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Agents’ MUTUAL. Agents’ Mutual Limited. A Company limited by Guarantee. Oxford 19 th March 2014. Agents’ MUTUAL. Company limited by Guarantee. No shareholders or shares. Directors approved and re-elected by the Members. They are unpaid .

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slide1

Agents’

MUTUAL

Agents’ Mutual Limited. A Company limited by Guarantee.

Oxford

19thMarch 2014

slide2

Agents’

MUTUAL

Company limited by Guarantee.

No shareholders or shares.

Directors approved and re-elected by the Members. They are unpaid.

All firms listing on the portal are Members. Maximum liability = £1.

All Member firms get one vote and an equal interest in the Company, irrespective of firm size.

90% vote required to approve a Sale.

  • 100% agent-owned property portal
  • Serious competitor to the existing major portals
  • NOT to maximise financial returns to shareholders
  • High quality property search service
  • Minimum listing fees consistent with achieving and maintaining leadership
  • For ALL bona fide Sales and Letting Agents
  • ALL segments of the residential market.
slide3

Agents’

MUTUAL

£6M Loan Capital

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%
slide4

London

Agents’

MUTUAL

slide5

The Regions

Agents’

MUTUAL

slide6

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
  • Income £140M
  • Costs £36M
  • Profit £104M
  • Margin 74%
  • 2013
  • Income £65M
  • Costs £35.5M
  • Profit £29.5M
  • Margin 46%

Zoopla prices will rise to meet Rightmove’s – there will be no price competition

ZPG CEO, 2013

slide7

Agents’

MUTUAL

The Threat

slide8

Agents’

MUTUAL

I..it is clear to see a small fortune can be saved by instructing us over the traditional High Street Agent.

slide9

Agents’

MUTUAL

slide10

Agents’

MUTUAL

Landlord.org is the site that traditional agents do not want you to see! Save money, avoid the middlemen and take control.

slide11

Agents’

MUTUAL

The Threat

  • Vendor direct
  • Landlord direct
  • Multi-listing
  • Agency software
  • Franchising
  • ?
slide12

Agents’

MUTUAL

Strategy

  • Entering alongside the two giant players won’t work
  • No reason for consumers to switch
  • Extra cost to agents
  • Too much marketing investment required
  • Too risky to attract commitments and funding

We have to create some disruption.

Our portal

slide13

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
slide14

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.
slide15

Agents’

MUTUAL

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.

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.

  • 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 – Jan 14

Anchor tenants - before

Anchor tenants - Jan 15?

INDEPENDENT

AGENTS

INDEPENDENT

AGENTS

CORPORATES

CORPORATES

CORPORATES

CORPORATES

INDEPENDENT

AGENTS

INDEPENDENT

AGENTS

INDEPENDENT

AGENTS

INDEPENDENT

AGENTS

CORPORATES

Agents’

MUTUAL

INDEPENDENT

AGENT MEMBERS

Agents’

MUTUAL

INDEPENDENT

AGENT MEMBERS

INDEPENDENT

AGENT MEMBERS

7

slide16

Agents’

MUTUAL

The objective

Costs £30M*

At full scale

£250 per month

12,000 agent offices

10,000 agent offices

slide17

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.

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

£400

20% discount for 6-year commitment

Average

monthly

fees

Average

£4200 per office

per year

£200

Growth

Full scale

£50

slide18

Agents’

MUTUAL

Strategy

If agents get behind it, Agents’ Mutual can deliver much quicker.

£250 average listing fees or less – sustainably.

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

£400

20% discount for

6-year commitment

Average

monthly

fees

Average

£4200 per office

per year

£200

Growth

Full scale

£50

slide19

Pricing and funding

Agents’

MUTUAL

Three membership schemes during the ‘Growth’ phase

No commitment

Higher pricing

Not fixed

?

Price shown include lettings.

Lettings-only 50%

No pre-launch funding

Commit for five years

Prices shown are fixed

slide20

Pricing and funding

Agents’

MUTUAL

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.
slide21

Agents’

MUTUAL

Funding and financials

£6M+

Pre-launch funding

£21M+

Post-launch annual income

  • Become the No.2 Portal
  • take listings and income
  • drive awareness & traffic

3000+

offices

Listing fees

£14M pa

1850+ offices

Listing fees

£7M pa

12 months Launch

6 months

slide22

Agents’

MUTUAL

Funding and financials

£35M+

annual income

  • Become a credible alternative to the No.1 Portal
  • Match cost base and capability
  • Undercut prices

3000+ offices

£21M+

annual income

3000+

offices

1850+ offices

First year

One year to Launch

6 months

slide23

Agents’

MUTUAL

What next?

Register at: www.agentsmutual.co.uk

  • Silver membership:
  • non-binding Letter of Intent
  • contract when 4000 committed offices reached
slide24

Agents’

MUTUAL

Funding and financials

£21M+

Post-launch annual income

£6M+

Pre-launch funding

Contract HERE

3000+

offices

Letter of Intent NOW

1850+ offices

12 months Launch

6 months

slide25

Agents’

MUTUAL

What next?

Register at: 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.
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