Words: Ashley Rigg

Published: 8th May 2008

Top portal abandons commission-share model

International portal Property Showrooms has abandoned its commission-share business model for all but the biggest clients. The Malaga-based business is “owed a substantial amount of money” and is protecting itself from “here today, gone tomorrow” agents, according to Business & Media Manager, Peter Mindenhall.

Commission-share deals are still open to agents with over 1,000 resale properties and a large English-speaking telesales team, but all other new clients are being asked to pay €75 a month for unlimited property listings. Property Showrooms has a good natural search presence and Mindenhall believes the business they generate will pay for the listing cost many times over.   

Cleaning up

The new business model also aims to improve quality. Paying clients have a greater incentive to update their properties, which is better for everyone concerned, according to Mindenhall. Property Showroooms has removed 20% of their listings since the beginning of the year, so that “only results that give answers and information” are displayed. “Many portals import anything in a bid to generate more content…what happens is, the prospective buyer sees a number of poorly described properties with even poorer pictures, and simply leaves the site,” he continues.

To coincide with the change in business model, Property Showrooms has upgraded and simplified its administration centre. Agents can now list directly on the website via the online admin as well as the current XML option.

Industry trend

Commission-share deals are becoming hard to find. Next week we publish our updated top 10 property portal list and only one of them, Sunshine Estates, is actively promoting commission share. Unfortunately for agents, many of the best portals only offer pay-per-month options although a few proven performers like Lead Galaxy and The Move Channel offer cost-per-lead. Are the days of commission-share deals with portals over?  Please make a comment below.





 

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User Comments

We have experienced the same at Homesgofast.com. We now only work with large developers or UK based agents that we can visit ourselves. Once you have been fleeced its a nightmare trying to recover what is owed to you.

nick marr, marr international