Rightmove announced its half-year results this morning, showing a big rise in both profits and revenue, with agents paying 14% more on average per month to list their properties than last year.
Revenue for the six months to the end of June was up 16% to £57.9m. Underlying profits were up 15% to £49m against £42.6m for the same period last year. Rightmove's underlying profit margin was 73%.
Page impressions jumped 22% to 7.2bn and the number of advertisers went up 3.5% in the first six months of this year, to stand at 18,916. The average revenue per advertiser was £593 per month, compared with £518 a year ago. The increased spend came from additional advertising profits as well as price hikes.
CEO Nick McKittrick said: "Rightmove's popularity continues to grow. Traffic to our website and mobile platforms is up over 20% on a year ago, reflecting our ongoing investment in our brand and our technology, coupled with an improving housing market. This has generated a record number of enquiries for our customers.
"We continue to develop our services to provide the most engaging experience for home movers and the best advertising platforms for our customers to reach the UK"s largest home-moving audience and to win more business."
Rightmove puts its market share out of the top three UK property portals, measured in page impressions and excluding apps, at 81%.
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Comments
Just found this site, seems Rightmove annoyed someone!
rightmovesucks dot com
We received a letter from RM two months ago.
It stated our average stock volume over the last 6 months was 198 properties. This level meant that they had to change our contract with them. The average stock level for their agents was 48 properties. Therefore, we would be classed as having 4 branches and our fees would rise from £612 to £2568,00. An increase of 419%!!!!!
Obviously we told them no thanks! We have sent two letters addressed to the Managing Director, the first with our full compliant and giving notice. The second by recorded delivery asking for a response to our first letter. No response to either!
On top of all of that we have had to put up with the most unprofessional & patronising 'account manager' while at RM, on the last visit she was 2 hours late! As stated in our letter, the upside of leaving them is not having to see her again.
They are truly the worst organisation we have ever dealt with, they offer no customer service & their attitude is appalling.
Their downfall will not be long in coming and of their own making.
We have moved over to Zoopla, we are happy with the service and the level of enquiries generated, above all we are very happy with the fees.
The market is better now, come off rightmove, join zoopla, buy time vendors moan (because other agents are shit stirring) they will be sold...
ightmove has fed off the recession and now hopefully you feeders will grow a pair and leave.
Amazing how supposedly small, independant traders can be so weak.
Leave and buy yourself a nicer car,,,you deserve it for surviving the recession
@social media.
Well, why not have a look. From what I can see rightmove do quite a lot on twitter however not much in the way of promoting the agents that list with them.
Rightmove are after hits nothing more.
#rightmoveaddict for proof. Maybe this is why the quality of of those amazing page impressions mean diddly squat
By 'paperless offices' I mean Rightmove having them?
@ PeeBee on 2013-08-01 12:27:23
Maybe they will stay and carry on the same, if the agents are still there in the same form to feed them.
However, one thought is that they could become the main on-line 'realtors' with local on-line 'sales staff' using their site. similar to America? (a few almost 'paperless' offices - with evolving technology they become less and less necessary) In a changing market place the possibilities are endless. Give it 10 years.
Just a thought! ;>)
What do Right Move do on Facebook or Twitter?
What are they doing to get our properties in front of that audience?
Let's suppose I ask the folk of Sherringham to list all of the 'intermediaries' that have sold property in the area in the past 15 years. Is Rightmove going to be on list, down the list or not on the list at all?
The reason Rightmove, Zoopla, Property Places-Network et all don’t quote conversion figures is because as an advertising medium they perform worse than spam/junk mail. When I said they understand Estate Agents that is exactly the business they are in. The reason they are so profitable is because by providing a searchable index of property they are providing a better level of service to applicants than most agents. Most Agents are happy to pay to delegate their workload to someone else, the portals know it and exploit Agent laziness.
Even when RM come on here and gloat at their profit levels and effectively announce what the cost of running their service is, Estate Agents simply shrug their shoulders, cough up and carry on.
Sorry Rant Rant Rant, we are getting back on topic again. It’s funny how that keeps happening. Perhaps one day there will be a story about Hollyoaks or Big Brother and you can join in too.
"Point proven. Where do they go from here?"
Ray - the question is "Where do they WANT to go from here?", is it not?
MY response - "Why fix it if it ain't broken!"
RM etc have the perfect model. Income, income, income.
They have some 15000 'customers' to deal with. 14999 of them squeal like stuck pigs behind their backs - but pay diligently. And whether or not sales come as a result, RM get paid.
Why swap this, to gain 1.5 MILLION neurots ringing them every five nanoseconds screaming "what the **** are you doing to earn your ridiculously exorbitant fee?"
Your thoughts?
'........THEIR name is better known than OURS!' ...........
Point proven. Where do they go from here?
"...they might understand marketing better than Estate Agents but don't understand Estate Agency."
They understand that our business is based upon vendors and purchasers. They, via US, have sold their product to both to the extent that THEIR name is better known than OURS!
What more is there to need to understand?
"In respect of profits; 750k transactions @ £165k average, 20%, profit on 1.5% commission? I put it to you that you are misleading the jury."
Hmmm - and in comparison RM's paltry profit line is 73%.
RoI, mon ami, is Judge and jury in the court of business.
NO jury in the land can be misled by those figures.
Over to you... ;o)
Sorry Peebee, they might understand marketing better than Estate Agents but don't understand Estate Agency. If they did they would capitalise on the information in their database more effectively. They also understand Estate Agents, again that is different to understanding Estate Agency. A bookie understands gamblers and earns well from that understanding, same with the portals.
In respect of profits; 750k transactions @ £165k average, 20%, profit on 1.5% commission? I put it to you that you are misleading the jury.
Again on the grammar, I put it down to iphonitis. The lack of a full qwerty keyboard coupled with ignorance, laziness and conscience means few give a 5hit how thick they look. There are a couple of great examples in this thread alone.
'...' :
"...why should he have to hire someone who understands Estate Agency when seemingly none of the others do?" Au contraire mon ami - it is perfectly clear that the 'others' you refer to understand Estate Agency better than many Agents themselves!
Exhibit 'A' - they are making WAAAAY better profit out of it than those in it. That is the case for the defence, m'Lud!
As far as the content of the site goes... well sorry for being a grammarsaurus - but have a look yourself and tell me you'd want to be associated. Even 4 nowt.
I believe the last post by 'julian' stands as testament to everything I have said previously.
On THAT alone, I rest my case, m'Lud! ;o)
Peebee, while I understand your recommendation to Julian why should he have to hire someone who understands Estate Agency when seemingly none of the others do?
Spelling and punctuation? As that is a subject that hasn't been on the school curriculum for 25 years so it's a bit unfair to pick on Julian for that too. it mite gr8 on yers but datz ver way fings iz tdays innit
Julian your idea ought to work but it won't. You won't get thanked for your efforts and won't recoup the money or effort you are putting into it. Email Scott Creasey and ask him about selling to Estate Agents. Scott is a marketing man with a skin as thick as a Towie Tart, he's getting relatively nowhere and I doubt nor will you.
yell.com was only a comparison for advertising cost by the way yell.com is no way for an estate agent to advertise through in case you think i thought that which i don't.
so what your saying is if someone came to you and was showing good searches on a website for properties in your local area through local searches you would turn your nose up at it.
julian...
I certainly can't take any credit for offering you 'constructive comment'. In all honesty, I don't think you would want my input - but I will say that the site is amateurish in all aspects and any self-respecting Agent should steer well clear as it will cheapen their content.
So - in terms of the value of the others in comparison... PRICELESS.
You need to hire someone who:
a) actually understands Estate Agency
b) has some flair for web design
c) knows how to spell and punctuate
d) wants the challenge of a lifetime
and let them take over where you have left off.
Or just start again from scratch - they may find that easier.
Sorry.
Julian..." Is advertising on RM cost effective" ?..... if it wasn't would anyone be paying their high fees ? No.
Yell.com ??? is that where people search for property on your planet ?
Local portals, local search etc ? better than the No 1 property search location ? one of the top ten websites in the UK ? No, again.
Thanks for the feed back PeeBee constructive comments are always a favorite of mine to read but sadly given the nature of your comment you've priced yourself out of the market and missed the point of the post completely.
Layman's terms....
1. Is advertising on RM cost effective?
2. Are you targeting your audience properly?
3. Are RM working in your best interests?
£583 a month to advertise you pay less advertising on Yell.com top box number 1 about £2000 + Vat 12 x £583 gives an average of £6996 a year!
As far as i'm concerned PeeBee local portals done by local websites are far more effective than giant sites gives a better user search just remember if people are searching local maybe they don't want to use a large site like RM for obvious reasons.
Thank you Trevor
"Well said Ray. If agents club together they have access to more listings and a bigger buyer and tenant poo and reduce costs."
Just the sort of thing we need bigger poos? both buyer and tenants.
It isn't a bad thing Peebee, you won't come down in the night to find Peter Rabbit enjoying a nice jacuzzi bath in a stock pot on the hob.
Most kvetchers are harmless but one has to suspect that one is a a tad road ragey, all tourettes and fingers.
Well said Ray. If agents club together they have access to more listings and a bigger buyer and tenant poo and reduce costs.
Not all agents need to be on all portals if you share data.
I help agents daily access mkre listings and lower their cost of gaining other agents redundant applicant leads.
I WANT A CATEGORY!!!
Careful, now - you can't huff me but delicate eyes are reading this... ;o)
You missed off the malcontents who can't afford to buy and who have 5hit out while the market moves further out of their reach, those that still live at home with mum and dad.
You have got the poor spelling and grammar brigade covered so the only ones you have left off is the Rightmove reps and Peebee who doesn't fit in your categories but always has a comment to make.
'julian'...
With all due respect, whatever you aim to charge Leigh on Sea Agents for the privilege of advertising on your site, makes RM etc appear FANTASTIC value for money.
Free would be too much for me to consider, I'm afraid...
@quagmire on 2013-07-31 13:21:13
Not just one thing - a combination of increased costs all round just to 'keep up'.
Most of the smaller independents are now just agents for Rightmove? Discuss!
The only 2 sites out there that can offer a real alternative to these portals are both FREE. Gumtree and allagents.
If we both stuck to and promoted these sites, the others would soon start reducing their prices
'The Old Black Horse' were a full blown corporate, with the businesses they acquired fully owned, not a network of independents as you seem to suggest. They merely retained the local name, and combined it with their branding, ie: Black Horse Agencies Charles Hawkins.
Perhaps you're thinking more along the lines of 'Team' where businesses are still independently owned but use the Team branding.
What makes you think that the one office practice will not survive? be interested to know. I'm not so much concerned with any 'threat' from rightmove, but am beginning to think that the days of the 'high street' are numbered, and not just in agency!
@Ray
We are fine Ray, Thanks for asking.
I haven't boarded up my windows just yet and if and when the time comes it wont be rightmove that take me down.
@Ray Evans on 2013-07-31 11:55:17
I do know the situation - was a shareholder at the beginning. (sold them - what an idiot! :>))
I think you may have missed my main point. I was posing the question 'what is their real agenda?'. Further in my view, one office independents will not survive on their own for much longer. They should join together in a region under their own 'corporate' banner (similar to the old 'Black Horse'?) The difference being that it would be controlled by knowledgeable estate agents - not a Bank, mainly bent on selling its own services.
Are you serious? - are you actively promoting that site? - Its an embarrassment!
Think RM will sleep safe tonight!
im working on a local portal for the Leigh On Sea area to see how well it does then will be rolling it out steadily through areas it is focused on local searches rather than on big sites like RM and will be allot cheaper too!!
visit www.estateagentsleighonsea.co.uk my contact details are on the contacts page and feed back is always wanted good luck guys
♫ We're in the money,
We're in the money;
We've got a lot of what it takes to get along!
We're in the money,
The sky is sunny;
Old Man Depression, you are through,
You done us wrong! ♫
Ha ha ha ha ha ha ha ha ha ha ha ====> Bank
Where have you been?
Rightmove haven't been owned by the corporates for years, in fact most of the corporates are now shareholders in Zoopla so all your doing is feeding the same beast that you made rightmove into.
Maybe if us agents only advertised on RM and did not throw their £50 notes at every half ars*d portal then their would be no competition, RM fees would probably be higher yes but overall portal costs less?
We get 75% of our leads and at least 50% of our instructions either directly or indirectly because of RM. Start doing a bit more analysis (properly not just where did you see us) and see what you get. If Rightmove isn't working leave!
Who owns The Rightmove brand -
Corporate Estate Agents?
What is their REAL agenda -
The eventual demise of independents?
Think on it and if you are dissatisfied work out a mutual alternative regional marketing agenda for yourselves.
@RANT RANT RANT - BORING
I think that about covers it all.
@scottish Agent - Nice analogy, I like it.
1 property = 1 sale OR 1 let.
Redundant enquiries need properties too. Other agents who are not on the portals you're on will happily take those leads for a split of their fee.
B2B saves high portal fees and makes associate agents and you money. MLS. Agent networking works.
Other agents have stock you haven't.
It only adds market pressure for competition to come in and undercut with a cheaper and better service.
They may be making more money, but they a very unhappy client base.
Its a bit like paying your gas bill really, at present its a bit of a necessity but you don't like doing it especially when the gas suppliers keep reporting massive profits !!
However...... New eco solutions are on the way, gas suppliers won't have a monopoly for long.....
Same with Rightmove, the bubble will burst and the online marketing model will gradually change... As soon as a decent alternative comes in agents will be running to jump ship as the vast majority (especially smaller agents) have been ripped off for far too long.
Roll on 2020....... :-)
Just lost 7 managed units to a budget agent who advertises 0% landlords fee for main portals advertising.
Bye, bye main portals. Youve sold us up the river after 4 years loyalty. Were going to gum tree and working with another agent who can get us leads from rightmove on a results only arrangement. The other lady dont do gum tree
Wait for it to start......................
RM why dont you pass the profits on and reduce our fees or at least keep them static
Hi im from XYZ portal sign up with me i only charge you£50 pm
We all need to create a mutual
Join me im so much better!
im leaving i have had enough.....
lets all stop uploading to RM for 1 month that will teach them
Hi im trying to pitch for a job, only only comment on these threads to get noticed
Im going to show you how to raise your fee (then get shot down!)
This would not happen in Japan
Any of the above i have missed over the last 2 years of RM "News Stories"?
Suckers!
Fair play to them - at least they pay tax on their profits
Rightmove still making massive profits? They are making more profits from my small business than I am. Waiting patiently for the promised new portals to challenge them but if they don't hurry up it will be too late for my business
Im just glad to be NOT contributing to them anymore!