OnTheMarket this morning issued a surprise statement to the London stock exchange saying it will cut fees for full-paying agents by 33% over the next three months. It proclaimed: “We are the agents’ portal.”
In what appears to be a change of tack the portal wrote to agents this morning with the news, after only yesterday sending them an email not mentioning any discount.
It said then that it costs far less than Rightmove and called for agents to rally to support OTM.
It also told its agents that Rightmove’s deferred payment scheme “amounts at best to a modest ease on cash flow over coming months but with a corresponding pressure later . . .
“The new deferral scheme will not change the amount agents will ultimately pay Rightmove.”
OTM said: “Now is absolutely the moment for agents to provide their portal with maximum support, and for OnTheMarket to deliver what the founding agents envisaged for the industry – not least sustainably low listing fees at a fraction of Rightmove’s.”
However this morning OTM made it clear that it WILL be offering a discount, which will be applied automatically from next month for three months.
Its statement to the stock exchange said:
‘OnTheMarket plc, the agent-backed company which operates the OnTheMarket.com property portal, announces today a payment support initiative for its agent customers to help ease the anticipated impact of the evolving COVID-19 situation.
‘33% listing fee discount for 3 months
‘To help reduce the cash flow pressure which agents are expected to face, OnTheMarket is introducing a 33% listing fee discount for invoices issued in the 3 months starting April 2020. This discount will be given to all OnTheMarket agent customers who are paying on full-tariff listing agreements.
“It is too early to give guidance on the potential impact of COVID-19 on our results for the current financial year to 31 January 2021. While revenues may be impacted in the short term, the Group will preserve cash through the careful management of costs.
“Clive Beattie, acting chief executive officer, commented: “OnTheMarket exists because agents had the foresight to want their own portal in order to control their online marketing cost base.
“It is the core strategy of OnTheMarket as the agent-backed portal to deliver value and to provide first-class support for our agent customers.
“We are resolutely focused on doing everything possible to deliver value to our customers, both in these circumstances and beyond.
“We are the agents’ portal. We understand the next few months are going to be tough and, as such, we believe simply kicking the monthly rate back is not helping agent partners, it’s delaying the unavoidable. We believe that offering this discount early will assist agents to control their costs in the face of such uncertain times.”‘
Zoopla meanwhile told agents yesterday that it was sticking to an earlier commitment not to raise prices this year above the level of inflation. As OTM did only yesterday, it mentioned no discount.
Zoopla said it hoped that government moves to help business during the crisis would mean “the virus will only have a short-term impact on the property industry”.
It said that Zoopla would continue “to support your business during this challenging time”.
It is understood that there may be an update on Zoopla’s position on pricing.
Poke in the eye for RM!
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Why hasn’t o.m killed Rightmove?
It’s on the t.v.
It now needs to get agents off rightmove in one concerted effort.
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Re collective agent action
I dont think OTM wants to get involved ….based on ….when OTM started years ago agents in the Cardiff area were acting collectively but OTM did not want to be seen as involved in/encouraging the decision. Presumably afraid of legal action from RM…
Not sure if that positions changed?
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We don’t need a third party to help us. RM have shown their true colours in the last 24 hours TOTALLY DISGUSTING and they need to be killed off NOW.
WE hold all the aces and now this crisis has given us the perfect freedom to do it. Don’t delay
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Not sure if OTM can afford it but fair play to them for acting decisively and being brave enough ti change their minds.
Good to have pressure on the other two….
I think it would be great if the public actually knew the costs of RM and their % net profit …..most would be surprised.
All journalists just refer to the £1088 average fee presumably because thats what RM actually feeds them….
See The Times story yesterday about deferred payment….
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I think the Rightmove minimum fee is £1, 000pcm. If you don’t buy extra products up to this level you don’t get the discounted fee. So are they misleading the City if they are reporting an average fee lower than £1,000pcm. Is this an example of a lack of integrity?
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Welcome news.
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What a fantastic gesture from a portal that recieved little or no support from agents yet still supports its members, a true Agents Portal that as lease has morals and good intentions, let’s hope that all these Rightmove defectors get behind OTM and make it the number one portal that it deserves.
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Do you remember the story of Croc McDonald’s motto saying “If you see a competitor drowning, put a hosepipe in his mouth”?
It worked for McDonalds but I’m not advocating it for us agents, we should really pull together now. We’re facing a global crisis so we need to talk to each other and be united.
However, what a smart move from OnTheMarket. Their 33% discount is shoving a massive hosepipe in Rightmove’s greedy mouth.
Plus they’re investing in their relationship with their customers.
Would Ian Springett have done the same or would he have been more like Rightmove? What do you think?
Will you leave Rightmove and join OTM? Would you care if Rightmove drowned?
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Do you remember the story of Croc McDonald’s motto saying “If you see a competitor drowning, put a hosepipe in his mouth”?
It worked for McDonalds but I’m not advocating it for us agents, we should really pull together now. We’re facing a global crisis so we need to talk to each other and be united.
However, what a smart move from OnTheMarket. Their 33% discount is shoving a massive hosepipe in Rightmove’s greedy mouth.
Plus they’re investing in their relationship with their customers.
Would Ian Springett have done the same or would he have been more like Rightmove? What do you think?Will you leave Rightmove and join OTM? Would you care if Rightmove drowned?
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For a business that isn’t making a profit and are managing their own costs to offer a 33% discount for the next 3 months to their agents demonstrates that OTM is the portal to back – what further proof do we need?? Time to ditch RM ( I have) and get behind OTM – let’s make this happen!!
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