Pros and Cons of RNT - Dog or Gem?, page-19

I remember going to an REA seminar, I think it may have been around 2005, where the speaker was giving a demonstration on the new products that they were releasing. I remember thinking that they were going to dominate the market and I should be buying a few shares. At the time I had just bought a new house and didn't have the money. I think they were trading around $3.50 at the time. Big regrets there.

Looking at the RNT business model and website I just don't see how they can win the battle against the established players. They just don't have anything of substance to pull prospective tenants away from REA and if prospective tenants don't use the site then agents won't pay for it.

Someone asked earlier what the costs were to advertise on REA. There's a subscription fee (roughly $300 per month) and then you pay per property listing. We use the premium package so it costs us around $100 per property. I'm not sure what the standard listing cost is but I would assume it would be much cheaper.

Most agents subsidise their advertising package. ie they don't pass on the full cost to the landlord. in an effort to win business.