Rightmove is a popular online property portal that is used by millions of people across the UK. The company is primarily known for its online property listings, but many people are curious about how Rightmove actually makes money.
In this blog post, we will explore the different ways that Rightmove generates revenue and how the company has managed to become one of the most successful online businesses in the UK.
History of Rightmove
Rightmove was founded in 2000 by four of the largest estate agents in the UK: Halifax, Countrywide, Royal & Sun Alliance and Connells. The aim was to create a centralised online platform for people to search for property listings.
The website was launched in 2000 and quickly became popular among buyers, renters, and estate agents alike. By 2001, the website had over 1 million properties listed, and by 2003, it had become the UK’s most visited property website.
In 2006, Rightmove became a publicly-traded company and was listed on the London Stock Exchange. The IPO raised £39 million, giving the company a valuation of £425 million.
Over the years, Rightmove has continued to innovate and expand its services. In 2010, it launched its mobile app, which quickly became popular among users. In 2014, the company introduced its “Sold Prices” feature, which allows users to see the price at which properties in their area have sold for.
Rightmove has also expanded into new areas, including lettings and property management. In 2012, it acquired a 50% stake in Findaproperty.com, a competitor website, which helped to strengthen its position in the market.
Today, Rightmove is the largest online property portal in the UK, with over 19,000 estate agents and developers listing properties on its website. The company is also the most visited property website in the UK, with over 127 million visits per month.
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Rightmove’s success has not gone unnoticed, and the company has won numerous awards over the years, including “Best Property Portal” at the Sunday Times Estate Agency of the Year Awards and “Best Online Property Search Website” at the British Mortgage Awards.
How does Rightmove Work?
Rightmove is an online platform that allows estate agents and property developers to list their properties for sale or rent, and for buyers and renters to search for properties.
Here’s a breakdown of how the platform works:
- Property Listings
Estate agents and property developers can list their properties on Rightmove by signing up for a subscription. This gives them access to a range of tools to create their listings, including photos, floorplans, and descriptions. They can also specify the type of property, location, and price range.
- Property Search
Buyers and renters can search for properties on Rightmove by entering their preferred location, property type, and price range. The platform will then display a list of properties that match their search criteria. Users can refine their search by adding more filters, such as number of bedrooms, property size, or proximity to local amenities.
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- Property Details
Once users find a property they’re interested in, they can click on the listing to view more details, including photos, floorplans, and a detailed description. They can also see information about the estate agent or property developer who listed the property, including their contact details and website.
- Contacting Estate Agents
If users want to arrange a viewing or find out more about a property, they can contact the estate agent or property developer directly through the platform. Rightmove provides a messaging system that allows users to send enquiries or book viewings.
- Additional Features
In addition to property listings, Rightmove also offers a range of additional features to help users in their property search. These include:
- Sold Prices: This feature allows users to see the price at which properties in their area have sold for. This can help to give them an idea of the local property market and what they can expect to pay for a property.
- Property Valuation: Rightmove offers a free online property valuation tool, which uses data from recent property sales to estimate the value of a property. This can be useful for homeowners who are thinking of selling their property or for buyers who want to know if a property is priced fairly.
- New Homes: Rightmove has a dedicated section for new homes, where users can browse new builds and developments from property developers.
- Overseas Properties: Rightmove also features properties for sale or rent in other countries, including popular destinations such as Spain, France, and Italy.
Overall, Rightmove provides a comprehensive and user-friendly platform for property listings and searches, making it a valuable tool for both buyers and sellers in the UK property market.
How does Rightmove Make Money
Rightmove generates revenue in a number of different ways.
The company’s main sources of revenue are:
- Listing fees: Rightmove charges estate agents a fee to list their properties on its website. These fees can vary depending on the size of the agency and the number of properties listed. Rightmove also charges fees for additional services such as premium listings, featured properties and enhanced marketing.
- Advertising: Rightmove generates revenue through advertising. The company sells advertising space on its website to companies that want to reach its audience. These ads can be targeted to specific regions or demographics, making them a valuable marketing tool for businesses.
- Data services: Rightmove also generates revenue by selling data and analytics to its customers. This data can be used to help estate agents and property developers make informed decisions about pricing and marketing their properties.
- New homes: Rightmove has a dedicated section for new homes on its website. Property developers pay a fee to have their properties listed in this section. Rightmove also provides marketing and advertising services to help developers promote their properties to potential buyers.
- Rent and lettings: Rightmove generates revenue from letting and property management services. The company charges landlords and letting agents a fee to list their properties on its website. Rightmove also offers additional services such as tenant referencing and rent collection.
- Mortgages and insurance: Rightmove has a mortgage and insurance section on its website. The company generates revenue by referring customers to mortgage lenders and insurance providers. Rightmove receives a commission for every successful referral.
How Rightmove became successful
Rightmove’s success can be attributed to a number of factors. The company was one of the first online property portals in the UK and quickly established itself as the market leader. Rightmove’s user-friendly website and comprehensive property listings made it a popular choice for people looking to buy or rent a property.
Rightmove’s business model is also highly scalable. The company’s revenue is generated from a large number of small transactions, rather than relying on a few large clients. This means that the company can easily expand its services and increase its revenue without significantly increasing its costs.
Rightmove’s dominance in the UK property market has also helped to cement its success. The company has become the default choice for estate agents and property developers who want to reach a large audience of potential buyers and renters.
Finally, Rightmove’s commitment to innovation has helped to keep the company at the forefront of the online property market. The company has invested heavily in new technologies such as virtual reality and machine learning to improve the user experience and provide more accurate data and analytics.
Rightmove Funding, Revenue & Valuation
Rightmove is a publicly traded company, listed on the London Stock Exchange (LSE: RMV). The company’s IPO in 2006 raised £39 million and gave it a valuation of £425 million. Since then, the company’s stock price has steadily increased, reflecting its continued growth and profitability.
As of March 2023, Rightmove has a market capitalization of over £5.57 billion, making it one of the UK’s most valuable technology companies.
Revenue
Rightmove generates revenue primarily from subscriptions and advertising. Estate agents and property developers pay a subscription fee to list their properties on the platform, with fees varying depending on the size of the agency and the number of properties listed. As of 2021, Rightmove charges estate agents and developers between £199 and £1,000+ per month for its services.
In addition to subscription fees, Rightmove also generates revenue from advertising. The platform offers a range of advertising options for estate agents, such as featured listings, premium advertising, and banner ads. These advertising options are designed to help estate agents and developers promote their properties and increase their visibility on the platform.
As of 2022, Rightmove reported total revenue of £332.6 million, with operating profit of £241. 3 million. The company’s revenue has steadily increased over the years, reflecting its dominant position in the UK property market and its ability to attract both buyers and sellers to the platform.
Expansion into New Areas
In addition to its core property listings business, Rightmove has also expanded into new areas in recent years. For example, in 2018, the company acquired Van Mildert, a tenant referencing and insurance company, which has helped it to diversify its revenue streams.
Rightmove has also launched a range of new services for estate agents, such as its “Rightmove Plus” platform, which provides agents with additional tools to manage their property listings and track their performance on the platform. These new services are designed to help estate agents and developers to improve their efficiency and productivity, while also generating additional revenue for Rightmove.
Rightmove Competitors
Despite being the dominant player in the UK property market, Rightmove faces competition from several other online property platforms.
Here are some of the key competitors to Rightmove:
- Zoopla
Zoopla is one of the largest property platforms in the UK, with over 18 million monthly visits to its website. Like Rightmove, Zoopla allows estate agents and developers to list their properties for sale or rent, and for buyers and renters to search for properties. Zoopla also offers additional features such as property valuations, sold prices, and local area guides.
- OnTheMarket
OnTheMarket is a UK-based property platform that launched in 2015. It offers a range of property listings, including residential and commercial properties, as well as overseas properties. OnTheMarket differentiates itself from other platforms by requiring estate agents to list exclusively with them or face higher subscription fees.
- PrimeLocation
PrimeLocation is a UK-based property platform that focuses on higher-end properties, such as luxury homes and mansions. It offers a range of property listings, including residential and commercial properties, as well as overseas properties. PrimeLocation also offers a range of additional features, such as property news, market trends, and lifestyle articles.
- Gumtree
Gumtree is a classifieds website that allows individuals to list properties for sale or rent. While Gumtree is not specifically designed for the property market, it is a popular platform for private landlords and individuals who want to rent or sell their property without going through an estate agent.
- Facebook Marketplace
Facebook Marketplace is a platform that allows individuals and businesses to buy and sell items, including properties. While Facebook Marketplace is not specifically designed for the property market, it is a popular platform for private sellers and individuals who want to reach a large audience.
While these platforms offer similar services to Rightmove, they have different business models, target markets, and user experiences. However, despite the competition, Rightmove remains the dominant player in the UK property market, with a large and loyal user base, comprehensive property listings, and a reputation for innovation and user-friendliness.
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Conclusion
Rightmove is one of the most successful online businesses in the UK. The company generates revenue through a variety of sources, including listing fees, advertising, data services, new homes, rent and lettings, and mortgages and insurance. Rightmove’s success can be attributed to its user-friendly website, scalable business model, dominance in the UK property market, and commitment to innovation.