David Williams ups his stake in comparison site Rate My Agent to 3pc
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Polynovo and Medical Developments chair David Williams has lifted his stake in Rate My Agent owner RMA Global (ASX:RMY) for a third time since it listed earlier this month.
Mr Williams, who chairs the company, now owns 3 per cent of the real estate agent comparison site.
RMA Global listed on July 5 after raising $12 million selling shares at 25c each. The stock has since traded under that level, closing at 20c on Friday.
Mr Williams told Stockhead he saw the stock had slipped to 19c “and thought it’s too good value to let go by”.
“We’ve released into New Zealand and into the US. I think both of those markets are going to be big growth markets, because I think we’re going to see the same uptake by real estate agents as we’ve seen in Australia.”
Rate My Agent lets real estate agents create an online profile which customers can then add reviews to. If they want to promote further, they can pay a monthly fee to boost their profile up the lists.
Most reviews are so far positive although Mr Williams says they are now letting bad reviews through.
Swearing and “blasphemy” do get moderated out, however.
But it’s the US market that he finds exciting.
“In the US you have a buying agent and a selling agent,” he said.
The fees are larger and American agents are more used to building an individual profile.
They have 1.1 million agents signed up in the US.
Mr Williams compares the $74 million company to another home-focused ASX stock Updater (ASX:UPD).
Updater offers relocation services for people moving house — which it refers to as “ReloTech” — and makes money from on-selling customers as sales leads to partners such as insurance and Pay TV providers.
It is worth $630 million and last year made $2.2 million in revenue.
Mr Williams believes RMA Global can leverage its customer data to similarly cross-sell services such as energy, removals and insurance.