Aug 02, 2021
Boomin’s Founder and Group CEO, Michael Bruce, was interviewed by Graham Norwood, editor of Estate Agent Today, over the rising Rightmove fees as well as the levels of investment to support the agency industry.
Bruce questioned Rightmove’s latest performance figures, showing that the average revenue per advertiser was up 63% in the first six months of 2021. This figure is 11% higher than in 2019, many months before the pandemic hit the property market.
In the interview, Bruce said, “Rightmove continue to take much of their profits from agents. Their whole strategy is to continue to increase what they charge agents … Over the next two or three years agents could be paying another 60 per cent on what they’re paying today.”
“Their capital expenditure was down 80 per cent to less than 0.5 per cent of the [first half of the year] profits so in terms of what they’re actually investing … it’s a paltry sum in terms of what they’re actually earning and passing back to shareholders.
“The two leading directors’ salaries outstrip the meagre level of investment they make.”
“Anything that Boomin does to see them invest more heavily, help to see them being kinder to agents in terms of what they’re charging and the relationship they have … will be so much better for them.”
When questioned why agents continue to remain loyal to the portal despite rising fees, Bruce commented, “No one single thing will disrupt Rightmove. Agents need to be confident there is a credible alternative - we’re very early in our journey and we believe we will become that in time.”
“…With the greatest respect to Zoopla and OnTheMarket they are just replicas of Rightmove and are not offering consumers anything material different than a classified advertising space. The reality is all of these businesses come out of classified advertising - that’s their DNA.”
Boomin’s portal remains free for all agents until 31 March 2022 with no long-term commitment. Find out more about how to sign up on Boomin.