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Agents’MUTUAL Agents’ Mutual Limited. A Company limited by Guarantee. North Wales – Anglesey 1 st April 2014.

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Presentation on theme: "Agents’MUTUAL Agents’ Mutual Limited. A Company limited by Guarantee. North Wales – Anglesey 1 st April 2014."— Presentation transcript:

1 Agents’MUTUAL Agents’ Mutual Limited. A Company limited by Guarantee. North Wales – Anglesey 1 st April 2014

2 Agents’MUTUAL 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. 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.

3 June 2013 – 6 member firms January member firms offices  Large national brands – 2%  Prominent regionals – 20%  Small firms (1-3 offices) - 78% Agents’MUTUAL £6M Funding

4 Agents’MUTUAL The Regions

5 Rightmove set to raise income to £200M by Zoopla needs to treble income to match Rightmove. Agents’MUTUAL Agent now have to list with both portal groups  a duopoly with no real constraint on prices Income £65M - Costs £35.5M - Profit £29.5M - Margin 46% Income £140M - Costs £36M - Profit £104M - Margin 74% We are persuaded by the arguments that the creation of a strong competitor to Rightmove will restrain price increases Zoopla prices will rise to meet Rightmove’s – there will be no price competition ZPG CEO, 2013

6 Agents’MUTUAL The Threat

7 Agents’MUTUAL -Vendor direct -Landlord direct -Multi-listing -Agency software -Franchising ? The Threat

8 Strategy Our portal 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. Agents’MUTUAL

9 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

10 Strategy Agents’MUTUAL 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.

11 CORPORATES INDEPENDENT AGENTS INDEPENDENT AGENTS Anchor tenants - before CORPORATES INDEPENDENT AGENT MEMBERS CORPORATES INDEPENDENT AGENTS INDEPENDENT AGENTS Anchor tenants – Jan 14Agents’MUTUAL CORPORATES INDEPENDENT AGENT MEMBERS INDEPENDENT AGENTS INDEPENDENT AGENTS Anchor tenants - Jan 15? INDEPENDENT AGENT MEMBERS Agents’MUTUAL 7 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. 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. 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.

12 The objective Costs £30M* 12,000 agent offices £250 per month 10,000 agent offices At full scale Agents’MUTUAL

13 Strategy Agents’MUTUAL 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. Pre-launch subscription Year 1Year 2Year 5Year 9Year 8Year 7Year 6Year 4Year 3 £400 £200 £50 20% discount for 6-year commitment Full scaleGrowth Average monthly fees Average £4200 per office per year

14 Strategy Agents’MUTUAL If agents get behind it, Agents’ Mutual can deliver much quicker. £250 average listing fees or less – sustainably. Pre-launch subscription Year 1Year 2Year 5Year 9Year 8Year 7Year 6Year 4Year 3 £400 £200 £50 20% discount for 6-year commitment Full scaleGrowth Average monthly fees Average £4200 per office per year

15 Three membership schemes during the ‘Growth’ phase No commitment Higher pricing Not fixed Pricing and funding Agents’MUTUAL Firm sizeOffice Location Offices in Firm Volume Discount Prime London Other London Prime Country Other Country 1-3 0% £595£495£395£ % £565£470£375£ % £536£446£356£ % £506£421£336£ % £476£396£316£ % £446£371£296£221 No pre-launch funding Commit for five years Prices shown are fixed ? Price shown include lettings. Lettings-only 50%

16 Pricing and funding Agents’MUTUAL Firm sizeOffice Location Offices in Firm Volume Discount Prime London Other London Prime Country Other Country 1-3 0% £595£495£395£295 £506£421£336£ % £565£470£375£280 £480£400£319£ % £536£446£356£266 £455£379£302£ % £506£421£336£251 £430£358£285£ % £476£396£316£236 £405£337£269£ % £446£371£296£221 £379£316£252£188 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 Commit for 5 years Fund the development Fee discount v Silver Firm sizeOffice Location Offices in Firm Volume Discount Prime London Other London Prime Country Other Country 1-3 0% £595£495£395£ % £565£470£375£ % £536£446£356£ % £506£421£336£ % £476£396£316£ % £446£371£296£221

17 Agents’MUTUAL Funding and financials £6M+ Pre-launch funding offices offices Listing fees £7M pa Listing fees £14M pa £21M+ Post-launch annual income 12 months Launch6 months Become the No.2 Portal  take listings and income  drive awareness & traffic

18 Agents’MUTUAL Funding and financials £21M+ annual income offices First year offices offices One year to Launch £35M+ annual income Become a credible alternative to the No.1 Portal  Match cost base and capability  Undercut prices 6 months

19 Agents’MUTUAL

20 What next? Agents’MUTUAL Register at: www. agentsmutual. co.uk www. agentsmutual. co.uk Silver membership:  non-binding Letter of Intent  contract when 4000 committed offices reached

21 Agents’MUTUAL Funding and financials £6M+ Pre-launch funding offices offices £21M+ Post-launch annual income 12 months Launch6 months Letter of Intent NOW Contract HERE

22 What next? Agents’MUTUAL Register at: www. agentsmutual. co.uk 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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