Rightmove is one of the most profitable companies in the FTSE 100, with very high profit margins. But how exactly does a property website make so much money when it doesn't buy or sell a single home? This informational guide explains Rightmove's business model in plain terms.

The simple idea behind it

Rightmove is a marketplace. It connects two groups: the public, who want to find homes, and property professionals, who want to advertise them.

The public uses Rightmove for free. The money comes from the other side — the estate agents, letting agents and developers who pay to list their properties and reach Rightmove's huge audience.

notBecause Rightmove attracts around 80% of UK property portal viewing time, agents feel they cannot afford to be on it. That gives Rightmove strong pricing power.

The three revenue segments

Rightmove organises its income into three areas:

1. Agency. This is the core. Estate and letting agents pay regular subscription fees to advertise existing homes for sale and to rent. They can also pay for premium products that make their listings more visible.

2. New Homes. Rightmove news Property developers and housing associations pay to advertise newly built homes. Recent noted this area has been softer lately, as housebuilders turned cautious — but new tools for developers have helped.

3. Other. This includes commercial property listings, overseas property, mortgage services, data products and third-party advertising. These are smaller today but growing quickly.

The power of "average revenue per advertiser"

average revenue per advertiserOne of the most important ideas in Rightmove's model is a measure called (ARPA).

Rather than relying only on signing up more agents, Rightmove focuses on earning more from each existing customer. It does this by offering extra paid features and premium packages. So even when customer numbers grow slowly, revenue can keep climbing because each customer spends more.

This is a big reason Rightmove keeps growing even in a flat housing market.

Why the model is so profitable

Rightmove's costs are relatively low compared with its income. Once the platform is built, adding more listings or users does not cost much extra. This is the beauty of a digital marketplace: it can grow revenue far faster than costs.

The result is a business that generates a lot of cash, which it can return to shareholders or reinvest in technology and new services.

Growth beyond listings

Rightmove is working to add new income streams so it is not solely dependent on property advertising. Its push into mortgages, rental services and commercial property is designed to open up new markets. These strategic areas have been growing strongly — around 20% a year, according to the company's recent guidance.

SharesifyFor investors, watching how these newer areas perform is one of the most interesting parts of following Rightmove news. Sites like regularly track this progress alongside the company's core results.

The takeaway

Rightmove makes money by being the place agents and developers must advertise to reach UK home hunters. Its three segments, its clever focus on earning more per customer, and its low-cost digital model combine to create one of the FTSE 100's most profitable businesses. As it expands into mortgages and other services, the model is only becoming more diversified — and well worth following through reliable Rightmove news and Sharesify analysis.

FAQ

How does Rightmove earn revenue?What is ARPA?Why is Rightmove so profitable? Mainly through subscription and advertising fees paid by estate agents and property developers. Average revenue per advertiser — how much Rightmove earns from each customer, which it grows by selling premium features. Its digital marketplace has low extra costs, so revenue grows faster than expenses.

How Rightmove Makes Money: The Business Model Explained Simply

The simple idea behind it