Tried to do some more research and am still left unsure. Does anyone know what real-estate agents pay to list rentals on realestate.com.au and domain? I assume there are unlimited packages and/or a per property price schedule.
I am guessing its not more than $20 or so based on the fact that there are companies that will list your property on all of the main big websites, for a flat fee of under $90.
One example: http://www.allrentals.com.au/
'RENTAL' LISTINGS $88.00*
List your private rental property on:
realestate.com.au
onthehouse.com.au
domain.com.au
property.com.au
rent.com.au
homely.com.au
ALL FOR A FLAT FEE OF $88.00* UNTIL RENTED
Similar arrangements for the $100 price range like http://forsaleforlease.com.au/list-on-realestate-com-au/ etc.
It still seems to me a chicken and egg situation. The site needs page views, for this it needs properties. At the moment listing are free - what will be the incentive for realestate agents (or private landlords) to keep listing on rent.com.au after they start charging for listings?
Surely the current "save $99" is just marketing fluff. Who would pay $99 to list on one less trafficked website, when they could pay less to be on domain.com.au, realestate.com.au, onthhouse, property.com.au and more combined?
It would all seem to hinge on pageviews and eyeballs, I cant see what point of difference they will offer which will get landlords or agents to pay to be honest. If these guys don't list, then the traffic will likely wane. If the traffic slows, all the ancillary services are of less value and will have less critical mass.
Its a viscous viscous circle and what the incumbents have been so dominant for so long. Even domain.com.au hasn't been able to make much of a dent in REA's business.
As I mentioned earlier, I think there is probably a market for helpful tools and services for private landlords, whether that be advertising, management services, payment and bond assistance etc. I just dont know whether all the excitment so far about some of RNT's advertising potential is realistic.
Will keep watching from the sidelines for now and see how things track. Good luck to those on-board now, the SP is still trading at 100% of its average from the first half of the year so longer term holders are doing very well.
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