There are strong rumours that Domain.com.au are testing the waters with what can only be described as a completely confusing pricing models for agents across Australia!
Here is how it seems to work. Where domain.com.au have strengths, which for the most part is alongside their major classifieds publications the Sydney Morning Herald (Sydney) & The Age (Melbourne), they are introducing a zoning system.
The idea that this has always been the case, is new to me and to many of the agents I have conversations with.
So as an example an Inner West Suburb such as Balmain will incur Zone 1 pricing of up to $600+ per month. However country and outer suburban areas will be downgraded to Zone 2 or 3 depending on their popularity and base.
I can see some merit in this, but at its core, it is just about getting more dollars out of agencies. I have had conversations with the good people from domain.com.au about this and even though they seem to be convinced it is a fairer system – the net result is they simply just make more money.
Another thing!
From what I understand Domain.com.au are also introducing separate fees for commercial listings as well, this has been done on the heels of the recent multimillion dollar purchase of commercialrealestate.com.au . This is a shame – as I have said here before about my qualms with realestate.com.au charging agents extra fees for commercial listings for residential agents. This was a point of difference between the two super portals!
A sensible and fair outcome is for residential agents to have at least 10 current commercial listings. Residential agents have always carried some commercial stock and giving them at least some leeway here would be a good thing and would show some empathy for residential agencies.
There is a closing of the gap between the big two portals now (pricing and services), however there is one big massive gaping gap (that is getting bigger each year) between the popularity of domain.com.au and realestate.com.au as realestate.com.au continues to build on impressive results month after month. The gap is now almost 1.5 million visitors a month (October 2006 Neilson//Netratings).
Another worrying rumour I heard was that Domain.com.au are considering offering (directly to vendors) the option of having their listing upgraded for a fee – not through the agency but through the domain.com.au website.
I can categorically state that with all of my dealings with agents that this will not be accepted under any circumstances. The idea of Domain.com.au having a direct monetary relationship with vendors, is a very slippery slope indeed and one that I am sure will be canned (if indeed it is going to happen in the first place).
I would love to be a fly on the wall at some of these high level discussions at these portals. Do you think they are sitting there finding new ways to help agents in difficult times? Or do you think they are throwing out as many hair brained ideas on how to reap more money from the very clients that have built there success in the first place.