Rightmove’s god-like status means that Rightmove is now over eight times more likely to be ‘googled’ than the term ‘property for sale’.
And the firm’s astonishing 70% profit margins over the last five years is more than success – it’s downright alchemy.
Notwithstanding the huge marketing costs invested to build the brand to the status that it now enjoys, Rightmove is not a clever business in that it simply takes an estate agent’s own hard won inventory and aggregates it with others to provide one consolidated destination for the consumer.
It merely takes advantage of the fragmented nature of our industry.
But now there are threats to its immortality and it must react. However, there is no sign that it will.
The threats that I refer to are as follows:
- ZPG and On The Market are better funded than ever and are seeing brand awareness grow. This is no longer the monopoly that Rightmove previously enjoyed.
- Disintermediation of the industry is taking place. We will see fewer estate agency brands in future and therefore the opportunity arising from fragmentation will dilute. When and if two ‘online’ agent players take 35%+ of the UK market between them, they become destination sites in their own right. This may take longer than some of us thought, but it remains a threat.
- Technology will lead further transformation of search – Blockchain and Artificial Intelligence will become prevalent and may change the underlying way that search is constructed. New disruptors will emerge (Rummage4, etc).
- International – Once Zillow, Scout24 and REA decide that they have squeezed the pips on their local markets, thoughts must inevitably turn to other territories
- Facebook – If they decide to play in the portal space as now seems likely given their tie-up with ZPG and OTM as a tester, they could swallow Rightmove in one gulp.
- Google – Often threatened as an entrant to property search in a big way and was tested in Australia back in 2012. Google already own all global search traffic and data plus control ad revenues that are enough to buy Rightmove thousands of times over. Be afraid, be very afraid.
- Customer sentiment toward Rightmove is declining, especially as the company tries to balance making announcements to the City regarding proposed revenue per agent increases, versus justifying agents’ subscription value to the agents themselves.
With regard to the latter threat, the agency fraternity are really pissed off.
A softer property market and tougher times are the backdrop to a significant marketing overhead that becomes more expensive every year and by an increasingly unjustifiable amount.
A typical £1,000 per month expense when you’re selling three homes a month at a reducing fee level and whilst rent and rates and staff costs increase, is unsustainable. Is rebellion afoot?
Rightmove should not underestimate the impact of ‘people power’ and the traction that a David and Goliath campaign can muster, fast.
So what does Rightmove do? On the one hand it must suck up to the City and show growth (public companies are like sharks in that they die unless they are constantly moving forward).
On the other hand they must also endear themselves to their customer base, the 20,500 monthly subscribers that are, some would say, its forgotten lifeblood.
Rightmove were innovators once.
When Harry Hill first architected the idea whilst boss at Countrywide, the concept was frankly genius and remained so for a number of years.
Since then, (and I mean this in a respectful, constructive way) Rightmove has become lazy. New products are scant and their historic add-ons such as Premium Listings, Featured Agent and Featured Property are tired and unproven in an ROI sense.
It took years to revamp Rightmove Plus and even then it was but a re-skin.
‘Draw a search’ is probably the most revolutionary of its new products and that’s not exactly reinventing the wheel – just pumping up the tyres a little.
Therefore Rightmove must begin to innovate again and to disrupt – itself even. If it does, it will be able to both justify its increasing fees to agents and endear itself to the City all at once.
What It Must Do
Search – reinvent it: Conventional portal search is predicated around knowing the area that you want to live in and the type of house that you want to buy. But that’s not the way we really think.
Fundamental to choosing a new home are other primary considerations such as travel time to work and schools (not distance, but time taken); character and style of property; adjacent facilities; community demographic; school ratings etc – in other words I should not be asked to search for the ambiguity of a ‘3 bed semi within 1 mile of Aylesbury‘ but rather ‘show me houses with character and big gardens a 45 minute commute of EC2 and 15 mins walk to an Ofsted ‘Outstanding’ school in an ABC1 community’ for instance. This can be done.
Then, as the site visitor clicks and dwells on houses that they like over a period of time, use that data to serve up recommendations to them on the basis of what the data says they like and rather than what they think they like (they’re often two different things – the head vs heart dynamic etc).
Valuation leads: these are key to showing a value added to agents. Simply sending an email to agents that a consumer says they want a valuation because they filled in a form, is too 1990’s.
Instead, creating an outbound call centre that contacts all prospects that express interest in a Rightmove property and then qualify them and book a valuation visit for local agents, selling that lead to them – that’s the future. Each lead would be worth BIG money indeed to Rightmove.
Copy ZPG: Insurance comparison, mortgages, conveyancing… these are all missed tricks in an industry where many independent agents do not promote these as additional revenue streams.
Make it easy for them and create the backdrop to earn much-needed income from these ancillaries via a B2B proposition and, dare I venture, a B2C approach too. And at the same time reduce reliance on pure agency subscription revenue and de-risk the threats above.
Software: There is a huge gap in the industry for what I refer to as ‘estate agency software 2.0’. Reapit, DezRez and the PSG suite of products are all ‘1.0’ products and agent-facing only. The next generation is consumer facing and creates customer empowerment and control, a better user experience and at a reduced cost of servicing. If Rightmove aligned itself with such a platform they could ‘own’ search and software as ZPG does.
Take risks: Calculated risks but risk nonetheless. No one ever stayed top of their game by playing safe.
New blood: All teams need internal challenge. An injection of fresh ideas and edginess from new people that seek to prevent the complacency of the status quo.
This is not to be underestimated especially when big businesses actually crave the safe hands that will otherwise ultimately grow tired and drop things by staying in the same position for too long.
Charm offensive: PR is important to any business. But PR is not just an external tool to gain coverage and customers but should also be used as a means to communicate a narrative and tone of voice internally.
In this case, to alter the perception that Rightmove are an arrogant and complacent overlord that looks down upon its customers. This suggestion is of vital importance right now. Winning hearts and minds is not just about the ideas above – but must also be sincerely meant.
This is my humble contribution to the Rightmove debate as it continues to rage and with all and sundry threatening to boycott, leave or to build alternative portals to rival it.
What are your thoughts? Can Rightmove reinvent itself?
And if it does, can this justify ever higher fees and a bolstering of its future share value?
- Russell Quirk is founder of online agent Emoov
I didn’t know Rightmove were looking for a new Chief Operating Officer Russell, but I’m sure they thank you for your application none the less.
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Yes, a bit odd to be offering wrongmove advice. I wonder if they’ll listen?!
Wonder what will happen with onthemarket when its back in the appeal court later this year (November I heard). Won’t they be deciding if the “one other portal” rule was anti-competitive from the off? All very interesting!!
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I would not be surprised if both OTM and Connells come to an agreement whereby Connells drops the case and they sign a 5 year agreement with OTM.
Both are holding trump cards.
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Cannot believe connells aren’t using there influence more here. If they don’t get rid of purplish chicks they might go same way as countrywide.
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OTM now holds the key. If they continue to push then our industry will finally break the monopoly Rightmove has and find ourselves a viable alternative. Rightmove is utterly dead to estate agents.
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Finally fellow agents are seeing the value of OTM.
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“when you’re selling three homes a month at a reducing fee level”
Finally some insight into how many homes the call centre agents are selling 🙂
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I always read Mr Quirks PR with interest and intrigue but cannot find my concentration sticks before my mind wanders off to wonder why he would be publicly giving these ideas. Then I suss that it is because if Reicht move flails and OTM succeeds, the agents are more in control and that in itself could exclude emoove. I then doubt that he or indeed many agents on RM are RICS qualified, yet we all allow rightmove to wag the dog by suggesting that we carry out valuations. Even RQ is calling it a valuation and it’s not. I am sure Mr Springett will like one or two ideas, better still the property portals should ask their own customers (the agents) what they would like to see as a benefit.
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Countrybumpkin
Reich is a German word literally meaning “realm”.
‘The best political weapon is the weapon of terror. Cruelty commands respect. Men may hate us. But, we don’t ask for their love; only for their fear’. Heinrich Himmler
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Rightmove and Emoov days are numbered. Only a matter of time now.
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Whilst RM still have the leads it is important for the PR teams to work their magic to counter the move by OTM. Really interested to see who prevails as OTM are pitching themselves against RM and how many sign ups they have so they will be a success only if they achieve more. Hard for many other portals to compete given the cast resources of these giants. Unless as you say FB comes into play. RM seem like they are staying awfully quiet and I am sure there is something up their sleeve. All good for the industry in my opinion.
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What a load of drivel. Why do you keep being asked to write these pieces?
Self centred nonsense. When you learn to write at school, the first thing they teach you is to engage with your audience, not drone on about your own self interest.
Goodbye.
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And just like Rightmove, Mr Quirk has aggregated something that belongs to others and is calling them his own.
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I’m not sorry to say that I find anything Mr Quirk has to say of NO interest.
Self centred as JonnyBanana43 has mentioned.
Mr Quirk is a Self Publicity Machine, akin to the kid at school that copied other kids homework ….His Report Card no doubt read “not worthy of further discussion” ……and if it didn’t it does right here, right now.
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Yes, he’s a publicity junkie and yes, he does sometimes spout some drivel but at least he has an opinion and he is not afraid to put his name on what he writes.
If we only ever read stuff we agree with we would never challenge our own thinking and the world would be a duller place.
I don’t agree with 99% of what Quirk comes out with but I would miss him if he stopped doing it.
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If Russ’s tongue was long enough he’d be licking himself all over, such is his opinion of how great he tastes.
How about a bit of peace and quiet for a change? Jeez Louise.
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I’m not so sure Rightmove will pay for such expert advice on how to run their business. Rightmove will do what they always do. Nothing. They remain staunchly quiet, just as they did when OTM and Zoopla were slinging mud at each other on a daily basis and let the industry combust around them whilst they stay quiet, have a laugh and watch the bank balance hit new heights each day.
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Agreed – but RM are trapped by the fear of killing the golden goose.
They may make minor adjustments, but anything radical cannot be contemplated.
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surely the US big tech giants are the future? Amazon/Uber will be somewhere in the mix at some point
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I’m utterly fascinated/obsessed by RightMove as so many are.
Handling the lead generation side of an agency so comprehensively and with far more demonstrable ROI than traditional forms of advertising like newspapers and print. Yet there’s a disconnect between the value that they actually give agents and how they’re perceived.
I see people like Miles in the organisation and they ‘get’ agency and I’ve always found it completely able to justify his and RM’s position. But much as it might seem like it he can’t be everywhere and that agency empathy needs to run through the business and that starts with sales and account management. I don’t know the figures but I’m guessing most come from places like Yellow Pages rather than ex Agents who would understand the challenges agents are up against whilst also being far more confident of being able to show the benefits back.
In one of my more day dreamy fantasy moments where Trump and Brexit haven’t happened I think about what it would take to turn them into a more acceptable face to many agents. And I’m not being naive I know there’s a whole demographic where like the aforementioned Trump that RightMove is the devil but I don’t think that would be the case for the rest.
I don’t know maybe some of the lingering resentment would be too much in the short term to overcome but I simply don’t believe that a company so responsible for delivering so much business should be seen in that way.
On most of Russell’s other points I can’t really disagree with much of it either. Those are trends that are pretty much inevitable.,
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The issue i have and resentment, is we provide RM the stock, without it they are nothing.
OTM, Zoopla and any other portal can provide what RM do for a fraction of the cost.
The ONLY reason we all stick with RM is because other agents will stab us in the back if we leave. That fear allows RM their astronomical increases as they know we will not go elsewhere.
The day agents can work together on a local level where 75% can choose a portal to advertise on and agree to ditch RM will be the day it dies. Sadly as we have seen time and again agents cannot and will not work together, so no chance of it happening.
Also RM do not bring in nearly as much business as they say they do. Not many times do we list a property on RM and then a buyer calls up views it and buys it, Most of our sales come from working the database.
As for valuation leads, we get next to nothing from any of the portals, most come by way of working the database and good old fashion canvassing.
Incidentally, that is why the likes of PB will never be a success, to be a good agent you need good people who can “See a deal” and make it happen. The internet is still at least a couple of decades away from this.
If RM was as good as it says it is we would have no need for the likes of Reapit 😉
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I think collusion is the main reason agents won’t work together and ditch RM.
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I first crossed swords with Russell Quirk about ten years ago on a citywire forum and I was probably rude to him then, but this is a well constructed piece, to the extent that I wonder if he wrote it himself ( old habits die hard Russell )
My main takeaway is the single point of access, buyers and sellers are a river not a lake, they move, you can only buy whats for sale and you can only sell to who’s buying, that was different last month and will be different again next month, will people expect a single source of everything or will they use different tools such as those described above?
Most people are sophisticated in their own area of expertise whether it’s plumbing, nursing or hedge fund managing but every seven years or so they enter our world, at which point they will probably always want a rightmove style list of options not custom search it will go over the average persons head, and I mean no disrespect to them in that
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‘estate agency software 1.0’? Think Quirky needs to see what’s out there these days… Our CRM property software is fully consumer facing and does Lettings, Property Management, maintenance reporting and accounts etc. Sounds like we’re using ‘estate agency software 3.0’! His PurpleBricks’ rip-off software is not something Rightmove or any agent needs thank you very much.
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Self promotion piece.
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Surely in an industry where a supplier has a majority market share by some distance, this should be appreciated and taken advantage of. Doesn’t that allow the customers to save themselves hundreds, if not thousands of pounds of wasted spend in other marketing mediums?
With the money saved from what would be wasted in other areas, that can be channeled into making your marketing strategy the strongest it can be, in a area where your whole audience is looking. Be one of the many, or fear just being one of the few.
You want to see how much car dealerships are paying for Auto-trader before moaning about a portal that supplies pretty much all of your business…
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Funny!
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Ehhhh? Nice to get a mention but…… what?
This is all a bit “Please miss, please miss, over here miss!!!!”
Yes Russell, I can see you’ve got your hand up we know all of that, what was your actual point? Telling Rightmove what they need to do is brilliant, I’m sure they’ll appreciate it and probably in your head, same as you were the one who was going to rescue Alison Platt, you’re the fella to bail out Mr Brookes-Johnson.
Rightmove is windows 98 tech that has a problem; it’s chief executive reckons he can charge agents £2500 per month because that’s what the newspapers used to charge. Trouble is they can’t, they don’t have the ability to innovate in the way they need to and keep hold of their revenue.
BTW, we are not disruptors we are restorers, disruption is for people who break the rules and use their rule breaking as a means to give themselves advantage over those who stick to them. We insist on fighting fairly and honestly, competing not cheating. That way we can simply red flag those that can’t generate a profit from operating honestly.
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There is still a demand for face to face interaction when it comes to buying and selling a property, THIS IS A FACT!. Sure over the last few years the convenience of such portals for consumers has left independent agents frustrated but it’s clear the service they are getting of RM etc is not up to standards. I feel like now more than ever Independent agencies who are taking control of their own online media are now reaping the rewards!
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