Analyst Anthony Codling, CEO of Twindig, gives his assessment of what may be happening at Boomin.
The 1st of April 2022 was crunch time for Boomin; agents who wanted to stay on the platform had to start paying.
The question on everybody’s lips was, had Boomin delivered value or was it a busted flush?
We started to get a feel for the success (or not) of Boomin on 8 April when it began to release details of which estate agency firms were backing it to succeed.
It seems to us that Boomin is using the same media playbook on paying sign-ups as it did for the number of agencies signing up for the free trial, a drip, drip, drip-feed, a few at a time, keeping us guessing and keeping the column inches coming.
In the first tranche of ten were many big hitters:
Acorn – around 40 branches across London and the South East
Andrews Residential – 2 branches in west London
Balgores – 12 branches in Essex and Kent
Chancellors – 57 branches in Southern England, London and Mid Wales
Douglas & Gordon– 18 branches in London
Foxtons – around 50 branches in London
Hammond & Stratford – 5 branches in Norfolk
Keatons – 9 branches in London
Martyn Gerrard – 10 branches in North London
Pacitti Jones – 9 Branches in Glasgow and West Scotland
If we sum up total branches so far we have 212 paying branches with eight of the ten firms mentioned serving London.
Of the paying agents so far released, we estimate that Boomin has over 150 branches across London and when we remember that the UK housing market is a collection of thousands of local markets, then success is built from the bottom up (local market by local market) rather than the top-down, and there could, of course, be more paying customers in London yet to be announced.
As more customers are publicised we will track the regional coverage, but in the land of estate agency, where most firms have one or two branches, we may find that Boomin is blooming in many local markets across the country.
In our view, looking at the headline figure of how many branches a challenger has compared to Rightmove is the wrong yardstick with which to measure success.
We believe that the concentration of those branches is more important than the total number of branches.
Success in one local market is often transferable to another local market, and then another, and another, and if this sort of (geometric or viral) growth accelerates it could well catch some of the larger players unawares.
Boomin: Follow the money?
The theme running throughout the iconic box set ‘The Wire‘ (if you haven’t watched it, watch it – and you’ll thank us) is follow the money and what was good advice for the Baltimore PD is probably good advice for us too.
So let us not forget that according to reports in the media, most notably Sky News, Boomin has also just raised around £20m to fund the next stage of growth, and we doubt that investors would have backed Boomin at this stage if they thought it was busted rather than booming.
One press release does not make a successful business, but the first one about paying customers has certainly piqued our interest.
As ever, the property portal market and the UK housing market are rarely dull.
Time will tell if Boomin transforms the portal market, but it is certainly having a good go.
Anthony Codling is CEO of Twindig. The views expressed in this article are his own.
Comments (23)
Yipee. I have had a second Smartval request. Only trouble is that it came in at 12:30 on Saturday, when I had the day off and it “self distructs in 1 hour”. Very useful.
So how about this statement ….. Boomin has also just raised around £20m to fund the next stage of growth, and we doubt that investors would have backed Boomin at this stage if they thought it was busted rather than booming.
What are they following?
History of poor return/failed to produce for agents, its paying customers doesn’t come into the equation of potential risk this business venture will flop.
I get it, we can make money by following a lemming over the cliff we haven’t bothered to look is in front of us, because someone said it could be a good idea, even though it has not been able to prove it or because they have their dirty fingers in the barrel of swirling cash and it is of no matter if it succeeds or fails.
‘Smart Val’ should be outlawed if the public believe they are getting an accurate valuation. This is going to come back and bite many agents who use it irresponsibly.
COME ON PEOPLE These people have no interest in Boomin working for agents, their sole aim is to wind up the industry into a frenzy, get investors to plough millions of others peoples money in to it, then sell off the shares they have no doubt given themselves as was their plan with PB. I was offered 25% off, then 50% off and then 50% off with a money back guarantee and some shares to sign up to paying for Boomin. remember the old adage, if something sounds to good to be true!
It’s worth running a SmartVal on your home. I was surprised to see how few agents in the High Street were on it.
Call me old fashioned but If the owners truly believe in its success, then why not use their own money and take an even bigger share of the profits.
I think people are missing the obvious question regarding these agents paying for Boomin . . . How much are they paying ? At £1 per office per month, Boomin can legitimately say that are generating income but hey everybody would say yes at that price.
To my mind it’s a tried and tested business model for this media, just like Rightmove give it away to the big boys to generate content then the little guys have to follow. Whether you choose to is obviously based in what they can really offer.
I had the good fortune to see a Boomin presentation at an agent conference last week and I was amazed at their proposition and vision.
If you have not been shown exactly what their vision and strategy is, I’d suggest finding out before passing up an opportunity to get involved.
Morning Property Searches. I’ve had a pitch and it was underwhelming at best. Nothing new, just a referral site, reliant on the EAs promoting it’s use.
What was I missing? I couldn’t really see, feel, get anything which was “wow I will make money”, or “my business will be better off for being a part of this”.
So far, I’m yet to hear many (if any) people say Boomin has delivered anything other than a valuation lead on par with OnTheMarket’s. (That’s crap btw for the avoidance of doubt)
I was hoping @DannyMarino would be able to shed some light on it, but it seems he is happy to chuck a comment in and then leg it.
If you don’t mind me you asking you; what makes the proposition so good. (forget the vision though, anyone can paint a pretty picture).
Are you an EA? if not, I am not sure how anyone NOT an EA can comment on how the proposition is good though.
Genuine question, not looking to have a war of words, just want someone to put it down in text, as those who have something bad to say about it, get a bit of stick, but I feel they at least comment on why (be that the dislike of the founders, the proposition or both).
Have a good day in the meantime.
Thanks Rick,
I started in Agency in 1993 and as such have a fairly good grasp on what was being offered. I have changed the name on my account for transparency.
They appear to be offering far greater value for money and a commitment not to increase their fees unless they have delivered the revenue to justify it, and even then it has parameters, which is refreshing for a start.
For all the hate that the industry has for Rightmove, I am surprised that more agents are not looking at the potential being offered. Boomin is offering far more in the way of nurturing for prospective clients and is not fixed on having a purely transactional relationship. Implementing digital strategies to actually capture opportunities for agents, not just throw them a val/view opportunity.
If everyone is expecting another Rightmove and judging it as such, they will be disappointed. Even Boomin don’t want to be just another portal.
As for relying on agents promoting its use, I am not sure that any agents have been stumping up the cash for the channel 4 adverts running over the past few months. There is also a massive ad campaign planned for ITV and Sky channels to garner more interest from consumers.
I can only assume Ric, that you are not a participant but someone that has already ruled them out given the Bruce’s previous enterprises, that, let’s face it, were far from unsuccessful, whether you liked or loathed the idea.
The proof will be in the pudding, but someone’s got to take the first bite. From what I can see, there are firms already feasting having already enjoyed a free lunch for 12 months. So there has to be something of value on offer, unless you feel that the brands named above don’t have the required experience to formulate valid opinions either.
Hi Dan. (Thanks for the reply).
So, you are correct in I have a hatred to anyone who was so vicious about “what we do” coupled with a suspicion which is fair to call a guess that this is really just about the spin doctoring of shares for those who have enough to make quick £300ks and £1m when funders get a bit giddy…
The nurturing… I would have thought most Estate Agents nurture their own leads (and other local homeowners) but more importantly I would have thought most EA’s understand at that key moment “time to sell” for a homeowner, that person who has been nurtured for god knows how long will simply start a fresh with lets get X, Y & Z out to value based on 1, 2 and 3 reasons.
It might just be me, but brand loyalty is no longer and how many times have we all sighed “all that work I did for them and they used the other agent” I think it is crazy to leave “nurturing to a 3rd party” and lets be fair, if all agents sign up in my village, are they not simply being nurtured by us all with the same message? It is not a unique 1 member per village offering to my knowledge.
The promise of fixing costs is great, but let’s just pretend for one minute, everyone signs up, knowing their fees will NOT increase unless they make 0.01p net profit from membership, it is highly possible that they (Boomin) know EAs making a profit is unlikely and they are quite happy with this, because the actual value in Boomin (or more so for Boomin) is to have lots of paying members, so promising the fixed until a profit is good, but fixed to them is still brilliant, because they profit either way.
And to say make money from us and we will increase your membership is actually a bit of a smack in the gob IMO, but the starry eyed strap line is “fixed membership unless you make money” and this hooks some, which is crazy because making money is surely the vision for the EAs so why be happy they will charge you more if you DARE make a ROI with Boomin.
I appreciate your reply… but for me:
1. Nurture in house using letter boxes, social media, Google Reviews and your own CRM (plus Sold Boards).
2. The Founders are experts in creating a feeding frenzy in the stock markets where only the major shareholders win.
3. Fixed membership unless you make money makes no sense to the EA surely, its a no win isn’t it?
4. Fixed memberships for Boomin are a win win anyway, as they have something to show the city, which is their vision.
I just cannot see the benefit in us all supporting the same thing, if ultimately the company has put themselves in a no lose gamble… and the EA knows any success from this and your fee goes UP.
The trouble with your thoughts on ‘Nurture in house’ is that you are mostly focused on response marketing rather than actual nurturing. The following is a generalisation, so please don’t take them personally.
letter boxes – wanting something – low response rate, time consuming and expensive with poor ROI
Social media – likely and most often filled with bragging that no-one really cares about
Google reviews – great for the 2% of people actually looking to move right now – wasted on the 98% of people that could be nurtured by your brand that may move in the future
CRM – only engaging with people you have already engaged with, not nurturing any new prospects and likely positioned for reactive marketing rather than nurturing activities.
Many homeowners are terrified to actually engage with an agent for the fear of being swept up in the “I want your home” noise. So to have a 3rd party do it for you can be far more rewarding, let alone cost effective.
I agree that people will revert to the “let’s get three valuations” but most will likely have already decided who they want to use, but want to garner all other opinions before pushing the button. Perhaps you should be considering looking at the distribution of digital property logbooks to nurture clients in the long term and keep your brand in their hands whilst keeping them updated with market price trends?
I get all that… perhaps I use the above different to some.
Leaflet drops IMO are to get email addresses, then you’ve captured something you can use to nurture someone with. So a QR code with a Instant Valuation link.. your ValPal account goes NUTS!
NEVER offer a Free Valuation on a leaflet drop… busy fool time.
Then the nurture, then you get out what you put in, so I accept signing up to 3rd party sites for the reactive agents might be required, but you can nurture with price trends, community news, regulation changes, local WELL DONE stories, competitions all sorts of stuff on a regular basis…
it just takes time or a system which allows you to nurture as you say, but nurture more specifically to your market, not on a national 3rd party nurturing kind of way.
Log book
Tourettes?
(No upset intended to anyone with the condition or Janybyerss, but I just imagined @janbyerss blurting “Log book” out in a Father Jack kind of way” I just hope she said “feckin” as the prefix)
Yes I am an agent of 35 years.
Brilliant (and thank you)… I boast 30 years, but have learnt 1 year experience or 50 years we are always learning and some of the longest serving agents are perhaps the most guilty of “jumping in for FOMO”.
Danny what is it you see where Boomin will increase your listing levels or more so provide you with a better quality lead than any other portal or what your 35 years of experience is capable of getting?
The other Dan commented, but chucked an advert in for promoting Log Books at the end, and I am not convinced nurturing a home owner with log books is going to change much (excite people)… nurturing for me is interesting, fun, topical information. There is a place for Log Books but not on the nurture journey just yet IMO. Perhaps a story about them, once in a while.
Thanks Ric, it wasn’t really an advert. All I would say is that it very much depends what Log Book solution you are looking at. Some are just a glorified repository of paperwork to help speed up transactions, others contain informative dynamic data to keep homeowners engaged with property market movements and trends. Perhaps your opinion could be based on actually looking at what is available?
From our research, people are fascinated by their own property values, people are cautious about engaging with an agent when they are simply curious about their values and they consistently engage with something that tells them about how their own property price might have been affected. If delivering that is not considered to be nurturing prospects, I am not sure why?
No worries (it was a tad tongue in cheek my advert comment… as it was a tiny bit promo like, but no offence intended)
I’ve not said delivering local market trends is not useful… I’ve simply said with a bit of effort you can deliver that yourself.
I’ve used Dataloft in the past but we tend to get more interaction with stories about paint colours and kitchen styling tips than we do with the data heavy info. But as I said, I believe price trends is a part of the process which you should deliver.
I’ve had log books put to me… and you are correct maybe there are different kinds of “log books” available and some I am unaware of.
Again, always happy to look at something which might make a difference, so if you want to get in touch about the log book you are talking about, happy for you to email me some more info with the benefits to my clients and buyers. Especially if there is no argument that there is a benefit to the log book.
I am an open book when it comes to an idea, but I am also the awkward sod who; if I can argue against it, I know my competitors can and therefore will just be another gimmick which does not win me business.
No trouble at all Ric. I’d be happy to send you some info or, better still, give you a demo. This is not about what your competitors think, more about what your home owning audience will think. 10% of agents grasp it, and that’s ok. 57% of home owners that have one engage with it every month. 24% of home owners that receive our market updates click though to their analysis page in their log book to get up to date information every month.
The agents that deliver them are having their brand engaged with every time a home owner logs in.
Do get in touch, you can’t miss me on LinkedIn as I am the only Daniel Hamilton-Charlton there. Always happy to spend time with an awkward sod, so long as they have an open mind.
@DannyMarino – Same comment applies here, from the last Boomin advert which you defended.
Your chance to get me hooked and tell is what is so wonderful about Boomin and change the game for my business (or even my clients).
Don’t worry about Boomin mate…..just keep spaffing money at your old mates Rightmove! The point of my comment was that Rightmove has so many haters, pretty much every agent. So why the hell keep paying them money? They really are taking the P out of you and are every time they get your cheque!
If all agents left them (as I did) that would be the end of the monopoly and agents could start to have some clout again. Unfortunately there is a big lack of balls amongst 99% of agents so it’ll never happen.
Ok, but the story was about Boomin and the point with any business-train is; the more people who jump on the harder it becomes to jump off.
I agree with your RM opinion and openly admit, I’ve tried to come off and it became commercial suicide unfortunately. I know I have a great brand and great team, but unfortunately the public opinion near me is “you’re not on Rightmove, there is a problem” and that battle I have given up trying to lead. I am not too proud to admit, I need to be on Rightmove as my digital presence “for now”. It is what it is.
I applaud you for coming off and making it work.
As for Boomin though, if ALL agents join, it will 100% become something the public expect and the EAs cannot get off, and ultimately the fees will increase as they answer to the city and dividends will be expected… (however, I don’t actually think Boomin expect this to happen and are more focused on the £20m raised funds here and there with some quick short selling in between) and then oh well that didn’t work but thanks to the EAs and investors who made the board some big dollar.
“Follow the money” hasn’t served those investing in PurpleBricks House of Cards.
It’s time these entrepreneurs stopped having us believe they are building something brilliant, or something truly disruptive.- they are using other people’s money to play games that enrich none, other than themselves.