REA Group offers 'slush fund' to real estate agency in return for advertising: Tweet of the day

REA Group offers 'slush fund' to real estate agency in return for advertising: Tweet of the day
Alistair WalshDecember 8, 2020

The chase for real estate vendor advertising has flared in a battle of the website giants to secure estate agency support.

REA Group offered to establish a slush fund worth tens of thousands of dollars for a leading Melbourne real estate agent if it committed to an exclusive two-year advertising deal, writes our sister site Crikey.

 

REA Group CEO Greg Ellis's response to the article was: 

“Let me be very clear in saying that all REA Group’s customer products and services are offered in strict compliance with applicable laws. 

“The Ultimate Online Advertising Package benefits agents and vendors by providing price certainty to selected enhanced products, including our top-ranking Premiere Product. 

 “There is no cash incentive paid to any customer office or agent under the Ultimate Online Advertising Package.

"Neither is there any cash incentive paid to any customer office or agent as part of our Cooperative Marketing Arrangements. Those arrangements are offered at franchisor level to provide training and education to franchisee offices and agents. 

 “Crikey has reproduced only part of the confidential letter of agreement outlining a cooperative funding arrangement. The letter goes on to require the contracting party to ensure compliance with all applicable laws in performance of cooperative marketing obligations, including the Estate Agents legislation to which the Crikey article refers.  

 “Furthermore, we’re disappointed with the negative assertions being made about the conduct of real estate agents. We work very closely with real estate agents and know them to be a hard working group of people who are motivated by delivering the best outcome for their customers. To suggest they are not complying with the relevant legislation or not acting in the best interest of their vendors, is entirely unfair. 

"We welcome a full and thorough review of the media industry’s current and historical business practices,” Ellis concluded. 

Alistair Walsh

Deutsche Welle online reporter

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