MARKETING
standing and they need to be able to bring something to the party. We probably reject more than we take on.” Nick Churton says that Mayfair Office is highly selective. “We have such a good overview of who does what, we probably know who we want anyway,” he says – for instance in Hereford, Bill Jackson “knows every twist, turn, haystack in Hereford, he is the person I would put you in touch with if you wanted to know anything about that market. That’s the kind of person we want.” Many of the networks are now 15 to 20
years old; the Mayfair Office was established in 1995, and the National Homes Network over 30 years ago. But the environment has changed dramatically since they were set up, with the coming of the portals, major corporate agents, and estate agency franchises. How relevant are the networks to today’s world? While agents now don’t need a network
to promote their properties – consumers can easily search or browse Rightmove and the other portals - Trevor Mealham points out that the two biggest MLSs in America “make Rightmove look like a dwarf”; they can have up to 100,000 agents listing properties with them. Besides, Rightmove does not actively promote the properties listed on its portal, whereas agents who share inventory do. Nick Churton points out that portals also do not provide any differentiation – they show properties as a pure commodity and don’t promote the expertise or ability of the agent. “The word really has to be exclusivity,” he says. “If you’re on Rightmove you’re not exclusive, you haven’t got a unique selling proposition. As an agent it is incredibly difficult to get a USP. We have a nice window on the High Street – so does the next guy; we’re on Rightmove - well so is the next guy. Rightmove will not differentiate you.” The franchises and corporate networks
have perhaps changed things more than the portals. Nick Churton certainly believes so: “The franchises are possibly changing things more than the portals are,” he says. Independent local agents are being squeezed by the bigger chains, which can achieve economies of scale for many of their marketing costs and benefit from high
We applaud and support
your wishes to be independent, yet part of
something bigger.” NICK CHURTON MAyfAIR OffICE
business model. Through Team Property Services, it enables member agents to offer an EPC free of charge if clients take up the conveyancing option, helping them win instructions, and it also offers deals on financial services, removals, and even utilities – “beyond pure agency to everything to do with the move,” says Neil Parsons. Add to this lower rates on some of the
portals (though not Rightmove) and Team is able to deliver competitive advantage to its members. Neil Parsons says, “Team enables good local estate agents to compete more credibly against the big corporate guys.” The difference, of course, is that unlike
consumer awareness of their brands. In this world, the marketing networks
represent a powerful resource for the independents - not just in terms of marketing, but in delivering the resources of a corporate head office to otherwise independent firms. In fact, the services delivered by National Homes Network to its members – including staff training, discounts on products and services, regional meetings and national conferences, as well as a national magazine and a London office – look very similar to the benefits delivered by many franchise networks (though it doesn’t deliver a turnkey business process or start-up advice. Team, likewise, enables agents to share
marketing ideas, and holds regular regional meetings to let them bounce ideas off each other – something most franchisors identify as a major strength of their
We go beyond pure agency, we can look after everything
to do with the move.” NEIL PARSONS TEAM
54 OCTOBER 2011 PROPERTYdrum
franchise offices, agencies which belong to these networks remain independent. Nick Churton claims that “we are possibly, with one or two exceptions, the only group that you can belong to which applauds and supports your wishes to be independent and yet be part of something bigger. This is a way that our member firms can hang on to their own precious and valuable identities and still play in the big pool.” To some extent, the networks are trying
to square the circle between the benefits of franchising and corporate models, and the desire for independence – and it looks as if their members believe it’s working. Many of the networks are still growing –
INEA, which has increased its offices from 120 to 660 in a year, is growing particularly fast. Nick Churton says even though Mayfair Office is now a well established network, and has some areas with a waiting list, there are other areas where it is not represented. “There’s the opportunity to grow another 10-20 per cent from where we are at the moment,” he estimates. Whether they will win the battle has yet
to be seen. But they are certainly fighting very hard.
Do you have views on affinity networks?
www.propertydrum.com/articles/networks
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