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Turf War - it reads like a soap opera script
Posted: 12th July 2010
Ronald Ennik spends 20 years building SA's most glamorous estate agency into the top performer in Gauteng, then leaves and joins an aggressive new upstart. He also persuades his young assistant Rupert Finnemore to resign and join him at Leapfrog for a salary of R60 000/month, up from R42 000. But Pam Golding Property CEO Andrew Golding isn't having any of it. Before he leaves, Finnemore is back. "I understand he's been promoted to sales manager with a RlOO 000/month salary and profit share," says Ennik. Ennik then employs Golding's Pretoria manager Retha Schutte; Golding turbo-charges her salary and makes her head of a new division with a stake in it. Ennik then starts negotiating with Midrand manager Tony Santana.
Golding comes to a new arrangement with him. Key agents' commissions are increased. Golding says Schutte was due for promotion. "Other agents are constantly approaching our agents to join them," he says. "What we did because of Ronald approaching our staff was nothing unique or out of the ordinary. "What is unusual is the systematic initiative to attempt to entice certain managers and agents. There was clearly a programme to solicit Pam Golding Property's people by using information that it appears was available to Ronald in his confidential position as MD of the region." Ennik denies that he has a "programme" to poach Pam Golding staff. Soap opera aside, Ennik's move to Leapfrog might turn out to be a watershed in the estate agency industry. Pam Golding is the epitome of the orthodox model: family owned and run with agents as independent contractors entering into a joint venture with the agency. In return they get a "farm area" to operate in, a brand, marketing and advertising, office space, advice and expertise, training and the protection of intellectual property.
Leapfrog is the brainchild of Jan le Roux, one of the property industry's most innovative characters. He centralised advertising into weekend property sections. Le Roux also started the property as- sociation and its origination arm Better-bond, which claims to be the top in terms of turnover in SA. Le Roux wants Leapfrog to change the industry model, to give agents more long-term financial security. Leapfrog gives agents a share in the business. "Our agents focus on their buyers and sellers, and we focus on our agents. The longer they stay and the better they perform, they get an increasing share over the years in an investment company that owns 25% of Leapfrog and will invest in property assets.
This will give them annuity income that will see them through recessions and retirement." Another innovation is a 5% overriding commission on any new agent that an established agent introduces to Leapfrog. "The aim is to get and keep the best agents in the business," says Le Roux. Leapfrog was launched as the property boom was coming to an end, but has 50 branches, mostly franchises.
Established agents play down the Leapfrog model. "The idea (of security for agents) is commendable," says Samuel Seeff. "But it will take a long while — if at all — to prove that it will attract the best agents or lead to great success for Leapfrog. Agents are short-term thinkers, which is why they are agents, and I don't think that will change." Ennik has a share in Leapfrog's key, but underperforming, Gauteng branch and is a joint national executive director with Le Roux and Bruce Swain, the former head of Remax.
He says he is concentrating on repositioning and strengthening the brand. "I want to get away from the froggy little cutesy image," he says. 'This is about the action of leapfrogging the established order into a stronger model." He is also tweaking the agent-focused model. "We want to get those right before we concentrate on building up our agent complement," he says. "Of course, I will be picking the low-hanging fruit among agents when I come across them." lan Fife Face-off Andrew Golding (left), and Ronald Ennik
Golding comes to a new arrangement with him. Key agents' commissions are increased. Golding says Schutte was due for promotion. "Other agents are constantly approaching our agents to join them," he says. "What we did because of Ronald approaching our staff was nothing unique or out of the ordinary. "What is unusual is the systematic initiative to attempt to entice certain managers and agents. There was clearly a programme to solicit Pam Golding Property's people by using information that it appears was available to Ronald in his confidential position as MD of the region." Ennik denies that he has a "programme" to poach Pam Golding staff. Soap opera aside, Ennik's move to Leapfrog might turn out to be a watershed in the estate agency industry. Pam Golding is the epitome of the orthodox model: family owned and run with agents as independent contractors entering into a joint venture with the agency. In return they get a "farm area" to operate in, a brand, marketing and advertising, office space, advice and expertise, training and the protection of intellectual property.
Leapfrog is the brainchild of Jan le Roux, one of the property industry's most innovative characters. He centralised advertising into weekend property sections. Le Roux also started the property as- sociation and its origination arm Better-bond, which claims to be the top in terms of turnover in SA. Le Roux wants Leapfrog to change the industry model, to give agents more long-term financial security. Leapfrog gives agents a share in the business. "Our agents focus on their buyers and sellers, and we focus on our agents. The longer they stay and the better they perform, they get an increasing share over the years in an investment company that owns 25% of Leapfrog and will invest in property assets.
This will give them annuity income that will see them through recessions and retirement." Another innovation is a 5% overriding commission on any new agent that an established agent introduces to Leapfrog. "The aim is to get and keep the best agents in the business," says Le Roux. Leapfrog was launched as the property boom was coming to an end, but has 50 branches, mostly franchises.
Established agents play down the Leapfrog model. "The idea (of security for agents) is commendable," says Samuel Seeff. "But it will take a long while — if at all — to prove that it will attract the best agents or lead to great success for Leapfrog. Agents are short-term thinkers, which is why they are agents, and I don't think that will change." Ennik has a share in Leapfrog's key, but underperforming, Gauteng branch and is a joint national executive director with Le Roux and Bruce Swain, the former head of Remax.
He says he is concentrating on repositioning and strengthening the brand. "I want to get away from the froggy little cutesy image," he says. 'This is about the action of leapfrogging the established order into a stronger model." He is also tweaking the agent-focused model. "We want to get those right before we concentrate on building up our agent complement," he says. "Of course, I will be picking the low-hanging fruit among agents when I come across them." lan Fife Face-off Andrew Golding (left), and Ronald Ennik
* Artcile courtesy of Financial Mail
Posted by: Leapfrog Property Group

