Hybrid agency Yopa says it has turned a corner this year after adjusting its fee structure and focusing on making more money from mortgages.
The company says the new strategy has helped it increase the agency’s share of listings nationally, boosted its revenue by 38% and helped retain its local representatives as they begin to earn more money.
Yopa also says it has reduced its costs by 40% year-on-year after significantly reducing what the company pays to gain instructions, and also increased its income per listing year-on-year.
Its fee structure has been simplified and now includes both a ‘no sale, no fee’ product but also a relaunched ‘pay later’ option that takes the fee as a direct debit ten months after a vendor signs up. Last year it experimented with a ‘pay monthly’ option but this has now been dropped.
All its fees are two-tiered, allowing vendors to choose whether to do the viewings themselves, or pay Yopa to do it.
Sighs of relief will have been breathed at its two main backers, Savills and the Daily Mail, who together have invested over £90 million into the agency. Late last year Savills revealed that the agency had enough cash to keep going for another 12 months.
Yopa’s improving performance coincides with the arrival of former Countrywide Group Chief Executive Grenville Turner (left) in August last year to be its chairman. Then CEO Ben Poynter subsequently left three months later.
Turner is an executive with a reputation for turning around property businesses operating in hard times and understands the nuts and bolts of estate agency operations.
“We’re delighted to see that the strides we took in the second half of 2019 are turning into real results,” says Turner.
“By introducing a bespoke mortgage proposition, Scout Financial Services, improving engagement with our legal services and successfully implementing key Contact Centre tech, helping us have more conversations with more customers more often, we have surpassed personal bests for revenues from both instructions and ancillaries.”