10:26 AM, 20th May 2016, About 5 years ago 4
The “value”of Property118.com will mean different things to different people. For example, our readers may interpret the word value to represent the educational value of our content and forums. On the other hand, our investors might be more concerned with the financial worth of the business and returns on investment. Our role is to find a balance which appeals to everybody.
All of these interpretations of “value” are very important to our plans to launch Property118 Landlords Association.
To-date our primary objective has been to focus on building attention by facilitating the sharing of best practice. That will obviously continue to be the case whatever else we do in the future.
When it is launched, Property118 Landlords Association will be dedicated to protecting the legal rights of landlords. The business plan and investment opportunities will be revealed to Property118 members within the next few months. One thing I can reveal at this stage though is that the SEIS investors who purchased shares in Property118 Portal Limited last year will see an immediate uplift in the notional capital value of their shares to the extent of over 100% of their initial investments.
Property118.com, as well as PrivateProsections.org and LitigationWarranty.co.uk are currently owned by Innovative Landlord Solutions LLP. At the moment these business are owned separately from Property118 Portal Limited but we hope to merge the two businesses and include the new landlords association within the same umbrella. To this end we have recently appointed the services of a professional business valuer to establish the financial value of Property118.com
The closest comparable website business we have found so far is the one founded by Martin Lewis – MoneySavingExpert.co.uk – which was reportedly sold to MoneySupermarket.com back in 2012 for £87 million. The basis of the financial valuation of the MoneySavingExpert website appears to have been based on the attention it commands. As other websites such as Facebook have proven, attention is a commodity more valuable than gold these days!
Details of the MoneySavingExpert website vital statistics, in terms of page views and unique visitors, can be found in an article in the Guardian Newspaper which I have linked below
The attention commodity built in Property118 is one of the key pillars to supporting the success of the landlords association business, which has already attracted indications of interest to the tune of £200,000 of investment for 4% of the shares in the NewCo in which the landlords association will be created. This places a notional value on that business model of £5 million, which is completely separate of course to the value of Innovative Landlord Solutions LLP (“ILS”).
The MoneySavingExpert website has a much wider audience, i.e. anybody in the UK who wants to save money, compared to the Property118 audience being primarily UK landlords, letting agents and property developers. Nevertheless, whilst the Property118 website is nowhere near as large as the MoneySavingExpert website, there are many similarities.
It will be interesting to see whether the professional valuer considers the financial value of Property118.com pro-rata to MoneySavingExpert based on attention (page views and unique users) and whether that value is adjusted to consider scale and the difference in users, i.e. regular consumers vs property people.
Also the numbers for Property118.com have continued to rise significantly in 2016.
Experience has taught us that fundraising to fight legal battles based on receiving donations is particularly difficult and time consuming. That is why a commercial Landlords Association is required, which can raise funds from investors and offer the prospect of attractive returns as well as very sound reasons for landlords to become members.
Our mission is to unite UK private housing providers (buy-to-let landlords) by launching a landlords association focused entirely on providing legal support for a membership fee of just £10 a month.
Successful legal cases will enhance our public profile and drive an increasing number of landlords to select us as preferred legal representatives. Small landlords usually lack the power to defend their legal rights. We will offer them a unique and powerful umbrella at a very reasonable rate.
Where it is realistic to do so we will fund legal action on behalf of members to protect their business interests under the following circumstances:-
1) Private Prosecutions of rogue letting agents and other service providers
2) Representative action against unfair manipulation of terms by mortgage lenders
3) Judicial Reviews of adverse legislation
The first objective of Property118 Landlords Association is to recruit 50,000 paying members within 5 years. This will produce £6 million a year of revenue based on a monthly membership fee of £10 a month.
65% of all investment funding and ongoing membership fees will be reserved for funding of legal action and associated media exposure. This would still equate to 42% ROI for investors assuming £5 million of share capital and 50,000 paying members.
To register your interest in Property118 Landlords Association please complete the form below.
The growth of Property118 has been tremendous over the last five years as can be seen from the statistics below. This year we are projecting in excess of 5 million page views and 2.5 million unique visits.
Property118 Growth – 1st Jan 2011 to 31st Dec 2015
Property118 Stats – 1st Jan 2016 to 10th April 2016
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