OnTheMarket reports that its helping agents move from free to paid memberships

June 13, 2019
Share this Post: 

OnTheMarket has reported that its conversion program for agents changing from free deals to paid memberships is progressing slowly.

This conversion is regarded as being critical for the long-term profitability of OnTheMarket (OTM).

Its statement this morning says: “A total of almost 1,000 branches have been signed under paying contracts since conversion commenced, with an average ARPA [revenue from each branch] of £337 per month. Of these new contracts, 57 percent are long-term commitments of three or five years with shares and the majority of the balance are on one year contracts with an option to convert to a longer-term contract with shares.”

It adds: “The ongoing growth in paying contracts is key to the group's transition into profitability. The conversion process is using a range of offers which, for selected agents, include long-term agreements which will be accompanied by share issuance. The Directors believe that attractive equity incentives can be provided to new property advertisers joining OnTheMarket.com whilst at the same time enhancing value substantially for existing shareholders. Such equity issuance enables agents to support the only major agent-backed portal with a view to creating a fairly-priced alternative to Rightmove and Zoopla and to share in any increase in the value of the Company. The shares issued to agents are typically subject to lock-in arrangements to ensure that new shareholders’ interests are closely aligned with those of all other agent investors and with the success of the Group."

When it comes to the rest of the figures, OTM also reports that its overall membership stays around the 12,500 mark that it has been reporting for several months. 

Read more here

Join us in Madrid, November 12-15 for the Global Online Marketplaces Summit.

Property Portal Watch Madrid Summit 2019

June 13, 2019

Subscribe to our mailing list to get the famous, free Friday newsletter!

News and analysis to help build better online marketplace businesses, in your inbox, every Friday

Related News

Investment Roundup 14Mar
Funding and Investment Roundup: Adevinta, JustMoveIn, REA Group, Tomo Mortgage

This week's funding and investment roundup starts with the now not-so-surprising news that Adevinta is selling...   Europe: Adevinta sells...

Read More
Product Update 2025Mar14 1
Product and Services Roundup: Domclick, Samolet, Homele, Dubizzle, Jitty

This week's product roundup has some interesting news from two Russian businesses...   Europe: Domclick launches house building services and...

Read More
Rightmove Row Of New Housees 2
Rightmove Appoints Amanda James as Non-Executive Director and Audit Chair

Rightmove has appointed Amanda James as a non-executive director (NED) and chair of its Audit, Nomination, and Corporate Social Responsibility...

Read More
Shutterstock 1118947796 3
Baltic Classifieds Group Acquires Real Estate Valuation Platform Untu.lt

Baltic Classifieds Group (BCG) has acquired Lithuanian real estate valuation platform Untu.lt for an undisclosed sum, expanding its portfolio of...

Read More

Editor's Pick