Colin Shairp, who runs the Fine & Country Southern Hampshire and Town & Country Southern agencies, is not joining OnTheMarket and he's written to clients to explain why.
He has also contacted Estate Agent Today to explain why he is sticking with Rightmove and Zoopla. Here is his letter to vendors in full. (Earlier this week, we ran a letter sent to vendors by an agent moving to OnTheMarket).
It's the nature of marketing a new product that there has to be a certain amount of brashness if it is to succeed.
But there's a new kid on the block in the world of estate agency insisting that to join its on-line presence estate and lettings agents are only allowed to be on one other portal.
In kind human terms, such an approach might be described as an overabundance of self confidence. This new portal, owned by a group of estate agents, is insisting that already successful portals must be abandoned in order to come to its party. To keep the property analogy going, how do you think you would fare if you arrived in a neighbourhood and asked everyone to come to a party provided they left behind all allegiances to all their old friends but one Precisely!
So it is that I'm not abandoning Rightmove or Zoopla to join the new portal. The latest survey by Property Academy, in which 4,506 people currently selling their home or investment property were questioned, shows that 94 per cent expected their property to be marketed on Rightmove and 68 per cent on Zoopla, while 39 per cent backed Primelocation.
I don't see it in the interests of my clients to withdraw their homes from being promoted on one (or more) of the top three most used property portals just to satisfy the whim of a start-up. If you are thinking of selling your home, ask any estate agent you are thinking of instructing if they have abandoned other portals they formerly used in order to join the new one.
Many may well answer that they have done so to break the grasp of the other portals and also to save themselves money. But if they are working for you and charging the same commission as other agents then the only winner may be themselves. After all, your property will not be on-line where you imagined it might be and you will be taking part in a marketing experiment that may possibly delay the sale of your home. If the agent argues that it won't because the property will still be on Rightmove or Zoopla then what is the purpose of backing the new website other than to save money
Personally, I will continue with both Rightmove and Zoopla while that's what my clients expect. True, their combined cost is probably equal to the overheads of 1.5 extra staff members but I have ameliorated that not by slashing their bill but by insisting they add on other marketing tools for free. This increases their effectiveness for sellers because greater analysis of their data is possible.
Interestingly, the Property Academy survey, for which 35 per cent of respondents lived in the south east but outside London, shows that 68 per cent of all respondents first saw their next property on Rightmove or Zoopla, 62 per cent said they would not consider selling through an on-line only agency, and 78 per cent did not make their choice of agent by selecting the one with the lowest fee. What impressed them most when considering which agents to seek out for valuations was the agent's reputation (20 per cent), its marketing or brand (16 per cent), or because they had dealt with the agent before (14 per cent).
In other words, they like what they're getting already and that's what I'll continue to provide. But I'm not averse to change and when it's needed I'll make it.
Until then, the industry can carry on navel gazing and I'll carry on selling homes.
Colin Shairp, director, Fine and Country Southern Hampshire
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Comments
It seems OnTheMarkets position is, with a few previously noted exceptions, that agents signing up to them may only advertise on one other[b] UK[/b] portal. This, of course, leaves the door wide open to agents marketing their properties on portals physically located outside the UK. So, whether agents are looking for additional exposure to UK customers or access to financially secure overseas buyers from, say, China via Juwai, or Asia via iProperty, the US via Realtor.com, or for that matter anywhere else in the world courtesy of the 500+ portals available through the XML2U distribution network, they can do so without infringing the OnTheMarket membership restriction.
An XML2U feed provides a significant marketing opportunity for agents looking to offer their properties around the world, on both free-to-advertise portals and those that charge for their services. Portals can be cherry-picked by the agent from a distribution list of more than 500 mainstream and niche portals on all Continents. XML2Us principal claim to fame is its ability to extract the property data direct from the agents website his export file, and convert the data into multiple formats to satisfy 95% of the worlds portals and other online marketing platforms (like Twitter and Facebook) without engaging with the agents software or technology provider.
Agents are only human :) like the rest of us! And are naturally attracted to something "new and fresh" willing to "give it a try" especially if it is going to save them money in the SHORT term! 4600-odd (so far) shoulders behind it so far - allegedly Let's see how many of these agents are still signed up in 18 months time! Regrettably the novelty tends to wear off more often than not.
I think the fun and games have already started don't you!
This is brilliant!
Not sure if I'm 'PeeBee 1' or 'PeeBee 2' - but perhaps you would elaborate on "interesting" in respect of my ramblings
Thank you.
A bit of fun set to the famous Monty Python What did the Romans ever do,.. scene.
What did Rightmove, Zoopla & PrimeLocation ever do for us
SPRIGITUS: They've bled us white, the bastards. They've taken everything we had, and not just from us, from our fathers, and from our fathers' fathers.
EMREPY REPUS: And from our fathers' fathers' fathers.
SPRIGITUS: Yeah.
MADEMPARANIOUS: And from our fathers' fathers' fathers' fathers.
SPRIGITUS: Yeah. All right, Mademparanious. Don't labour the point. And what have they ever given us in return!
HEDI TURNIOUS: Recognised household names
SPRIGITUS: What
HEDI TURNIOUS: Recognised household names
SPRIGITUS: Oh. Yeah, yeah. They did give us that. Uh, that's true. Yeah.
ONTHY FENCIUS: And the consistent prime time TV advertising.
EMREPY REPUS: Oh, yeah, the consistent prime time TV advertising, Sprigitus. Remember what the finding property websites used to be like
SPRIGITUS: Yeah. All right. I'll grant you the recognised household names and the consistent prime time TV advertising are two things that Rightmove, Zoopla & PrimeLocation have done.
MATTHIAS: And the extensive National advertising.
SPRIGITUS: Well, yeah. Obviously the extensive National advertising. I mean, the adverts in the National newspapers, side of buses, bus stops, billboards, underground train stations and everywhere else go without saying, don't they But apart from the recognised household names, the prime time TV advertising, and the extensive national advertising....
AGENTTUS UNSURIUS: Real time feeds.
ONTHY FENCIUS: Best price guides, which are great on valuations.
ALL THE AGENTS: Huh Heh Huh...
NOTYETIUS MOVED: Comprehensive Competitor analysis
ALL THE AGENTS: Ohh...
SPRIGITUS: Yeah, yeah. All right. Fair enough.
AGENTTUS UNSURIUS: And the unrivalled internet coverage they give us.
ALL THE AGENTS: Oh, yes. Yeah...
STAYIN PUTUS: Yeah. Yeah, that's something we'd really miss, Sprigitus, if we left Rightmove, Zoopla & Prime Location. Huh.
AGENTTUS UNSURIUS: Excellent client report tools.
EMREPY REPUS: And the public always know how to find and use them now, Sprigitus.
STAYIN PUTUS: Yeah, they certainly know how to make sure the public knows about them. Let's face it, they're the only ones who have large enough advertising budgets.
ALL THE AGENTS: Hehh, heh. Heh heh heh heh heh heh heh.
SPRIGITUS: All right, but apart from the recognised household names, the consistent prime time TV advertising, the extensive national advertising, real time feeds, best price guides, comprehensive competitor analysis, unrivalled internet coverage, excellent client report tools, the public knowing how to find them and their massive marketing budgets what have Rightmove, Zoopla & PrimeLocation ever done for us
GONA NOAWHERE: Meets the clients wants.
SPRIGITUS: Oh. Meets the clients wants Shut up!
"...can't really disagree with any of that."
Don't worry Mr Davies - we both know AT LEAST ONE PERSON who will - don't we! ;o)
But thanks anyway for the thumbs-up! Most appreciated
'Brand Awareness' of OTM will only stand a chance of being achieved quickly if it is overwhelmingly advertised in every way possible from day one by the local agents involved. Local agents are still the greatest force in property.
SAYING IT IN CAPITAL LETTERS DOESN'T MAKE IT TRUE.
I doubt the public at large will be very aware of OTM at all, even after the launch. Pick twenty random people on the street and ask them to name a property portal - how many are going to say Zoopla and Rightmove, even PrimeLocation How many do you think will name OTM I'd hedge my bets on a grand total of none.
That's OTM's main problem, brand awareness and competing with the big two on a PR level. I know the small beginnings argument and all that, but I just can't see OTM being the one to break the duopoly.
Everyone acknowledges that rightmove is the biggest property site in the UK so why is he bothering with Zoopla at all Using his logic he would just stick with the biggest website ' in his clients best interests'.
If agents don't support a new initiative then the status quo will continue forever and agents will continue to be exploited by the ever increasing fees and arrogance of RM.
IT WONT BE LONG BEFORE THE PUBLIC ARE VERY AWARE OF OTM.
Who cares what he thinks He's obviously not has his latest Rightmove price hike yet well his "members" obviously have because they don't agree, which just about sums up this article. Lack of conceptual understanding or the primary purpose which is to loosen the grip that a NON estate agency web site has over it's abused clients. It can't be more simple that. In every other industry if a 3rd party had an industry in it's grip, they'd sure try and loosen it..but obviously not F & C, they must like being swaddled!
@ Nicholas - yes MLS is superior to the UK portal platforms.
@ Rob - SPOT ON - He's doing the best for his clients, which is what every good estate agents should be doing
@ PeeBee's 1 & 2 - Interesting :-)
@ John - Maybe this F&C boss has it right
@ Trevor - You make a valid point that the budget online agents could abuse the fact that agents who have helped build main portals appear to have done so for now well backed budget agents to benefit from.
I never doubted it. Your spelling and grammar is also much better than your impersonator.
Very good points, can't really disagree with any of that. I fully back the idea that RM & Z are fit for purpose and aren't going to be pushed out the way by any new pretenders - their brands are too big and their market share is too large. I also think you're right that the best we can hope for from AM is to shake things up a bit, to remind the two big portals how they actually make their money and that it's not on for them to hold agents to ransom.
"...whilst I agree that more competition is needed in the portal market, and that Rightmove and Zoopla have too much power and dominance (charging whatever they like and basically saying put up or shut up), I don't think OTM is the answer."
IS there a need for "more competition" DO prospective buyers and tenants need - or WANT - another three...four... FIFTY websites to trawl in order to a) see the same information time and time again and b) take up so much more of their time and effort(which clearly they have so little of that they can't actually PHYSICALLY search for property anymore, according to those sources we keep having pushed down our throats...)
Open up another 50 portals - RM&Z will still be top of the pile... and one by one the others will shrivel and die. Look at NeedaProperty - the last 'Hovis' that came, made a noise for a few months - and a week or so ago sunk without so much of a bubble breaking the surface. One out of what - dozens Hundreds
RM & Z were - and still are - perfectly fit for use. They simply needed training as they have become unruly animals. RM started it... Z like the look of what's happening and are now baring their teeth to the hands that feed them also. MAYBE the only thing that will come out of the AM movement is that they both get their 'nads kicked and stop playing silly bu99ers with those that essentially pay their inflated wages.
Or maybe it'll all go sadly Pete Tong and their 'nads will grows a titanium shell!
Completely agree! Estate agents will be bare faced lying if they inform perspective clients they will advertising their homes to the widest audience. Surely if they are taking a backward step with the marketing of properties and in the process lining their pockets further by saving on membership fees they should also relay a saving onto the vendors and charge a lesser commission Thought not! Once again this has been completely blown out of the proportion and disguised as a competition between online and high street estate agents. In-fact the truth of the matter is high street estate agents are finally feeling the pinch of modern day civilisation and the current economy. They are finally getting undercut on fees and like a thousands of other industries need to now re-structure their business model instead of trying to slam the door on modern day companies which save people money. The true issue here is the ever increasing Rightmove membership fee, surely it would have made sense for every agent on OnTheMarket to drop the portal and remain on Zoopla. In time I would expect Zoopla to then increase their fees as they start to grow their market share, but at this time (and years down the line) the brilliant OnTheMarket will be more dominant and they can consider cutting Zoopla as well (in an ideal world). But yet in a world of greed every business wants to make as much money as possible and even though this is an 'Estate Agency Owned Portal' there are always fat cats at the top lining their pockets and I'm confident if OnTheMarket in 5/10 years time is still going and does sit within the top 3 portals you can bet they'll be putting fees up and we'll be back to the same situation we are in now. Let's be honest there's room for both online and traditional estate agents especially considering online share about 3% of the current UK market, but would we be really here having this debate and starting this so called 'game changing' portal if Rightmove and Zoopla both charged respectable fees without the worry of increase I doubt it...
That would be ME, Mr Davies. Note that the username of my evil twin is always preceded by (Guest)...
Mr Parnes
Before I type another word and this starts to look like a typical 'AM Collective' rant - I have jumped up and down like a demented kangaroo from Day 1 about the farce that is the 'one other portal' rule. That being said and out of the way, we are now well over a year down the line since the whole AM thing was first brought to our attention; things both industry-wise and more globally in relation to internet have moved onwards (and some would even suggest upwards...) and as we speak some 4600 branches have allegedly signed up knowing, understanding - and more importantly, AGREEING - to the imposition of the rule. SOME of those Agents are no doubt dropping several portals - and believe they are potentially 'saving' thousands in the process. SOME of them may only be dropping ONE portal - and depending on which it is, will perceive they are potentially 'saving' hundreds - or spending MORE. And then you have those that currently only use one of the "competing portals" - whose spend is now going to be significantly higher on the basis they believe they are speculating to accumulate. Whichever they are, the really sad fact is that in essence the whole shebang has come about NOT because of the existing portals' failure to deliver - but instead it is purely driven (regardless of the AM spiel) by resentment of their success in charging for what they deliver! There has NEVER been a 'requirement' to advertise on these portals - companies did so because they either WANTED to, or felt they NEEDED to. I now see that AM have been instrumental in doing what no other has so far - giving their Members the confidence/cojones/call it what you like to stick two fingers up and go in a different direction.
Whether the history books show this to be a winner or a loser is to be seen. But there are 4600-odd (so far) shoulders behind it so far - whatever their real agenda may be - and that's ONE BIG weight.
He's doing the best for his clients, which is what every good estate agents should be doing. I thought his letter was spot on. He's clearly outlined the reasons why he has not signed up and has given valid reasons for not doing so. I also agree with most of the points he makes.
Yes, whilst I agree that more competition is needed in the portal market, and that Rightmove and Zoopla have too much power and dominance (charging whatever they like and basically saying put up or shut up), I don't think OTM is the answer. Most people want to know their property is being marketed on one or both of Zoopla and Rightmove. OTM's one other portal rule and the disallowing of online agents are both naive and ill-advised moves, in my book.
This is getting confusing. Will the real PeeBee please stand up
Only a few more days folks for the fun to start!
Whilst I am a firm believer in "competition" between portals, I am against portals applying membership restrictions on those who wish to use them. There is plenty of room for another MLS portal in today's marketplace. If there are concerns joining OTM now, why not wait until "the dust settles" and see how RM and Z actually deal with the "new kid on the block".
Zzzzzzzzzzzzzzzzzzzzzzzzzz...
Ive just picked up my blinkers so I can focus on my own views. I care ZILCH about whats really going on
Colin understands what is going on. His concern is for his business, but shows his want to remain in the bigger marketing outlets that consumers have heard of.
On the flip side I totally get that RM and Z allow budget models in which is allowing the unwanted marketeers into the traditional agents space which I feel is wrong. A case of RM and Z biting the hand that feeds them.
But whilst 1,000's of proper agdnts leave RM and Z the recently newly funded (by many millions) budget boys will ride on the two big portals that traditionalshave established. Unfortunately, I fee OTM is going to help the budget biys rise from a 5% share tk a 6%-8% share.
"Until then, the industry can carry on navel gazing and Ill carry on selling homes."
With respect, Mr Shairpe, you have said ZILCH in five hundred and ninety-seven words to your clients that gives even the merest inkling about "selling homes" - instead you rattle on endlessly about t'internet... and how vitally important it is to be listed on major existing portals to bring potential buyers to you instead of actually PROACTIVELY going about finding a buyer.
If THAT WERE the case, Mr Shairpe, there are many online-only Agencies that can give your clients all they need - access to those portals - for tuppence in the pound to your Fee scale.
IS that the case... or do you bring more to that party you were yammering on about in your third paragraph than seems to be the case in your "letter to vendors"
It's funny how this part of Fine and Country disagrees with the other parts of Fine and Country who have signed up.
I wonder if Mr Shairp changes his mind within a few months of launch.