance team at Sapient. He has been a Director of The Sporting Exchange Limited since September 2006.

    stephen has been an Executive Director of Zoopla Property Group Plc since April 23, 2014. He serves as a Non-Executive Director of Featurespace Ltd and boohoo.com plc. He served as a Director at Betfair Limited since September 25, 2006. He served as a Director of Betfair Group PLC from September 25, 2006 to December 3, 2012

    all rather Cosy Club ……………… 

    served as the Chief Financial Officer of The Sporting Exchange Limited  September 2006. and served as an Interim Chief Executive Officer of Betfair Limited  January 1, 2012 and served as its Chief Financial Officer. He served also served as Chief Financial Officer of Betfair Group Plc  September 2006 to December  2012. 

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  13. GuardianIndependentObservor
    June 2, 2015 at 16:21

    theres alot more …. but lets not let their cat out of the bag just yet ……

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    1. The Outsider
      June 2, 2015 at 16:29

      Do you wear a tin foil hat and talk alot about the illuminati?

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  14. GuardianIndependentObservor
    June 2, 2015 at 16:35

     

    did you dig that excuse out using NED line … >  dont  Need your help to refresh Excuses and improve your Defense

    There is NO NO IMPARTIALITY  when you have an “active chairperson / investor/board member of FTSE tech company” who then purports to impartiality as  chairperson of LSE   please don’t make us laugh more the city are a law to themselves self regulation and “this situation is definitely self regulation ……”

     

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  15. GuardianIndependentObservor
    June 2, 2015 at 16:41

    looks like the Zoopla camp  feathers keep getting ruffled lol …

    there alot more to come ……….

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  16. The Outsider
    June 2, 2015 at 16:49

    The best/craziest conspiracy theorists always talk about more to come!

    Keep taking the tablets my friend.  They are there to help you.

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    1. Robert May
      June 3, 2015 at 05:28

      Don’t be too quick to mock, there is only a silk thread between  your conspiracy and  their truth!  Them knowing something before you do doesn’t make them mad

       

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  17. GuardianIndependentObservor
    June 2, 2015 at 18:37

    now now, less of the insults 🙂  never mentioned the c word ? please don’t call me a liar unless yo u have evidence.

    many in the IT industry…. and services industry… just don’t point blank  like what zoopla is doing …… most importantly the public like the truth not liars

    the z club is too cozy  we all know…..

     

     

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  18. GuardianIndependentObservor
    June 3, 2015 at 12:02

    very interesting what FOI act  flags up …. A Purple Skeleton / s  in cupboard / s .. … ….? 

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