Some Purplebricks agents in Australia ‘literally went hungry’ as they tried to make it work

Some of Purplebricks’ agents in Australia “literally went hungry” as they tried to make the business model work.

There were also instances of agents ending up in debt, and some losing homes and livelihoods. Some agents were left with depression and other mental health issues.

The extraordinary claims are published in Independent Australia, which quotes one former agent as saying there was an allegedly toxic internal culture that “increasingly forced agents to work people to the bone”.

The article quotes a former agent who said the company ran a “churn and burn” business model that treated people like a commodity.

The piece also says that the issue of responsibility for superannuation and other entitlements “is currently the subject of pending litigation by a number of former Purplebricks agents”.

The publication adds that a venture called Betterway Real Estate is set to launch shortly, headed up by former Purplebricks licensee and national sales director Luke Pervan.

It is said to have an upfront fee model.

Purplebricks announced pulling out of the Australian market in May, at the same time as founder Michael Bruce left the company.

It said that the prospective returns from operating in Australia were “not sufficient to justify continued investment”.

Purplebricks subsequently also pulled out of the US market, with the firm saying since that it had made mistakes in over-expansion into overseas markets.

Purplebricks yesterday declined to comment on the new claims made in Independent Australia.

https://independentaustralia.net/business/business-display/real-estate-collapse-purple-bricks-road-to-ruin,13070

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14 Comments

  1. Woodentop

    Remind me, didn’t we hear from LPE’s in this country they too were worked to the bone?

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  2. Hillofwad71

    ” The grass is greener ” and the prospect of untold riches has led many a greenhorn or unsuitable candidate  to join the “next best thing ”
     
    Some of those have paid a very heavy price for being lured in incurring life changing debts.It seem sometimes that the sole criterion for entry is having a pulse .
     
    Many franchisees  ushered in at Ewemove for example  have had a salutary  experience where  individual financial  failures show no signs of abating  despite what  Ian Wilson said the other week  who is now   moving towards retirement  in a much healthier position than many of his Ewemove franchisees.!
     
    It seems  that Belvoir  who have experienced  little churn must adopt  a more rigorous  selection procedure  in choosing their franchisees and all credit to that .
     
    The franchise for one town at Ewemove is an interesting example of  a lack of due diligence by the franchisors in franchisee selection
    The first franchisee dissolved  the company  franchise  without even getting around to submitting a set of accounts in 2017
     
    A new franchisee was appointed shortly after  where according to Ewemove website and Zoopla today  has 0 instructions .
     
     
    With 0 instructions and with the last set of accounts showing annual creditors of £71k its difficult to see this heading  anywhere  but oblivion for a second time which is of no help to both franchisor or franchisee.No good to the successful  franchisees either who operate under the Ewemove banner
    You really couldn’t make it up      

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  3. NotAdoctor32

    You have to remember that absolutely all of this is self-inflicted and none of it forced.  They aren’t prisoners that were dragged from their desks.

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  4. AgentQ73

    Definitely not employees though.

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  5. s71

    where is ducky

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    1. Woodentop

      Same as the Dodo?

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    2. Ostrich17

      We ate him with fava beans and a nice chianti 😉

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  6. GPL

     

    They made their bed, so they have to lie in it.

     

    No Sympathy – Adults need to make Adult decisions or reassess if the landscape changes.

     

    They were happy enough to try & shaft Traditional Estate Agents.

     

    ……and they wouldn’t know what “Hungry” is.

     

     

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    1. Purple is the colour

      Ahhh, the ignorance of the high street, truly remarkable! You lot have no idea of what you talk about, none at all.

       

      The future is Purple and you all know it, just don’t want to admit it. I know, I felt the same before I understood the model and it really is the way forward. Any LPE’s or LBP’s who didn’t make it, didint make it in the high street either but they wanted to give it a go, fair play to them.

       

      With the Bruces gone, the new management in place have all the kit and more importantly the funds, to completely take over and they will. I know it’s painful to watch but don’t say you weren’t warned!

       

      Good day!

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      1. Property Pundit

        HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

        The Prophet in disguise perhaps?

        Come back when you’ve got more than 4% market share.

         

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      2. Hillofwad71

        The problem with the Bruces having gone all its done is to expose the thin layer of competence underneath .Emperor’s New Clothes
         
        .   A new CEO who has  yet  to  endorse any new revenue streams and seems incapable of closing down Oz in a timely  fashion .
        It beggars belief the huge payroll they are still carrying to service a handful of instructions New instructions down in UK this financial years with August showing a decline of 15% year on year .wheels falling off already so short in the journey
         
          Should imagine Axel are torn  beween dumping their shares  or  taking it over so high risk there for investors
        Why on earth would the  existing selling  platers management  want to stump up £385m to take it on ?

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      3. Woodentop

        The colour purple … ah yes, the colour one goes when one snuffs it, the colour associated with funeral services. Fits perfectly don’t you think about everything you say .. dead in the water and terminal.

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      4. htsnom79

        Wtf? The reason this story got eleven comments rather than the one hundred and eleven it would of got two years ago is that a) this place is quieter generally and more pointedly b) PB are simply not relevant anymore, managed decline at best from what I can see on the ground.

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        1. Woodentop

          People started to realise they never had any real impact on their business after all. The colour purple is old news and no longer relevant.

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