Multifamily Internet Marketing Case Study

The Challenge

Fjeld Consulting was tasked to tender and negotiate a best in class internet provision service for a new development of 380 PRS units. The problem was the developer was searching for an option to recoup the infrastructure capital without including additional fees in the rents.

The Approach

We created a tender document that required the providers to price on three options:

  1. A non-exclusive marketing agreement that allowed for several providers (maximum resident choice) with a marketing referral fee / revenue share paid to the owner
  2. An exclusive marketing agreement advertising a single provider with a marketing referral fee / revenue share paid to the owner
  3. A full-inclusive bulk internet service at 100MB billed to residents as a technology fee with a resident option to upgrade to a 300MB or 1000MB service

Fjeld Consulting successfully persuaded several providers to competitively price these options and negotiated value-added extra services to help reduce operating expenses.

The Results

Fjeld Consulting executed a new non-exclusive internet marketing agreement that provided a 42% revenue share to the owner over a full fibre to the unit infrastructure, allowing the property to advertise 1000MB. The internet provider will bill customers £25 a month for a 100MB service with options for the residents to upgrade to a 300B or 1000MB service. Free Wi-Fi in all common areas, and free internet to the office is provided. The new marketing agreement created over £50,000 per year in additional income.