The new property portal Boomin has revealed its fees structure for agents.
Tapping into the industry debate over portal fees, Boomin describes its rates as “highly competitive” and guaranteed until 2023 for founder agents who join before it launches - although there isn't a date yet for that launch.
It’s already known that all agents signing up to the platform will have free use of the site throughout 2021 even if they are not founder agents, but now fees for 2022 to 2024 have been released.
The Boomin charging structure consists of a monthly Base Fee plus a Performance Fee per branch.
The Base Fee will include - in the portal’s own words - “pretty much everything that is charged for by other leading property portals, whether it be related to upgraded property listings, performance, branding, revenue generation etc, in addition to many more new features that are not offered by them.”
For agencies outside London:
- sales only £300 base fee;
- sales and lettings £399 base fee;
- lettings only £150 base fee.
For agencies in London:
- sales only £400 base fee;
- sales and lettings £499 base fee;
- lettings only £250 base fee.
For the three years from launch the maximum average monthly base fee per branch for founder agents works out at £200 for a Sales only office and £100 for a lettings only office outside London.
Inside London that is £267 for a sales only office and £167 for a lettings only office.
For combined Sales and Lettings offices it is £266 outside London and £333 in London. “These rates are before any revenues are earned by founder agents through the platform” says the portal.
It also says there will be no increase in the Base Fee for any founder agent until January 1 2023 whereupon there will be a five per cent increase in the base fee but only if Boomin has generated more revenue for the founder agent than they paid in base fees and performance fees in the prior year.
Performance Fees are charged alongside base fees.
Performance fees start at £20 per branch and are capped at £150 per branch when income from the Boomin portal for that branch in the month reaches £800. The performance charge starts afresh month on month.
You can see the table below, showing how the performance fee rises according to the revenue generated from the portal.
Boomin’s offer to agents relies heavily on additional revenue streams, particularly from two features on the new site called Property Playground and Priorities.
A statement from Boomin this morning says: “It is the aim of the business that agents will earn more money through the site than they pay over in fees. Boomin today announces that Founder Agents will receive 40 per cent of any ancillary revenues in 2021 when the platform is free to use, rising to 50 per cent in 2022 and beyond.”
Boomin stresses that revenue generated from the site itself, via booking agents’ valuations, helping them to secure instructions, making introductions or from anything agents advertise in their customer's property hub do not count as revenue towards the performance fee.
Michael Bruce, executive chairman and founder, says: “Boomin intends to take the lead from the outset with its commitment to fair and transparent fees. We have published detailed and compelling pricing on our website for Founder Agents with guaranteed terms for the next three years.
“Our pricing structure is intended to provide solid foundations for continued investment in agents and everyone who visits Boomin whilst sharing our revenues and having a mutually rewarding, win-win relationship and approach that enables us to determine the future together.
“Agents that sign-up before launch will become Founder Agents and will not only gain a competitive advantage in their local areas and qualify for free shares but will also benefit from compelling fixed fee rates and cost certainty until 2024.”