MUTUAL
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Agents’ MUTUAL Agents’ Mutual Limited. A Company limited by Guarantee. Oxford 19th March 2014 Agents’ MUTUAL Company limited by Guarantee. 100% agent-owned property portal No shareholders or shares. Serious competitor to the existing major portals Directors approved and re-elected by the Members. They are unpaid. NOT to maximise financial returns to shareholders All firms listing on the portal are Members. Maximum liability = £1. High quality property search service All Member get one vote Minimum listingfirms fees consistent withand an equal interest in the Company, achieving and maintaining irrespective of firm size.leadership For ALL bona fide Sales and Letting Agents 90% vote required to approve a Sale. ALL segments of the residential market. Agents’ MUTUAL June 2013 – 6 member firms January 14 - 550+ member firms - 1850+ offices Large national brands – 2% Prominent regionals – 20% Small firms (1-3 offices) - 78% £6M Loan Capital Agents’ MUTUAL London Agents’ MUTUAL The Regions Agents’ MUTUAL Agent now have to list with both portal groups a duopoly with no real constraint on prices We are persuaded by the arguments that the creation of a strong competitor to Rightmove will restrain price increases.. 2012 Rightmove set to raise income to £200M by 2017 Zoopla needs to treble income to match Rightmove. - 2013 2013 Zoopla prices will rise to meet Income £140M - Rightmove’s Income £65M – there will be no price competition Costs £36M - Costs £35.5M ZPG CEO, 2013 Profit £104M - Profit £29.5M Margin 74% - Margin 46% Agents’ MUTUAL The Threat Agents’ MUTUAL I..it is clear to see a small fortune can be saved by instructing us over the traditional High Street Agent. Agents’ MUTUAL Agents’ MUTUAL Landlord.org is the site that traditional agents do not want you to see! Save money, avoid the middlemen and take control. Agents’ MUTUAL The Threat - Vendor direct Landlord direct Multi-listing Agency software Franchising ? Agents’ MUTUAL Strategy Our portal Entering alongside the two giant players won’t work No reason for consumers to switch Extra cost Wetohave agents to create some disruption. Too much marketing investment required Too risky to attract commitments and funding Agents’ MUTUAL Strategy Use agents’ control over where they place their listings: Medium term commitment to list with the new portal – 5 years Members to list with maximum of one other portal of their choosing Effective on launch in January 2015 Fully exclusive listing ideal but not viable for agents Agents’ MUTUAL Strategy Neither Rightmove or Zoopla will have all the agents and properties we will have. creates a unique set of listings for our new portal a reason for consumers to use us Agents can publicise their switch and promote the new portal No net increase in cost of portals to agents. in some cases, total outlay on portals will fall. Reduces investment requirement and risk. Agents’ MUTUAL The 3 major corporates are the ‘anchor tenants’ for both Rightmove and Zoopla: - Advantageous terms - Share interests (Zoopla). Independent agents are just rent-payers. Anchor tenants - before Agents’ Mutual now has its own ‘anchor tenants’ – the first 500+ members and they will take listings and fees away from the others. They own and control the Company. Anchor tenants – Jan 14 INDEPENDENT AGENTS INDEPENDENT AGENTS CORPORATES INDEPENDENT AGENTS CORPORATES CORPORATES Agents’ MUTUAL INDEPENDENT AGENT MEMBERS INDEPENDENT AGENTS Every firm which joins Agents’ Mutual becomes a member on equal terms with all others - one of the ‘anchor tenants’ taking listings and fees from the others. Anchor tenants - Jan 15? INDEPENDENT AGENTS CORPORATES CORPORATES INDEPENDENT AGENTS Agents’ INDEPENDENT MUTUAL AGENT MEMBERS INDEPENDENT AGENT MEMBERS 7 Agents’ MUTUAL The objective Costs £30M* At full scale £250 per month 12,000 agent offices 10,000 agent offices Agents’ MUTUAL Strategy Raise development funding from member agents – the Gold members 5-year commitments from Gold and Silver members – in return for fixed fees. Fees lower than the big portals – but high enough to allow reinvestment for growth. Once full scale is reached – 10,000 offices – fees can fall. £400 Year 1 Average monthly fees Year 2 Year 3 Year 4 Year 6 Year 7 Year 8 20% discount for 6-year commitment Average £4200 per office per year £200 Growth £50 Year 5 Pre-launch subscription Full scale Year 9 Agents’ MUTUAL Strategy If agents get behind it, Agents’ Mutual can deliver much quicker. £250 average listing fees or less – sustainably. £400 Year 1 Year 2 Year 3 Year 5 Year 6 Year 7 Year 8 20% discount for 6-year commitment Average monthly fees Average £4200 per office per year £200 Growth £50 Year 4 Pre-launch subscription Full scale Year 9 Agents’ MUTUAL Three membership schemes during the ‘Growth’ phase No commitment Higher pricing Not fixed No pre-launch funding Commit for five years Prices shown are fixed Pricing and funding Firm size Office Location Offices in Firm Volume Discount 1-3 0% 4-6 5% 7-12 10% 13-19 15% 20-49 20% 50+ 25% Prime London Other London Prime Country Other Country £595 £495 £395 £295 £565 £470 £375 £280 £536 £446 £356 Price shown include lettings. £266 £506 £421 £336 Lettings-only 50% £251 £476 £396 £316 £236 £446 £371 £296 £221 Agents’ MUTUAL Pricing and funding Firm size Commit for 5 years Fund the development Fee discount v Silver ENTRY TICKET Pre-launch subscription 8 months x £75 = £600 > non-refundable Loan Notes of £2000 per office (£1000 lettings-only). annual interest of 10% repayable by 2020. Offices Offices in in Firm Firm 1-3 1-3 4-6 4-6 7-12 7-12 13-19 20-49 50+ Office Location Volume Volume Discount Discount 0% 0% 5% 5% 10% 10% 15% 15% 20% 25% Prime Prime London London Other Other London London Prime Prime Country Country Other Other Country Country £595 £595 £495 £495 £395 £395 £295 £295 £506 £421 £336 £251 £565 £565 £470 £470 £375 £375 £280 £280 £480 £400 £319 £238 £536 £536 £446 £446 £356 £356 £266 £266 £455 £379 £302 £226 £506 £506 £421 £421 £336 £336 £251 £251 £430 £358 £285 £213 £476 £396 £316 £236 £405 £337 £269 £201 £446 £371 £296 £221 £379 £316 £252 £188 Agents’ MUTUAL £6M+ Pre-launch funding Funding and financials Become the No.2 Portal take listings and income drive awareness & traffic £21M+ Post-launch annual income Listing fees £14M pa 3000+ offices Listing fees £7M pa 1850+ offices 6 months 12 months Launch Agents’ MUTUAL Funding and financials £35M+ annual income Become a credible alternative to the No.1 Portal Match cost base and capability Undercut prices £21M+ annual income 3000+ offices 3000+ offices 1850+ offices 6 months One year to Launch First year Agents’ MUTUAL Register at: What next? www .agentsmutual.co.uk Silver membership: non-binding Letter of Intent contract when 4000 committed offices reached Agents’ MUTUAL Funding and financials £21M+ Post-launch annual income £6M+ Pre-launch funding Contract HERE Letter of Intent NOW 3000+ offices 1850+ offices 6 months 12 months Launch Agents’ MUTUAL Register at: What next? www .agentsmutual.co.uk Silver membership: non-binding Letter of Intent contract when 4000 committed offices reached New Gold membership offer: Contract and funds now.
