User:RT at Purplebricks/Purplebricks Business Model

Business model
Purplebricks is a technology-led estate agency that provides a hybrid service, as it combines the use of an online platform and local property agents. Vendors and landlords can manage their property let or sale using the online platform and app. The local property agents assist with valuations, listings, and other ancillary services. The company does not maintain a branch network of brick-and-mortar estate agencies, which reduces fixed costs associated with rent, energy usage, and other operational expenses. In part due to these savings, Purplebricks charges customers lower fixed fees.

Purplebricks charges a fixed upfront fee for its services that sellers pay to be listed, rather than a percentage of the sale price once the property sells. This fee includes consultation services from a local agent, photography of the property, listings on property portals like Rightmove and Zoopla, and management of the sales process. Payment may be made when the property is listed or after a ten month deferral. This approach is different from the commission-based structures of traditional estate agencies, in which agents are paid their fee only if the property sells.

Local agents are referred to as “local property experts” and work remotely in their local area. Agents visit the seller’s home directly to discuss the sale and value the property—and, once instructed, to provide services, including creating a floorplan of the property, taking pictures, and providing assistance with other aspects of online marketing. For an additional fee, agents can lead viewings of the property. They may also assist with negotiations when selling.

Brand and marketing
Purplebricks' commission-free, hybrid agency business model was intended to disrupt the UK residential property market, and marketing has been a central element of the company's business strategy.

In 2016, Purplebricks began using the tagline "commisery", meaning the misery home sellers feel about paying commission, to distinguish itself from traditional real estate agencies. A full advertising campaign about the concept followed the next year, and ran extensively in the UK, US, and Australia. The campaign won an Effectiveness Award from the Institute of Practitioners in Advertising in 2018 for demonstrating proof on payback on marketing communications, as the campaign contributed to a 218 percent growth in revenue.

In 2019, Purplebricks was added to the Superbrands list, which tracks consumer perception of brand and marketing activity. Purplebricks' presence on the list was seen as an indication that the company had established itself as a household name. In 2020, Purplebricks claimed to have achieved 98 percent brand awareness within the UK.

In 2021, Purplebricks arranged a product placement in the British soap opera series Coronation Street. The company was featured as the estate agent that would be selling the show's fictional Rovers Return Inn. The appearance of the Purplebricks sign above the pub marked the first time a firm had integrated a product into one of the show’s storylines.