Words: Ashley Rigg
Published: 12th June 2008
The Move Channel cuts lead prices in half
International property portal
The Move Channel is offering agents up to 50% off their standard cost per lead price of £10. Discounts are offered in return for pre-payment of lead bundles. Agents paying £500 in advance are offered leads at £9 each with tiered discounts up to 50% for a pre-payment of £5,000.
Has The Move Channel started a price war? Not according to pay-per-lead rival
Lead Galaxy. “With fewer buyers in the market and the same number of agents looking for leads, lead prices should rise,” says Founder Gerard Doyle. “It flies in the face of basic economic principles…the only upside [of the Move Channel strategy] is recruiting advertisers who are new to the market who haven’t tested lead quality.”
Betting on upgrades
Move Channel Founder Dan Johnson insists the price-cutting strategy will deliver value for both the business and his agent and developers clients. “It’s a fair trade, agents get lower prices in return for helping us improve cash flow,” he says.
The Move Channel plans to re-coup any lost margins with a new suite of upgrade products and services launched this week. Their
new site has more featured property spots and has placed banners and skyscrapers in more prominent positions to improve their visibility. Advertisers can choose from seven upgrade packages that range from £375 to £1,995 and can be extended over a choice of time periods.
A better search experience
The site has improved its search functionality by adding smart filters which allow users to add and remove filters with one click. The look and feel of the site has also been upgraded and has a new corporate identity with different creative treatments for their navigation, text and photographs. The re-launch also “makes a stronger play on international, rather than being a generic property site,” says Johnson.
Big plans for the future
He continues: “The Move Channel is planning half a dozen major initiatives this year to complement the recent launch of the television site,
TheMoveChannel.Tv, earlier this year”. Investors are a key focus for the company and Johnson goes on to say he is planning to launch dedicated sites for land, commercial property and auctions as well as re-designing and upgrading the investment sub-domain.
Your comments
Gerard Doyle is right: buyer scarcity is likely to push up lead prices. However, scarcity will also drive demand for enhanced listings as the need to get ahead of the competition becomes even more intense. Which strategy do you think will work best? Please add your comments below.
User Comments
It does not look like a price war to me, just business sense by increasing cashflow. Agents can make a huge return on a £10.00 lead and we have found that they are prepared to pay more for enhanced exposure. The Move Channel site is a great improvement, much more user friendly.
Nick Marr,
Homesgofast.com