So what really happened at Emoov and Tepilo?
In a more than usually interesting video, Adam Day – who worked briefly for the merged Emoov group last year before it went into administration in December – spills the beans.
For example, he reveals how Tepilo was focused on winning instructions at the cost of sales progression, whereas Emoov concentrated so hard on sales progression that it neglected hundreds of Rightmove leads.
Day also reveals just how critical one particular event was.
It was the announcement by Connells Group that it was closing down Hatched – the online agent it had acquired from none other than Day himself, who had founded it.
And the reason Hatched was being closed was because Connells could not see the financial viability of the online model.
The timing of the announcement last September was pivotal to the Emoov group, says Day.
He had joined in July, from easyProperty which he says he could see wasn’t getting anywhere.
After joining Emoov, he was told by a senior figure there: “We’re quite surprised you’ve joined, Adam, because we are two weeks from running out of money.”
Founder Russell Quirk had embarked on a fund-raise – and Day was confident Quirk would pull it off.
But the Connells Group announcement “made investors sit up and take notice”.
It sealed the fate of Emoov, Tepilo, probably Housenetwork and, says Day, maybe a few more.
Day also uses the video to talk about the experience of working for Quirk – and is complimentary about his former boss.
Day left Emoov last October and now says that what he has learned is that estate agency cannot be done on cheap fees: “It does not work for the business, staff or customers.”
A cautionary tale.
Emoov, meanwhile, was acquired out of administration in January this year by Mashroom.
https://www.linkedin.com/feed/update/urn:li:activity:6562262494084247552/
EYE NEWSFLASH: Hatched to close as Connells says online model ‘not sustainable’
…what he has learned is that estate agency cannot be done on cheap fees…
And in other moments of revelation Mr Day discovers to his utter amazement that:
The earth is not flat.
The moon is not made of cheese.
There are no fairies at the bottom of the garden.
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It is a shame that Adam & Quirky had to spend millions of pounds of other peoples money to figure this out.
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You simply cannot be the cheapest and the best….
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Emoov had already gone on a money raise via Crowdcube in July ostensibly for a marketing budget for a full market float Quirk giving it the full on spiel
Hatched or No Hatched he could then hardly turn around in September to investors with a begging bowl and say sorry we actually need money just to keep the lights on !!!
Furtermore the original investor we had lined up for the merger before July hadn’t actually divvied up . Oh Dear!
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Well Adam stating the obvious and what we knew years ago.
I bet EXP will go the same way.
Why people keep trying to reinvent the wheel is beyond me. The public just want clearer communication and the legals to move fast. Online / hybrid / Self Employed / High Street really does not matter.
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Common Adam, you still trying to fool everyone.
”…what he has learned is that estate agency cannot be done on cheap fees…”
you jobeless are now trying to justly your action so that some idiot gives you a job!!!!
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What really happened is that none of these people were in it for the long term.
They were in it for a quick buck and it didn’t work because they don’t understand that representing someone in the sale of their most valued asset is more than a few pics and a RM listing.
If they want to know how to do the job properly I would be happy to teach them.
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Great video and confirms what we already know about most of these online agencies being clueless. Funny how their former leaders seem to think they could fix everyone else’s problems
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