Base Fees are a no brainer, but what is the Performance Fee?
New information on the highly anticipated Boomin platform, this time with specific numbers. The startup has released the specifics of its fees structure for agents.
So, here’s what we know already:
Founding Members, or agents who sign up before the official launch, will receive competitive rates until 2023, and all members will be able to use the full site for free until 2022.
Boomin has just revealed the rates for 2022, 2024, and onward. The startup will be introducing a unique two-type charging structure which includes a monthly Base Fee and a Performance Fee per branch.
Base fees are a no brainer. Boomin says it will be charging base fees in the same way other property portals do. There will be a difference in base fees charged for agencies both within London and outside of London and will differ, within the first three years of launch, depending on if the agents work for a Sales only office, lettings only office, or combination office.
Performance Fees are the real interesting part of this new platform. They will have a base starting price of £20 per branch and a cap of £150 per branch after it reaches £800 in income through Boomin.
This relies greatly on agents having other revenue streams to make the most they can each month. Therefore, Boomin is offering two features through its site- Property Playground and Priorities- to help agents out.
A statement from Boomin explained:
“It is the aim of the business that agents will earn more money through the site than they pay over in fees. Boomin today announces that Founder Agents will receive 40 percent of any ancillary revenues in 2021 when the platform is free to use, rising to 50 percent in 2022 and beyond.”
However there is a stipulation with the Performance Fee. Revenue generated from Boomin, either through “booking agents’ valuations, helping them to secure instructions, making introductions or from anything agents advertise in their customer’s property hub” do not count as revenue towards the Performance Fee.
That being said, its quite the attractive feature, one that could possibly pop up in other platforms in the near future.