OnTheMarket reports that its helping agents move from free to paid memberships

OnTheMarket has reported that its conversion program for agents changing from free deals to paid memberships is progressing slowly.

This conversion is regarded as being critical for the long-term profitability of OnTheMarket (OTM).

Its statement this morning says: “A total of almost 1,000 branches have been signed under paying contracts since conversion commenced, with an average ARPA [revenue from each branch] of £337 per month. Of these new contracts, 57 percent are long-term commitments of three or five years with shares and the majority of the balance are on one year contracts with an option to convert to a longer-term contract with shares.”

It adds: “The ongoing growth in paying contracts is key to the group's transition into profitability. The conversion process is using a range of offers which, for selected agents, include long-term agreements which will be accompanied by share issuance. The Directors believe that attractive equity incentives can be provided to new property advertisers joining OnTheMarket.com whilst at the same time enhancing value substantially for existing shareholders. Such equity issuance enables agents to support the only major agent-backed portal with a view to creating a fairly-priced alternative to Rightmove and Zoopla and to share in any increase in the value of the Company. The shares issued to agents are typically subject to lock-in arrangements to ensure that new shareholders’ interests are closely aligned with those of all other agent investors and with the success of the Group."

When it comes to the rest of the figures, OTM also reports that its overall membership stays around the 12,500 mark that it has been reporting for several months. 

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