South Africa’s Property24.com has launched a new pricing model, designed to improve sales and reduce cash flow strain for estate agents.
Property24.com’s new Success Based Fee (SBF) model, developed in association with Real Estate Agencies of South Africa (REASA), is a world-first that allows estate agents to effectively market all their listed properties without any associated risk or upfront costs.
The new pricing plan is based on a pay-per-sale concept, and has been designed to make advertising more affordable for an industry under duress. Using the SBF model, estate agents will now only be liable to pay a small once-off fee upon completion of a sale, and will receive unlimited listings across the Property24.com portal, as well as the SAHometraders partner network, without having to pay any monthly subscription fees.
“The Internet is fast becoming the favoured marketing avenue for estate agents, and with demand growing exponentially, so too are listing prices,” says JP Farinha, Property24 General Manager. “The SBF model has been developed so as not to burden an already struggling industry, and has a built-in price protection element, with annual increases of no more than CPI + 5.5%, so as to ensure that this option remains affordable in years to come.”
Whilst traditional subscription-based options will still be available to Property24.com customers, they are expected to experience market-related price increases.
“The UK has experienced a year-on-year price increase of approximately 20% for the past seven years as a result of the Internet boom,” explains Farinha. “Having seen a doubling in our audience in the past year, we expect that the same upward pricing pressures will apply in South Africa, which is why this new system will end up making long-term sense for the vast majority of estate agents, irrespective of their size.”