A commission-free business model appears to be a winning formula as Australian platform buyMyPlace posts a 55 percent jump in revenue in its listings from March to 30 June 2016.
The company generated record month-on-month and quarterly growth, with Q4 FY16 revenue up 44 percent on the prior quarter and total listings up 22 percent in the same period.
buyMyplace CEO Paul Heath said the results were proof that the company is a successfully disruptive influence in the property sector.
“The consistent growth in both revenue and listings demonstrates the commission free real estate model is resonating with many Australians who are no longer prepared to pay excessive and unnecessary commissions to agents,” he said.
Heath said the company had grown the business through a number of initiatives since listing on the ASX.
These included the introduction of three new packages at $895, $995, $1295 to enable customers to choose the level of support and marketing activity they require. The packages increased average revenue per listing by 20 percent over the prior corresponding period.
buyMyplace has also boosted its national marketing campaigns which reportedly resulted in 35 percent growth in unique visitors to the web site and a 220 percent increase in inquiries. Full service sales listings also increased 47 percent compared to the corresponding period.
The company also expanded to offer mortgage and finance products through AFG and utility connection services through Movinghub, both of which will be available this month.
buyMyplace recorded $1,176,992 in revenue for the full financial year to 30 June 2016. As a result of the reverse acquisition of Killara Resources, undertaken as part of its listing on the ASX, buyMyplace incurred a $4.6 million loss for FY16, which the company says is predominantly a non-cash loss.
“We are delighted that we have been able to deliver the commitments we made to investors through the capital raising and ASX listing process,” said Heath.
“We are looking forward to introducing further enhancements to our product and service offering in the new financial year as well as growing the business at a similar trajectory to what we have experienced since listing in March.”